Some builders are starting to see more interest from buyers, including those who spent 2023 on the sidelines, waiting for better rates.

Housing demand has been improving in recent months, as mortgage rates have ticked down. And while that’s putting upward pressure on home prices, there are a few factors that could keep a lid on home price appreciation.

High mortgage costs, low supply of houses for purchase and high rents made for a pretty bleak year. But there’s a glimmer of light on the horizon.

There’s research that shows when the left-most digit of a number changes, we tend to give the change more weight.

Realty firm Redfin said homes are less affordable than at any time since they started tallying the numbers 11 years ago.

A lot of homebuilders are working with lenders to offer lower mortgage rates — or they’re offering other incentives like money towards closing costs.

The average monthly payment on a new mortgage rose 46% in 2022, and home prices and mortgage rates have continued to climb in 2023.

Pending home sales fell more than 7% in August, according to the National Association of Realtors. While demand for homes is still high, people are having a harder time qualifying for mortgages — and that’s intensifying demand for cheaper homes.

Both the buyer and the seller have unrealistic expectations right now, while prices and mortgage rates are high.

The highest mortgage rates in 20 years are now coupled with high home prices — bringing angst to many homebuyers.