TYLER, Texas (KLTV) – As mortgage rates continue to trend downward, East Texas realtors and lenders predict more buyers and sellers will affect the local housing market.
According to Freddie Mac, the national mortgage rate sits at just under 6.5%, the lowest it’s been in 15 months.
“I feel like once people started speaking about rates going down, even the slightest decline starts bringing more buyers into our market, and it allows sellers to feel more comfortable listing their home, because they know they can go purchase something else,” said Mortgage Loan Originator Amber Bowlden.
She predicted the decreasing rates have eased some of the concerns of homebuyers who have been waiting to list their homes until they knew loans would be more affordable, adding that this changes from client to client.
“Even the smallest rate decrease can increase their purchasing power,” she said.
On Friday, Federal Reserve Chairman Jerome Powell signaled there could be a cut in the interest rate come September: “The time has come for policy to adjust, the direction of travel is clear and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.”
The federal rate does not dictate lenders’ interest rates, but it does influence them.
Bowlden said she will advise clients not to wait until September 18 when the fed will have a policy meeting and possibly decide whether to cut the interest rates, adding the lower rates will inevitably drive up demand and competition.
“You might be able to find that house, get it under contract, and then, you know, lock your rate later. That’s something you can talk to your lender about,” said East Texas Realtor Shannon Franzen who is giving advice to her clients similar to Bowlden.
According to the National Association of Realtor, existing home sales increased by 1.3% in July.
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