We are entering the spring house buying season for 2024 and there is still a fair amount of uncertainty. Homebuyers are asking many of the same questions that faced them in 2023. Is the inventory of houses for sale going to improve? Which way are interest rates going to go this year? Is the presidential election going to have an impact on the interest rates?
First the inventory question. Unfortunately, there is not a blanket answer for that. Real estate has always been and remains a very local commodity. What is happening in one region is not necessarily the same thing that is happening in another region. Everyone needs to assess what is going on in your market. In addition to using a local realtor and the internet, homebuyers need to try many methods to find a house. Post on social media what type of a house you are looking for. Have family and friends help you find the house that you are looking for. Be open-minded to the size and type of house you are looking for.
Currently the 30-year mortgage rate is in the mid sevens. Certainly, that is a much higher rate than what we had a couple of years ago. But looking at the bigger picture, that rate is not bad based on what we have had over the last 40 years. Mortgage rates reached as high as the middle to upper teens in the early 80’s.
If you find a house that fits your needs and the price/payment is within your budget, move forward with your purchase. If rates move lower at some point, you can always refinance your mortgage.
If you are a first-time homebuyer, make sure your agent is looking for any down payment assistance programs that are available.
Home ownership is still important to help build wealth. Buy a home and obtain a mortgage, your way, which is best for you.
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