Lisa Mailhot | July 18, 2023
Buyers
Before considering selling your house, it's crucial to understand the current state of the housing market. An encouraging trend is emerging as homebuyers adapt and become accustomed to today's mortgage rates, which are now the new normal.
To gain a deeper understanding of recent mortgage rate developments, the following graph illustrates the trend for the 30-year fixed mortgage rate from Freddie Mac since last October. As evident from the graph, mortgage rates have maintained a relatively steady range of approximately 6% to 7% over the past nine months:
According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), mortgage rates play a significant role in influencing buyer demand and, consequently, home sales. Yun emphasizes the positive impact of stable rates, stating:
“Mortgage rates heavily influence the direction of home sales. Relatively steady rates have led to several consecutive months of consistent home sales.”
For sellers, the news that home sales are currently consistent is reassuring. It indicates that buyers are actively in the market, ready to purchase properties. To provide further context on the impact of mortgage rates on demand, consider the following:
When mortgage rates experienced a sharp increase last year, rising from around 3% to 7%, many potential buyers were taken aback and chose to delay their plans to buy a home. However, with the passage of time, the initial shock has subsided. Buyers have become more familiar with current mortgage rates and have accepted that the historically low rates of the past few years are no longer attainable. According to Doug Duncan, the Senior Vice President and Chief Economist at Fannie Mae, he states:
“. . . consumers are adapting to the idea that higher mortgage rates will likely stick around for the foreseeable future.”
In fact, a recent survey conducted by Freddie Mac reveals that 18% of respondents plan to purchase a home within the next six months. This means that nearly one out of every five individuals surveyed intends to buy in the near future, indicating that buyers are actively planning their moves in the coming months.
Naturally, mortgage rates are not the sole factor influencing buyer demand. Regardless of the current economic environment, people will always have reasons to move, whether due to job relocations, changes in households, or personal motivations. As a seller, you can take confidence in the fact that there is a market for your house today, with strong demand as buyers adjust to the current rate landscape.
The perception of mortgage rates among buyers is evolving as they become accustomed to the new normal. Steady rates contribute to robust buyer demand and consistent home sales. Let's connect and get your house on the market, putting it in front of these motivated buyers.
Explore the Southern California real estate market in Q2 2025 with insights on inventory trends, price changes, and buyer behavior in cities like Corona, Costa Mesa, D… Read more
As mortgage rates drop to their lowest level in months, homebuyers are gaining more purchasing power. Discover how this shift is benefiting house hunters and what it m… Read more
California is tackling its housing crisis by rolling back the California Environmental Quality Act (CEQA), long criticized for stalling new developments. This game-cha… Read more
The housing market is experiencing some noticeable changes, from fewer new listings to a drop in buyer activity. In this blog, we dive into the latest market shifts, w… Read more
The median sales price of a U.S. home has surged to a record high of $396,500, but with more homes on the market, buyers are in a stronger position to negotiate. Learn… Read more
Mortgage applications have increased by 1.1% following a decline the previous week, signaling some shifts in the housing market. In this blog, we explore the latest mo… Read more
Many longtime homeowners in Orange County are sitting on a hidden tax burden due to outdated capital gains rules that haven’t changed since 1997. Learn how this overlo… Read more
May 2025 saw home prices at seasonal highs, but growth has nearly stalled as market dynamics shift. With more listings than buyers, slower sales, and increased negotia… Read more
Selling your home may come with a tax obligation if you earn a profit. Learn how capital gains taxes work, what exemptions may apply, and how to plan strategically to … Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most