Mortgage
If you’ve got a move on your mind, you may be wondering whether you should wait to sell until mortgage rates come down before you spring into action. Here’s some information that could help answer that question for you.
In the housing market, there’s a longstanding relationship between mortgage rates and buyer demand. Typically, the higher rates are, you’ll see lower buyer demand. That’s because some people who want to move will be hesitant to take on a higher mortgage rate for their next home. So, they decide to wait it out and put their plans on hold.
But when rates start to come down, things change. It goes from limited or weak demand to good or strong demand. That’s because a big portion of the buyers who sat on the sidelines when rates were higher are going to jump back in and make their moves happen. The graph below helps give you a visual of how this relationship works and where we are today:
As Lisa Sturtevant, Chief Economist for Bright MLS, explains:
“The higher rates we’re seeing now [are likely] going to lead more prospective buyers to sit out the market and wait for rates to come down.”
If you’re asking yourself: what does this mean for my move? Here’s the golden nugget. According to experts, mortgage rates are still projected to come down this year, just a bit later than they originally thought.
When rates come down, more people are going to get back into the market. And that means you’ll have a lot more competition from other buyers when you go to purchase your next home. That may make your move more stressful if you wait because greater demand could lead to an increase in multiple offer scenarios and prices rising faster.
But if you’re ready and able to sell now, it may be worth it to get ahead of that. You have the chance to move before the competition increases.
If you’re thinking about whether you should wait for rates to come down before you move, don’t forget to factor in buyer demand. Once rates decline, competition will go up even more. If you want to get ahead of that and sell now, let’s chat.
Stay up to date on the latest real estate trends.
Builders are shifting their attention to what buyers want most right now – smaller, more affordable homes.
If you have questions about what’s happening in the housing market and what that means for you, let’s connect.
While today’s mortgage rates might seem a bit intimidating, here are two solid reasons why, it could still be a smart move to get your own place.
Today’s limited supply is one of the biggest advantages you have right now.
When you’re ready to make the most of today’s seller’s market, let’s get in touch.
The typical homeowner has $298,000 in equity.
4 beds | 3 baths | 3,341 sq. ft.
Whether you're looking to save money or want to take care of your loved ones, buying a multi-generational home might be a good idea for you.
Right now, putting the data into context is more important than ever.
You’ve got questions and we can’t wait to answer them.