2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers

2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers

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 move. When you’re ready, let’s connect.

When it comes to real estate, understanding current mortgage rate trends can be hugely beneficial, particularly for sellers. Today's market is showing two key reasons why this is the case, making it an opportune time to consider listing a property.

Firstly, lower mortgage rates can increase the pool of potential buyers. As rates decrease, home loans become more affordable, which opens the door for those who may have previously been priced out of the market.

Secondly, these low rates can also lead to increased home values. As more people can afford mortgages, demand for homes often increases. This higher demand can drive up home prices, which is ideal for those looking to sell.

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To further support this topic, a variety of reputable sources are referenced. These backlinks not only provide additional insight and validation to our content, but also improve our SEO visibility and ranking.

1. Federal Reserve Economic Data: This link provides a historical overview of mortgage rates, which can elucidate the current market trends.
2. National Association of Realtors: An authoritative source that offers a myriad of resources and insights into the real estate market, including aspects related to mortgage rates.
3. Zillow Research: This resource provides data-driven articles and research on the current housing market, including mortgage rate trends.
4. Bankrate: A comprehensive guide to understanding mortgage rates, including tips on getting the best rate.
5. Investopedia: A resource that provides educational articles explaining mortgage rates and their impact on home buyers and sellers.

By leveraging these authoritative and relevant backlinks, we enhance the credibility of our content and resort to a comprehensive approach to SEO that goes beyond the use of keywords.