Category: Blog

What Mortgage Rate Are You Waiting For?

You won’t find anyone who’s going to argue that mortgage rates have had a
big impact on housing affordability over the past couple of years. But
there is hope on the horizon. Rates have actually started to come down.
And, recently they hit the lowest point we’ve seen in 2024, according to
Freddie Mac (see graph below):

And if you’re thinking about buying a home, that may leave you wondering:
how much lower are they going to go? Here’s some information that can help
you know what to expect.

Expert Projections for Mortgage Rates

Experts say the overall downward trend should continue as long as inflation
and the economy keeps cooling. But as new reports come out on those key
indicators, there’s going to be some volatility here and there.

What you need to remember is it’s not wise to let those blips distract you
from the larger trend. Rates are still down roughly a full percentage point
from the recent peak compared to May.

And the general consensus is that rates in the low 6s are possible in the
months ahead, it just depends on what happens with the economy and what the
Federal Reserve decides to do moving forward.

Most experts are already starting to revise their 2024 mortgage rate
forecasts to be more optimistic that lower rates are ahead. For example,
Realtor.com says:

“Mortgage rates have been revised slightly lower as signals from the
economy suggest that it will be appropriate for the Fed to begin to cut
its Federal Funds rate in 2024. Our yearly mortgage rate average
forecast is down to 6.7%, and we revised our year-end forecast to 6.3%
from 6.5%.”

Know Your Number for Mortgage Rates

So, what does this mean for you and your plans to move? If you’ve been
holding out and waiting for rates to come down, know that it’s already
happening. You just have to decide, based on the expert projections and
your own budget, when you’ll be willing to jump back in. As Sam Khater,
Chief Economist at Freddie Mac, says:

“The decline in mortgage rates does increase prospective homebuyers’
purchasing power and should begin to pique their interest in making a
move.”

As a next step, ask yourself this: what number do I want to see rates hit
before I’m ready to move?

Maybe it’s 6.25%. Maybe it’s 6.0%. Or maybe it’s once they hit 5.99%. The
exact percentage where you feel comfortable kicking off your search again
is personal. Once you have that number in mind, you don’t need to follow
rates yourself and wait for it to become a reality.

Instead, connect with a local real estate professional. They’ll help you
stay up to date on what’s happening and have a conversation about when to
make your move. And once rates hit your target, they’ll be the first to let
you know.

Bottom Line

If you’ve put your moving plans on hold because of higher mortgage rates,
think about the number you want to see rates hit that would make you
re-enter the market.

Once you have that number in mind, let’s connect so you have someone on
your side to let you know when we get there.

Inventory is growing and that means more options for your search, more
negotiation power for you, it’s more likely sellers will make select
repairs, and more moderate price growth. If you want to talk more about
rising inventory means for you, let’s connect.

While the number of homes for sale varies by local area, nationally we’re
up over 36% year-over-year, but still down almost 29% compared to what’s
normal. Here’s what that means when you buy: more options for your search,
more negotiation power for you, it’s more likely sellers will make select
repairs, and more moderate price growth. If you want to talk more about
what rising inventory means for you, let’s connect.

Have you ever heard the phrase: don’t believe everything you hear? That’s
especially true if you’re thinking about buying or selling a home in
today’s housing market. There’s a lot of misinformation out there. And
right now, making sure you have someone you can go to for trustworthy
information is extra important.

The best way to redefine the style of your home is to do some DIY projects,
maybe with a nail or staple gun! Try these fun ideas out with your tools.

In today’s housing market, many sellers are making a critical mistake:
overpricing their houses. This common error can lead to a home sitting on
the market for a long time without any offers. And when that happens, the
homeowner may have to drop their asking price to try to re-ignite buyer
interest.

How To Choose a Great Local Real Estate Agent

Selecting the right real estate agent can make a world of difference when buying or selling a home. But how do you find the best one? Here are some tips to help you make that big decision as you determine your partner in the process.Check Their ReputationStart by gathering information about agents in your area. From there, try to narrow down the list. Ask the people you trust if they have someone they’d recommend. You’ll want to find an agent with a strong online presence, plenty of positive reviews, and someone whose great reputation truly precedes them. As Freddie Mac explains:“. . . you may want to look for a real estate agent who specializes in the type of home you’re searching for. For example, if you are looking for an energy-efficient home, look for an agent who has experience with finding and negotiating offers for those homes. If you are looking for new construction, you’ll want to find an agent who has experience with new construction and isn’t affiliated with the builder . . .”Look for Local Market ExpertiseA great agent should have in-depth knowledge of what’s happening at the national and local level. That way they can clear up any misconceptions sparked by what you’re reading or hearing in the news. And they can tell you how your area compares to the national data. As an added perk, they’ll also be familiar with the neighborhoods you’re interested in and community amenities. As a recent article from Business Insider says:“Spend some time talking with prospective agents about the local real estate market and how it could impact your purchase or sale. You want to get an understanding of how knowledgeable they are about local market conditions. Whether they’re helping you sell or buy, their strategy for you should account for those conditions.”Get a Feel for Their Communication Style and AvailabilityEffective communication is key in real estate transactions. Choose an agent who listens to your needs, answers your questions quickly, and keeps you informed throughout the process. If an agent is juggling too many clients, they might not be able to give you the attention you deserve. You want someone who will be readily available and responsive. So, what’s the best way to get a feel for their communication style and preferences? Bankrate offers this advice:“Interviews also give you a chance to find out the agent’s preferred method of communication and their availability. For example, if you’re most comfortable texting and expect to visit homes after work hours during the week, you’ll want an agent who’s happy to do the same.”Trust Your GutLast, rely on your instincts. If you feel like you do or don’t click with one of the agents you’re talking to, that matters. Choose an agent you feel at ease with and who inspires confidence. The right agent should be someone you trust to guide you through one of the most significant transactions of your life. As Business Insider says:“As long as you’ve properly vetted the agents you’re considering and ensured they have the necessary expertise, it’s ok to go with your gut . . . Maybe you have a better rapport with one of the agents you’re considering, or you just feel like they’re easier to approach. You’re going to be working closely with this person, so it’s important to choose an agent you’re comfortable with.”Bottom LineBy following these tips, you can pick an agent who’ll provide the support and expertise you need to help make the process as smooth as possible. It’d be an honor to apply for that job. Let’s connect so we can have a conversation and see if we’d be a good fit for working together.