Homebuyers and builders are confident in the housing market again — here’s why

The past decade saw a comparatively stable housing market with historically low mortgage rates. From 2010 to 2019, mortgages averaged between 3.5 and 5.5%, but COVID-19 lockdowns pushed that average down to 2.7% at the tip of 2020.

The housing market remained hot until interest rates started creeping up in mid-2022, when the Fed began increasing interest rates to curb inflation. This two-year streak of rate hikes helped bring inflation almost about the Fed’s 2% target but dampened the housing market and consumer self belief.