Feb. 3, 2023
The housing market experienced a slowdown in activity last year as mortgage rates rose, resulting in fewer offers and longer market times for homes. However, the tides are turning as rates are now beginning to drop and buyers are starting to re-enter the market. In fact, the Mortgage Bankers Association reports a 7% increase in mortgage applications last week compared to the previous week.
This shift presents a unique opportunity for those who have been considering selling their homes. As we approach spring, the market is poised for a return of buyers and experts are forecasting the favorable conditions that will drive this trend.
Mike Fratantoni, SVP and Chief Economist of MBA states, "Mortgage rates have reached their lowest level since September 2022, and the beginning of the spring buying season presents an increased affordability for first-time homebuyers with the combination of lower rates and a greater number of homes on the market."
Lawrence Yun, Chief Economist of National Association of Realtors, also highlights that "mortgage rates appear to have already peaked and have been declining since mid-November, signaling a return of buyers in the upcoming months."
Thomas LaSalvia, Senior Economist at Moody’s Analytics, predicts a robust labor market with rising wages, allowing for increased opportunities for homeownership as interest rates stabilize. And Sam Khater, Chief Economist of Freddie Mac, adds that "homebuyers are waiting for further rate decreases and a strong job market, along with a large demographic tailwind of millennial renters, will support the purchase market."
So, if you are ready to take advantage of this shift in the market, it's time to take action. Get in touch with a local real estate professional to gain a deeper understanding of buyer demand in your area and the optimal time to list your home. Don't miss out on this exciting opportunity to sell your home at a favorable market condition.
In conclusion, with the combination of lower mortgage rates, a return of buyers, and a robust job market, the housing market is primed for sellers to take advantage of favorable conditions. Stay ahead of the game and get your home ready to sell now.