Mortgage rates have become a major topic in the housing market recently due to their effect on affordability. If you're considering a move, you've likely been hoping for rates to drop for that reason. Based on trends from the past few

Mortgage Rates Trend Down in Recent Weeks

Mortgage rates have been a major topic of discussion in the housing market lately, mainly due to their influence on affordability. If you're considering a move, you've likely been hoping for a drop in rates to help with that. Recent trends suggest that you might just get what you’re waiting for.

Maybe you're contemplating whether to wait and see how low mortgage rates might drop. It's worth keeping in mind that the historically low rates we saw during the pandemic are behind us. If you're holding out for a 3% mortgage rate again, experts suggest that it's unlikely. As Greg McBride, Chief Financial Analyst at Bankrate, points out...

““The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”
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— Greg McBride, Chief Financial Analyst at Bankrate

With the recent decline in the market, there’s a great opportunity available to you right now. It might just be the push you need to consider getting back in.

The Relationship Between Rates and Demand 

If you hold off on buying until mortgage rates go down more, you could end up facing tougher competition as other buyers jump back into the market as well.

In the housing market, there's often a connection between mortgage rates and how many people are looking to buy. Usually, when rates go up, fewer buyers are interested. However, when rates begin to drop, that changes. Buyers who were hesitant due to higher rates will likely jump back into the market. Here’s what that means for you. According to a recent article from Bankrate:

““If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”
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— Bankrate

Bottom Line

If you’ve been considering buying, the recent drop in mortgage rates might be just the push you need to take action. Rates are at their lowest in months, which means it might be a good time to get back into the market before other buyers take advantage of the situation.

If you're prepared to begin the process, just reach out and we'll get started.