Lower Mortgage Rates Are Bringing Buyers Back to the Market
As mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed on the market longer. That meant some homeowners decided to press pause on selling.
Now, however, rates are beginning to come down—and buyers are starting to reenter the market. In fact, the latest data from the Mortgage Bankers Association (MBA) shows mortgage applications increased last week by 7% compared to the week before.
So, if you’ve been planning to sell your house but you’re unsure if there will be anyone to buy it, this shift in the market could be your chance. Here’s what experts are saying about buyers returning to the market as we approach spring.
Mike Fratantoni, SVP and Chief Economist, MBA:
“Mortgage rates are now at their lowest level since
September 2022, and about a percentage point below
the peak mortgage rate last fall. As we enter the
beginning of the spring buying season, lower mortgage rates
and more homes on the market will help affordability for
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“The upcoming months should see a return of buyers, as
mortgage rates appear to have already peaked and have
been coming down since mid-November.”
Thomas LaSalvia, Senior Economist, Moody’s Analytics:
“We expect the labor market to remain robust, wages to
continue to rise—maybe not at the pace that they did during
the pandemic, but that will open up some opportunity for
folks to enter homeownership as interest rates stabilize a
Sam Khater, Chief Economist, Freddie Mac:
“Homebuyers are waiting for rates to decrease more
significantly, and when they do, a strong job market and a
large demographic tailwind of Millennial renters will provide
support to the purchase market.”
If you’ve been thinking about making a move, now’s the time to get your house ready to sell. Let’s connect so you can learn about buyer demand in our area the best time to put your house on the market.