Will Plunging Mortgage Rates Cause Another Homebuying Rush?
There is no question that the housing market has been on fire since the beginning of the pandemic. With the waiving of inspections, insane over-asking prices, and unprecedented competition, real estate has experienced a boom.
With mortgage rates being on the rise over the last year, many have thought the housing market could stall. However, mortgage rates may plunge in the near future.
This bodes many to ask the question: will plunging mortgage rates cause another homebuying rush?
Where are the Rates Right Now?
The average daily mortgage rate today is around 6.59%. For some, it has reached well over 7%. However, for the second week in a row, rates continue to fall.
Realtor.com Chief Economist Danielle Hale states, “When mortgage rates dipped this summer, it boosted buyer demand enough to stabilize cooling trends.” Therefore, a homebuying rush may well be on the way.
Home Prices Become More Manageable
As the mortgage rates are falling, home price negotiations are now fair game. At this time last year, the prices were 11% lower than they are now. This is intended to fall as well as the rates drop.
More people now have the chance to jump into the homebuying game as housing prices are no longer at the maximum. For the last year, sellers have witnessed way over asking prices from multiple bidders.
More Sellers are Taking a Step Back
More people are sitting out from selling their homes as house prices continue to fall. This makes room for more serious buyers and their negotiating powers.
The competition continues to be steep although some sellers are choosing to wait to sell their homes. As the rates continue to fall, the amount of homebuyers is said to increase, thus prompting bidding wars to purchase the low housing inventory.
What Does This Mean For You?
Whether you are looking to buy or sell your home, this is a great time to jump into the real estate game. The Fed may continue to drop the mortgage rate in lieu of the impending recession at the beginning of 2023.
Sellers are taking a backseat which means now is the prime time to sell your home in Columbia, South Carolina. If you are looking to buy, you have more negotiation power now that housing prices have fallen. Act fast as the market can always shift at a moment’s notice!
After a hellacious past year of steadily increasing housing prices and mortgage rates, relief is in the air. The Fed is dropping the mortgage rate as it continues to fall for the second week in a row. However, this is prompting many people from listing their homes on the market.
Homebuyers’ negotiation powers are increased as housing prices fall. Be prepared for steep competition as there continues to be low inventory.
When you are ready to list your home or purchase a new one, contact Craig Augenstein, a top Columbia, SC real estate agent today!