What Mortgage Rate Do You Need To Move?

Today's mortgage rates are a high priority for many Kansas City homebuyers. Has the current KC housing market temporarily delayed your plans to move? You're not alone. Kansas City mortgage rates climbed to near 8% last year, leading some buyers to conclude that the numbers didn't make sense for their budget anymore.

Data from Bright MLS revealed high mortgage rates as the top reason buyers across the nation put their plans to move on hold (see graph below):

 

David Childers, CEO at Keeping Current Matters, speaks to this statistic in the recent How's The Market podcast:

"Three-quarters of buyers said 'we're out' due to mortgage rates. Here's what I know going forward. That will change in 2024."

Why are we seeing a shift in this trend? Kansas City mortgage rates have dropped from their peak last October. While there's still day-to-day volatility in rates, longer-term projections indicate KC rates should continue to fall this year as long as inflation gets under control. Real estate experts even predict rates below 6% by the end of 2024! This threshold would be a game-changer for numerous buyers in the Kansas City area. As a recent article from Realtor.com says:

"Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%."

While mortgage rates are nearly impossible to forecast, the current optimism from housing market experts can give insight into what's ahead. If your plans to buy a home were delayed, there's light at the end of the tunnel again. It may be time to start thinking about your move. The best question you can ask yourself right now is this:

What number do I want to see Kansas City mortgage rates hit before I'm ready to move?

The precise percentage at which you feel comfortable beginning your search for the perfect home is personal. For some buyers, it's 6.5%. Others will feel more comfortable at 6.25% or even once they drop below 6%.

Once you have that number in mind, the local real estate professionals at Just Say Home KC can help you stay informed on Kansas City housing market trends. These real estate agents will be the first to know when rates hit your target and can help you find the perfect home to match your needs and budget.

Bottom Line

Have you put your plans to move on hold because of current Kansas City mortgage rates? With housing market experts predicting a drop in rates later this year, it's important to consider the number you want to see rates hit that would make you ready to re-enter the KC market. The Just Say Home KC team of real estate professionals can help you know when KC rates hit this target and help you find your perfect home!

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