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, homeowners wanting to sell started seeing fewer offers and their houses stayed on the market longer as buyers waited for lower mortgage rates to return. As a result, some homeowners decided to press pause on selling. in fact, We wrote about the shifting market in a recent blog.
Verify your mortgage eligibility (Nov 22nd, 2024)Recently, mortgage rates have begun 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 were uncertain if there would be anyone to buy it, this shift in the market to lower mortgage rates could be the opening you’ve been hoping for. 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 first-time homebuyers.”
Verify your mortgage eligibility (Nov 22nd, 2024)
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 bit.”
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.”
Bottom Line
If you’ve been thinking about selling your house, now’s the time to get your house ready to put on the market. Plus, you’ll need to understand your finances so you can start thinking about your next move. At EFG, any of our experienced loan officers would be happy to help you understand your finances, show you options for mortgage programs that you can qualify for, and look at your current equity that will fuel your next move. Let’s connect today and get the process started!
