Before you decide to sell your house, knowing what you can expect in the current housing market is important. One positive trend is that homebuyers are adapting to today’s mortgage rates and getting used to them as the new normal.
To better understand what’s been happening with mortgage rates lately, the graph below shows the 30-year fixed mortgage rate trend from Freddie Mac since last October. As you can see, rates have been between 6% and 7% pretty consistently for the past nine months:
According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), mortgage rates play a significant role in buyer demand and, by extension, home sales. Yun highlights the positive impact of stable rates:
“Mortgage rates heavily influence the direction of home sales. Relatively steady rates have led to several consecutive months of consistent home sales.”
Hearing that home sales are consistent right now is good news as a seller. It means buyers are out there and actively purchasing homes. Here’s more context on how mortgage rates have recently impacted demand.
When mortgage rates surged dramatically last year, escalating from roughly 3% to 7%, many potential buyers felt a bit of sticker shock and decided to hold off on their home purchase plans. However, as time has passed, that initial shock has worn off. Buyers have grown more accustomed to current mortgage rates and have accepted that the record-low rates of the last few years are behind us.
As Doug Duncan, SVP and Chief Economist at Fannie Mae, says:
“. . . consumers are adapting to the idea that higher mortgage rates will likely stick around for the foreseeable future.”
A recent survey by Freddie Mac reveals that 18% of respondents say they’re likely to buy a home in the next six months. That means nearly one out of every five people surveyed plans to buy shortly, which shows buyers are planning to be active in the months ahead.
Of course, mortgage rates aren’t the sole factor affecting buyer demand. Regardless of mortgage rates, people will always have reasons to move, whether for job relocation, changing households, or any other personal motivation. As a seller, you can feel confident there is a market for your house today. And that demand is pretty strong as buyers settle where rates are now.
Bottom Line
The way buyers perceive today’s mortgage rates is shifting – they’re getting used to the new normal. Steady rates are contributing to solid buyer demand and consistent home sales. Let’s connect with KM Realty Group LLC to get your house on the market and in front of those buyers.
Related
- Why You Can’t Compare Now to the ‘Unicorn’ Years of the Housing Market
- Falling out of Love with Your House? It May Be Time To Move
- Planning To Sell Your House? It’s Critical To Hire a Pro
- Ready To Sell? Today’s Housing Supply Gives You Two Opportunities
- What You Want To Know If You’re Pursuing Your Dream of Homeownership
