Winter Guides / As Mortgage Rates go down, are more sellers entering the market?

Jan 27, 2024 9:00 am

Are More Homeowners Selling as Mortgage Rates Come Down?


                                                             
 

If you’re looking to buy a home, the recent downward trend in mortgage rates is good news because it helps with affordability. But there’s another way this benefits you – it may inspire more homeowners to put their houses up for sale.

The Mortgage Rate Lock-In Effect

Over the past year, one factor that’s really limited the options for your move is how few homes were on the market. That’s because many homeowners chose to delay their plans to sell once mortgage rates went up. An article from Freddie Mac explains:

The lack of housing supply was partly driven by the rate lock-in effect. . . . With higher rates, the incentive for existing homeowners to list their property and move to a new house has greatly diminished, leaving them rate locked.”

These homeowners decided to stay put and keep their current lower mortgage rate, rather than move and take on a higher one on their next home.

Early Signs Show Those Homeowners Are Ready To Move Again

According to the latest data from Realtor.com, there were more homeowners putting their houses up for sale, known in the industry as new listings, in December 2023 compared to December 2022 (see graph below):

 

 

Here's why this is so significant. Typically, activity in the housing market cools down in the later months of the year as some sellers choose to delay their moves until January rolls around.

This is the first time since 2020 that we’ve seen an uptick in new listings this time of year. This could be a signal that the rate lock-in effect is easing a bit in response to lower rates.

What This Means for You

While there isn’t going to suddenly be an influx of options for your home search, it does mean more sellers may be deciding to list. According to a recent article from the Joint Center for Housing Studies (JCHS):

A reduction in interest rates could alleviate the lock-in effect and help lift homeowner mobility. Indeed, interest rates have recently declined, falling by a full percentage point from October to November 2023 . . . Further decreases would reduce the barrier to moving and give homeowners looking to sell a newfound sense of urgency . . .”

And that means you may see more homes come onto the market to give you more fresh options to choose from.

Bottom Line

As mortgage rates come down, more sellers may re-enter the market – that gives you an opportunity to find the home you’re looking for. Let’s connect so you’ve got a local expert on your side who’ll help you stay on top of the latest listings in our area.

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As you know, I’m a Licensed Real Estate Agent. However, I work a little differently than other agents. Most agents typically serve only one market. I can help you buy or sell a home anywhere in the U.S.! 

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As a Relocation Specialist with Realty Connect, I belong to an nationwide network of over 25,000 top-rated agents serving every zip code in all 50 states. Instead of helping you buy or sell a home personally, I help match my clients with up to 3 great agents who specialize in your market. The best part? This is a 100% FREE service, so there is no cost, pressure or obligation! With my experience and connections, I can quickly help you find the perfect agent better than what most people are able to do on their own.

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As Mortgage Rates go down, are more sellers entering the market?
For the last couple of years, sellers have been hesitant to put their homes on the market in order to purchase a new one.  First it was the pandemic, then new high mortgage rates.  Let's see if this trend continues.

(Click here or above graphic to see video)
Want to chat or write?
Call/Text; 757-876-7443, Email: chris@realestatewithmrg.com

Why It’s More Affordable To Buy a Home This Year [INFOGRAPHIC]


                                                                                 
 

Some Highlights

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Are More Homeowners Selling as Mortgage Rates Come Down?
On the January 27, 2024 Episode of Real Estate with Mr. G, we will “Why You May Want To Seriously Consider a Newly Built Home”.
Topics include Rate Lock-In Effect, Home Sellers’ Issue, Home Inventory Availability
Great Episode as Mortgage Rates are changing.  View at: https://www.facebook.com/realestatewithmrg/

#HousingInventory #HousingInventory2024 #Housing2024 #Homebuyers2024 #RealEstatewithMrG
 
See you at 7 pm
As you know, I’m a Licensed Real Estate Agent. However, I work a little differently than other agents. Most agents typically serve only 1 market. I can help you buy or sell a home anywhere in the US!

As a Relocation Specialist with Realty Connect, I belong to an exclusive (nationwide) network of over 25,000 top-rated agents serving EVERY zip code in ALL 50 states. Instead of helping you buy or sell a home personally, I will help match you with up to 3 great agents that specialize in your market.

The best part? This is a 100% FREE service, so there is NO cost, pressure or obligation! With my experience and connections, I can help you find the PERFECT agent better than what most people are able to do on their own.
Ready to get started? Great! Please tell me a little more about your real estate goals by completing my referral request form. I look forward to helping you find a great agent! https://realtyconnect.pro/christopher-garguilo

Please feel free to contact me anytime with your Real Estate needs.  

Christopher Garguilo, Broker Associate, Licensed Referral Specialist
Realty Connect LLC
Scotland Square
Hampton, VA 23669
757-876-7443 / chris@realestatewithmrg.com

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