Why we care about the 30-year mortgage rate falling below 5%—and you should, too

Are you in the market for a new home? If yes, you might want to call your lender as soon as possible.

While mortgage rates are still higher than their recent historical average, the rate for a 30-year mortgage last week dropped below 5%. (The steepest drop since March 2020!)

So what's a buyer (or seller) to do?

We asked Ryan Keough, founder of The Heroes Group at True Floridian Realty, and here’s what he had to say.

Buyers

Get pre-approved for a loan. Seriously.

This step in the home-buying process ensures you know what you can afford and can act quickly if the right opportunity arises. Plus, you can follow the market with a better understanding of your options. (Knowledge is power!)

With rates under 5% for the first time since February this year, this might be the perfect opportunity to swoop up a new property or home.

Sellers

List your property or home now.

Yes, housing demand dropped sharply in June due, in part, to higher costs of borrowing. And thankfully, the opposite is also true: As mortgage rates fall, buyers gain more buying power, allowing them to move on to their next dream location. (And it could be yours!)

However, avoid the temptation to over-price your property—something many in the past have done and regretted.

Buyers seek value, and over-priced properties tend to sit longer on the market. But, a properly priced property (a.k.a. at market value) will attract more buyers and increase your opportunity for a quick sale.

But, will it last?

Chief economists don't think so. They believe rates will continue to fluctuate until we see a clear decrease in inflation.

So the lesson here is to act while the opportunities are hot!

For more information about the market or opportunities for your home or property, contact Ryan Keough or another True Floridian Realty team member.