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Real Estate Agent with Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA 92593-B

Mortgage Rates Down a Full Percent from Recent High

 

Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. And if you’re someone who’s looking to make a move, you’ve probably been waiting eagerly for rates to come down for that very reason. Well, if the past few weeks are any indication, you may be getting your wish.

Mortgage Rates Trend Down in Recent Weeks

There’s big news for mortgage rates. After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February. To help show the downward trend, check out the graph below:

No Caption ReceivedMaybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see a 3% mortgage rate again, you’re waiting for something experts agree won’t happen. As Greg McBride, Chief Financial Analyst at Bankratesays: 

“The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”

And with the decrease in recent weeks, you’ve got a big opportunity in front of you right now. It may be enough for you to want to jump back in. 

The Relationship Between Rates and Demand 

If you wait for mortgage rates to drop further, you might find yourself dealing with more competition as other buyers re-ignite their home searches too.

In the housing market, there’s generally a relationship between mortgage rates and buyer demand. Typically, the higher rates are, the lower buyer demand is. But when rates start to come down, things change. Buyers who were on the fence over higher rates will resume their searches. Here’s what that means for you. As a recent article from Bankrate says:

If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”

Bottom Line

If you’ve been waiting to make your move, the recent downward trend in mortgage rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too.

If you’re ready and able to start the process, reach out to a local real estate professional to get started.

Posted by

Grace be with you, and peace, from God our Father, and the Lord Jesus Christ.

2 Thessalonians 1:2 KJV

Keller Williams Realty Evolution

447 Newburyport Turnpike Suite #5

Topsfield, MA 01983

 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments(9)

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Roy Kelley
Retired - Gaithersburg, MD

This is good information to share with prospective mortgage borrowers.

Aug 07, 2024 08:46 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Doug, I know so many renters are waiting for the Feds to lower rates in Sept.  I keep telling them they can always refi down the road.

 

Aug 07, 2024 08:58 AM
Brenda J. Andrew
ULTIMA REAL ESTATE - Beach, TX
Broker/REALTOR in N Houston & Corpus Christi

This is Great News Doug Dawes .  Thanks so much for sharing and all of your expertise on the market.  I am thankful for the 1% right now!  Enjoy your week.

Aug 07, 2024 08:59 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Afternoon Roy Kelley 

As is always the case you have provided good advice. Hope you and Delores are enjoying the Gaithersburg, MD summer. Thank you for commenting

Aug 07, 2024 09:06 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Afternoon Will Hamm 

Yes, many folks are awaiting interest rate relief. The issue now is, the escalating home prices. A 1500 sq.ft. home in our modest neighborhood listed for $599K and within 2 days was UAG and sold for $690K.

Aug 07, 2024 09:08 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Afternoon Brenda J. Andrew RENE, PSA, MRP, SRS 

YES, we'll take what we can get when it comes around. Maybe that 1% drop will help with refinancing. Have a great rest of the week

Aug 07, 2024 09:10 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, many buyers are waiting not so patiently for the rates to come down a bit so they can buy!

Aug 07, 2024 09:34 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Hi Doug... yes, it is good news... but so far buyers still seem to be holding out. I think many of them are waiting for an adjustment in September.

Aug 07, 2024 11:11 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Doug - perspective continues to tell stories.  Sorting through information may share even more.  I can see why there are those who feel overwhelmed.  A bit.  Maybe a lot.  

Aug 08, 2024 02:54 AM