Before you decide tosell your house, its important to know what you can expect in the currenthousing market. One positive trend right now is homebuyers are adapting to todays mortgage rates and getting used to them as the new normal.
To better understand whats been happening with mortgage rates lately, the graph below shows the trend for the 30-year fixed mortgage rate fromFreddie Macsince last October. As you can see,rateshave been between 6% and 7% pretty consistently for the past nine months:
Accordingto Lawrence Yun, Chief Economist at theNational 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.
As a seller, hearing that home sales are consistent right now is good news. It means buyers are out there and actively purchasing homes.Heres a bit more context on how mortgage rates have impacted demand recently.
When mortgage rates surged dramaticallylast year, escalating from roughly 3% to 7%, many potential buyers felt a bit of sticker shock and decided to hold off on their plans to purchase a home. 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 atFannie Mae,says:
. . . consumers are adapting to the idea that higher mortgage rates will likely stick around for the foreseeable future.
In fact, a recentsurveybyFreddie Macreveals18%of respondents say theyre likely tobuy a homein the next six months.That means nearly one out of every five people surveyed plan to buy in the near future.And that goes to show buyers are planning to be active in the months ahead.
Of course, mortgage rates arent the sole factor affecting buyer demand. No matter where mortgage rates stand, people will always have reasons to move, whether its for job relocation, changing households, or any other personal motivation. As aseller, you can feel confident there is a market for your house today. And that demand is pretty strong as buyers settle into where rates are right now.
Bottom Line
The way buyers perceive todays mortgage rates is shifting theyre getting used to the new normal. Steady rates are contributing to strong buyer demand and consistent home sales.
Please call me when you are ready to buy or sell real estate, Marie McLaughlin 727-858-7569.
Source:https://www.keepingcurrentmatters.com/2023/07/18/homebuyers-are-getting-used-to-the-new-normal/
