2 Reasons Why Today’s Mortgage Rate Trend Benefits Sellers
If you’ve been holding off on selling your house to make a move because you felt mortgage rates were expensive, their current downward pattern is amazing news for you. Mortgage rates have descended because last October when they hit 7.79%. In fact, they’ve been listed below 7% for over a month now (see graph listed below):
And while they’re not going back to the 3% we saw during the ‘unicorn’ years, they are expected to continue to decrease from where they are now in the future. As Dean Baker, Senior Economist at the Center for Economic Research, discusses:
“It also appears that mortgage rates are now falling again. They will likely not be up to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”
Here are 2 reasons why this current pattern, and the expectation it’ll continue, is such great news for you.
You May Not Feel as Locked-In to Your Current Mortgage Rate
With home loan rates already substantially lower than they were simply a couple of months earlier, you may feel less locked-in to the present mortgage rate you have on your house. When mortgage rates were higher, moving to a new home meant potentially trading in a low rate for one up near 8%.
However, with rates dropping, the difference between your present home loan rate and the brand-new rate you ‘d be taking on isn’t as big as it was. That makes moving more budget friendly than it was just a couple of months earlier. As Lance Lambert, Founder of ResiClub, describes:”We might be at peak”lock-in effect.”Some move-up or lifestyle sellers might be pertaining to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”
More Buyers Will Be Coming to the Market
According to information from Bright MLS, the leading reason purchasers have been waiting to start into homeownership is high mortgage rates (see graph listed below):
Lower mortgage rates indicate purchasers can possibly save cash on their mortgage, making the possibility of purchasing a home more affordable and appealing. Now that rates are easing, more purchasers are likely to feel they’re prepared to leap back into the market and make their relocation. And more buyers suggest more demand for your home.
Bottom Line
If you’ve been waiting to offer because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the current decline in home loan rates may be your indication it’s time to move. When you’re all set, let’s connect.
Home mortgage rates have actually descended considering that last October when they hit 7.79%. With home loan rates currently considerably lower than they were simply a couple of months back, you may feel less locked-in to the present home mortgage rate you have on your home. With rates dropping, the difference between your existing home mortgage rate and the brand-new rate you ‘d be taking on isn’t as huge as it was. Now that rates are reducing, more purchasers are likely to feel they’re ready to leap back into the market and make their move. If you’ve been waiting to sell since you didn’t desire to take on a larger home loan rate or you believed buyers weren’t out there, the recent decrease in home loan rates might be your indication it’s time to move.