What happens when mortgage rates drop?
After 7 straight weeks of rising rates, the average interest rate for a 30-year fixed mortgage dropped to 7.36% today, November 3, 2023. That may not seem like much, but it's a definite move in the right direction.
But what will happen if mortgage rates continue to drop?
- The market will accelerate.
- Buyers will sprint off the sidelines.
- Home prices will go up.
- Competition will heat up.
The bottom line? Buying a home is a deeply personal decision. It might not be the right time for you, right now. But if you are in the market to buy a home, and you can afford it, it might make sense to do it sooner rather than later.
BUT SHOULDN'T I WAIT TO SEE WHAT HAPPENS IN 2024?
It's impossible to predict the real estate market or time it perfectly. And yet, keeping a pulse on where experts think home prices are headed is wise — especially if you're considering a move in 2024. Here's a roundup of seven expert predictions for U.S. home prices in 2024:
⬆ Goldman Sachs: +0.60%
⬆ Wells Fargo: +2.50%
⬆ The AEI Housing Center: +7.0%
⬆ Mortgage Bankers Association: +1.1%
⬆ Fannie Mae: +2.8%
⬆ Zillow: +3.3%
🔻 Moody's Analytics: -4.4%
TRYING TO TIME THE MARKET PERFECTLY RARELY WORKS.
No one wants to overspend. We all want the best possible deal. It's tempting to wait for prices to hit bottom and mortgage rates to drop.
But here's the thing… Trying to perfectly time the market rarely works.
In fact, what's more important than timing the market is time in the market. While the market may be volatile in the short-term, jumping in when you can will help you build wealth for your future. In my experience, a long-term outlook has paid off in terms long-term price appreciation in the Austin housing market.
If you want to chat further or talk about your plans for 2024, don't hesitate to reach out for some candid advice. We're here to help.