Summer is right around the corner, and so is the time of year when more of us think of buying or selling a home. However, inflation is still hanging around, which means that the interest rate cuts expected this year haven’t yet happened. It is still to be seen if this will affect the residential real estate market, and to what extent. The news isn’t all bad, though; unemployment remains low, and US stock markets rallied during the first months of 2024, rising by over 10%.
It’s a dilemma that’s been around for two years: Should potential homebuyers begin viewing properties now, or hold out for lower mortgage rates? Many current home shoppers are debating this now.
Since lower rates can increase a home budget, waiting for them can make a big difference, especially for first-time homebuyers who often struggle to find an affordable home. However, there’s a downside to waiting that some buyers don’t realize; namely, lower rates are expected to heat up the market, attract more prospective buyers, and drive-up property prices.
To complicate matters further, the interest rate cuts expected for 2024 haven’t yet happened, due to inflation’s refusal to leave the chat. While an average rate on a 30-year home loan of just under 7% is not far from the historical average, that’s little consolation to this year’s homebuyers.
Home shoppers also have more properties to choose from this spring than a year ago. Active listings have exceeded prior-year levels for five straight months, according to Realtor.com. Those shopping for new construction may have better luck this spring, especially as some builders are offering incentives such as mortgage rate buydowns.
If you are looking to purchase a home now, don’t wait – you can purchase your home today and refinance the loan with no lender fees.* Your home is an important investment, so take the time to make sure it’s right. Trust in your advocates and they will ensure that you have an exciting and fun experience buying your first home.
If you are purchasing a home, submit your application for pre-approval now so you can be prepared for your house hunting as soon as you find your perfect fit. Core Bank’s team of lenders are committed to helping you achieve your dreams, whether you’re ready to buy, build or refinance your home. Contact someone from our team and apply today!
* Assumptions: Conditions and restrictions apply. Lender fees (ie. Administration, applications, closing commitment, processing, underwriting and wire fees) will be waived when borrower closes on a refinance of a qualifying loan with Core Bank Mortgage. All other 3rd party fees apply. Refinanced loan must meet agency and investor guidelines (seasoning requirements, net tangible benefit). Limited to the initial refinance of the qualifying loan. Subject to credit approval.
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