Is it time to buy a home yet? That’s a tough question to answer. There are a lot of factors at play, but according to current data, some people think 2024 might be the year to pull the trigger on that three bedroom/two bath you’ve been looking at.
Here’s Five Fast Facts on The Current Home Buying Landscape:
- 📉 Down - As of this writing, the average 30-year mortgage rate is around 6.3%, which is down from both February and January.
- 📈 Want Ad - The Federal Reserve uses the labor market as a cue to start lowering the federal funds rate. The US added 275,000 jobs in February, which seems to indicate we’re going to see a few rate cuts this year. That said, they probably won’t kick in until later this year.
- 🏡 When? - Three banking organizations say rates should hit around 6% in the final three months of the year, but don’t see it dropping under that.
- 🏠 Flat - There are a few banking officials who believe rates won’t move at all. When rates hit 8%, it caused a steep decline in home sales. When it dropped back to the mid-6%, sales saw a quick change. In other words, buyers are comfortable with this level and if it ain't broke, don’t fix it.
- 🛍️ Jump - Financial experts say if you’re looking to buy a house, now might be the time to do it, instead of waiting for a significant drop. Such a decrease may cause increased competition for homes, leaving you out in the cold.
🔥Bottom line: It’s a roll of the dice at this point. How badly do you want or need to move? That’s pretty much the main factor in the home buying process right now (other than “can I afford it”). You may wind up waiting a very long time, but it’s the risk you take.
Do you want to buy a home this year?
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