Mortgage Rates Not Affecting Buyer Activity

Mortgage Rates Not Affecting Buyer Activity

For homeowners considering selling their house, you may be wondering if it's still a good time to make a move. The good news is that despite higher mortgage rates, buyer traffic is actually increasing, indicating that it could be a great time to sell.

The latest ShowingTime Showing Index, which measures buyers actively touring homes, provides valuable insights into the recent surge in buyer demand (refer to the graph below).

According to the graph, there was a significant surge in buyer traffic during the first two months of 2023. This could be attributed to the limited inventory of homes available for sale, which compelled potential buyers to continue their search even during the colder months.

To help paint the picture of why the latest report is important, we can compare the foot traffic observed in February of this year with that of the preceding six years (as illustrated in the graph below). The graph indicates that this February has witnessed one of the highest levels of buyer activity in recent history.

Over the past six years, the years with the highest February buyer traffic were 2021 and 2022 (as depicted in green in the graph above). However, these years were atypical for the housing market. Thus, when we compare the current February to the more typical pre-pandemic years, the data suggests a significant increase in buyer activity this year.

The rise in buyer traffic is particularly remarkable given the surge in mortgage rates this February. The Freddie Mac 30-year fixed mortgage rate increased from 6.09% during the week of February 2nd to 6.50% in the week of February 23rd. Despite this escalation, there has been a noticeable increase in the number of buyers seeking to purchase a home.

Jeff Tucker, Senior Economist at Zillow, thinks the increased buyer activity will continue:

“More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .

If you're considering selling your home, the fact that buyers are still actively searching for properties this year should be encouraging. This indicates that there is demand for homes similar to yours in the market. Collaborating with a real estate expert to list your property can enhance your chances of attracting motivated buyers. The more motivated buyers you get to your property, the chances of meeting or exceeding your sales price, increase. 

Bottom Line

Increased foot traffic is encouraging for this year’s housing market. It indicates that buyers are looking to purchase now, even with higher mortgage rates. If you’re ready to sell your house, let's have a conversation. Find a contact form below. 

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Masiv Real Estate, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Masiv Real Estate, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.