Mortgage Rates Are Lower and Buyers Are Back

Dated: February 8 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

Chase Scroggins

We make buying and selling homes in Metro Atlanta easier and less-stressful.We help residential buyers and sellers get the best deal while ensuring a smooth and financially safe transaction. In an eve....

Latest Blog Posts

Think The Market is Headed For a Crash? Think Again!

Why Today’s Housing Market Isn’t Headed for a Crash67% of Americans say a housing market crash is imminent in the next three years. With all the talk in the media lately about

Read More

Mortgage Rates Are Lower and Buyers Are Back

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

A Few Main Reasons for Selling Your Home

The Top Reasons for Selling Your HouseMany of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in

Read More

Here's What Housing Experts Are Expecting in 2023

Experts Forecast a Turnaround in the Housing Market in 2023The housing market has gone through a lot of change recently, and much of that was a result of how quickly mortgage rates rose

Read More