When rates drop, demand surges, driving prices higher. When rates rise, prices typically cool, creating opportunities for buyers.
Right now, inventory is at a 4-year high, and Morgan Stanley is projecting home prices to dip by 2% in 2025. But by 2026, they predict prices will rebound by 3% - meaning this window won’t last forever.
Buyers can take advantage of today’s market conditions to negotiate a better deal and to explore strategies like a 2-1 buy down to secure a lower rate and payment for the first two years.
While not every property is sitting stale, this is the message that needs to be shared with buyers: "you can’t have both low rates and low prices. " Find the best deal you can, and when rates drop, refinance to save even more.” " Date the rate; Marry the house."
If you’ve thought about making a move and are wondering what your buying power is, reach out to Rebecca Larrea. She can help you establish your budget and align your buying power with your goals.
