Buying
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.
Becoming a homeowner is an exciting milestone, but it takes thoughtful financial planning. With evolving market trends, budgeting for homeownership in 2025 is essentia… Read more
As 2024 comes to a close, it’s the perfect time for homeowners to make strategic financial moves to maximize savings and prepare for the coming year. Here are some yea… Read more
As the holidays approach, the real estate market may not be the first thing on your mind. But contrary to popular belief, this festive season might offer the perfect o… Read more
Even though there are more homes available for sale than there were at this time last year, there are still more buyers than there are houses to choose from. So, know … Read more
Home equity is a strong financial asset that homeowners can use in many ways. It represents the difference between the current market value of your home and the outsta… Read more
If you’re considering buying a home in a community governed by a Homeowners Association (HOA), you’re not alone. HOAs are common, offering a structured community envir… Read more
You’ve got questions and we can’t wait to answer them.