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Why Now Is the Ideal Time for Homebuyers to Act

After months of high mortgage rates and tight affordability, a unique opportunity is emerging for homebuyers. With rates gradually trending down, we’re experiencing a “sweet spot” that may not last long. If you’ve put your plans on hold, this could be the moment you’ve been waiting for to finally make your move.


Ask yourself: as rates continue to improve, what will other buyers do?


According to a recent survey from Bankrate, more than half of homeowners would be motivated to buy this year if rates drop below 6%. With current rates already near the low 6% range, it’s likely that more buyers will soon re-enter the market.


As demand picks up, prices could rise—potentially offsetting any savings from slightly lower rates. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), explains, increased demand often brings upward pressure on home prices, which can impact affordability.



The Market Benefits for Buyers Right Now


With fewer people actively searching for homes, competition is at a low, which works in your favor. The recent drop in mortgage rates has boosted affordability. As Mike Simonsen, Founder of Altos Research, notes, “Mortgage payments on the typical-price home are 7% lower than last year and are 13% lower than the peak in May 2024.” Additionally, while overall supply is still lower than ideal, it has increased significantly over the past year. Realtor.com’s Senior Economist Ralph McLaughlin shares that active listings are up by 35.8%, creating more options for homebuyers than in previous years.



Why Delaying Could Cost You


Waiting for “the perfect moment” to buy can be tricky and risky. As conditions shift, competition could intensify faster than anticipated. Greg McBride, Chief Financial Analyst at Bankrate, cautions that a further decline in mortgage rates could lead to a rush in demand, complicating the buying process. Acting now, while rates are favorable and competition is moderate, could give you an edge in the current market.



Bottom Line


Now is an ideal time to take advantage of falling mortgage rates, increased home choices, and lower competition. Let’s connect today to make the most of this buyer’s market and get you ready to find your new home.