If you’ve been putting off listing your house because you’re concerned that buyers aren't out there, this could be a good moment to connect with an agent.

After months of high rates keeping buyers away, we’re beginning to see a change. Recently, rates have started to drop due to various economic factors. Just yesterday, the Federal Reserve cut the Federal Funds Rate for the first time since they began raising it back in March 2022. While they don't directly control mortgage rates, this move makes it likely that mortgage rates could decrease even more, especially since more cuts are anticipated next year. As a result, lower mortgage rates are enticing more buyers to enter the market. Lisa Sturtevant, Chief Economist at Bright MLS, says:

““A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”
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— Lisa Sturtevant, Chief Economist at Bright MLS

You can really benefit from that increased interest from buyers.

As Rates Fall, Buyer Activity Goes Up

The graph below shows how falling mortgage rates are connected to an increase in buyer activity. The orange line indicates the average 30-year fixed mortgage rate, while the blue line represents the Mortgage Bankers Association (MBA) Mortgage Application Index, which tracks the number of mortgage applications.

When mortgage rates (in orange) decrease, we notice an increase in the Mortgage Application Index (in blue), indicating that more people are getting back into the mortgage application process.

What This Means for You

The National Association of Realtors (NAR) reported that home sales went up in July, marking a positive change after four months of declines. If you’re a homeowner considering selling your property, this increase in buyer interest could benefit you.

More buyers in the market create increased competition, often resulting in higher offers and a quicker sale for your home. Edward Seiler, AVP of Housing Economics at the Mortgage Bankers Association (MBA), suggests that this trend is likely to persist.

““MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”
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— Mortgage Bankers Association (MBA)

Overall, the market is becoming easier for a broader array of buyers, which might lead to more people interested in purchasing a home like yours.

With more buyers entering the market, this is a great time to start preparing your house for sale.

Bottom Line

The recent drop in mortgage rates is attracting more buyers to the market, and experts believe this trend will keep going. Let's collaborate to leverage this growing buyer interest and prepare your house for sale.