Mortgage Rates Still Headed in the Right Direction: What Buyers and Sellers Need to Know
If you're considering buying or selling a home, keeping an eye on mortgage rates is crucial. The good news? Rates continue to improve, and while the economy remains strong, positive movement in the bond market is helping keep mortgage rates on a downward trend.
Our trusted lender, Brooks Kelly, breaks it down for us:
Why Are Mortgage Rates Improving?
Recent economic reports, like the ADP payroll report, showed stronger-than-expected employment numbers—something that typically leads to higher mortgage rates. However, a key announcement from the U.S. Treasury provided a positive shift: they don’t see the need to issue more debt in the near future.
Why does this matter?
✅ Less debt means lower inflation
✅ Lower inflation leads to lower mortgage rates
✅ Lower rates create better opportunities for buyers and sellers
What Does This Mean for Buyers?
If you’ve been on the fence about purchasing a home, now is the time to start preparing. As rates continue to improve, affordability increases, giving you more buying power. The key is getting pre-approved now so you’re ready to act when the right home comes along.
What Does This Mean for Sellers?
Lower mortgage rates can attract more buyers to the market, meaning stronger demand for your home. If you've been thinking about listing, this is a great time to connect with a real estate professional (like us!) and start planning your next move.
The Trend to Watch
Looking ahead, mortgage rates have already moved past the 25-day and 50-day moving averages (important indicators in the bond market). If this trend continues and crosses the 100-day moving average, we could see even lower rates on the horizon.
Stay tuned! Whether you're looking to buy or sell, we're here to help you navigate the market and make the most of these changing conditions.
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