Blog > Mortgage Rates Are Down. Do Buyers Care?
<div class="hs-featured-image-wrapper"> <a href="https://blog.altosresearch.com/mortgage-rates-are-down-do-buyers-care" title="" class="hs-featured-image-link"> <img src="https://blog.altosresearch.com/hubfs/AdobeStock_339589999.jpeg" alt="Mortgage Rates Are Down. Do Buyers Care?" class="hs-featured-image" style="width:auto !important; max-width:50%; float:left; margin:0 15px 15px 0;"> </a> </div> <p>Mortgage rates fell two weeks ago, then climbed steadily again last week. Is it enough to motivate any new buyer activity or are we looking at 2025 before home sales finally recover?<br><br>From a total inventory perspective we haven’t seen any pick up in demand in the past couple weeks as mortgage rates fell under 7%. To be honest, this is a bit surprising to me. I expected to be able to measure some pickup in demand with cheaper money.<br><br>Two factors are at play here:<br><br>1) It could be that rates simply haven’t fallen far enough or stayed there long enough. I was expecting that under 6.75 to 6.5 would be a threshold where we’d see buyers start moving. We hit 6.5 ten days ago. But rates didn’t stay there long and in fact climbed all last week. If I’m a home buyer I’d have to be really attuned to rates and my purchase options to jump that quickly. Most buyers are frankly not that aware. Rising rates can stop me quickly, but it takes longer with lower rates to motivate me to action. </p> <p><br>2) The other reason could be seasonal timing. For falling rates to motivate buyers to take action, we’d need buyers actively shopping. It could be that we’re witnessing home buyers totally checked out for 2024, waiting to see where rates are, what the economy is doing, and who is president next spring. If I’m a home buyer, I don’t see a lot of market trends that make me want to jump now. <br><br>Whatever the reasons, we are not yet measuring any increase in demand for this dismal 2024 housing market. <br><br>Every week Altos Research tracks every home for sale in the country. We analyze all the pricing, supply and demand, and all the changes in that data and we make it available to you before you see it in the traditional channels. If you aren’t using Altos market reports with your clients, your buyers and sellers, now might be the time to step up. Go to <a href="http://altosresearch.com" style="font-weight: bold;">altosresearch.com</a> and book a free consult with our team. Because everyone is worried about what’s happening right now. They need you to help them see clearly. The data we cover here in these national videos is available for every zip code in the US. Join us to dive in.<br><br>I’m Mike Simonsen, I’m the founder of Altos Research. Let’s look at the data for the week of August 12, 2024. <span style="font-weight: bold;">Please refer to the video below for all the charts I mention in this transcript!</span></p> <img src="https://img.chime.me/image/fs/chimeblog/20240813/16/original_4dc333f0-9f51-408d-920f-4026d69fe454.gif?a=7754956&k=14&r=https%3A%2F%2Fblog.altosresearch.com%2Fmortgage-rates-are-down-do-buyers-care&bu=https%253A%252F%252Fblog.altosresearch.com&bvt=rss" alt="" width="1" height="1" style="min-height:1px!important;width:1px!important;border-width:0!important;margin-top:0!important;margin-bottom:0!important;margin-right:0!important;margin-left:0!important;padding-top:0!important;padding-bottom:0!important;padding-right:0!important;padding-left:0!important; ">
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Catherine Abiera - Lumbres, ABR MRP C2EX AHWD
Broker Associate | License ID: EA100089425
Broker Associate License ID: EA100089425