Hesitant to sell your Triangle area property due to previously high mortgage rates? There’s encouraging news with the recent downward shift in mortgage rates. Since peaking at 7.79% last October, rates have consistently stayed under 7% for over a month (refer to the graph below):
This drop in rates, while not reaching the lows of the ‘unicorn’ years at around 3%, signals a potential further decrease. Dean Baker, Senior Economist at the Center for Economic Research, sheds light on this trend:
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 a couple of key reasons why this trend, and its anticipated continuation, are advantageous for Raleigh home sellers like you.
You May Not Feel as Locked-In to Your Current Mortgage Rate
The recent decline in mortgage rates means you may not feel as tied to your current mortgage rate. When rates were nearing 8%, selling meant possibly accepting a much higher rate on your new home’s mortgage.
Now, with the decline in rates, the gap between your current rate and a potential new rate is narrower, making the prospect of moving more financially viable than just a few months ago. Lance Lambert, Founder of ResiClub, comments on this situation:
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
Data from Bright MLS indicates that the primary deterrent for buyers entering the homeownership market has been high mortgage rates (see graph below):
As mortgage rates lower, home loans become more affordable, enhancing the appeal of buying a Triangle area home. With the easing of rates, we’re likely to see more buyers feeling ready to enter the market. An increase in buyers translates to heightened demand for homes like yours.
If the prospect of higher mortgage rates or a lack of buyers has been delaying your decision to sell your Raleigh home, the current downward trend in mortgage rates might be the indicator you’ve been waiting for. When you’re prepared to make your move, contact Linda Craft Team Realtors and navigate this favorable market together.