The recent dip in mortgage rates brings promising news. Beyond the immediate impact on affordability, there's an intriguing ripple effect that might just be the catalyst you've been waiting for - an increase in the number of homes available for sale!
Over the past year, the housing market faced a challenge with a limited inventory of homes.
The culprit? The mortgage rate lock-in effect.
When rates went up, many homeowners chose to stick with their current properties, reluctant to give up their lower mortgage rates for a higher one on their next home.
However, the tide seems to be turning. The latest data from Realtor.com shows a rise in new listings in December 2023 compared to the same period in 2022, contrary to the typical seasonal cooling-off observed in the real estate market towards the end of the year.
This shift is noteworthy as it suggests that the rate lock-in effect may be loosening its grip, responding to the decline in mortgage rates.
In fact, interest rates have recently fallen by a full percentage point from October to November 2023, signaling a positive change.
While it won't lead to an overnight abundance of housing options, the increase in new listings is a positive sign. A continued reduction in interest rates could further lift the lock-in effect, fostering a sense of urgency among homeowners looking to sell.
So, as mortgage rates continue to decline, the door opens wider for more sellers to re-enter the market.
This, in turn, provides home seekers with a greater pool of options to choose from.
To make the most of this shifting landscape, it's advisable to connect with a local mortgage professional. Having a local expert by your side ensures that you stay abreast of the latest developments in your area, helping you navigate the market with confidence. As rates come down, the real estate market may just become the treasure trove of options you've been waiting for. It's time to seize the opportunity and embark on your home-buying journey with newfound optimism.
Since 1996 we are trusted advisors regarding your home loan or rental properties. We go the extra mile for all clients! Apply now.
Phone: (805) 419-9097
info@afloans.mortgage
2150 Pickwick Dr. Suite 1716
Camarillo, CA 93011
Powered By LenderHomePage.com
American Financial Lending, Inc strives to ensure that its services are accessible to people with disabilities. American Financial Lending, Inc has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
American Financial Lending, Inc makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows afloans.mortgage to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
American Financial Lending, Inc accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
American Financial Lending, Inc continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on American Financial Lending, Inc website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on American Financial Lending, Inc website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: alex@afloans.mortgage
This site uses cookies to process your loan application and other features. You may elect not to accept cookies which will keep you from submitting a loan application. By your clicked consent/acceptance you acknowledge and allow the use of cookies. By clicking I Accept you acknowledge you have read and understand American Financial Lending, Inc's Privacy Policy.