Did you know buyers are coming back into the market?

Dated: February 10 2023

Views: 8

Lower Mortgage Rates Are Bringing Buyers Back to the Market

Lower Mortgage Rates Are Bringing Buyers Back to the Market | MyKCM

As mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed on the market longer. That meant some homeowners decided to press pause on selling.

Now, however, rates are beginning to come down—and buyers are starting to reenter the market. In fact, the latest data from the Mortgage Bankers Association (MBA) shows mortgage applications increased last week by 7% compared to the week before.

So, if you’ve been planning to sell your house but you’re unsure if there will be anyone to buy it, this shift in the market could be your chance. Here’s what experts are saying about buyers returning to the market as we approach spring.

Mike Fratantoni, SVP and Chief Economist, MBA:

Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”

Thomas LaSalvia, Senior Economist, Moody’s Analytics:

"We expect the labor market to remain robust, wages to continue to rise—maybe not at the pace that they did during the pandemic, but that will open up some opportunity for folks to enter homeownership as interest rates stabilize a bit."

Sam Khater, Chief Economist, Freddie Mac:

“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market.”

Bottom Line

If you’ve been thinking about making a move, now’s the time to get your house ready to sell. Let’s connect so you can learn about buyer demand in our area the best time to put your house on the market.

Blog author image

James & Karen Olsen

The Olsen Home Team's mission is to provide our clients with superior customer service. Our focus is to help you achieve your goals, and by the end of the process gain you as a lifelong customer and f....

Latest Blog Posts

Spring 2023 Is Going To Be A Great Sellers Market!

The Spring Housing Market Could Be a Sweet Spot for Sellers Some HighlightsThe biggest challenge in the housing market is how few houses there are for sale compared to the number of

Read More

Did you know buyers are coming back into the market?

Lower Mortgage Rates Are Bringing Buyers Back to the MarketAs mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed

Read More

Are We At The Bottom of the Housing Market?

Have Home Values Hit Bottom?Whether you’re already a homeowner or you’re looking to become one, the recent headlines about home prices may leave you with more questions than

Read More