As mortgage rates rose last year, the housing market experienced a slowdown, resulting in fewer home offers and longer selling periods. Unfortunately, this caused many homeowners to put their selling plans on hold.
Fortunately, rates are declining, and buyers are re-entering the market. Recent data from the Mortgage Bankers Association (MBA) indicates that mortgage applications increased by 7% last week compared to the previous week.
If you’ve been considering selling your home but are still determining if there are buyers in the market, this shift could be your opportunity. Here’s what experts say about buyers returning to the market as we approach the spring season.
Mike Fratantoni, SVP and Chief Economist of MBA, believes that lower mortgage rates and more homes on the market will make it more affordable for first-time homebuyers. In addition, Lawrence Yun, Chief Economist of the National Association of Realtors (NAR), predicts that the upcoming months will see a return of buyers as mortgage rates have already peaked and have been coming down since mid-November. Meanwhile, Thomas LaSalvia, Senior Economist at Moody’s Analytics, expects the labor market to remain robust and wages to continue to rise, providing homeownership opportunities as interest rates stabilize.
Sam Khater, Chief Economist of Freddie Mac, states that homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a sizeable demographic tailwind of Millennial renters will provide support to the purchase market.
Now is an excellent time to prepare your home for sale. Connect with me at 720-436-3249 to learn about the demand for buyers in your area and the best time to put your house on the market.