Should I Wait for Mortgage Rates To Come Down Before I Move?
Mortgage Rates Laura Miller Edwards Realty Group April 26, 2024
Mortgage Rates Laura Miller Edwards Realty Group April 26, 2024
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.
This blog post previously appeared on https://www.simplifyingthemarket.com/en/2024/04/16/should-i-wait-for-mortgage-rates-to-come-down-before-i-move?a=106260-312309902871c1f0d820820f58bf8fde. The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
Stay up to date on the latest real estate trends.
Agent Value
If selling your house is on your to-do list this year, the time to start prepping is now.
Selling Tips
It pays to anticipate potential issues before buyers ever step through the door. And one way to do that is with a pre-listing inspection.
New Construction
Right now, there are more newly built homes to choose from than there would normally be in the market.
Pricing
Over the past few years, you’ve probably seen a whole lot of headlines about how home prices keep going up. But have you ever stopped to think about what that actually… Read more
Housing Inventory
Some homeowners hesitate to sell because they’ve got unanswered questions that hold them back.
First Time Home Buyers
If you’re like a lot of aspiring homebuyers, there’s a major hurdle standing in your way — the cost of living.
For Sellers
The way your agent markets your house can be the difference between whether or not it stands out and gets attention from buyers. That’s why it’s so important to work w… Read more
For Buyers
Buying a home can feel like a challenge with today’s mortgage rates. Buying now before the spring rush might actually give you the upper hand.
Pricing
There’s one big mistake you need to avoid when you sell your house this year: setting your price too high.
Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact us today.