C
entury 21 Real Estate CEO Mike Miedler sees "positive signs" emerging in the real estate market, despite consumers waiting for mortgage rates to settle. He notes that the decade-long run-up in price appreciation is slowing down, with a potential flat to 2-3% increase year-over-year by the end of the year. This slowdown could be a welcome relief from the affordability crisis.

    Miedler points out that even small decreases in mortgage rates are creating more demand for housing. According to Freddie Mac's latest survey, the average rate on a 30-year fixed mortgage has dropped to 6.69%, its lowest level since October. As a result, purchase applications have increased by 3% week-over-week and 50% from November 2023.

    The CEO attributes this surge in demand to the Federal Reserve's rate cuts, which have led to an increase in units sold across the country for the first time since 2021. Miedler identifies affordability as the biggest issue driving rates, a problem that remains despite the positive signs in the market.