Southern New Hampshire Real Estate: Are Lower Mortgage Rates the Opportunity You've Been Waiting For?

Mortgage rates have been one of the hottest topics in the Southern New Hampshire housing market lately, especially given...

Suzanne Damon
August 12th, 2024
3 min read

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.

About the author

Suzanne Damon

603-493-5561

Partnering with a real estate agent you can trust, who has the proven experience, knowledge and negotiating skills to succeed, is as priceless as the home you’re buying or selling. With over 30 years of exceeding expectations in residential sales, Suzanne Damon is an unparalleled expert and advisor when it comes to your real estate needs. Suzanne’s extensive experience and proven track record as a buyer and listing agent, investment advisor, property management and marketing specialist have earned her coveted recognition as a leader in the nation. The Wall Street Journal and Barron’s Business Review have ranked her as a top-producing Certified Luxury Home Marketing Specialist for her outstanding level of service, and ability to produce results. Suzanne currently ranks in the top 10% of agents in New Hampshire and heads a talented full-time staff that assists her. The most important measure of success, however, is the reputation she enjoys with her clients, who reward her excellence with ongoing repeat and referral business. Known for her unique attentive approach and “client-first” philosophy, Suzanne embodies all the skills and qualities required of an outstanding real estate professional. The integrity, in-depth market knowledge, marketing savvy, expert negotiating and quality network she brings each client and deal are the hallmarks of how she works. Putting clients first also means being accountable, accessible and responsive. Whether you are buying or selling a home in the Manchester, Bedford, Goffstown, Hooksett, Londonderry, Auburn or Candia areas, Suzanne is at your side protecting your best interest and helping achieve your goals. Prestigious industry affiliations and accomplishments also set Suzanne apart. She is a designated REALTOR member of the Greater Manchester/Nashua Board of REALTORS, a member of the New Hampshire Women’s Council of REALTORS, and recipient of the prestigious ABR, CLMHS, and CRS designations. Suzanne has trained intensively in various facets of real estate, from financing and legal matters to appraisal and taxation. She also founded two thriving organizations: her own brokerage company in Hooksett, NH which she managed and sold to a large franchise, and DAMON HOMES, LLC, managed by her husband and son, which develops raw land for enhancement of the community. Personally, Suzanne has been married to an incredible man for over 32 years, with whom she raised three wonderful children. Their close family spends as much time together as possible and loves to travel when time allows.