Mortgage rates are finally heading in the right direction – and buyers are starting to jump back in.
According to the data, buyer demand increased considerably once mortgage rates reached a new low for 2025. The Mortgage Bankers Association (MBA) reports that applications for home loans were up 23% compared to the first week of September last year.
If you’ve been waiting to sell, or your listing recently expired because the market was slower than you hoped it would be, now is the time to reconsider your move. Buyer demand is the highest it’s been since July – and you don’t want to miss this window.
When Rates Drop, Buyers React
Here’s what’s happening. The 30-year mortgage rate dropped to 6.13% earlier this month. And that’s the lowest it had been since October 2024. That decline followed weak job growth and other economic indicators that are fueling speculation the Federal Reserve may cut the Federal Funds Rate multiple times this year. Mortgage rates started dropping because financial markets were anticipating those Fed decisions. And that opens the door for more buyers to act.
Since today’s buyers are looking at every angle to make home purchases more affordable, they’re much more sensitive to even the slightest movement in mortgage rates. Basically, it boils down to this. As affordability improves, so does buyer demand (see graph below):
And that’s a change you’re going to feel – in a good way. Since about this same time last year, we’ve been in a plateau of “limited” buyer demand. However, now that rates are decreasing, buyer demand is improving.
What This Means for You
If you’re looking to move, it’s time to get serious about what’s happening in the market and how you can use these key moments to your advantage. Maybe you have an expired listing that sat without offers earlier this year? Or you held off on selling altogether, thinking buyers weren’t out there? This is your signal – they’re coming back. Now, it’s not in the big surge the market saw a few years ago, but this could be your window.
Here’s the opportunity: List now while buyer activity is rising and before more sellers in your neighborhood do too. Other homeowners may not notice this shift for a while, so you can gain a competitive advantage by acting now.
On the other hand, waiting to list may still attract more buyers if rates continue to decline, but it will likely also draw more sellers. Why take that risk?
A trusted local agent can help you assess your home’s value, fine-tune your pricing strategy, and make sure it stands out to the serious buyers who are taking action today.
Bottom Line
Buyers are watching rates, weighing their options, and starting to get off the sidelines. If you’re thinking about selling, this may be your chance to get ahead.
Want to make sure your house shows up for the right buyers, at the right time?
Let’s connect and walk through the steps together so you can make the most of this moment.
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