Lower Mortgage Rates Are Bringing Buyers Back to the Market

Lower Mortgage Rates Are Bringing Buyers Back to the Market

 

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.

 Simplifying the Market 

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About the Author

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Heather Lefebvre

Heather Lefebvre is a licensed Real Estate Broker in Florida with 20+ years of experience. She specializes in the South Florida market and works with Adache Real Estate, a full-service brokerage firm. With a finance background, Heather brings extensive knowledge to every transaction, including single-family homes, condominiums, commercial real estate, and bulk sales. She is an expert in foreclosed (REO) and short sale properties. Heather holds certifications as a Certified Residential Specialist (CRS), Luxury Home Market Specialist (CLHM), and International Property Specialist Member (CIPS). As a Certified Luxury Home Marketing Specialist (CLHMS), she has achieved exceptional performance in luxury markets, offering expertise and confidence to affluent buyers and sellers. Contact Heather Lefebvre at Adache Real Estate LLC for all your real estate needs in South Florida.