From Your President of the Pee Dee REALTOR ® Association Amy McCalman Kirby
Falling Mortgage Rates Are Bringing Buyers Back
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 a REALTOR ®.
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 . On September 18th the Federal Reserve cut the Federal Funds Rate for the first time since they began raising that rate in March 2022 . And while they don ’ t control mortgage rates , this sets the stage for mortgage rates to fall even further than they already have – especially since more cuts from the Fed are expected into next year . And lower mortgage rates are bringing more buyers back into the market . Lisa Sturtevant , Chief Economist at Bright MLS , says :
“ A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market .”
The best part ? You can take advantage of that renewed buyer interest .
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 , while the blue line shows the Mortgage Bankers Association ( MBA ) 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 , showing more people start to re-engage in the process ( see graph below ):
What This Means for You
According to the National Association of Realtors ( NAR ), home sales increased in July , which was a welcome shift after four straight months of declines . If you ’ re a homeowner thinking about selling , this uptick in buyer activity works in your favor .
More buyers means more competition , which can lead to higher offers and shorter time on the market for your house . And , according to Edward Seiler , AVP of Housing Economics at the Mortgage Bankers Association ( MBA ), this trend is expected to continue :
“ MBA is expecting that slower home-price appreciation , coupled with lower rates , will ease affordability constraints and lead to increased activity in the housing market .”
All in all , the market is becoming more accessible to a wider range of buyers , which could result in even more people looking to purchase a house like yours .
With more buyers entering the market , now ’ s the time to start getting your house ready to sell .
Bottom Line
The recent decline in mortgage rates is already driving more buyers into the market , and experts project this trend will continue . Connect with a local REALTOR ® to take advantage of this increased buyer demand and get your house ready to sell .
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