Should I Wait for Mortgage Rates To Come Down Before I Move?

<article class="post-1010451 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1010451"><span class="entry-date">April 16, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Should I Wait for Mortgage Rates To Come Down Before I Move?</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=Should+I+Wait+for+Mortgage+Rates+To+Come+Down+Before+I+Move%3F&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fshould-i-wait-for-mortgage-rates-to-come-down-before-i-move%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="Should I Wait for Mortgage Rates To Come Down Before I Move? Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240416-Should-I-Wait-for-Mortgage-Rates-To-Come-Down-Before-I-Move.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>If you’ve got <a href="https://www.simplifyingthemarket.com/2024/03/14/why-todays-sellers-market-is-good-for-your-bottom-line/" rel="noopener noreferrer" target="_blank">a move</a> on your mind, you may be wondering whether you should wait to sell until <a href="https://www.simplifyingthemarket.com/2024/03/12/what-mortgage-rate-do-you-need-to-move/" rel="noopener noreferrer" target="_blank">mortgage rates</a> come down before you spring into action. Here’s some information that could help answer that question for you.</p>
<p>In the housing market, there’s a longstanding relationship between mortgage rates and buyer demand. Typically, the higher rates are, you’ll see lower buyer demand. That’s because some people who want to move will be hesitant to take on a higher mortgage rate for their next home. So, they decide to wait it out and put their plans on hold.</p>
<p>But when rates start to come down, things change. It goes from limited or weak demand to good or strong demand. That’s because a big portion of the buyers who sat on the sidelines when rates were higher are going to jump back in and make their moves happen. The <a href="https://www.mortgagenewsdaily.com/mortgage-rates" rel="noopener noreferrer" target="_blank">graph below</a> helps give you a visual of how this relationship works and where we are today:</p>
<p> <a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240415/20240416-Demand-Based-on-Rate-Environment.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240415/20240416-Demand-Based-on-Rate-Environment.png"/></a></p>
<p></p>
<p>As Lisa Sturtevant, Chief Economist for <em>Bright MLS</em>, <a href="https://www.marketwatch.com/story/bad-news-for-home-buyers-mortgage-rates-rise-for-third-week-in-a-row-2b3a8c2a?" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“The higher rates we’re seeing now [are likely] going to lead more prospective buyers to sit out the market and wait for rates to come down.”</em></p></blockquote>
<h4><strong>Why You Might Not Want To Wait</strong></h4>
<p>If you’re asking yourself: what does this mean for <a href="https://www.simplifyingthemarket.com/2024/04/02/why-overpricing-your-house-can-cost-you/" rel="noopener noreferrer" target="_blank">my move</a>? Here’s the golden nugget. According to experts, mortgage rates are still projected to <a href="https://www.simplifyingthemarket.com/2024/03/26/whats-the-latest-with-mortgage-rates/" rel="noopener noreferrer" target="_blank">come down</a> this year, just a bit later than they originally thought. </p>
<p>When rates come down, more people are going to get back into the market. And that means you’ll have a lot more competition from other buyers when you go to purchase your next home. That may make your move more stressful if you wait because greater demand could lead to an increase in multiple offer scenarios and prices rising faster.</p>
<p>But if you’re ready and able to <a href="https://www.simplifyingthemarket.com/2024/03/08/the-spring-market-is-a-sweet-spot-if-youre-looking-to-sell-infographic/" rel="noopener noreferrer" target="_blank">sell now</a>, it may be worth it to get ahead of that. You have the chance to move before the competition increases.</p>
<h3>Bottom Line</h3>
<p>If you’re thinking about whether you should wait for rates to come down before you move, don’t forget to factor in buyer demand. Once rates decline, competition will go up even more. If you want to get ahead of that and sell now, talk to a real estate agent.</p>
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