Is this an opportunity for homebuyers to get into the market?
Mortgage rates dropped after positive inflation data was released last week. Freddie Mac analyzed the market after the announcement, and realized that the drop in rates had a positive impact on homebuyer demand.
Freddie Mac chief economist, Sam Khater, said, “While mortgage rates have resumed their decline, the market remains hypersensitive to rate movements, with purchase demand experiencing large swings relative to small changes in rates.”
He went on to say, “Over the last few weeks, latent demand has been on display with buyers jumping in and out of the market as rates move.”
While the current market may be volatile, you can always lock in your mortgage rate for up to 90 days, and shop with confidence. Learn more about mortgage rate lock and apply today!
What does the current housing market inventory look like?
Not only does the mortgage rate market appear to be cooling, but home inventory looks like it’s trending positively for shoppers. Housing inventory increased by 1,339 homes nationwide last week. That may sound small, but this could be the start of a trend. Homeowners have more equity in their homes than ever, and home prices are still relatively high. Individuals looking to sell may see this as an opportunity to take advantage of the current market.
Will home sellers have to negotiate more in 2023?
The team at Yahoo! Finance spoke with Dan O’Brien, an agent based out of Indianapolis at Trueblood Real Estate. He claims that the days of a house selling for $100,000 over list are gone, and sellers will have to start negotiating with homebuyers again. He stated, “We actually have buyers protecting buy contingencies, like inspection and appraisal. A lot of times, those were out the window during the peak craziness of the COVID market.”
A return to a more even market should be a welcome sight to homebuyers looking to get back into the market.
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