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Are you wondering why mortgage rates keep changing? One day they’re up; the next, they’re down. If you’re thinking about buying or selling a home, these shifts matter. Understanding what’s happening can help you make smarter decisions in today’s real estate market. Here’s what you need to know:
Why mortgage rates keep changing. Mortgage rates follow the 10-year U.S. Treasury bond. When the bond market shifts, interest rates move with it. If the stock market drops, investors shift money into bonds, causing rates to fall. When bond prices drop, rates go up.
For buyers, lower rates mean bigger loan approvals and lower monthly payments. More people qualify for mortgages, creating a more competitive market. When rates rise, fewer buyers can afford homes, slowing the market down.
How fluctuating rates impact buyers and sellers. When rates drop, homeownership becomes more affordable. Buyers can stretch their budget and get a better home without increasing their monthly payment. This also benefits sellers since more buyers in the market lead to faster sales and stronger offers.
But higher rates create hesitation. Many homeowners locked in historically low rates over the past few years. Selling now means giving up those low payments and taking on a higher mortgage. This makes some sellers reluctant to list, limiting inventory.
What to expect in the coming months. As summer approaches, more homes will hit the market. Families prefer moving when kids are out of school, leading to a surge in listings. This gives buyers more options but also increases competition among sellers.
More inventory can slightly lower home prices, making homes more affordable. This benefits both sides—sellers can move up to a bigger home at a reasonable price, and buyers get more choices and better deals.
If you’re buying, watch interest rates closely. A small drop can significantly lower your monthly payment. If you’re selling, more buyers entering the market could mean a quicker sale and a better price. Navigating these shifts can be tricky, but I’m here to help you make the smartest move at the right time. Call me at (602) 738-9943 or email jason@thepenroseteam.com. Let’s create a strategy that works best for you.
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Let’s Explore Your Selling Options. I’ll help you sell your home at the price and terms you want. Free Selling Strategy Call
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