The Downward Trend in Mortgage Rates is Good for Sellers

For homeowners contemplating selling but hesitant due to previously high mortgage rates, the current downward trend in rates is a welcome development. Since peaking at 7.79% last October, mortgage rates have consistently stayed below 7% for over a month (refer to the accompanying graph):

While rates may not return to the exceptionally low 3% of the past ‘unicorn’ years, they are anticipated to decrease further in the near future. Dean Baker, Senior Economist at the Center for Economic Research, notes:

“It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”

Here’s why this trend and its expected continuation are particularly beneficial for you as a seller.

Reduced Mortgage Rate Lock-In Effect

The recent drop in mortgage rates means you might not feel as constrained by your current mortgage rate. When rates were higher, moving to a new home often involved exchanging a low rate for one around 8%.

Now, with rates falling, the gap between your existing mortgage rate and the new rate for a potential move is narrower. This makes relocating more financially feasible than it was a few months ago. Lance Lambert, Founder of ResiClub, comments:

“We might be at peak “lock-in effect.” Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”

It’s important to talk with a trusted lender, like Mark Scocco with Crown Home Mortgage. He can help you see how today’s lower mortgage rates can increase your buying power and help to remove the lock-in effect you may have been feeling.

Increase in Home Buyers

Interest in the Market Data from Bright MLS indicates that the primary reason buyers have been delaying their home purchases is high mortgage rates (see graph below):

As mortgage rates decrease, buyers can save on their home loans, making home buying more appealing and affordable. With easing rates, more buyers are likely to re-enter the market, ready to make a purchase. This increased buyer interest translates to higher demand for your property.

Bottom Line

If you’ve been postponing selling due to concerns over higher mortgage rates or a lack of buyers, the recent reduction in mortgage rates could be the signal you need to proceed with selling. When you decide to take the next step, contact Countryside Homes NJ and RE/MAX Select, we’re here to help.

Client Testimonials for Countryside Homes NJ

At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.

David R. New Homeowner

Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.

Rachel and Andre First Time Homebuyer

As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!

Prestia Family New Homeowners

From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!