We have no way of accurately predicting if and when mortgage rates might drop below 6%, but let's assume at some point they do.
When this happens, we do expect more homeowners who are locked into a low mortgage rate to list their home for sale. It's reasonable to expect that supply will increase when mortgage rates fall.
At the same time, we also expect many more buyers -- enticed by lower rates -- to enter the market. Demand will rise when mortgage rates fall.
So very likely, the net effect of lower rates will be more upward pressure on home prices.
The bottom line for you: If one of your life goals is to become a homeowner, it's important for you to know that there is a cost of waiting for a lower rate. So rather than wait for a lower rate (as prices continue to move higher), we encourage you to embrace these 5 mindsets and begin your journey now.
You just never know when the right opportunity might present itself, and you want to be ready to write your offer when the right home comes along.
This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
1619 Monroe Street #1, Madison, WI, 53711
