If you’ve been holding off on selling your house to make a move because you felt mortgage rates were too high, their recent downward trend is exciting news for you. Mortgage rates have descended since last October when they hit 7.79%. In fact, they’ve been below 7% for over a month now (see graph below):
And while they’re not going back to the 3% we saw during the ‘unicorn’ years, they are expected to continue to go down from where they are now in the near future. As Dean Baker, Senior Economist at the Center for Economic Research, explains:
“It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”
Here are two reasons why this recent trend, and the expectation it’ll continue, is such good news for you.
You May Not Feel as Locked-In to Your Current Mortgage Rate
With mortgage rates already significantly lower than they were just a few months ago, you may feel less locked-in to the current mortgage rate you have on your house. When mortgage rates were higher, moving to a new home meant possibly trading in a low rate for one up near 8%.
However, with rates dropping, the difference between your current mortgage rate and the new rate you’d be taking on isn’t as big as it was. That makes moving more affordable than it was just a few months ago. As Lance Lambert, Founder of ResiClub, explains:
“We might be at peak “lock-in effect.” Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”
More Buyers Will Be Coming to the Market
According to data from Bright MLS, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates (see graph below):
Lower mortgage rates mean buyers can potentially save money on their home loans, making the prospect of purchasing a home more attractive and affordable. Now that rates are easing, more buyers are likely to feel they’re ready to jump back into the market and make their move. And more buyers mean more demand for your house.
Bottom Line
If you’ve been waiting to sell because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the recent decline in mortgage rates may be your sign it’s time to make your move. When you’re ready, connect with a local real estate agent.
Aaron Boone is a seasoned professional in the real estate industry, bringing a wealth of experience and a genuine commitment to helping individuals and families find their ideal homes. With a career that began in 2007, Aaron has established himself as a reliable and knowledgeable expert in the field, specializing in assisting people with relocation needs and seniors looking to downsize.
As a long-time resident of the community for over 30 years, Aaron possesses a deep understanding of the local market dynamics and trends. His educational background is equally impressive, holding degrees in education, human resources, and business management. This diverse foundation allows him to approach real estate with a comprehensive and well-rounded perspective.
Aaron’s professional journey has seen him excel in various facets of the real estate realm, including property management, marketing, technology solutions, accounting, and finance. His extensive skill set enables him to guide clients through the intricacies of buying or selling a home with confidence and efficiency.
What sets Aaron apart is his unwavering commitment to going above and beyond for his clients. He is known for being a compassionate and attentive advocate, offering support at every step of the real estate process. His approach is characterized by a unique blend of knowledge, care, and active listening.
Notably, Aaron is upfront and straightforward in his communication style. He believes in telling clients what they need to hear, not just what they want to hear, fostering a relationship built on trust and transparency. His ability to think outside the box allows him to find creative solutions to challenges that others might overlook.
In addition to his professional achievements, Aaron brings a folksy, down-to-earth approach to his work, making the journey to finding a dream home both enjoyable and stress-free. Whether it’s through his deep community roots, extensive expertise, or his genuine care for clients, Aaron Boone stands out as a dedicated and effective real estate professional.