If you are planning to sell your house, it is important to know what to expect in the current housing market. One positive trend is that homebuyers are adapting to today's mortgage rates and accepting them as the new normal.
To better understand the recent trends in mortgage rates, the graph below shows the 30-year fixed mortgage rate from Freddie Mac since last October. Rates have been between 6% and 7% for the past nine months.
As a seller, it is good news that home sales are consistent right now. This means that there are buyers who are actively purchasing homes. Here is some more context on how mortgage rates have recently impacted demand:
When mortgage rates surged dramatically last year, rising from roughly 3% to 7%, many potential buyers were shocked and decided to postpone their home purchase plans. However, as time has passed, this initial shock has worn off. Buyers have become more accustomed to current mortgage rates and have accepted that the record-low rates of the past few years are a thing of the past.
Of course, mortgage rates are not the only factor that affects buyer demand. People will always have reasons to move, whether it is due to a job change, a change in household size, or any other personal reason, regardless of where mortgage rates are. As a seller, you can be confident that there is a market for your house today. And as buyers adjust to the current rates, demand is quite strong, given consistent low inventory.
In short, the way Buyers perceive today's mortgage rates is changing - they are getting used to the new normal. Steady rates are contributing to strong Buyer demand and consistent home sales.
On a fun note, we received the following testimonial for our listing team leads, Lauren and Allison:
“From our first meeting with Allison O'Brien and Lauren Woolsey, we knew we'd be in great hands with the Dana Green Team (DGT). After explaining our goals and timing for the sale of our home, the DGT sprung into action to help plan inspections, coordinate with vendors, and create a business plan. The DGT presented plenty of comp data, shared market insights, and presented us with a target list price. After brilliantly staging and photographing our home, the DGT put our house on the market, and within 11 days, we received a great offer. The communication was excellent, the escrow process was painless, and we felt we had a true partner in the DGT. My wife and I highly recommend Allison and Lauren to anyone interested in selling their home with exceptional professionals in the Lamorinda area.”
If you, or anyone you know, is interested in selling a home this year, we would love to partner with you for a successful sale. It is never too early to get started with the sales process!
Dana & Team