What Mortgage Interest Rate Is Required for Relocating?

What Mortgage Rate Do You Need To Move?

If purchasing a home has been on your mind, chances are that mortgage rates are a significant concern for you. They might even be the reason why you've decided to postpone your plans for the time being. Last year, when rates approached 8%, many buyers discovered that the figures no longer aligned with their budget. This situation might also resonate with you. Information from Bright MLS reveals that the primary reason buyers have delayed their moving plans is the impact of high mortgage rates (refer to the graph below):

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David Childers, CEO at Keeping Current Matters, speaks to this statistic in the recent How’s The Market podcast:

“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”

That’s because mortgage rates have come down off their peak last October. And while there’s still day-to-day volatility in rates, the longer-term projections show rates should continue to drop this year, as long as inflation gets under control. Experts even say we could see rates below 6% by the end of 2024. And that threshold would be a gamechanger for a lot of buyers. As a recent article from Realtor.com says:

Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”

Although predicting mortgage rates is quite challenging, the positive outlook from experts can provide you with a glimpse of what lies ahead. If your plans have been put on hold, there's renewed hope for progress. This indicates that it might be a good time to contemplate your next move. The most important question you can pose to yourself at this moment is:

What number do I want to see rates hit before I’m ready to move?

The specific percentage at which you feel ready to resume your search is subjective. It could be 6.5%, 6.25%, or even when rates fall below 6%.

Once you've determined that threshold, here's your next step: reach out to a local real estate professional. They will keep you updated on market developments, and when rates reach your desired level, they will be your first point of contact.

Bottom Line

 If you've postponed your moving plans due to current mortgage rates, consider the specific rate threshold that would prompt you to re-enter the market.

Once you've identified that target rate, reach out to a real estate professional. Having someone on your side will ensure you're informed when the market reaches your desired rate.

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