Is Now the Perfect Time to Buy a Home? Marry the House and Date the Rate!

Less Competition: Right now, there are fewer buyers in the market. That means you can beat the spring rush and face less competition.

Negotiation Power: You also have more room to negotiate. Homes are currently selling at 97% of their list price, compared to the frenzied market of 2021-2022 when it was 101% over list price.

Rates Continue to Drop: Remember, rates are continuing to drop. So, while you might be committing to a mortgage, think of it as marrying the house but dating the rate. It's a short-term commitment.

Affordability Example: For instance, if you secure a 30-year conventional mortgage with a $400,000 loan at the current rate of 6.5%, your monthly payment would be $2,528. If rates drop by just 0.25% or 0.50%, the difference is only $65 to $130 a month. So, why wait?

New Construction Homes: Don't forget to explore new construction homes; they've dropped their prices and are offering fantastic incentives with lower rates, some as low as 4.5%!

Building Equity: Buying now means you start building up your equity right away, rather than waiting on the sidelines.

Current Mortgage Rates: Mortgage rates have decreased this week, reaching their lowest level since May of 2023. The national average for a 30-year fixed loan stands at 6.6%.

Rate Drop Momentum: Rates have been dropping at an unprecedented pace over the past 8 weeks, the fastest drop since 1992. A total decrease of 91 basis points since July 2023.

The Unpredictability Factor: Yes, rates are dropping, but the past year has been unpredictable. It's better to secure the home you want now with a lower rate compared to last year.

Refinancing Option: Even if rates go down further, you can always refinance later. Don't miss out on your dream home because you're waiting for the perfect rate.

To recap, waiting in January 2023 seemed like a good idea with rates near 6.5%. But, as the year unfolded, so did the unexpected.

Fed Rate Hike: In early-February 2023, the Federal Reserve raised the Fed Funds Rate by 25 basis points. This started a chain reaction in the mortgage market.

Rate Rollercoaster: Rates initially dropped, but then they began to rise steadily. Mortgage rates began 2024 on an 8-week winning streak, the longest in 13 years.

Increased Purchasing Power: During this period, the 30-year fixed-rate mortgage rate shed more than 150 basis points, giving home buyers 16% more purchasing power today.

Inventory on the Rise: As interest rates start to fall, we're witnessing a steady increase in home inventory. Sellers are becoming more inclined to put their homes on the market now that rates seem more appealing to potential buyers.

Seller Confidence: Sellers are gaining confidence in the market, seeing an opportunity to attract buyers with these lower rates. This means you'll have more options to choose from.

Lower Inventory, Higher Rates: Remember, the relationship between inventory and rates is closely tied. More inventory often leads to lower rates. So, as more sellers list their homes, rates could become even more favorable.

Beat the Rush: This is a critical point: as the inventory increases and rates remain attractive, more buyers will soon start entering the market. Many have been on the sidelines, waiting for rates to drop. Now is the time to get in before the rush hits.

Your Advantage: By buying now, you have the advantage of choice. You can explore various properties, negotiate with confidence, and secure a great deal while the market is in your favor.

In conclusion, the rising inventory is a positive sign for potential homebuyers. It's an indication that the market is shifting in your favor. With more options and lower rates, you have the opportunity to find your dream home while competition is still relatively low.

And remember, those who waited this time last year are still waiting, missing out on the homes they wanted as rates continued to rise. Don't let that happen to you.

So, here's the key takeaway: 'Marry the house and date the rate.' Lock in your dream home now, while rates are attractive, and enjoy the benefits of homeownership. Don't wait until it's too late.