Buyers are Moving Without Lower Rates
For much of the past two years, the housing market slowed as buyers and sellers waited for conditions to change. Mortgage rates stayed elevated, inventory remained tight, and many homeowners held onto covid-era historically low rates.
Recent data suggests that dynamic is starting to ease. Not because mortgage rates have dropped dramatically, but because behavior across the market is changing. These insights may be especially important as we head into the traditionally busier spring buying season.
What We’re Seeing in the Market
Mortgages with rates above 6 percent now make up a larger share of outstanding loans than ultra-low-rate mortgages originated during the pandemic, according to Fast Company.
This shift suggests the long-standing rate lock-in effect is beginning to ease. Fewer homeowners are anchored to once-in-a-generation rates, and more are making housing decisions based on current needs rather than past conditions.
At the same time, data from the Mortgage Bankers Association shows that average mortgage application payments declined in December, even though mortgage rates remained relatively elevated. The decrease reflects slower home price growth and buyers adjusting loan sizes and price points.
Looking ahead, data is trending toward gradual improvements in affordability across more major metros. While rates are expected to remain above recent historical lows, slower price appreciation and income growth are helping rebalance monthly payments in some markets.
Taken together, these signals suggest the market is beginning to move with more consistency than it has over the past two years.
Where Buyers Are Finding Leverage
With monthly payments easing slightly and inventory improving in some areas, buyers are finding more flexibility than headlines often suggest. Sellers are also showing greater openness to concessions, credits, and deal structures that help manage upfront and monthly costs.
This is where a smart financing strategy can play a larger role. Depending on a buyer’s goals and timeline, options such as temporary buydowns, adjustable-rate mortgages, or programs like Movement Boost*, which can help with down payment and closing costs, may provide ways to move forward without waiting for rates to return to past lows.
Buyers who focus on structuring payments that fit their budget, rather than timing the market perfectly, are finding more opportunities to take the next step.
Policy Changes Could Cause Rapid Market Shifts
Recent reporting from CNBC has highlighted growing attention on potential changes in Federal Reserve leadership, which could influence the longer-term direction of monetary policy.
While no immediate policy shifts are guaranteed, markets often respond to expectations and uncertainty over time. This highlights why being ready matters. Rate dips can create short windows of opportunity, and Movement programs like Lock & Shop** allow buyers to lock a rate before they ever find a home, helping them take advantage of those moments when they appear.
Find the Right Solution for Your Goals
The housing market is beginning to regain momentum in ways that open more paths forward, even without dramatic changes in rates. Payments are stabilizing, inventory is improving in some areas, and long-standing barriers like the rate lock-in effect are starting to ease.
What that means in practice is that there may be more than one way to move forward depending on your goals, timing, and budget.
If you’re curious how today’s market could work for you, fill out the form below to talk through your options.
*For qualified borrowers. FHA 3.5% financing with an additional 1.5% to put towards closing costs is in the form of repayable second lien with a 10 year amortization term and a rate at 2% above the first lien rate. Additional restrictions apply. Not available in NY
** for qualified borrowers. The Lock & Shop 120-day lock period is available for 30-year fixed Conventional, FHA, and VA 1-4 unit Primary and 2nd Home (when permitted by product) purchase loans for an upfront Lock & Shop Fee. Borrowers must pay Lock &Shop Fee within 48 hours of Lock Request and identify a property address within 75 days of the Lock Request or the lock will be canceled. Excludes brokered, jumbo, renovation, buydowns, COOPs, and bond loans. Borrowers will be eligible for a one-time float down no earlier than 45 days and no later than 15 prior to the estimated closing date once they are fully approved (no outstanding borrower credit conditions). The Lock & Shop program may be amended or terminated at any time except for qualified home purchasers with loans locked prior to the date of the amendment or termination. This offer is not a commitment to lend.
