NASHVILLE, Tenn. (WKRN) — As many Middle Tennessee homebuyers remain in a wait-and-see period, local realtors say they’re seeing the lowest interest rates so far this year.

The Federal Reserve is expected to meet on Wednesday, and some local realtors said there could be even more relief then.

“Mortgage rates are still hovering around 6.1-6.2, which is the lowest it's been this entire year,” Ashton Real Estate Group of REMAX Advantage co-owner and managing broker Debra Beagle said. “As soon as rates do dip to where that monthly payment is in line, I would grab it and go.”

Inventory across Middle Tennessee is improving, with up to four months' worth of inventory in some areas. But if rates drop, Beagle said that number could change, along with demand.

"So buyers out there, right now, they need to be thinking strategically, and even if the rate is not where everybody would love to see down towards the bottom 5s, I mean if it's at six or down there, you can buy down the rate, I would jump in because you have more choices, and you have more ability to negotiate on the front end for seller concessions,” Beagle said.

Last week, Middle Tennessee saw roughly 142,000 showings, meaning interest in the market is still strong.

In Rutherford County, George Weeks with Team George Weeks Realty Estate said he's seeing roughly three-and-a-half months of inventory, up from less than a month's worth in 2021.    

“We're seeing more listings come onto the market, and we're seeing more buyers also entering the marketplace," Weeks said. "It seems like they have more confidence and that they're coming off the fence."

He also urged buyers to be ready to go with financing following pent-up demand.

“There's more listings coming onto the market," Weeks said. "Interest rates are coming down, but the frenzy of everybody getting into the market all at once hasn't happened, so you can still negotiate a great deal on a home that appeals to you."

Last week, Beagle traveled to Washington, D.C., to advocate for dropping mortgage insurance premiums for homebuyers. She said the fund currently has roughly $200 billion in it. 

News Source : https://www.wkrn.com/news/local-news/the-impact-of-mortgage-rates-decreasing-in-middle-tennessee/