A Drop in Mortgage Rates Could Give Atlanta’s Housing Market a Much-Needed Boost

If you’ve been keeping an eye on the real estate market here in Atlanta, you’ve probably noticed things have been a bit slower than usual. Mortgage rates have stayed slightly high this year, and that’s made it tough for a lot of buyers to make moves. The spring season, which is normally one of the busiest times of year, didn’t bring the activity many of us were hoping for.

But there’s some positive news on the horizon.

According to the National Association of Realtors, if mortgage rates drop to 6 percent, cities like Atlanta could see a strong uptick in home buying activity. Right now, the average 30-year fixed mortgage rate is hovering around 6.72 percent. It’s been relatively steady for months now, but experts believe we could see rates come down a bit before the end of the year.

During a recent housing market update, NAR’s Chief Economist Lawrence Yun mentioned that while we probably won’t see rates fall to 3 or 4 percent again anytime soon, a drop to 6 percent is very likely. That shift, even though it might seem small, could make a big difference.

Affordability has taken a real hit lately. Home prices are still rising, and many buyers earning a median income are feeling stretched thin. Zillow recently pointed out that the average household in metro Atlanta would need to earn about $15,000 more just to comfortably afford a typical home here, even with a 20 percent down payment.

That’s not easy.

But if rates drop to 6 percent, that could open up the possibility of homeownership to more than 100,000 households in the Atlanta area. That’s a big number. Nationwide, about 5.5 million households would be able to afford a median-priced home if rates fall as expected. NAR says we could then see a 3 percent increase in total home sales by the end of this year and possibly as much as 14 percent growth in 2026.

For buyers, this could be the window you’ve been waiting for. And for sellers, more qualified buyers entering the market means more interest in your property.

It’s definitely something to watch closely. I’ll be staying on top of it, and as always, I’m here to help if you want to talk through your options.

Let’s see what the rest of the year brings.