Leave a Message

Thank you for your message. We will be in touch with you shortly.

Modern Rustic Kitchen

Should I Wait for Mortgage Rates To Come Down Before I Move?

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:

 No Caption Received

 

As Lisa Sturtevant, Chief Economist for Bright MLSexplains:

“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.”

Why You Might Not Want To Wait

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.

Bottom Line

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.

Recent Blog Posts

Stay up to date on the latest real estate trends.

A modern kitchen with dark blue cabinets, a large marble countertop

For Buyers

From Frenzy to Breathing Room: Buyers Finally Have Time Again

Today’s market is moving slower, in the best possible way. And that’s creating more opportunity for buyers who felt shut out in recent years.

Real Estate Market

Online Home-Buying Search Terms Recently Hit 2-Year High

One of the clearest ways to measure what people are thinking about is to look at what they’re searching for online.

For Sellers

The 3 Things You Risk by Pricing Too High

When selling your house, the price you choose isn’t just a number, it's a strategy. And in today’s market, that strategy needs to be sharp.

Buying Tips

What Credit Score Do You Really Need To Buy a Home?

Your credit score doesn’t have to be perfect to qualify for a home loan.

A modern dining room with a modern table and chairs. There is a swimming pool visible through the windows behind the table.

Agent Value

Don’t Make These Mistakes When Selling Your House

Are you thinking about selling your house? Some common mistakes today can make the process more stressful or even cost you money.

Forecasts

The Truth About Where Home Prices Are Heading

Here’s what the experts project for home prices over the next 5 years. And spoiler alert – it’s not a crash.

Mortgage Rates

Mortgage Rates Are Stabilizing – How That Helps Today’s Buyers

While affordability is still tight, mortgage rates have shown signs of stabilizing in recent months.

Selling Tips

What Every Homeowner Needs To Know In Today’s Shifting Market

The housing market is getting back to a healthier, more normal place. Here's what to expect.

A modern, open-concept living space with white walls and hardwood floors

For Sellers

Why Most Sellers Hire Real Estate Agents Today

Selling your house without a real estate agent as a “For Sale by Owner” (FSBO) may be something you’ve considered. But you should know that, in today’s shifting market… Read more

Work With Us

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact us today.