You may have seen the headlines: mortgage rates just dipped to 5.99%.
At first glance, that number may not seem like a big change. But in real estate, crossing below the 6% mark is more than math — it’s psychology. And psychology often drives market movement.
Recent data shows that roughly 35% of potential sellers say they would consider selling in a 5% interest rate environment. Compare that to periods when rates sit above 6%, where seller willingness drops dramatically. That difference alone makes this shift meaningful.
Over the past two years, many homeowners chose to stay put. With higher rates, selling meant giving up a favorable mortgage and stepping into uncertainty. This created what many refer to as “locked-in inventory” — homes that would normally trade but didn’t.
Now, that lock may be starting to loosen.
As rates dip, even slightly, confidence tends to return. Sellers begin to feel that timing may be improving. Buyers re-engage as affordability improves, even marginally. And when both sides start paying attention again, the market gains momentum.
This doesn’t mean inventory will surge overnight or that prices will suddenly change direction. What it does mean is more conversations are starting to happen — between homeowners, buyers, lenders, and real estate professionals.
If you’ve been watching the market from the sidelines — whether you’re considering selling, buying, or simply staying informed — this rate movement is worth paying attention to.
Small shifts often lead to bigger changes. And this one may be the signal that activity begins to pick up as we move forward.
If you’re curious how this impacts your specific situation, the smartest next step is simply understanding your options.
