As mortgage rates rose last year, activity in the housing market slowed down. As a result, homes started seeing fewer offers and stayed on the market longer, which meant some homeowners decided to pause selling.
However, rates are now coming down—and buyers are starting to reenter the market.
The latest data from the Mortgage Bankers Association (MBA) shows that mortgage applications increased last week by 7% compared to the previous week.
So, if you’ve been planning to sell your house but are unsure if anyone will buy it, this shift in the market could be your chance. Here’s what experts say 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 considering moving, now’s the time to have your house prepared to sell in the Chicagoland area and surrounding suburbs. Let’s connect with real estate agents at KM Realty Group LLC so you can learn about buyer demand in our area and the best time to put your house on the market.
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