When to Buy: Tracking Mortgage Rates for 2024
Pushing Pause Thanks to Mortgage Rates
If you hit pause on your home search last year due to mortgage rates climbing, you’re not alone. For most people mortgage rates play a significant role in the decision-making process, especially when rates neared the 8% mark last year. Between rates, home pricing continuing to climb, and student loan payments being revived, many of our homebuyers had to re-evaluate their budgets.
Bright MLS reveals that high mortgage rates are the primary reason many buyers have postponed their moving plans.
This sentiment is echoed by David Childers, CEO at Keeping Current Matters, who shared on the How’s The Market podcast:
“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”
Mortgage Rates Turning Around
There’s good news on the horizon! Mortgage rates have started to come down from their October 2023 peak, with expectations for further reductions throughout the year, so long as inflation rates stabilize. Some experts are even predicting rates could dip below 6% by the end of 2024. This change could significantly impact buyer sentiment. As stated by Realtor.com:
“Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”
What Mortgage Rate Will Help You Buy?
While it’s challenging to predict mortgage rates, the current outlook offers a hopeful glimpse for those who’ve been waiting on the sidelines. If you’re contemplating when to resume the hunt for your new home, consider this question:
What mortgage rate would make you comfortable enough to start your home search?
Your answer is personal. It could be 6.5%, 6.25%, or even just under 6%. You may be thinking, “I have no clue. I just want them as low as possible!” And we get that. Another way to know when it’s right to house hunt is to determine what you want your monthly payment to be. We can help you create a budget that fits best for you, and from there, we can look at the best home price and mortgage rate to fit within your budget!
Next Steps for Determining When to Buy
If mortgage rates have been the barrier between you and your homebuying aspirations, now’s the time to pinpoint the rate (and more importantly, the budget!) that would encourage you to re-enter the market. Let’s have a quick chat to see what mortgage rate and payment are best for you! Call or text us at (303) 477-3889 for your clear mortgage plan, or contact us here.
