Mortgage rates fell over the past week. According to Freddie Mac, the 30-year fixed-rate mortgage averages 6.47% as of August 8. It is still unclear if the lower mortgage rate will increase home buying; inventory remains challenging in many markets. If you currently own your home, now could be the time for you to look into refinancing your mortgage and how it can save you money.
Experts still expect home prices to rise throughout 2024 with these predictions:
- Fannie May sees home prices increasing 4.8% year over year by the end of 2024
- The National Association of Realtors thinks existing home prices will inch up under 2% overall by the end of 2024.
Low home inventory is a chronic problem in the US. This has generally kept home prices up, even as mortgage rates peaked near 8% and homebuying demand plummeted last year. Demand may increase if rates go down in the second half of 2024, so even if home prices were to drop in 2024, they likely wouldn’t fall enough to significantly improve affordability on their own.
Getting a mortgage is a significant process that can be complicated if you don’t take the right steps from the beginning — and whether you’re buying your first home or just transitioning to a new one, making informed decisions early can lead to a smoother process.
Prepare for Homeownership
If rates drop later this year, it will undoubtedly improve affordability for borrowers, but with that will come increased demand. This will keep home prices high and likely push them up even further. Finding a home in your price range may become even trickier, and you may need to make a lot of offers on homes before you get one accepted.
Here’s what you should be doing to prepare for homeownership before the end of the year.
1.) Get your finances ready!
Because home prices are likely to remain high and mortgage rates may not come down until later this year or next year, you’ll want to make sure you get the lowest rate you can. One of the faster methods to get your credit score up is to lower your credit utilization. This will also decrease your debt-to-income ratio, which is another factor mortgage lenders look at when considering what rate to give you. Make sure to get preapproved with someone from our team before talking to a realtor!
2.) Look for Affordable Mortgages and other First-Time Homebuyer Assistance
The key to affording homeownership for many buyers in 2024 will be utilizing mortgages geared toward first-time homebuyers and combining them with grants or other forms of down payment assistance.
Conventional loans allow down payments as low as 3%, while FHA loans allow 3.5% down payments. USDA and VA loans allow no down payment. Learn more about Core Bank’s mortgage options.
Remember, working with a knowledgeable mortgage professional can guide you through the process and answer any specific questions you may have. Core Bank’s team of lenders are committed to helping you achieve your dreams, whether you’re ready to buy, build or refinance your home. Contact someone from our team and apply today!