The Federal Reserve efforts to loosen credit markets have had a positive effect on current mortgage rates, which have been hovering in the high 4 to mid 5 percent range for a 30-year fixed-rate loan. These historically low rates have created exceptional buying opportunities, which accounts for the unexpected decrease in housing inventory levels across the country. According to Lawrence Yun, NAR chief economist, "It appears some buyers are taking advantage of much lower home prices."
Total housing inventory at the end of 2008 fell 11.7 percent to 3.68 million existing-homes for sale. NAR President Charles McMillan says the time is right for buyers to act. “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market,” he said.