If you're considering a move, you might be pondering whether to hold off on selling until mortgage rates decrease before taking action. Here's some insight to help you navigate that decision.

In the housing market, there's a well-established correlation between mortgage rates and buyer activity. Generally, as rates rise, buyer demand tends to decrease. This is because potential movers may hesitate to commit to higher mortgage rates for their next home, opting instead to postpone their plans.

However, when rates begin to drop, the dynamic shifts. Demand transforms from subdued to robust. Many of the buyers who were waiting on the sidelines during periods of higher rates are likely to re-enter the market, igniting increased activity. The accompanying graph provides a visual representation of this relationship and current market conditions:

As Lisa Sturtevant, Chief Economist for Bright MLS, points out:

"The current higher rates will likely prompt more potential buyers to hold off on entering the market and wait for rates to decrease."

Why Waiting Might Not Be the Best Option If you're wondering how this affects your moving plans, here's the key insight: experts anticipate that mortgage rates will still decrease later this year, albeit slightly later than initially projected.

As rates decline, more buyers will re-enter the market, intensifying competition. This could potentially lead to more stressful situations, such as multiple offer scenarios and faster price increases, if you wait to make your move.

However, if you're prepared to sell now, it could be advantageous to act sooner rather than later. Selling now gives you the opportunity to move before competition intensifies.

In Conclusion When considering whether to wait for rates to drop before making your move, remember to factor in the expected increase in buyer demand. With declining rates, competition is likely to escalate further. If you're considering selling now to stay ahead of the curve, let's connect and discuss your options.