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Lot Size
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Home Size1,258 sqft
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Beds3 Beds
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Baths3 Baths
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Year Built1977
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Days on Market14
Mortgage Rates for (the Rest) of 2024
- Real Estate Tips
- October 25, 2024
2024 is coming to a close, and maybe you feel like you’ve been renting forever–but is this the best time to buy a home? What about mortgage rates? Whether a homeowner or prospective buyer, there’s no doubt that mortgage rates play a part in affordability and the housing market in general. Let’s take a look at recent trends so far to better gauge where things could go to make the best decision.
2023 in Review
To better try to understand where mortgage rates are now, reviewing 2023 may be the best place to start. In a ugly nutshell, last year was not a good time for homebuyers wanting to secure more affordable loans, with rates ping-ponging from 6.48% to over 7% for 30-year fixed mortgages. This topsy-turvy volatility stemmed from rising inflation, international tensions, and Fed monetary policies (mainly hiking interest rates). Would 2024 be any better?
2024 Up to Now
At the beginning of this year, mortgage rates were projected to stay higher than pre-pandemic levels, but could still dip lower than the 2022 and 2023 peaks. As recently as this October, 30-year fixed mortgage rates rose to over 6%, even though the overall trend has been a decline throughout 2024. But how does this affect the housing market now–and you?
The Current Housing Market Yo-Yo
Rocket science it’s not; if mortgage rates are on the low side, then homes become more affordable, so there is a big growth surge in the market. PulteGroup, for instance, stated profits were greatly surpassed in 2024’s third quarter, due mainly to lower mortgage rates and an increase in demand for new housing.
Despite this, some homeowners remain hesitant on pulling the trigger to sell their properties with fluctuating interest rates a huge concern, which is why many are choosing to simply stay where they are. Buyer or seller, what’s the best course of action?
Things to Consider if Buying or Selling in 2024
With everything covered thus far, prospective homebuyers and current homeowners should consider the following:
- For Buyers: Keep your finger on the pulse of trending rates and other economic factors. If it’s conceivable to lock in a pre-approved mortgage, by all means do so, it could possibly give you a more competitive edge.
- For Owners: If your mortgage rate is high, check into refinancing as rates fall. But also carefully weigh a potential refi to closing costs and what’s left on the current mortgage loan.
How to Secure the Best Mortgage Rates in 2024
As financial experts and other gurus continue crystal-balling where mortgage rates could go for the remainder of 2024, to get the best rate possible, look into:
- Credit Rules: If you have or can attain a higher FICO score (740+ is ideal), then lower rates will come to you on a silver platter. If you’re going to apply for a mortgage, do everything you can (consolidate, pay off debts, etc.) to have the highest, attainable score.
- Compare: Some lenders may offer drastically different terms and rates, so it makes sense to explore credit unions, banks, or even online lenders to get the best deal.
- Get ARMed: If you know you’re planning to eventually move or refinance, opting for Adjustable-rate mortgages (ARMs) can come with lower rates than other fixed-rate loans.
- The Down Payment: A lender may look more favorably at a larger, higher down payment with the logic being their risk is significantly reduced. This could mean a much lower interest rate.
Don’t Do This Alone, a Realtor Can Help!
2024 may be winding down, but as you can see, mortgage rates and the overall housing landscape has never been in more of a state of flux–and do you really want to be afloat on this turbulent sea without a captain? You don’t have to figure this all out on your own. Hiring an experienced Realtor can help you navigate this sea-in-flux, and also secure the best mortgage rate possible.
If you have any questions about the ever-changing 2024 market, contact Linda Moore today and be one step closer to crossing the threshold of your dream home!
