Two speakers explain how mortgage rates drive buyer activity and house prices. When rates drop, competition heats up and prices rise. When rates climb, fewer buyers enter the market and prices soften.
Just how important are mortgage rates on the housing market? So the last couple of years we talked a whole lot about how there's a ton of pent up buyer demand just waiting for rates to drop before.
They jump back in the housing market.
But keep in mind when this happens, that makes house prices go up that much quicker because there's more competition. We saw our first glimpse of this back in January of.
24 mortgage rates.
Dropped, buyer activity picked up, house prices shot up in the heart of winter. That never happens.
And more recently.
In August and September.
Mortgage rates.
Went to recent lows, buyer activity picked up and from August to.
September alone, buyer activity went up 7.4%. It's a huge monthly jump, but it shows the importance of mortgage rates on the housing market.
So use this to your advantage. When rates drop.
It helps the monthly.
Payment, but you're probably going to pay.
More for the house.
Rates go up.
Less competition, you can.
Get a better deal on the house. Mortgage rates are the faucet that turns buyer activity off and on. Mortgage.
