Mortgage rates have been on the decline since late last year, and this has spurred some buyers back into the market. In fact, the latest data from the Mortgage Bankers Association (MBA) shows mortgage applications increased last week by 7% compared to the week before. Low mortgage rates are just one factor that can motivate buyers, but they’re an important one. And with rates expected to stay relatively low, we could see even more buyers getting off the sidelines and into the market.
Buyers who have been on the sidelines are now returning to the market
Buyers who have been patiently waiting on the sidelines due to higher mortgage rates are now beginning to re-enter the market, taking advantage of the recent drop in borrowing costs. Lower mortgage rates mean that buyers can now save thousands of dollars over the course of their loan and lock in a more favorable rate for years. Although it remains to be seen if this uptick in buyers entering the market is indicative of a larger trend, lower mortgage rates could signal an improvement in overall housing activity as more buyers are able to purchase homes at a more comfortable level of debt.
With more buyers in the market, prices are beginning to rise
Home buyers are once again stepping into the market thanks to the lower mortgage rates. This influx of new buyers has caused an increase in demand, resulting in a rise of home prices throughout the country. Sellers who previously had trouble selling their homes due to economic factors such as higher rates are now taking advantage of this higher buyer activity by fetching more money for their properties. As mortgage rates continue to remain low and buyer activity slowly rises, it looks like the housing market is poised to enter another positive phase of growth.
If you’re thinking of buying a home, now is a great time to do it
If you’ve been considering buying a home, now is an ideal time to move ahead. Mortgage rates are at the lowest they’ve been in years, making it more affordable for buyers to purchase homes. Plus, with more buyers coming into the market, there is a greater selection of homes available at competitive prices. Don’t miss your chance to capitalize on these great conditions and make your dream of owning a home come true!