2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers

If you’ve been holding off on selling your house to [make a move](https://www.simplifyingthemarket.com/en/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/?a=713258-9a8342bcf821027012880bf1d7cccbf7) because you felt mortgage rates were too high, their recent downward trend is exciting news for you. Mortgage rates have descended since last October when they hit 7.79%. In fact, they’ve been [below 7%](https://freddiemac.gcs-web.com/node/28231/pdf) for over a month now (_see graph below_): [](https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Mortgage-Rates-Continue-to-Hover-in-the-Mid-6-percent-Range.png) And while they’re not going back to the 3% we saw during the [‘unicorn’ years](https://www.simplifyingthemarket.com/en/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/?a=713258-9a8342bcf821027012880bf1d7cccbf7), they are expected to continue to [go down](https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=713258-9a8342bcf821027012880bf1d7cccbf7) from where they are now in the near future. As Dean Baker, Senior Economist at the _Center for Economic Research_, [explains](https://cepr.net/contrary-to-what-the-washington-post-tells-you-homeownership-rates-for-young-people-are-above-the-pre-pandemic-level/): ###### _“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 are two reasons why this recent trend, and the [expectation](https://www.simplifyingthemarket.com/en/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/?a=713258-9a8342bcf821027012880bf1d7cccbf7) it’ll continue, is such [good news](https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=713258-9a8342bcf821027012880bf1d7cccbf7) for you. #### You May Not Feel as Locked-In to Your Current Mortgage Rate With mortgage rates already significantly lower than they were just a few months ago, you may feel less locked-in to the current mortgage rate you have on your house. When mortgage rates were higher, [moving](https://www.simplifyingthemarket.com/en/2023/12/22/get-your-house-ready-to-sell-this-winter-infographic/?a=713258-9a8342bcf821027012880bf1d7cccbf7) to a new home meant possibly trading in a low rate for one up near 8%. However, with rates dropping, the difference between your current mortgage rate and the new rate you’d be taking on isn’t as big as it was. That makes [moving](https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=713258-9a8342bcf821027012880bf1d7cccbf7) more affordable than it was just a few months ago. As Lance Lambert, Founder of _ResiClub_, [explains](https://www.resiclubanalytics.com/p/lockin-effect-told-2-maps?utm_source=www.resiclubanalytics.com&utm_medium=newsletter&utm_campaign=the-lock-in-effect-as-told-by-2-maps&jwt_token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJzdWJzY3JpYmVyX2lkIjoiZTFhYmVkNWYtMjMwOC00ZDlhLWEzY2YtMmNiNmJkNzg0YTc0IiwiZXhwIjoxNzA0MjI5Njg4LCJpc3MiOiJodHRwczovL2FwcC5iZWVoaWl2LmNvbSIsImlhdCI6MTcwNDA1Njg4OH0.kgtTWNpT6CQaG3sypDr0uRJAnyMH9ozLhjjxYVWTThI): ###### _“__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.”_ #### More Buyers Will Be Coming to the Market According to [data](https://brightmls.com/article/market-survey-winds-of-change-expected-for-2024) from _Bright MLS_, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates (_see graph below_): [](https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Top-3-Reasons-Buyers-Paused-Decision.png) Lower mortgage rates mean buyers can potentially save money on their home loans, making the prospect of purchasing a home more attractive and affordable. Now that rates are easing, more buyers are likely to feel they’re ready to jump back into the market and make their move. And more buyers mean more demand for your house. ### Bottom Line If you’ve been waiting to sell because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the recent decline in mortgage rates may be your sign it’s time to move. When you’re ready, [let’s connect](https://www.simplifyingthemarket.com/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/).