In the fall and early winter, people in central Missouri are busy starting school, excited about football — especially this year — and surviving the holiday season. Among those events, who would want to add the potential stress and time it takes to search for and buy a new home? Even though it’s still a “seller’s market” and a busy time of year, the fall and early winter can be a great time to buy a house, particularly this year. Interest rates are lower, home inventory levels are increasing, and there is less market competition. All elements provide buyers with opportunities this time of year.    

For most homebuyers, mortgage rates are a considerable element of their home purchase decision. Fortunately, current mortgage rates are much lower than a year ago. Government bond yields have decreased as inflation continues to ease, resulting in lower mortgage rates. With the potential of the Federal Reserve to begin lowering the Federal Funds rate, mortgage rates could continue to go lower through the winter. 

Most housing economists have expressed that bond markets have already “priced in” lower interest rates and are not predicting mortgage rates will drop much further. The days of 3 percent mortgage rates are far behind, but a mortgage rate between 5.5 to 6.5 percent is still a phenomenal rate.  

The number of homes on the market is much higher than a few years ago, giving those searching for a home more options. Many current homeowners with low mortgage rates have been reluctant to sell their homes and feel “rate locked,” not wanting to give up their current rate. 

As mortgage rates decrease while home equity has increased, these homeowners are beginning to feel more comfortable selling their current homes and taking on slightly higher mortgage rates from a new purchase. Also, life events, such as a growing family, retirement, and job relocations, are increasing home inventory levels.  

One of the biggest benefits of buying in the fall and winter is less competition from other homebuyers. So many people wait until the spring and summer to purchase a new home, mainly because of the school calendar. With the potential of lower mortgage rates this spring and summer, market competition could be fierce. Fall and winter typically have more inventory on the market, giving buyers more choices and less chance of being in a multiple-offer situation. Also, sellers seem more likely to negotiate a little more during the fall and winter months.  

Fall and winter are busy times of year and moving when the weather is cold and gloomy is not ideal. However, homebuyers might miss a great opportunity in the coming months. Why wait until the spring or summer when homebuyers will face lower inventory levels, stiffer competition, and, more than likely, higher prices? 

If you are considering buying a new home, save yourself some stress and money by taking advantage of the fall and winter home market. You’ll thank yourself next spring when you are settled in your new home while your friends and family are dealing with annoying market factors you were able to avoid.

Brian Toohey is the chief executive officer for the Columbia Board of REALTORS.