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2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers

If you’ve been holding off on selling your house to make a move because you felt mortgage rates were too high, their recent downward trend is exciting news for you. Mortgage rates have descended since last October when they hit 7.79%. In fact, they’ve been below 7% for over a month now. And while they’re not going back to the 3% we saw during the ‘unicorn’ years, they are expected to continue to go down from where they are now in the near future. Here are two reasons why this recent trend, and the expectation it’ll continue, is such good news for you.

1. You May Not Feel as Locked-In to Your Current Mortgage Rate

With mortgage rates already significantly lower than they were just a few months ago, you may feel less locked-in to the current mortgage rate you have on your house. When mortgage rates were higher, moving to a new home meant possibly trading in a low rate for one up near 8%. However, with rates dropping, the difference between your current mortgage rate and the new rate you’d be taking on isn’t as big as it was. That makes moving more affordable than it was just a few months ago.

As Lance Lambert, Founder of ResiClub, explains: “We might be at peak ‘lock-in effect.’ Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”

This means that if you’ve been hesitant to sell your home due to concerns about taking on a higher mortgage rate, the current rate trend is making the transition to a new home more financially feasible. It’s an opportunity to sell your current property and potentially secure a lower mortgage rate on your next home.

2. More Buyers Will Be Coming to the Market

According to data from Bright MLS, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates. Lower mortgage rates mean buyers can potentially save money on their home loans, making the prospect of purchasing a home more attractive and affordable. Now that rates are easing, more buyers are likely to feel they’re ready to jump back into the market and make their move. And more buyers mean more demand for your house.

With mortgage rates on the decline, prospective buyers are likely to find homeownership more appealing. This increased demand for homes can work in your favor as a seller. Your property becomes more enticing to potential buyers, potentially leading to a quicker sale and possibly a better price.

Bottom Line

If you’ve been waiting to sell because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the recent decline in mortgage rates may be your sign it’s time to move. The current market conditions are creating a favorable environment for both sellers and buyers. When you’re ready, let’s connect and explore the opportunities that await you in this evolving real estate landscape. It’s a great time to make your move in the housing market.

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