Is It Time To List Your House? Falling Rates Suggest Yes
If you’ve been holding off on listing your house due to concerns about a slow market, now might be the perfect moment to reconsider.
After months of high mortgage rates sidelining buyers, things are starting to shift. Rates have already started to decline due to various economic factors. In fact, the Federal Reserve just cut the Federal Funds Rate for the first time since they began increasing it back in March 2022. While the Fed doesn’t directly set mortgage rates, their actions set the stage for mortgage rates to fall further, especially as more cuts are expected into next year. As mortgage rates drop, more buyers are re-entering the market. Lisa Sturtevant, Chief Economist at Bright MLS, highlights this shift:
“A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”
That’s great news if you’re thinking about selling—you can benefit from this renewed buyer interest.
Falling Rates Fuel Buyer Activity
As rates decrease, buyer activity tends to rise. The chart below illustrates how the average 30-year fixed mortgage rate (orange line) relates to the Mortgage Bankers Association (MBA) Mortgage Application Index (blue line), which tracks the number of mortgage applications. When rates go down, mortgage applications—and buyer demand—typically go up.
What This Means for You
According to the National Association of Realtors (NAR), home sales increased in July after four months of decline, signaling a turning point for the market. If you’re considering selling your home, this boost in buyer interest could work in your favor.
More buyers mean more competition, which can result in higher offers and a quicker sale for your property. Edward Seiler, AVP of Housing Economics at the Mortgage Bankers Association (MBA), supports this outlook:
“MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”
With market conditions becoming more favorable to a wider range of buyers, your home could attract more interest and competitive offers.
Bottom Line
The recent drop in mortgage rates is already drawing more buyers into the market, and experts predict this trend will continue. Let’s work together to take advantage of this surge in buyer demand and get your home ready to sell.
