Homebuyers Are Getting Used to the New Normal

Before you decide to sell your house, it’s important to know what you can expect in the current housing market. One positive trend right now is homebuyers are adapting to today’s mortgage rates and getting used to them as the new normal.

To better understand what’s been happening with mortgage rates lately, the graph below shows the trend for the 30-year fixed mortgage rate from Freddie Mac since last October. As you can see, rates have been between 6% and 7% pretty consistently for the past nine months:

According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), mortgage rates play a significant role in buyer demand and, by extension, home sales. Yun highlights the positive impact of stable rates:

“Mortgage rates heavily influence the direction of home sales. Relatively steady rates have led to several consecutive months of consistent home sales.”

As a seller, hearing that home sales are consistent right now is good news. It means buyers are out there and actively purchasing homes. Here’s a bit more context on how mortgage rates have impacted demand recently.

When mortgage rates surged dramatically last year, escalating from roughly 3% to 7%, many potential buyers felt a bit of sticker shock and decided to hold off on their plans to purchase a home. However, as time has passed, that initial shock has worn off. Buyers have grown more accustomed to current mortgage rates and have accepted that the record-low rates of the last few years are behind us. As Doug Duncan, SVP and Chief Economist at Fannie Mae, says:

“. . . consumers are adapting to the idea that higher mortgage rates will likely stick around for the foreseeable future.”

In fact, a recent survey by Freddie Mac reveals 18% of respondents say they’re likely to buy a home in the next six months. That means nearly one out of every five people surveyed plan to buy in the near future. And that goes to show buyers are planning to be active in the months ahead.

Of course, mortgage rates aren’t the sole factor affecting buyer demand. No matter where mortgage rates stand, people will always have reasons to move, whether it’s for job relocation, changing households, or any other personal motivation. As a seller, you can feel confident there is a market for your house today. And that demand is pretty strong as buyers settle into where rates are right now. 

Bottom Line

As buyers adapt to the "new normal" of steady rates, we are witnessing a surge in buyer demand and consistent home sales. If you're considering selling your house, now is an opportune time to connect with a local real estate agent who can help you capitalize on this strong market.

At Mountain Rose Realty, we understand the intricacies of the Telluride Real Estate market. Our expert agent, Anne-Britt, specializes in navigating the unique dynamics of Telluride Real Estate and can provide valuable guidance tailored to your specific needs.

With steady mortgage rates, buyers are feeling more confident in making their homebuying decisions. This increased buyer demand presents a fantastic opportunity for sellers to showcase their properties and attract motivated buyers. By partnering with a local real estate agent, like those at Mountain Rose Realty, you can leverage their expertise, network, and marketing strategies to ensure your house gets maximum exposure to potential buyers.

Through strategic marketing initiatives and leveraging online platforms, Mountain Rose Realty, with Anne-Britt as your dedicated agent, will help you position your property in front of the right audience. Don't miss out on the strong buyer demand and consistent home sales driven by steady mortgage rates. Connect with a local real estate agent, such as Anne-Britt at Mountain Rose Realty, who can guide you through the selling process and help you seize the opportunities available in the market.

Now is the time to take action and get your house on the market. Trust the expertise of Mountain Rose Realty and Anne-Britt, your dedicated Telluride Real Estate specialist, to navigate the current real estate landscape and ensure a successful and rewarding selling experience.