If youve got a move on your mind, you may be wondering whether you should wait to sell until mortgage rates come down before you spring into action. Heres some information that could help answer that question for you.

In the housing market, theres a longstanding relationship between mortgage rates and buyer demand. Typically, the higher rates are, youll see lower buyer demand. Thats because some people who want to move will be hesitant to take on a higher mortgage rate for their next home. So, they decide to wait it out and put their plans on hold.

But when rates start to come down, things change. It goes from limited or weak demand to good or strong demand. Thats because a big portion of the buyers who sat on the sidelines when rates were higher are going to jump back in and make their moves happen. The graph below helps give you a visual of how this relationship works and where we are today:

As Lisa Sturtevant, Chief Economist for Bright MLS, explains:

The higher rates were seeing now [are likely] going to lead more prospective buyers to sit out the market and wait for rates to come down.

Why You Might Not Want To Wait

If youre asking yourself: what does this mean for my move? Heres the golden nugget. According to experts, mortgage rates are still projected to come down this year, just a bit later than they originally thought. 

When rates come down, more people are going to get back into the market. And that means youll have a lot more competition from other buyers when you go to purchase your next home. That may make your move more stressful if you wait because greater demand could lead to an increase in multiple offer scenarios and prices rising faster.

But if youre ready and able to sell now, it may be worth it to get ahead of that. You have the chance to move before the competition increases.

Bottom Line

If youre thinking about whether you should wait for rates to come down before you move, dont forget to factor in buyer demand. Once rates decline, competition will go up even more. If you want to get ahead of that and sell now, talk to a real estate agent.

Venessa James - Broker Associate    

ABR, ALHS, CHMS, MCNE, LUXE, SFR, SRS  

Platinum Experience Group - KW Professionals 

(281) 889-8292 platinumexperiencegroup.com

Integrity, Experience, Results