2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers

If you’ve delayed selling your home to relocate due to concerns about high mortgage rates, the recent significant decline is encouraging news. Mortgage rates have steadily decreased since October, reaching below 7% for over a month now. This downward trend may present a favorable opportunity for homeowners looking to make a move (see graph below):

Although mortgage rates are not anticipated to return to the exceptionally low levels seen during the ‘unicorn’ years at 3%, there is an expectation that they will continue to decrease from their current levels in the near future. This potential further decline could offer favorable conditions for individuals considering home-related decisions. As Dean Baker, Senior Economist at the Center for Economic Research, explains:

“It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”

Here are two compelling reasons why the ongoing and anticipated continuation of this recent trend in mortgage rate decline is exceptionally positive positive news for you.

You May Not Feel as Locked-In to Your Current Mortgage Rate

With mortgage rates currently much lower than they were just a few months ago, you might sense a reduced sense of commitment to your existing mortgage rate. In times of higher mortgage rates, considering a move to a new home often involved potentially exchanging a low rate for one approaching 8%.

Nevertheless, as rates decrease, the gap between your present mortgage rate and the prospective rate for a new home isn’t as substantial as it once was. This makes the prospect of moving more economically feasible than it was just a few months ago. As Lance Lambert, Founder of ResiClub, explains:

“We might be at peak “lock-in effect.” Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”

More Buyers Will Be Coming to the Market

According to data from Bright MLS, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates (see graph below):

With reduced mortgage rates, buyers have the opportunity to save on home loans, enhancing the appeal and affordability of homeownership. As rates continue to ease, a surge in buyer readiness is expected, resulting in increased demand for houses.

Bottom Line

If you’ve delayed selling due to concerns about higher mortgage rates or perceived buyer scarcity, the recent dip in mortgage rates signals a favorable time to consider making your move. When you’re prepared, reach out, and let’s connect.