Two Reasons Why Today’s KC Mortgage Rate Trend Is Good for Sellers
Have you hesitated to sell your home because you felt Kansas City mortgage rates were too high? There's exciting news: rates are currently on a downward trend! Last October, mortgage rates hit 7.79%. However, they have steadily decreased since then and have stayed below 7% for over a month now (see graph below):
While rates are not predicted to return to the 3% seen during the 'unicorn' years, you can expect them to drop steadily in the near future. As Dean Baker, Senior Economist at the Center for Economic Research, explains:
"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."
Are you looking to sell your Kansas City home? There are two central reasons why this recent trend, and the expectation it'll continue, is hopeful news for you.
Don't Feel Locked-In to Your Current KC Mortgage Rate
With Kansas City mortgage rates already significantly lower than just a few months ago, you may feel less locked in to the existing rate you have on your house. When mortgage rates were higher, moving to a new home meant possibly trading in a low rate for one close to 8%.
In the current Kansas City housing market, there isn't as significant of a difference between your present mortgage and the new rate you'd be taking on. This decrease increases moving affordability even more than just a few months ago. As Lance Lambert, Founder of ResiClub, explains:
"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."
Expect More Interested Buyers in the KC Housing Market
According to data from Bright MLS, the top reason home buyers have been waiting to commit to homeownership is elevated mortgage rates (see graph below):
Kansas City buyers can save money on their home loans with lower mortgage rates, making the possibility of purchasing a home more attractive and affordable. With current KC mortgage rates easing, numerous interested buyers are likely to jump back into the market and make their move. What does this mean for you? More buyers equals more demand for your house!
Have you been waiting to sell your Kansas City home out of hesitation to commit to an increased mortgage rate? Are you worried there aren't interested KC buyers in the current market? The recent decline in mortgage rates could be your sign it's time to move! The Just Say Home Team is dedicated to making the sale of your Kansas City home fast, smooth, and profitable!