“I think that sentiment is putting a lot of people on the sidelines and saying, ‘Well, if (Trump is) pressuring (Powell) that aggressively every day and (Trump) believes that rates are going to cut,’ I think that people are just sitting on the sidelines and waiting for that rate cut to happen,” he said. “Even if it doesn’t correlate directly with lower mortgage rates.
“I think that’s just one of the biggest hot-button headline topics right now. I think that people think, ‘Oh well, they haven’t cut rates yet. Rates are high. I’m going to wait till this big cut happens that I keep hearing about.’”
What is best for the borrower
While there is no question that a decrease in mortgage rates would heat up the housing market, Hall reminds borrowers that there are opportunities to be had when rates remain higher.
“When rates are high, you can get your home at a better purchase price and a discount,” he said. “Specifically in Charlotte, we’ve seen a big shift over the last six months where we’re noticing houses staying active on the market longer. People are getting houses for discounts, and we’re seeing price cuts.”
Buyers who qualify for a home have an opportunity to secure deals in some markets where there are more homes on the market than buyers. However, Hall knows that all it will take is a slight rate decrease to flood the market with buyers once again.
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