Get informed about the current housing market before selling your house. A positive trend is that homebuyers are adjusting well to today's mortgage rates, which they now see as the new norm. According to Freddie Mac, the 30-year fixed mortgage rate has remained steady between 6% and 7% since last October.
Mortgage rates hold significant sway over buyer demand and, consequently, home sales, according to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR). Yun emphasizes the positive effects of stable rates, stating that consistent home sales have been observed over several consecutive months.
This is great news for sellers, as it indicates an active market with motivated buyers. Let's delve further into how recent mortgage rates have influenced demand. Last year, a dramatic surge in mortgage rates from around 3% to 7% caused potential buyers to experience sticker shock and delay their home buying plans. However, as time has passed, the initial shock has faded. Buyers have become more accustomed to current mortgage rates and have come to terms with the fact that the historically low rates of the past few years are behind us. Doug Duncan, SVP and Chief Economist at Fannie Mae, explains that consumers are adjusting to the idea that higher mortgage rates are here to stay.
In fact, a recent survey conducted by Freddie Mac reveals that 18% of respondents are likely to purchase a home in the next six months. This means that almost one out of every five people surveyed plans to buy a home soon, demonstrating a strong intention among buyers to be active in the upcoming months.
While mortgage rates are not the sole driving factor behind buyer demand, regardless of their status, people still have various reasons to move, such as job relocation or changing households. As a seller, take comfort in knowing that there is a market for your house today, and the demand remains robust as buyers adapt to the current rate environment.
Now that you know how buyers’ perception of mortgage rates is changing, you can capitalize on this new trend. With rates remaining stable, there is a surge in buyer demand and a steady stream of home sales. Don't miss out on this golden opportunity - connect with Scott and the Smolen Team today to get your house on the market and attract these eager buyers!
