Mortgage rates have been one of the hottest topics in the Southern New Hampshire housing market lately, especially given their significant impact on affordability. If you're considering a move in the region, you've likely been watching the rates closely, waiting for a dip to make your purchase more feasible. Well, recent trends suggest your patience may be paying off.
Mortgage Rates Show Signs of Relief
There's good news on the horizon for those eyeing the Southern New Hampshire real estate market. After recent reports on the national economy, inflation, unemployment rates, and the Federal Reserve's latest comments, mortgage rates have started to decline. According to Freddie Mac, they’re now at levels we haven't seen since February. This trend is encouraging, especially as Southern New Hampshire continues to be a desirable location for both local and out-of-state buyers.
Should You Wait for Rates to Drop Further?
If you're hoping rates will continue to drop, you’re not alone. However, it's essential to keep things in perspective. The record-low rates from the pandemic era are a thing of the past. If you're holding out for a return to 3% mortgage rates, experts agree that's unlikely to happen. Greg McBride, Chief Financial Analyst at Bankrate, emphasizes:
“The hopes for lower interest rates need the reality check that 'lower' doesn't mean we're going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”
Given this context, the recent drop in rates could be the sign you’ve been waiting for to jump back into the Southern New Hampshire market before competition heats up again.
Understanding the Relationship Between Rates and Demand in Southern New Hampshire
In Southern New Hampshire, as in most markets, there's a relationship between mortgage rates and buyer demand. Typically, when rates are high, buyer demand tends to cool. But as rates start to fall, more buyers re-enter the market. This increased demand can drive up home prices and potentially lead to bidding wars.
If mortgage rates continue to trend downward, we might see more buyers re-ignite their searches across towns like Manchester, Nashua, and the Seacoast region. As a recent article from Bankrate suggests:
“If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”
Bottom Line
If you’ve been waiting to make your move in Southern New Hampshire, the recent downward trend in mortgage rates may be your opportunity. Rates have reached their lowest point in months, which could allow you to get ahead of other potential buyers who are also ready to jump back into the market.
If you're ready to explore your options, now could be the perfect time to start the process. Reach out today, and let’s get started on finding your next home in Southern New Hampshire.
