As mortgage rates rose last year, activity in the housing
market slowed down. And as a result, homes started seeing fewer offers and
stayed on the market longer. That meant some homeowners decided to press pause
on selling.
Now, however, rates are beginning to come down—and buyers
are starting to reenter the market. In fact, the latest data from the Mortgage
Bankers Association (MBA) shows mortgage applications increased last week by 7%
compared to the week before.
So, if you’ve been planning to sell your house but you’re
unsure if there will be anyone to buy it, this shift in the market could be
your chance. Here’s what experts are saying about buyers returning to the
market as we approach spring.
Mike Fratantoni, SVP and Chief Economist, MBA:
“Mortgage rates are now at their lowest level since
September 2022, and about a percentage point below the peak mortgage rate last
fall. As we enter the beginning of the spring buying season, lower mortgage
rates and more homes on the market will help affordability for first-time
homebuyers.”
Lawrence Yun, Chief Economist, National Association of
Realtors (NAR):
“The upcoming months should see a return of buyers, as
mortgage rates appear to have already peaked and have been coming down since
mid-November.”
Thomas LaSalvia, Senior Economist, Moody’s Analytics:
"We expect the labor market to remain robust, wages
to continue to rise—maybe not at the pace that they did during the pandemic,
but that will open up some opportunity for folks to enter homeownership as
interest rates stabilize a bit."
Sam Khater, Chief Economist, Freddie Mac:
“Homebuyers are waiting for rates to decrease more
significantly, and when they do, a strong job market and a large demographic
tailwind of Millennial renters will provide support to the purchase market.”
Bottom Line
If you’ve been thinking about making a move, now’s the time
to get your house ready to sell. Let’s connect so you can learn about buyer
demand in our area the best time to put your house on the market.
Source: Real Estate with Keeping Current Matters