The Mortgage Market is Shifting: Here's What You Need to Know
At Seven Lilies Realty, we are always keeping an eye on the latest market trends to provide you with the best advice and insights. The mortgage market is currently showing signs of a shift, and here’s a quick rundown of what’s happening:
Mortgage Rates
Mortgage rates remain in the low-to-mid 6% range, a significant increase from the pandemic lows of 3-4%. During the height of the pandemic, we saw historically low mortgage rates, but those days seem to be behind us for now. The current rates, while higher than before, are still considered favorable when looking at the broader historical context.
Home Prices
Home prices on a national scale continue to grow, but there are some interesting variations at the local level. While many markets are still experiencing price increases, some areas are seeing surprising dips. This can create unique opportunities for buyers who are looking to enter the market in those specific regions.
Buyer Activity
Applications for purchase mortgages are down compared to even last year’s modest levels. This decrease in buyer activity is partly due to the higher mortgage rates, which have made financing a home more expensive. As a result, some buyers are choosing to wait, hoping for better conditions in the near future.
Potential Shift
There is growing speculation that we might see a shift in the near future. The recent slowdown in inflation has increased speculation of a Federal Reserve rate cut later in 2024. If this happens, we could see mortgage rates come down again, potentially reigniting buyer activity and making home purchases more affordable.
Market Outlook
The current market is in a bit of a wait-and-see mode. While buying conditions are less favorable than they were a year ago, there could be significant opportunities for those who are patient and ready to act when the conditions improve. If you're considering buying a home, staying informed and being prepared to move quickly can position you well for when the market shifts.
At Seven Lilies Realty, we are committed to helping you navigate these changing times. Whether you’re looking to buy, sell, or simply understand the market better, our team is here to provide you with the guidance and support you need. Keep an eye on our blog for more updates and insights into the real estate market.
Information in this blog post came from Loandesk Mortgage, a sister company of Radius Agent Realty.
