By: Nicole Azzi Williams Fast forward to the current time in 2024 - mortgage rates have remained slightly below 7%; as of March 27th, the average 30-year fixed rate was Approximately 6.77%. Experts had initially anticipated lower rates because of the dropping rate of inflation; but, a 3.1% increase in inflation 2 months ago had complicated the Federal Reserve's intention to reduce rates.

Despite this, there is still expectation that mortgage rates would drop by 2024, particularly given the Federal Reserve's rate-cutting ambitions. This assumption is reflected in the average 30-year fixed-rate mortgage, which is comparably lower than 7.76% in November.

With inflation constant and interest rate moves on indefinite hold, the real estate market appears to be at a crossroads, particularly for those who have chosen to wait it out. In such a circumstance, should property buyers buy now or wait until the end of the year? Here at The Williams Team, we'll go into more detail about this - keep on reading!

Not sure whether to buy a home now or wait? Here's a breakdown for each scenario:

Scenario #1 : Buying A House Now
Moves of necessity—for work changes, family situation adjustments, and downsizing to a more affordable market—are predicted to drive up property sales in 2024. But here are common factors why buying a house now can become a great idea for you:

• Increased Purchasing Power: Buying a property now instead of waiting until year-end can increase your purchasing power.

• Mason Whitehead, branch manager at Churchill Mortgage, notes that rates have decreased by approximately 1.5% from their peak in late November and early December 2023.

• This decrease in rates allows homeowners to qualify for a substantial amount of funds each month.

• Diminished Seller Power: Another advantage of purchasing now is the weakening power of sellers.

• Whitehead observes that sellers are witnessing market stabilization, leading them to be more reasonable with offers.

• Sellers are often covering the buyer's closing costs to facilitate deals.

• Additionally, as more people see rates declining, they may become more inclined to sell and move.

If you’d like to make the move now, here are a few tips that could help you get the lowest mortgage rate possible:

Firstly, increasing your down payment reduces the loan-to-value ratio (LTV), which lenders use to assess risk. A higher LTV could make you eligible for more favorable loan conditions. Secondly, aim to improve your credit score, as higher scores often translate to lower interest rates. Taking steps to boost your credit before applying for a mortgage could result in a better rate. Lastly, opting for a shorter loan term may lead to lower interest rates despite higher monthly payments.

Scenario #2 Wait until later this year before buying

• If interest rates continue to decrease, homebuyers may have increased purchasing power by the year's end.

• However, there are trade-offs in this scenario, such as intensified competition among buyers due to lower rates, potentially leading to rising house prices and other complications.

• Brian Shahwan, a mortgage banker and broker at William Raveis Mortgage, acknowledges the pros and cons of waiting to buy a home.

• Pros include lower interest rates and more available inventory.

• Cons include higher house prices and uncertainty about market timing.

• Shahwan encourages buyers seeking a primary residence to act quickly, while those seeking investment properties or second homes should wait.
  
  

Looking forward to 2024, Realtor.com predicts a small drop in the average monthly cost of buying a typical home, from $2,240 this year to $2,200, making up about 35% of the average income for American families. Expectedly, low demand and limited options for buying will continue as sellers remain cautious.

Securing the best possible interest rate on your home loan can lead to significant savings in the long run. Here are some simple steps to help you get the best rate:
keep an eye on changing rates, check your credit score regularly, and explore offers from different lenders. According to Freddie Mac, customers who got quotes from two lenders saved over $1,500 over the loan period, while those who got five quotes saved about $3,000.

So here at The Williams Team, we know how crucial it is to find the right mortgage lender. That's why we've built strong relationships with various trusted mortgage lenders over the years. Our team has the expertise to offer valuable insights through a consultation whenever you need it. All you have to do is visit www.thewilliamsteam.com to schedule your consultation today!