For the hoards of cautious home buyers across the U.S. who have been sitting on the sidelines as they wait out the rocky real estate market, now might finally be the time to make moves, according to a report Thursday from Redfin.
A trio of welcome market conditions are making the sector more buyer friendly than it has been of late: Mortgage rates have dropped from 8% to 7.4% in the last few weeks, hitting their lowest level since mid-September; there are more homes for sale than there have been all year; and price drops are at a record high, the online property portal and brokerage said.
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“A series of macro-economic events and indicators helped bring rates down last week,” the report said, citing the Fed deciding against another interest-rate hike; the Treasury announcing plans to issue less long-term debt than expected; and the job market growing slower than forecast.
But the downturn could easily reverse, depending on what economic news emerges in the coming weeks.
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“I’m advising buyers to lock in a mortgage rate as soon as they drop to a number where they can make the math work,” said Hal Bennett, a Seattle Redfin Premier agent.
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“Payments could go up hundreds of dollars overnight if the winds shift on mortgage rates, and all of a sudden you won’t be able to afford the home you want or you won’t qualify for a mortgage. This window of opportunity could be narrow,” Bennett said.
Though inventory is still low compared to pre-pandemic figures, there has been an “unseasonal” uptick in the total number of homes for sale, which is at its highest level since the start of the year.
Meanwhile, nearly 7% of sellers dropped their asking price in the four weeks ending Sunday, a record proportion.
