Is now a good time to buy a home? Mortgage rates are falling.

Potential homebuyers have spent most of the year sitting on the sidelines because of low inventory and high mortgage rates.

But over the past six weeks, mortgage rates have been steadily dropping, averaging 7% for a 30-year fixed mortgage down from nearly 7.8% at the end of October, according to data released by Freddie Mac on Dec. 7.

Mortgage applications increased 2.8% from the prior week, for the week ending Dec. 1, according to the Mortgage Bankers Association.

So is this a good time to buy a home?           

Kate Konzen and Monica Munoz walk their dogs Brandy and Petey on Monday, April 26, 2021, in their Indianapolis neighborhood. The couple hopes to buy a house soon, but strong buyer demand and a limited inventory of available homes is continuing to drive up prices.

Mortgage rates

Declining mortgage rates may be giving some would-be homebuyers an opportunity to dust off buying plans that were shelved as mortgage rates rocketed higher this fall, says Danielle Hale, senior economist for

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“However, in the big picture, mortgage rates remain pretty high,” says Hale. “The typical mortgage rate according to Freddie Mac data is roughly in line with what we saw in August and early to mid-September, which were then 20 plus year highs.”

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