Still, few are expecting rates to tumble anywhere close to their COVID-19 level – and borrowers hoping for a return to pandemic-era rates need to adjust their definition of “normal,” according to Orlicki. He sees possible headaches ahead for buyers holding out for much lower mortgage rates before they wade into the market.
“Those people who’ve been sitting on the sidelines, I think, are coming to the realization that rates aren’t going to move down as quickly as they’d like,” he said. “And it’s a buyer’s market right now.
“We all know that if rates start coming down, values will probably move higher because you’ll have more qualified people out shopping with what we still consider very limited inventory.”
His advice to clients: if they find something they like, they can always refinance that rate at a later date. That makes sense, he said, because current advantages for buyers may not last if the market finally begins to heat up.
“I don’t think the concessions and everything else are going to be there six to 12 months from now when this pendulum eventually swings back to a seller’s market,” he said.