Why Lower Interest Rates Are Driving Faster Home Sales

By Kerry Ellison

Over the past 30 years, Kerry has proven herself time and time again by remaining in the top tier of Central Arkansas real estate. As her business grew, Kerry saw the need to start a team to continue providing clients with the best experience possible.

Is now the right time to move with interest rates dropping below 6%? That’s the question many homeowners and future buyers are asking right now. With rates dipping, the Central Arkansas market is shifting in a way that could benefit both buyers and sellers.

Understanding the significance of this rate decrease is key to making an informed decision, whether you plan to purchase your first home, leverage your existing equity, or trade up to a new property.

Here’s what you need to know:

Interest rates are low, and that changes everything. With mortgage rates dropping below 6%, homeownership is more affordable. Lower rates reduce monthly payments, stretch your budget, and make your dream home easier to achieve. This is a prime buying opportunity.

What it means for sellers. For those listing homes under $500,000, it’s good news. More buyers are entering the market because of these lower rates, and that means homes are still getting strong offers. In fact, if your home is in good condition, you might even get full price or close to it.

What it means for buyers. With less than two months of housing inventory, competition is tight. But that doesn’t mean you can’t negotiate. You might be able to get help with closing costs or ask for repairs. Lower rates combined with negotiating room can make a big difference in your overall deal.

Now might be the ideal time to upgrade your home, especially if you feel your current one is too small. Homeowners, on average, have around 37% equity, which means you could have more capital available than you realize. Even with a current mortgage rate as low as 3%, the recent dip in interest rates makes it worthwhile to explore if trading up is financially beneficial right now.

Rarely seen low interest rates significantly impact buying and selling power. If you’re ready to see your options, give me a call at 501-725-1227 or email info@theellisongroup.com. I’m here to help you make a confident move in today’s market. Let’s find the strategy that works best for you.