Home » Mortgage Rates drop under 7% for the first time in almost 5 months

Mortgage Rates drop under 7% for the first time in almost 5 months

Edson Miranda
News
  //  January 16, 2024

Home buyers haven’t seen rates below 7% since August of 2023. Could this be the turning point for a more affordable housing market in 2024?

This is such a blessing for home buyers who were sidelined in recent months by higher borrowing costs. The latest rate drop brings hope for buyers who witnessed rates surge near 8% in the Fall, in some instances over 8%. Adding to the optimism, Economists predict rates to fall even further and the Federal Reserve said three rate cuts are likely in 2024. The potential for rate cuts in the new year offers hope that pressure on other interest rates, including long-term mortgage rates, will ease. NAR forecasts mortgage rates to average 6.3% in 2024.

As rates come down we’ll start to see stronger sales activity in 2024. Paige and I already witnessed local market volume heat up over the Fall and now into the Winter season. We believe all signs point to a highly competitive Spring market starting to develop. We pray the lower mortgage interest rates translate into stronger new home builder activity, as more inventory will be needed to satisfy demand. As we all experience in 2021 once demand exceeds supply we start to see bids over asking, waived property inspections, and the overall abandonment of wise buying protocols. If you’re thinking of making a change this year, rest easy, as the interest rates fall the more affordable your monthly mortgage payment becomes. Plus, inventory has been ramping up! However, as interest rates dip lower and as we get closer to the Spring market we can see pricing, offers, and new home premiums begin to surge again.  Our advice is don’t wait, buying and selling a home takes time. Best time to start is now and the best place to start is by contacting us! 

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