Andrea Ballesteros January 18, 2024
Are you contemplating a move but have been hesitant due to seemingly high mortgage rates? The recent downward trend in mortgage rates brings exciting news for potential sellers. Since last October, when rates peaked at 7.79%, they have steadily descended and have now remained below 7% for over a month. While we may not revisit the unicorn years of 3% rates, experts predict a continued decline, offering sellers a window of opportunity.
1. Freedom from Rate Lock-In
The substantial drop in mortgage rates over the past few months means you may no longer feel bound to your current mortgage rate. Previously, moving to a new home might have involved trading in a low rate for one nearing 8%. However, with rates now on the decline, the gap between your current mortgage rate and the potential new rate is more manageable. Lance Lambert, Founder of ResiClub, suggests that we might be at the peak of the "lock-in effect," with move-up or lifestyle sellers realizing that the era of 3% and 4% mortgage rates may not return soon.
2. A Surge in Buyer Interest
Bright MLS data indicates that high mortgage rates have been the primary reason holding back potential homebuyers. Lower mortgage rates translate to potential savings on home loans, making homeownership more appealing and affordable. As rates continue to ease, more buyers are likely to re-enter the market, creating increased demand for homes. This surge in buyer activity is excellent news for sellers, as a larger pool of potential buyers increases the likelihood of a successful sale.
If you've been delaying your decision to sell, concerned about taking on higher mortgage rates or unsure about buyer interest, the recent decline in mortgage rates serves as a promising sign. It's time to consider making your move. When you're ready to explore the possibilities, let's connect. The current mortgage rate trend is not just a shift in numbers; it's an unlocking of opportunities for sellers in the Southern California real estate market.
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