Mortgage Rates Down a Full Percent from Recent High

Mortgage rates have been a hot topic lately, and for good reason. They play a huge role in housing affordability, and if you’ve been waiting to make a move, you’re probably keeping a close eye on those rates. Well, there’s some good news for you!

Mortgage Rates Trend Down in Recent Weeks

Recent economic reports, inflation trends, and the Federal Reserve’s comments have led to a noticeable drop in mortgage rates. According to Freddie Mac, rates are now at levels we haven’t seen since February.

You might be wondering if you should wait a bit longer to see how low rates will go. Here’s a reality check: those record-low rates we saw during the pandemic are likely a thing of the past. Experts like Greg McBride, Chief Financial Analyst at Bankrate, suggest that the best we might hope for over the next year is a rate between 5.5% and 6%.

But with the recent decrease, this might be a golden opportunity for you to jump back into the market.

The Relationship Between Rates and Demand

Waiting for rates to drop further could mean facing more competition as other buyers also get excited about the lower rates. Generally, when rates are high, buyer demand is lower. But as rates decrease, more buyers who were on the fence will resume their home searches. As Bankrate points out:

“If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”

Bottom Line

If you’ve been holding off on buying, the recent drop in mortgage rates might be the nudge you need to get back in the game. Rates are at their lowest point in months, and acting now could give you a significant advantage before other buyers catch on.

Ready to explore your options? Reach out, and let’s get started!