What Is The Ideal Mortgage Rate Home Sellers Need For Home Sales To Pick Up?

During several recent sales consultations where I speak with potential home sellers, the sellers have expressed a desire to wait for mortgage rates to fall before putting their home on the market.  The idea is that lower interest rates would increase the value of their homes.  Some have been waiting for a while as mortgage rates have held relatively steady. 

 The mortgage rates have hovered around 7%, which has made housing less affordable and seems to have slowed real estate sales. Many times the question from potential home sellers is what is the ideal mortgage rate that would spur more home buyers seeking to purchase homes.  The idea being that if mortgage rates fell, it should mean owning a home would become more affordable.  

Perhaps we have an answer.  A recent article, "Here's Where The Mortgage Rate That Will Push Americans To Buy" cites a National Association of Realtors (NAR) report that states the "projected homebuying sweet spot of 6%" could reach that level in 2026.

For those sellers who can wait and want to try to "time the market," the aforementioned NAR report seems to indicate the turning point towards more home sales is around the corner.  However, I caution home sellers that it is difficult to time the market and no one knows where interest rates will be in the future.

Both home buyers and home sellers need to navigate the market they are in during the time of sale and/or purchase.  Each real estate buyer and seller have different goals in mind.  As a valued real estate professional, I advise on strategies to reach the goals, market as such and negotiate on your behalf until the end of the home selling or home buying process.  

Michael Friedman
Broker-Associate, Realtor
eXp Realty

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