The surge in monthly closings is likely due to the drop in mortgage rates, which began declining last fall. This brought more buyers into the market and, importantly, might have persuaded more homeowners to sell their properties. As most sellers are also buyers, many have been reluctant to trade a low mortgage rate for a higher one.
Mortgage rates averaged 6.87% for 30-year fixed loans in the week ending March 21, according to Freddie Mac.
“Mortgage rates tumbled from late October through mid-January, steadying through early February at some of the lowest rates since May 2023,” Realtor.com® Chief Economist Danielle Hale said in a statement. “This dip brought down buying costs and enabled more households to plan to make a move in 2024.”
