2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers

<article class="post-910632 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-910632"><span class="entry-date">January 17, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=2+Reasons+Why+Today%E2%80%99s+Mortgage+Rate+Trend+Is+Good+for+Sellers&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2F2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers Simplifying The Market" decoding="async" loading="lazy" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/2024017-2-reasons-why-today-s-mortgage-rate-trend-is-good-for-sellers..png" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>If you’ve been holding off on selling your house to <a href="https://www.simplifyingthemarket.com/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">make a move</a> because you felt mortgage rates were too high, their recent downward trend is exciting news for you. Mortgage rates have descended since last October when they hit 7.79%. In fact, they’ve been <a href="https://freddiemac.gcs-web.com/node/28231/pdf" rel="noopener noreferrer" target="_blank">below 7%</a> for over a month now (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Mortgage-Rates-Continue-to-Hover-in-the-Mid-6-percent-Range.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Mortgage-Rates-Continue-to-Hover-in-the-Mid-6-percent-Range.png"/></a></p>
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<p>And while they’re not going back to the 3% we saw during the <a href="https://www.simplifyingthemarket.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>, they are expected to continue to <a href="https://www.simplifyingthemarket.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">go down</a> from where they are now in the near future. As Dean Baker, Senior Economist at the <em>Center for Economic Research</em>, <a href="https://cepr.net/contrary-to-what-the-washington-post-tells-you-homeownership-rates-for-young-people-are-above-the-pre-pandemic-level/" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, </em><strong><em>although we may soon see rates under 6.0 percent</em></strong><em>, which would be low by pre-Great Recession standards.”</em></p></blockquote>
<p>Here are two reasons why this recent trend, and the <a href="https://www.simplifyingthemarket.com/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">expectation</a> it’ll continue, is such <a href="https://www.simplifyingthemarket.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">good news</a> for you.</p>
<h4><strong>You May Not Feel as Locked-In to Your Current Mortgage Rate</strong></h4>
<p>With mortgage rates already significantly lower than they were just a few months ago, you may feel less locked-in to the current mortgage rate you have on your house. When mortgage rates were higher, <a href="https://www.simplifyingthemarket.com/2023/12/22/get-your-house-ready-to-sell-this-winter-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">moving</a> to a new home meant possibly trading in a low rate for one up near 8%.</p>
<p>However, with rates dropping, the difference between your current mortgage rate and the new rate you’d be taking on isn’t as big as it was. That makes <a href="https://www.simplifyingthemarket.com/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">moving</a> more affordable than it was just a few months ago. As Lance Lambert, Founder of <em>ResiClub</em>, <a href="https://www.resiclubanalytics.com/p/lockin-effect-told-2-maps?utm_source=www.resiclubanalytics.com&amp;utm_medium=newsletter&amp;utm_campaign=the-lock-in-effect-as-told-by-2-maps&amp;jwt_token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJzdWJzY3JpYmVyX2lkIjoiZTFhYmVkNWYtMjMwOC00ZDlhLWEzY2YtMmNiNmJkNzg0YTc0IiwiZXhwIjoxNzA0MjI5Njg4LCJpc3MiOiJodHRwczovL2FwcC5iZWVoaWl2LmNvbSIsImlhdCI6MTcwNDA1Njg4OH0.kgtTWNpT6CQaG3sypDr0uRJAnyMH9ozLhjjxYVWTThI" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“</em><strong><em>We might be at peak “lock-in effect.”</em></strong><em> Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”</em></p></blockquote>
<h4><strong>More Buyers Will Be Coming to the Market</strong></h4>
<p>According to <a href="https://brightmls.com/article/market-survey-winds-of-change-expected-for-2024" rel="noopener noreferrer" target="_blank">data</a> from <em>Bright MLS</em>, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Top-3-Reasons-Buyers-Paused-Decision.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Top-3-Reasons-Buyers-Paused-Decision.png"/></a></p>
<p></p>
<p>Lower mortgage rates mean buyers can potentially save money on their home loans, making the prospect of purchasing a home more attractive and affordable. Now that rates are easing, more buyers are likely to feel they’re ready to jump back into the market and make their move. And more buyers mean more demand for your house.</p>
<h3>Bottom Line</h3>
<p>If you’ve been waiting to sell because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the recent decline in mortgage rates may be your sign it’s time to make your move. When you’re ready, connect with a local <a href="https://www.simplifyingthemarket.com/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">real estate agent</a>.</p>
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