Lower mortgage rates are bringing buyers back.

Posted by Brian Burds on Tuesday, January 31, 2023 at 11:11:03 AM By Brian Burds / January 31, 2023 Comment

Housing activity slowed last year as mortgage rates rose. The result was fewer offers and longer market times. Some homeowners paused selling.

However, rates are falling and buyers are returning. Mortgage applications rose 7% last week, according to the MBA.

This market shift could be your chance to sell your house if you've been unsure if anyone will buy it. Experts say spring buyers will return.

MBA, SVP, Chief Economist Mike Fratantoni:

“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.”

NAR Chief Economist Lawrence Yun:

“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.”

Moody's Analytics Senior Economist Thomas LaSalvia:

“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.”

Freddie Mac Chief Economist Sam Khater:

“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.”

Summation
Get your house ready to sell if you're thinking of moving. Let's talk about buyer demand and the best time to sell your house.