Is Now the Time to Sell? Here’s Your Sign to Speak with an Agent
If you’ve been holding off on listing your home, fearing a lack of buyers, now might be the perfect moment to reconsider.
After months of elevated interest rates keeping potential buyers at bay, the tide is turning. Mortgage rates are beginning to drop, thanks to shifting economic conditions. Just yesterday, the Federal Reserve made its first cut to the Federal Funds Rate since raising it in March 2022. While the Fed doesn’t directly control mortgage rates, this move sets the stage for further reductions in borrowing costs, with additional cuts likely in the coming year. As mortgage rates decrease, more buyers are re-entering the market.
Lisa Sturtevant, Chief Economist at Bright MLS, highlights this trend:
“A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”
The great news? This creates an ideal opportunity for you to tap into growing buyer interest.
Buyer Activity Rises as Mortgage Rates Decline
The graph below shows how decreasing mortgage rates (orange line) directly influence rising buyer activity. The blue line represents the Mortgage Bankers Association (MBA) Mortgage Application Index, which tracks the number of mortgage applications. As the graph reveals, as mortgage rates fall, more buyers are applying for loans, re-engaging with the housing market.
What This Means for You
July brought a positive shift in the housing market, as home sales increased for the first time in months, according to the National Association of Realtors (NAR). If you’re a homeowner thinking about selling, this surge in buyer activity could work to your advantage.
More buyers in the market means greater competition, which can drive higher offers and quicker sales. Edward Seiler, AVP of Housing Economics at the Mortgage Bankers Association (MBA), supports this outlook, stating:
“MBA expects that slower home-price appreciation, combined with lower rates, will ease affordability challenges and boost activity in the housing market.”
As the market becomes more accessible to a wider range of buyers, the potential for selling your home quickly—and at a favorable price—grows stronger.
With increasing buyer interest, now is the ideal time to prepare your home for sale.
Bottom Line
The recent drop in mortgage rates is fueling buyer demand, and experts predict this trend will continue. Let’s work together to capitalize on this momentum and get your home ready to sell.