Mortgage rates dipped below 6.8% a couple weeks ago according to Freddie Mac, and I don't think enough people are talking about it. Especially first time buyers and sellers who are sitting on the sidelines waiting for some kind of green light.
Here's the thing. A lot of first time buyers I talk to are still mentally stuck on the idea that rates need to hit 5% before they make a move. I get it. That number feels comfortable. But waiting for 5% while renting at $1,800 a month is costing you real money every single month. That's equity you're handing to your landlord.
The shift from 7.1% down to the high 6s doesn't sound like much. On a $350,000 home though, that's roughly $80 to $100 less per month on your payment. That adds up. And more importantly, it signals that the direction is moving in your favor.
For sellers, this matters too. When rates tick down even a little, more buyers start getting pre-approved. I've seen a bump in showing requests over the last few weeks in my own listings. If you're a first time seller thinking about listing this summer, the window is opening up. Buyers are out there. They're just quieter than the 2021 crowd.
I think people overthink the rate situation. They treat it like they're locking in forever. You're not. You can refinance later. I've had clients close at 7.2% last year and they're already watching for a refi opportunity. The house was the right call. The rate was temporary.
One thing I'll say, and this is just my opinion. I think waiting for the "perfect" market is the single biggest mistake first time buyers make. There's no perfect market. There's the market you're in and the options in front of you. Cool cool cool if you want to wait, but at least run the numbers so you know what waiting is actually costing you.
If you're a first time buyer or seller and you haven't checked in on rates or your buying power in the last 60 days, you're working with old information. Reach out and let's look at the real numbers together. Talk soon.