Because of current economic conditions, Baxter expects rates to continue to slide into 2026, which should set up a strong spring buying season.
“I think rates come down,” he said. “I think that’s likely to happen for a lot of reasons. The economy is looking shaky, and job numbers are looking really weak. Inflation, even though they keep talking about it, I think that’s likely heading a little bit lower. All these things point to the likelihood of lower interest rates.
“As lower interest rates happen, more buyers come in, and also more sellers. There are a lot of sellers who are locked into their 3% mortgage, but they want to move. I’ve had people literally tell me, ‘I’m going to stay put until rates get into the fives, and then we want to move, but I want to wait until it gets a little bit closer to what I’m at.’ I think that’s going to unlock a lot of activity.”
Another clickbait headline
However, when these doomsday headlines hit the internet, they add another reason for buyers and sellers to pause any potential plans. Which means brokers have to go back to work trying to convince potential customers that the market crash being forecasted isn’t going to happen.
Andrew Kunisawa, senior loan officer with Accelerated Lending Group, said these conversations with customers are a critical part of a mortgage broker’s job.
