Interest Rates on the Decline 📉
In the past few weeks, we've witnessed a significant drop in interest rates—a five-week streak! As of November 30th, the U.S. weekly average for a 30-year fixed mortgage hit 7.22%, down from this year's peak in late October. It's currently the lowest we've seen since the end of August.
Market Dynamics Shifting 🔄
Recent economic indicators, such as higher jobless claims, slowing inflation, and softer Black Friday spending, and suggest a positive shift for the real estate landscape. This means that buyers are starting to reengage, updating pre-approvals and submitting new mortgage applications.
So what does this shift in rates mean for homebuyers and sellers?
Good News 😄 Bad News 😫
This uptick in buyer activity is fantastic news. More buyer competition could mean shorter days on market, fewer concessions or negotiations needed, and possible bidding wars returning. After recent slowdowns, this great to hear.
A drop in mortgage rates is welcome news as it increases purchasing power and homeownership may become attainable again for those previously priced out of the market.
While lower interest rates are a win for affordability, the bad news is that this will lead to increased competition for the limited number of homes for sale. If you remember from not too long ago this is the perfect storm for bidding wars, price escalations, fewer seller concessions and the possible return of waived contingencies.
Timing Is Everything ⏰
As the market dynamics evolve, it's crucial to time your actions wisely. Sellers will benefit from the current buyer resurgence, while buyers might still find a less crowded playing field with prices and seller concessions that make a purchase appealing.
Think rates will go down further? Remember, you can always refinance later.
I'm keeping a close eye on market conditions as we head into 2024. Reach out with any questions or for an updated look at how these trends are impacting our local market.