Mortgage Rates Are Falling. What does this mean for you?

Table of Contents

• Surprising Christmas Gift from Federal Reserve

• Here's why now could be the perfect time to list y …

• Bottom Line

Surprising Christmas Gift from Federal Reserve

Remember that feeling when bidding wars were the norm, and houses practically flew off the market? Well, strap yourselves in, because with mortgage rates tumbling and buyer confidence on the rise, that whirlwind might just be making a comeback.

Yesterday, the Federal Reserve announced they would not be raising interest rates any further through the end of the year, and signaled a likelihood of at least 3 interest rate cuts in 2024. Markets responded well to this, causing the U.S. 10-year treasure yield to fall, which is closely correlated to mortgage rates. This caused mortgage rates to plummet over the past 24 hours, leading to a current average of 6.62% interest rate on a 30 year fixed mortgage (VA & FHA mortgages currently sit in the low 6% range).

While rates are still much higher than 2021, these are the lowest rates we’ve seen since May of 2023 and is allowing many buyers to enter back into the market. We see this in mortgage applications which have gone up week over week for the past 5 weeks in a time of year when mortgage applications are usually slowing down. With potentially more qualified buyers, many home sellers are considering entering the market.

Here's why now could be the perfect time to list your home:

• Mortgage Rates on a Downward Spiral: Forget roller coasters, mortgage rates are diving headfirst! The Fed's recent pause on rate hikes has sent interest rates plummeting, making homes much more affordable for buyers.This translates to more qualified buyers lining up at your door, ready to make offers.

• Buyer Demand is Buoyant: Remember those days of crickets chirping when you put your house on the market? Those are fading fast. With rates dipping, pent-up buyer demand will continue to increase. This means increased competition for your property, potentially driving up offers and shortening your selling time.

• Bidding Wars: Back in the Ring? With more buyers and sweeter mortgage deals, bidding wars could be making a reappearance. This means multiple offers on your table, giving you the power to negotiate the best possible price for your home. With a good pricing strategy, your home becomes the obvious choice for any homebuyer, leading to multiple offers and a much higher sales price.

Bottom Line

Thinking of moving? Lower rates make selling your current home for a premium price and buying that next home within reach. Even if you're not quite ready to sell, or you’re a first time home buyer, there are still reasons to celebrate this shift in the market. Buying that dream starter home is much more attainable with lower rates.

So, what are you waiting for? This could be the golden opportunity you've been waiting for. Let me know if you’d like to discuss your options and get your home ready to shine in the spotlight. Remember, a knowledgeable agent can help you navigate the market, and secure that top dollar offer.

Don't let this chance slip through your fingers! Seize the opportunity and sell with confidence. Let's make this your selling season to remember!

P.S. Share this newsletter with your neighbors and anyone you know who might be considering selling their home. When the time is right, I would love the opportunity to earn your business. Feel free to respond to this email with any questions you may have.