Chief Economist Lawrence Yun recently observed that "even with elevated mortgage rates, the housing market appears to be thawing." His comment, paired with the Morningstar article, America's Frozen Housing Market is Finally Starting to Thaw, highlights a shift that many of us in real estate are experiencing firsthand: buyers and sellers are adapting to the new normal.
For nearly two years, mortgage rates have hovered around 7%. At first, this felt like an insurmountable hurdle, a far cry from the historically low rates we had grown accustomed to during the pandemic years. But as one savvy commenter pointed out on LinkedIn, "Rates have been pretty steady around 7% for the past two years if you zoom out. So buyers are likely used to it and looking at other things, like total payment, to see if it makes sense to proceed. Rates are no longer the biggest focus now that they seem to have stabilized in a range."
This shift in mindset is critical. For buyers and sellers alike, decisions are no longer paralyzed by interest rates. Instead, they’re recalibrating their expectations and focusing on what matters most: affordability, timing, and—above all—life changes.
Why Life Changes Drive the Market
It’s easy to get caught up in macroeconomic factors when we talk about the housing market. But real estate, at its core, is about people. Life doesn’t pause because mortgage rates rise. Families grow, jobs relocate, relationships change, and priorities evolve. These are the forces that keep the market moving, regardless of external conditions.
As a real estate agent, I’ve found that staying "in flow" with my clients makes all the difference. By focusing on their needs—whether it’s finding a home for their expanding family, downsizing after the kids have moved out, or relocating for a dream job—I can help them navigate the current market with confidence. The key is understanding that life transitions don’t wait for interest rates to drop; they happen when they happen.
The Importance of Adaptability
This period of higher rates has also taught buyers and sellers to adapt. Buyers are no longer waiting indefinitely for rates to return to historic lows. Instead, they’re looking at their total monthly payments and evaluating what they can afford. Sellers, meanwhile, are becoming more realistic about pricing, knowing that the market has shifted.
This adaptability is what makes me optimistic about the future. Yes, rates may be higher than we’d like, but people are resilient. They adjust, they plan, and they move forward—because they have to.
A Market in Motion
As we enter a new phase in the housing market, the thaw Lawrence Yun referred to feels like an invitation. It’s a reminder that our industry is built on relationships and life’s inevitable changes, not just numbers and data. For those of us who focus on being present and staying connected, this is an opportunity to grow and thrive alongside our clients.
So while rates may have seemed like the story for the past couple of years, the real story has always been about the people we serve. And that’s a market that never truly freezes.