What Mortgage Rate Do You Need To Move?

If youve been thinking about buying a home, mortgage rates are probably top of mind for you. They may even be why youve put your plans on hold for now. When rates climbed near 8% last year, some buyers found the numbers just didnt make sense for their budget anymore. That may be the case for you too.

Data from Bright MLS shows the top reason buyers delayed their plans to move is due to high mortgage rates (see graph below):

David Childers, CEO at Keeping Current Matters, speaks to this statistic in the recent Hows The Market podcast:

Three quarters of buyers said were out due to mortgage rates. Heres what I know going forward. That will change in 2024.

Thats because mortgage rates have come down off their peak last October. And while theres still day-to-day volatility in rates, the longer-term projections show rates should continue to drop this year, as long as inflation gets under control. Experts even say we could see rates below 6% by the end of 2024. And that threshold would be a gamechanger for a lot of buyers. As a recent article from Realtor.com says:

Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.

While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into whats ahead. If your plans were delayed, theres light at the end of the tunnel again. That means it may be time to start thinking about your move. The best question you can ask yourself right now, is this:

What number do I want to see rates hit before Im ready to move?

The exact percentage where you feel comfortable kicking off your search again is personal. Maybe its 6.5%. Maybe its 6.25%. Or maybe its once they drop below 6%.

Once you have that number in mind, heres what you do. Connect with a local real estate professional. Theyll help you stay informed on whats happening. And when rates hit your target, theyll be the first to let you know. 

Bottom Line

 If youve put your plans to move on hold because of where mortgage rates are, think about the number you want to see rates hit that would make you ready to re-enter the market.

Once you have that number in mind, connect with a real estate professional so you have someone on your side to let you know when we get there.

Venessa James - Broker Associate    

ABR, ALHS, CHMS, MCNE, LUXE, SFR, SRS  

Platinum Experience Group - KW Professionals 

(281) 889-8292 platinumexperiencegroup.com

Integrity, Experience, Results