Falling rates are bringing new life to the market, giving homebuyers a stronger chance to qualify and negotiate with more confidence.
If you’ve been keeping an eye on the housing market, you’ve probably noticed that things are finally starting to look a little better for buyers. Rates are easing, sellers are offering incentives again, and affordability is improving. Here’s what’s happening right now and what these trends could mean for you as a buyer.
Interest rates are improving. Over the summer, mortgage rates hovered around 7.25%, but now they’re sitting in the mid-6% range. That drop of about three-quarters of a point makes a big difference in monthly payments and overall affordability. Lower rates give more buyers the ability to qualify for financing, and even seeing a “6” instead of a “7” gives many buyers the confidence to start looking again.
The fall market is shifting. Homes are spending a bit more time on the market, and we’re starting to see price reductions that haven’t been common in recent years. Sellers are also offering closing cost credits again. Buyers can use those funds to reduce out-of-pocket expenses or buy down their rate for a lower monthly payment. While the market isn’t completely in favor of buyers yet, it’s much more balanced than it has been.
“Mortgage rates have dropped from the sevens to the mid-sixes, giving buyers more affordability and confidence to reenter the housing market.”
Prepare early for the spring season. If you’re planning to buy a home in the spring, now is the best time to prepare. Getting pre-approved early allows us to review your credit and finances and identify small changes that can improve your score and help you qualify for a better loan. We use a soft credit pull at this stage, so it doesn’t affect your credit score. Taking these steps now helps you enter the spring market in a stronger position and ready to move quickly when the right home appears.
What to expect next? No one can predict exactly what will happen with rates or the economy, but current trends suggest gradual improvement as we move into the new year. That means buyers who start preparing now could benefit from better conditions ahead.
The coming months are shaping up to bring strong opportunities for buyers who prepare early. With rates improving and sellers offering more flexibility, now is the time to position yourself for success. Whether you’re planning to buy your first home or make a move this spring, understanding these trends will help you make confident decisions.
If you have any questions, you can call or text me at 952-212-3597 or email me at ChadandSara@edinarealty.com. We’ll help you navigate the changing market so you can reach your homeownership goals with confidence.
