After months of high rates keeping buyers on the sidelines, things are starting to shift. Rates are already coming down due to a number of economic factors. The Federal Reserve’s 50-basis-point rate cut on September 18 has pushed mortgage interest rates down, bringing a glimmer of hope to potential buyers.
With two more Fed meetings scheduled before the end of 2024, we could see rates continue to fall. Experts are weighing in on how low rates may go, some see rates dropping to the mid-5% range. But factors such as inflation and government debt could impact these forecasts. And while they don’t control mortgage rates, this sets the stage for mortgage rates to fall even further than they already have. And lower mortgage rates are bringing more buyers back into the market. Lisa Sturtevant, Chief Economist at Bright MLS, says:
“A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”
The best part? You can take advantage of that renewed buyer interest.
What This Means for You
According to the National Association of Realtors (NAR), home sales increased in July, which was a welcome shift after four straight months of declines. If you’re a homeowner thinking about selling, this uptick in buyer activity works in your favor.
More buyers means more competition, which can lead to higher offers and shorter time on the market for your house. And, according to Edward Seiler, AVP of Housing Economics at the Mortgage Bankers Association (MBA), this trend is expected to continue:
“MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”
All in all, the market is becoming more accessible to a wider range of buyers, which could result in even more people looking to purchase a house like yours.
With more buyers entering the market, now’s the time to start getting your house ready to sell. Let’s work together to take advantage of this increased buyer demand and get your house ready to sell!