Before you decide to sell your house, you should know what the home market is like right now. Homebuyers are getting used to today's mortgage rates and seeing them as the new norm, is a good sign.
The graph below shows the direction for the 30-year fixed mortgage rate from Freddie Mac since October. This will help you understand what has been happening with mortgage rates lately. Rates have been between 6% and 7% for most of the last nine months, as you can see:
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says that mortgage rates have a big impact on how many buyers are interested in a home and, by extension, how many homes are sold.
As a seller, it's good to hear that home sales are steady right now. It means that there are people out there who are buying homes. Here's more information about how mortgage rates have changed demand in recent years.
When mortgage rates went from about 3% to 7% last year, many would-be buyers were shocked by how much it would cost to buy a home and decided to put their plans on hold. But as time has gone on, that first shock has faded. Buyers are getting used to the current mortgage rates and have come to terms with the fact that the record-low rates of the last few years are gone.
18% of people who took part in a recent study by Freddie Mac said they are likely to buy a home in the next six months. That means that almost one in five of the people polled plan to buy in the next few months. And that shows that buyers plan to be busy in the coming months.
Of course, mortgage rates aren't the only thing that affects how many people want to buy a home. No matter what the mortgage rates are, people will always have reasons to move, whether it's for a new job, a new family, or something else. As a renter, you can be sure that some people want to buy your house right now. And that desire is pretty strong now that owners are getting used to the rates.
The way buyers think about today's mortgage rates is changing; they're getting used to the new normal. Rates that don't change much are helping to keep buyers interested and home sales steady. Let's talk so we can get your house on the market and in front of those buyers.