What Do Lower Interest Rates Mean For Home Buyers and Sellers?

Look out for new construction

More good news: Lower interest rates and a lack of inventory are strong incentives for home-building projects. Single-family home construction was up 42% in November 2023 compared to a year earlier⁴. So, if you’re interested in new construction, 2024 may be your year.

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If you’re a seller….

It will be easier to sell your home

Lower interest rates will bring buyers in from the sidelines who are ready to purchase. First-time buyers, renters sitting out the market, and homeowners looking to upgrade will be shopping for homes in 2024. It’s a good time to consult with a real estate agent to get a current assessment of the value of your home, because it’s probably changed in your favor.

You could raise your selling price

Since buyers will have access to more favorable mortgage rates, they’ll have more money to spend. You may be able to get more for your home than you anticipated. Make sure you’re marketing all the features of your property, both inside and out, for the best chance of getting top dollar.

There are still fewer homes on the market

The inventory shortage hasn’t gone away. So, if you have a home to sell, you may find yourself in the middle of a bidding war – especially in a popular area. What’s more, you’ll probably sell it quickly.

The real estate market is still in flux, and we don’t have a crystal ball to tell us how it might change in the coming months. So, when it comes to knowing if it’s a good time to enter the market, a professional real estate agent can be a big help. Enlist a pro through Anywhere, and you’ll be able to benefit from their expertise and knowledge to sell or buy a home at the most favorable time.

Also, take advantage of AARP Real Estate Benefits by Anywhere. It’s free to sign up.

There are no hidden fees. And, when you buy and/or sell your home, you can earn $300-$7,200 after closing.

Click here to calculate the cash benefit you could receive when selling or buying a home using your AARP Real Estate Benefits from Anywhere.

^Sources:

^{1 https://www.cnbc.com/2023/12/13/fed-interest-rate-decision-december-2023.html}

^{2 https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey}

^{3 https://www.nar.realtor/magazine/real-estate-news/mortgage-rates-cool-off-settle-in-6-percent-range}

^{4 https://www.nar.realtor/magazine/real-estate-news/home-sales-start-to-rise-building-momentum-for-2024}

^{*The cash back bonus is offered in most states. In some states, a gift card or commission reduction at closing may be provided in lieu of the cash back bonus. The program is not available for employer- sponsored relocations or transactions in Iowa or outside the United States. The cash back bonus is not available in Alaska and Oklahoma. In Kansas and Tennessee, a MasterCard MAX gift card will be issued. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing. The cash back bonus is only available with the purchase and/or sale of your home through the use of a program-introduced real estate agent. The actual amount you receive is based on the purchase and/or sale price of your home. The program award is not available in certain transactions with restricted agent commissions (including many new construction, For Sale by Owner, or For Sale by iBuyer transactions). Your assigned agent can help you identify any transactions where the award would not be available. Participating program real estate agents are affiliated with the participating real estate brands: Coldwell Banker, Century 21, ERA, Better Homes and Gardens Real Estate, and Corcoran Group and all related logos are trademarks owned or licensed by Anywhere Real Estate or its affiliated companies. All real estate commissions are negotiable. This is not a solicitation if you are already represented by a real estate broker. Please check with a program coordinator for details. Program terms and conditions are subject to change at any time without notice. Additional terms, conditions, and restrictions apply.}

^{AARP commercial member benefits are provided by third parties, not by AARP or its affiliates. Anywhere pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP and its affiliates do not employ real estate agents and do not endorse the agents or brokerages made available by Anywhere. Neither AARP nor its affiliates are real estate brokers. Some provider offers are subject to change and may have restrictions. Please contact the provider directly for details.}