Considering a move? Mortgage rates likely play a pivotal role in your decision-making process. For many, fluctuations in rates can put plans on hold. Last year, when rates approached 8%, numerous potential buyers found themselves reconsidering their budgets. If this sounds familiar, you're not alone.
According to data from Bright MLS, high mortgage rates were the primary reason for delaying moves among buyers. David Childers, CEO at Keeping Current Matters, elaborated on this trend in a recent How’s The Market podcast, noting that three-quarters of buyers cited mortgage rates as a deterrent. However, there's optimism on the horizon for 2024.
Since their peak in October, mortgage rates have gradually declined. Although day-to-day fluctuations persist, long-term projections suggest a continued decrease throughout the year, contingent on stabilizing inflation rates. Some experts even anticipate rates falling below 6% by the year's end, potentially reshaping the landscape for buyers.
Realtor.com highlights this sentiment, noting that while the desire for homeownership remains strong, many individuals are waiting for mortgage rates to reach more favorable levels. In fact, a significant portion of Americans eyeing a home purchase within the next year would consider it feasible if rates drop below 6%.
While predicting mortgage rates is challenging, the positive outlook from experts offers hope for those whose plans were previously stalled. If you've been waiting, now might be the time to reconsider your move. The crucial question to ask yourself is: At what rate am I comfortable resuming my search?
Your ideal percentage is personal. Whether it's 6.5%, 6.25%, or below 6%, establishing your threshold is the first step. Once you've determined this, enlist the help of a local real estate professional. They can keep you informed about market trends and alert you when rates align with your target.
In conclusion, if high mortgage rates have deterred you from moving forward with your plans, it's worthwhile to consider the rate at which you'd feel comfortable re-entering the market. With optimism surrounding potential rate decreases, now may be an opportune time to reassess your options and take steps towards your desired move.