Lower Mortgage Rates are bringing buyers back to the market

The housing market saw a slowdown last year as mortgage rates increased. As a result, there were fewer offers for homes and they remained on the market for longer. Some homeowners had to put a halt to their plans to sell. Now, rates are starting to fall and buyers are reentering the market. According to the Mortgage Bankers Association (MBA), mortgage applications rose by 7% last week compared with the previous week.
This shift in the market could be your opportunity to sell your house if you are unsure if anyone will buy it. Experts are predicting that buyers will return to the market in spring.
Mike Fratantoni (SVP and Chief Economist), MBA:
“Mortgage rate are at their lowest level since September 2022 and about a percentage below the peak mortgage rate last autumn. Lower mortgage rates and more homes will make it affordable for first-time homebuyers as we move into the spring buying season.
Lawrence Yun, Chief Economics Officer, National Association of Realtors.
“The upcoming months will see a return to buyers as mortgage rates have already peaked and been falling since mid-November.”
Thomas LaSalvia Senior Economist, Moody’s Analytics
“We expect the labor markets to remain strong, wages to continue rising–maybe not at a pace that they did during pandemic but that will allow some people to get into homeownership once interest rates stabilize a bit.”
Sam Khater, Chief Economist, Freddie Mac:
“Homebuyers wait for rates to fall more dramatically. When they do, a strong labor market and a large demographic tailwind from Millennial renters will support the purchase market.”
Bottom Line: If you’ve been considering moving, now is the time to make your house available for sale. To find out about buyer demand in your local area and the best time for your house to be on the market, contact a local realty professional.
Members: Sign in now and get your personalized posts! Click Here to learn more about KCM’s newest feature, personalized posts.