What does the slowdown mean for homebuyers and sellers?

I spoke recently about how a recession can affect home prices. However, today I’ll talk about how a recession can affect the overall cost of buying a home. We know from historical data that interest rates tend to go up at the beginning of a recession, which we have recently seen; but to come out of a recession, interest rates are typically lowered to help stimulate the economy.

“An economic slowdown isn’t always a bad thing

for the housing market.”

The graph at 1:06 in the video above shows data to support that claim. Looking at each recession all the way back to the 1980s, every time the economy slowed down, mortgage rates decreased. Over the past five recessions, mortgage rates fell an average of almost 2% from the beginning to the end of the recessionary period. In many cases, they continued to fall after the recession ended.

What does this mean for you if you’re considering buying or selling a home? It means that an economic slowdown isn’t always a bad thing for the housing market. Typically, it means that interest rates drop, which is a good thing if you’re planning to get a mortgage.

Here’s the bottom line: If you are planning to buy or refinance a home, lower mortgage rates can help make the process easier. While we don’t have a crystal ball to look into the future, we can rely on past data to help us understand what may come.

If you’d like more information about how a changing market can affect your home buying or selling plans, contact us today for a no-obligation discussion. We promise to listen to your concerns and help create an exit strategy that works best for your situation. And remember: It’s not the market—it’s the marketing that makes the difference!