If you’ve been hesitant to list your house because you’re worried no one’s buying, here’s your sign it may be time to talk with me.
After months of high rates keeping buyers on the sidelines, things are starting to shift. Rates are already coming down due to a number of economic factors. And yesterday the Federal Reserve cut the Federal Funds Rate for the first time since they began raising that rate in March 2022. While they don’t control mortgage rates, this sets the stage for mortgage rates to fall even further than they already have. More cuts from the Fed are expected into next year. Lower mortgage rates are bringing more buyers back into the market.
As Rates Fall, Buyer Activity Goes Up
The graph below illustrates the relationship between falling mortgage rates and rising buyer activity. The orange line represents the average 30-year fixed mortgage rate. The blue line shows the Mortgage Bankers Association Mortgage Application index, which tracks the number of mortgage applications.
As you can see, as mortgage rates (orange) come down, the Mortgage Application index (blue) rises. That shows more people are start ing to re-engage in the process.
What This Means for You
According to the National Association of Realtors, home sales increased in July. This was a welcome shift after four straight months of declines. If you are a homeowner thinking about selling, this uptick in buyer activity works in your favor.
More buyers means more competition. This leads to higher offers and shorter time on the market for your house. All in all, the market is becoming more accessible to a wider range of buyers. This may result in even more people looking to purchase.
With more buyers entering the market, now’s the time to start getting your house ready to sell.
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