What Mortgage Rate Do You Need To Move?

If purchasing a home has been on your mind, it's likely that mortgage rates are a significant concern for you. They might even be the reason you've decided to delay your plans for the time being. With rates edging close to 8% last year, some buyers discovered that the financial calculations no longer fit within their budget. This scenario could also apply to you.

Information provided by Bright MLS indicates that the primary cause for buyers postponing their relocation plans is attributed to elevated mortgage rates (refer to the graph below):

David Childers, CEO of Keeping Current Matters, addresses this statistic in a recent episode of the How's The Market podcast:

“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”

This is due to the decline in mortgage rates since their peak last October. Although rates still experience day-to-day fluctuations, longer-term forecasts indicate a continued decrease throughout the year, provided inflation is managed. Experts suggest that rates could even dip below 6% by the conclusion of 2024. Such a development would significantly impact many buyers, as highlighted in a recent Realtor.com article:

“Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”

Predicting mortgage rates is a daunting task, but the positive outlook from experts offers valuable foresight into the future. If your plans were postponed, there's renewed hope on the horizon, signaling that it might be opportune to contemplate your next move. The most pertinent question to ponder at this juncture is:

What number do I want to see rates hit before I’m ready to move?

The specific percentage at which you feel ready to resume your search is subjective. It could be 6.5%, 6.25%, or even when they fall below 6%.

Once you've determined that threshold, here's your next step: Reach out to a local real estate agent. They'll keep you updated on market developments, and as soon as rates align with your target, they'll notify you promptly.

Bottom Line

If you've postponed your plans to move due to current mortgage rates, consider the specific rate threshold that would prompt you to reconsider entering the market.

Once you have that number in mind, let’s connect.