Is the Real Estate Market Ready to Explode?

If rates dip below this threshold, get ready for more buyers to jump back into the market

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Good evening, real estate champs! 🏠 With talk of fluctuating mortgage rates and changing market dynamics, everyone’s asking: is the real estate market about to take off again? If so, what’s the tipping point?

Today, we’re diving into the magic number: 5.5%. That’s the rate buyers want—and the threshold that could trigger a wave of activity in the market.

Let’s break it down and explore how you can position yourself (and your clients) for what’s coming next!

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5.5%: THE MAGIC MORTGAGE RATE

According to John Burns Research and Consulting, a massive 71% of homeowners say they won’t even think about buying unless they can lock in a mortgage rate at or below 5.5%.

That number is more than a data point—it’s a signal. If we hit 5.5%, the market could take off in a big way. Agents, take note: this is your golden ticket.

That makes 5.5% a key number to watch. If rates dip below that threshold, get ready for more buyers to jump back into the market.

CONSUMER PERCEPTION: WHAT'S "NORMAL"?

It turns out, 62% of buyers think a “normal” mortgage rate is below 5.5%. This perception is shaping their decision-making, and it’s your job to align their expectations with the current market realities.

Educate your clients on where the market stands today—and how they can still make a move, even if rates are above their ideal.

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HIGHER RATES, LOWER ACTIVITY

Only 13% of buyers are open to a mortgage rate between 6.5% and 6.99%. This shows how higher rates are slowing down buyer activity across the board.

Your move? Focus on creative financing options like ARMs or rate buy-downs to help keep deals alive. Need ideas? Check out last week's podcast where we shared four strategies to achieve lower rates, even when the market says otherwise.

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THE LOCK-IN EFFECT: IT’S STARTING TO CRACK

We all know about the lock-in effect—homeowners holding off on selling because their current mortgage rates are too good to let go.

Well, guess what? That effect is starting to crack, and more homes are hitting the market.

This is the moment to position yourself for the flood of activity that could be coming soon.

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5.5% IS A BENCHMARK, NOT A DEALBREAKER

While 5.5% is the psychological tipping point, it doesn’t mean the market grinds to a halt above that.

Use it as a benchmark to educate clients, but remind them that flexibility can lead to deals they won’t want to miss.

Also, keep in mind, nearly 40% of all home sales this year were all-cash—proving that for some buyers, rates aren’t even a factor.

WHAT HAPPENS IF RATES DIP BELOW 6%?

It’s been proven that whenever rates flirt with dropping below 6%, mortgage applications spike. If you’re not watching these shifts closely, you’re going to miss out. Be the agent who’s on top of it and ready to advise clients when the window opens.

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CREATIVE FINANCING IS YOUR BEST FRIEND

Now is the time to show clients how they can still win, even with higher rates. Rate buy-downs, ARMs, and paying discount points upfront can make a huge difference.

And don’t forget about the builders in your area who are offering insane incentives like rates as low as 3-4%. Stay informed so you can give your buyers every possible advantage.

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BE THE EXPERT YOUR CLIENTS NEED

How many of your buyers are out there right now, checking out homes and open houses without you? If you don’t want them to slip away, make sure you’re the first person they think of when it’s time to move.

Host a virtual homebuyer seminar, walk them through the creative financing options, or just pick up the phone and check in. The more value you provide now, the more trust you’ll build for the future.

Need extra accountability and support? Sign up for Premier Coaching today and get started for free at PremierCoaching.com.

WRAPPING IT UP

The 5.5% mortgage rate is more than just a number—it’s the key to unlocking the next big wave in real estate. But don’t sit back and wait for the perfect moment.

Get ahead of the game by arming your clients with creative financing solutions and becoming the expert they trust when the market shifts.

READY TO TAKE YOUR CAREER TO THE NEXT LEVEL?

Join our Premier Coaching for free, and get daily coaching sessions, expert scripts, and the strategies you need to tackle prospecting head-on. Sign up at https://premiercoaching.com.

And if you’re ready to take that next big step, consider joining the EXP Realty team. Visit https://whylibertas.com/harris or text Tim directly at 512-758-0206.

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AND THAT'S A WRAP!

Sweet dreams,

Tim & Julie Harris
Harris Real Estate Daily

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