San Diego Sellers, Rejoice: 2 Reasons Why Today's Mortgage Rate Trend Is Favorable for You
San Diego homeowners, if you've been postponing the sale of your home due to high mortgage rates, you'll be thrilled to hear about the recent downward trend. Since peaking at 7.79% last October, mortgage rates have been steadily declining. In San Diego's dynamic market, they've remained under 7% for over a month now (refer to the graph below for details).
Though they're not plummeting back to the 3% seen during the 'unicorn' years, the forecast indicates a continued decrease. Dean Baker, a Senior Economist at the Center for Economic Research, shares his insights:
"Mortgage rates are on a downward trajectory. They're unlikely to return to pandemic lows, but rates below 6.0 percent are on the horizon, which is quite low by historical standards, especially pre-Great Recession."
Here's why this trend is particularly beneficial for San Diego sellers:
- Less 'Mortgage Rate Lock-In' Anxiety: The recent drop in rates means you're less tied down by your current mortgage rate. When rates were soaring near 8%, moving to a new home often entailed sacrificing a low rate for a higher one. Now, with rates decreasing, the gap between your existing rate and what you'd get in a new mortgage isn't as stark. This change can make relocating more financially feasible than a few months ago. Lance Lambert, Founder of ResiClub, observes:
"The peak of the 'lock-in effect' might be behind us. Sellers looking to upgrade or change lifestyle are realizing that rates of 3% and 4% may not return soon."
- Increased Buyer Interest in San Diego: Data from Bright MLS shows that high mortgage rates have been a significant deterrent for potential buyers. With rates lowering, homeownership becomes more affordable, encouraging more buyers to enter the market. San Diego, with its unique appeal, is likely to see an influx of interested buyers, increasing the demand for homes like yours.
The Takeaway for San Diego Sellers: If you've been hesitating to sell due to high mortgage rates or a perceived lack of buyers, the recent dip in rates could be the signal you've been waiting for. San Diego's market is ripe for sellers, and when you decide it's time to make your move, we're here to help you navigate it. Let's connect and explore your options in this favorable market.
