Considering a move? If you're like me and many others who bought or refinanced before rates increased, you may be pondering whether it's best to wait for mortgage rates to drop before making your move. Here's what you need to know.
In the housing market, mortgage rates and buyer demand have a tight relationship. When rates are high, demand tends to be lower, as potential buyers hesitate to commit to higher mortgage payments. However, when rates start to decrease, buyer demand picks up significantly. Many who previously held off on purchasing decide it's the right time to make their move.
As Lisa Sturtevant, Chief Economist for Bright MLS, points out, the current high rates are likely causing some buyers to postpone their plans, waiting for a more favorable rate environment.
But here's the catch: while rates are expected to drop later this year, no one knows this for sure, and waiting may not be the best strategy. When rates do decrease, the market will become more crowded with buyers, leading to increased competition and potentially higher prices. If you're ready to sell now, taking action before rates fall could give you an advantage, allowing you to move ahead of the competition.
In essence, waiting for rates to drop isn't just about the mortgage —it's also about considering the impact on buyer demand. So don't try to time the market. The best time to move is when it's right for you.
If you're ready to discuss your options and potentially seize the current opportunity, let's start the conversation today.
Questions?