Low Mortgage Rates Welcoming Buyers Back to the Market

Last year, as mortgage rates increased steadily, the housing market saw a sharp decline in activity. Fewer offers were made on homes and they stayed up for sale longer; this meant many homeowners put their plans to sell on hold. But now that we are seeing decreasing rates once more, buyers have returned to the market!

A recent report by the Mortgage Bankers Association (MBA) reveals a 7% rise in mortgage applications this week compared to the one prior. If you’ve been considering selling your house but are uncertain if anyone would be interested, now is an opportune moment to take advantage of these trends! As spring steadily approaches, experts agree that buyers will soon return to the market en masse – so don’t miss out on making a great sale!

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.”