📉 Good news for sellers: Mortgage rates are on the decline! 🏡✨
If you've been waiting to sell your home due to concerns about high mortgage rates, now might be the perfect time to make your move. Rates have been steadily decreasing, making home ownership more affordable and attracting more buyers to the market. 📈🔑
Here are two key reasons why this trend benefits sellers:
1️⃣ You're not as locked into your current mortgage rate as before. With rates dropping, the difference between your current rate and a new one isn't as substantial, making moving more affordable.
2️⃣ Lower rates mean more buyers entering the market, increasing demand for your home. 🏠🌟
Don't miss out on the latest insights in our podcast, and make sure to check out our fantastic "House of the Week" in Rockville! This charming single-family rancher is conveniently located near the Rockville metro and City Center. 🚆🏡
Ready to seize the opportunity? Let's connect! 🤝 #RealEstateTrends #MortgageRates #SellersMarket
of Jay Day and the Day Home Team at LPT Realty with our weekly real estate podcast. Jay I've heard things in the national news, the words mortgage rates, up, down, what's going on?
Up, down, all around. A little bit of this, a little bit of that.
I don't know. I do these podcasts with you and then I hear the national news and I think, man, these people don't know what they're talking about. Jay knows what's going on.
Well, that's very kind of you, but I don't know if I want all that pressure. So the rates have come down from the highest point they were at. And so overall what we're seeing is that mortgage rates have descended since last October when they hit about 8%. So we have been seeing them drop down. Now, they dropped lower a couple of weeks ago than they're back up, but they're still not up to where they were pushing close to 8%. And I was looking at some statistics on this and some data, and Dean Baker, a senior economist at the Center of Economic Research says that it appears that mortgage rates are now falling again. They almost certainly not fall back to the pandemic levels, although we may soon see rates under 6%, and we actually have seen rates under 6% for government loans, and that would be low by pre Great Recession standards. Also, we're finding that with the rates dropping, sellers are starting to realize it's a lot different. Maybe they refinanced and had 4% and they weren't making any moves and selling because the rates were close to 8%. Now with them getting down to the low sixes, upper fives, they're starting to realize, okay, well maybe I can make a move. It's not as bad as it was. It's better than it was just a few months ago. And so Lance Lambert, who is a founder of ResiClub, said, we might be at a peak lock-in effect, some move up lifestyle sellers might be coming to terms with the fact that 3 and 4% mortgage rates aren't returning anytime soon, meaning that sellers have realized, okay, we're never going to get back to that level if I need to move. And we're not at the highest, pushing 8%, so now might be a good time if we're in that upper fives, we can pull a trigger and who knows if they're going to go down, but we definitely know that they can go up and they can go up quickly. Some of the other interesting studies that I looked at were according to Bright MLS, that here are the top reasons why buyers have been waiting. And number one, 72% was due to high mortgage rates. 34% was due to inventory, lack of inventory, and 17.4 were because of the affordability home prices. So the lower rates are allowing them to be able to make that purchase now, and the home sale prices are not as concerning because people are realizing the prices aren't coming down. Actually, another thing that I just looked at was a home price forecast, home index that shows that home price forecasts are due to climb over the next five years. They're saying estimated for what they're looking at is in 2024, they're expecting home values to increase by 2.35%. 2025, 2.7. 2026, 3.67. 2027, 4.06. 2028, 4.15. So if that is correct, waiting for prices to come down is just not going to happen, and I don't see it happening either. There's still a crazy demand. The rates are getting a little more affordable. So if you've been sitting on the fence about selling your home, now's not a bad time to do that. And the same thing on the buy side. Again, on the buyer side, if you're looking at estimates that values are going to go up at least close to 3% every year and then hitting over 4% increase, it's just going to cost you more and more money the longer you wait. So if you have any questions about that, you can feel free to reach out to us. Again, these are all predictions. This is all based on what the economists say in the real world. What we're seeing is homes are still moving fairly quickly. There's still a lack of inventory and what sort of peaked that was, those rates hitting in the upper fives, low sixes is what I would say. So you ready for the home of the week?
What do we got?
Alright. This is one pushing out towards our Montgomery County people. 606 Lincoln Street in Rockville, Maryland, listed for 365. Also on this one, we are going to have an open house this Saturday, 1/27, so the 27th from 1:00 to 3:00 PM. This is a single family home. It's a rancher, no basement. That's the price is 365. It's close to the Rockville Metro and City Center. Three bedrooms, one full bath, formal dining room. There's a covered rear porch, off street parking, storage shed, partially fenced. This is one that if you're looking for a smaller home, great, or if you're looking as an investor and looking to maybe renovate, possibly see if you can increase the size of the house and make a good return. This one could be good for you. If you want to see what the home looks like, go to wfre.com. Look up Tom and Jay's Real Estate Podcast. If you like what you see, click on the button and we can get your private tour and get you into the home. ASAP.
of Jay Day and the Day Home Team at LPT Realty with our weekly real estate podcast. Thank you for listening and tell your friends all about it.