Key highlights:
- Now is an opportune time to purchase a home to stay ahead of the competition.
- Daily average mortgage rates hit a 14-month low of 6.34% on Monday, providing buyers with increased purchasing power.
- With a 20% increase in total listings compared to last year, there is a wide range of inventory available for buyers to choose from.
As of Monday, August 5th, daily average 30-year fixed mortgage rates dropped to 6.34%, the lowest since April 2023. This decrease was a result of a weak jobs report leading to concerns of a potential recession and a subsequent global market slowdown.
Following recent events, rates slightly rose to 6.52% on August 6th but remain below the peak of 7.5% in April. Buyers have gained nearly $30,000 in purchasing power since July, and further interest rate cuts are anticipated in September.
The rise in total listings by 20% from last year indicates a favorable market for buyers. If you are considering buying a house, now may be the ideal time to make your move.
Is it a good time to buy a house now?
In short, yes. Buying now can help you secure a home before prices potentially rise due to increased competition. Lower rates offer savings over the loan term and enable more of your mortgage payments to contribute to building equity.
Recent fluctuations in the market have defied conventional trends, making it an unpredictable yet compelling time for buyers. While uncertainties remain, the current dip in mortgage rates presents an advantageous opportunity for homebuyers.
Will mortgage rates decrease further in 2024?
Current mortgage rates reflect investor expectations regarding the Federal Reserve’s actions. Economists anticipate a gradual decline in rates throughout the year, factoring in potential interest rate cuts in the near future.
How did we reach this point?
Historically low inventory levels and high demand fueled a housing boom in recent years, driving prices upwards despite high mortgage rates. The market dynamics have shifted, leading to a unique situation where prices continue to rise even as rates decrease.
The current trend of rising home prices amidst increasing inventory and low sales activity suggests a complex market scenario that demands cautious observation.
Prepare for competitive home selling
Reduced mortgage rates are expected to attract more buyers, intensifying competition among sellers. It is essential for sellers to be ready for heightened demand in the housing market.
Consider locking in your mortgage rate today
Securing a low mortgage rate now offers financial benefits in the long term, especially with rates at historic lows. Buyers and all-cash investors alike can benefit from locking in favorable rates before potential price increases.
Final thoughts
For those eyeing a home purchase, the current market conditions present a compelling opportunity. Connecting with a real estate agent and initiating your search now can position you advantageously in a market that is gaining momentum.