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Boston condo interest rates and Feds delicate dance

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Boston condo interest rates and Feds delicate dance

If you’ve been thinking about buying a Boston Beacon Hill condo, mortgage rates are probably top of mind for you. They may even be why you’ve put your plans on hold for now. When rates climbed near 8% last year, some buyers found the numbers just didn’t make sense for their budget anymore. That may be the case for you too.

Data from Bright MLS shows the top reason buyers delayed their plans to move is due to high mortgage rates (see graph below):

 a graph of blue rectangles with text

David Childers, CEO at Keeping Current Matters, speaks to this statistic in the recent How’s The Market podcast:

“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”

That’s because mortgage rates have come down off their peak last October. And while there’s still day-to-day volatility in rates, the longer-term projections show rates should continue to drop this year, as long as inflation gets under control. Experts even say we could see rates below 6% by the end of 2024. And that threshold would be a gamechanger for a lot of buyers. As a recent article from says:

Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”

While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into what’s ahead. If your plans were delayed, there’s light at the end of the tunnel again. That means it may be time to start thinking about your move. The best question you can ask yourself right now, is this:

What number do I want to see rates hit before I’m ready to buy a Boston Beacon Hill condo?

The exact percentage where you feel comfortable kicking off your search again is personal. Maybe it’s 6.5%. Maybe it’s 6.25%. Or maybe it’s once they drop below 6%.

Once you have that number in mind, here’s what you do. Connect with a local real estate professional. They’ll help you stay informed on what’s happening. And when rates hit your target, they’ll be the first to let you know. 

Boston Condos and the Bottom Line

If you’ve put your plans to move on hold because of where mortgage rates are, think about the number you want to see rates hit that would make you ready to re-enter the market.

Once you have that number in mind, let’s connect so you have someone on your side to let you know when we get there.


Boston condo interest rates and Feds delicate dance

Boston condo interest rates and Feds delicate dance

Boston condo interest rates and Feds delicate dance. Mortgage rates have come down 1% in the last few weeks, and the casual observers are hoping it means that the Big Turnaround will commence in the Spring of 2024 for the Boston condo for sale market.

But for a full-fledged Boston condo buying spree to break out, home prices would have to drop too.

We’re probably not going to see the whole market drop in price (i.e., big dips in the median sales prices) because the downtown Boston properties should hold their value better with the impatient buyers.

But those who don’t need the perfect condominium will likely have better luck next year with getting a deal. 

Updated: Boston Real Estate Blog 2023


The mortgage interest chart below and the excerpt below is from Mortgage News Daily.

Boston condos



Will higher mortgage rates have Boston condo sellers lowering their asking price?

No surprise that mortgage rates will play a big role in how it plays out, and they have been extremely volatile lately.

The invisible impact on the market will be will be Boston condos buyers expect higher mortgage rates to convince sellers to lower their price. But sellers aren’t very empathetic, and most will go with their retail list price based on the highest comps ever recorded, and hope that cute young professional couple with two high-paying jobs falls in love and just pays what it takes to win it.

What impact does mortgage rates have on the Boston condo for sale market?

If rates miraculously drop back down to 5% and under, then Boston condo buyers won’t have a good reason to expect better pricing, and they will be tempted to give in and just pay what it takes. But if rates are 6% and higher, they have a rallying cry and the Big Standoff will be on.

How much lower will condo prices need to be to satisfy Boston condo buyers?

They probably won’t have a number in mind, and the answer will just be ‘less’.  It will likely end up being a binary decision – either rates are low enough that we’ll just go ahead and pay these prices, or they won’t.

What is the challenge for Boston condo buyers for 2022 and 2023?

The biggest challenge for buyers will be Boston condo for sale inventory, it will be most interesting to see if the Boston luxury homes – the real creampuffs – sit for long, or if they blow out to cash buyers or to those who care more about getting the right condominium, rather than the right mortgage rate.

Boston Condos for sale and the bottom line

The bottom line, If there is a steady stream of new Boston condos for sale inventory, it will help keep more Boston condo buyers to engage in the market. Hopefully, the delicate dance the Fed is orchestrating with interest rates will result in a soft-landing.

Updated: Boston Real Estate Blog 2023

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