If you've been holding off on selling your home because you're worried there aren't enough buyers, here’s your sign that the tide may be turning. After months of high mortgage rates keeping buyers at bay, the market is showing signs of improvement. Rates are starting to decrease, driven by several economic factors, including the Federal Reserve’s decision to cut the Federal Funds Rate for the first time since they started increasing it in March 2022. While the Fed doesn't directly control mortgage rates, this move is setting the stage for rates to drop even further in the coming months, making homeownership more affordable and reigniting buyer demand.
According to Lisa Sturtevant, Chief Economist at Bright MLS:“A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”
What does this mean for you? You can take advantage of this renewed buyer interest.
Falling Mortgage Rates Bring Buyers Back
As mortgage rates drop, more buyers are stepping back into the market. There’s a clear connection between falling rates and increased buyer activity. The Mortgage Bankers Association (MBA) Mortgage Application Index, which tracks the number of mortgage applications, shows that as rates fall, more people begin the process of buying a home.
This is great news for sellers, as more buyers means more competition, which can often lead to quicker sales and even higher offers.
What Does This Mean for Sellers?
The National Association of Realtors (NAR) reports that home sales increased in July, reversing a four-month trend of declining sales. More buyers in the market increases competition, giving homeowners a potential edge when selling. According to Edward Seiler, AVP of Housing Economics at the MBA:“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.”
In short, the current shift in the market is opening the door for a larger pool of buyers, which could work to your advantage when selling your home.
Time to Get Your House Ready
With buyer activity on the rise, now is the perfect time to prepare your house for the market. If you’ve been waiting for the right moment to sell, this could be it.
Bottom Line
Falling mortgage rates are already drawing more buyers into the market, and experts expect this trend to continue. Call me so we make a plan to leverage this renewed interest to sell your home successfully.
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