Is It Still A Good Time To Buy? – Mortgage Rates Rise Above 7%

The Federal Reserve is still not ready to lower interest rates. At its latest meeting on May 1, 2024, the Fed held the federal funds rate steady. Meanwhile, mortgage rates have inched back over 7%.

There are many factors to consider. It’s not all a,bout mortgage rates. Housing inventory, finding the best mortgage lender, and getting a fair price on a home are all factors. But you’re not buying the market. You’re buying a house in a city, neighborhood, and block where you want to live. Hopefully, for quite a while. Let’s consider how 2024 might be the year to buy a house.

Understanding the market:

• The mortgage rate has contributed to the lack of existing homes for sale. However, with the beginning of the 2024 spring home buying season, new listings are rising. Realtor.com reports that 17.8% more sellers listed their homes in the week ending March 16 compared to the same week in 2023. Overall active inventory is up nearly 24% year over year, as well.
• Construction of new homes is showing promise of growth, with a near 6% increase in housing starts year over year in February. Builders still face supply shortages and higher prices for land and labor, though.

When is a good time to buy a house?:

• Buying a home is more than considering macroeconomic factors. It’s an important life decision based on your personal and financial situation – Homeownership requires a years-long timeline. How you make a living, your friends, family, and even community amenities all come into play.
• A primary consideration: your job. Will it require a location change anytime soon, or can you live where you please? Is your income steady and all but assured?
• One of the significant factors that will qualify you for a home loan is your credit score. It’s important to know it before applying for a mortgage.

What “debt” is included?

• Include debt such as monthly mortgage payments (or rent), real estate taxes, and homeowners insurance. Also, add any car payments, student loans, and the monthly minimum due on credit cards. Remember any personal loan payments and child support or alimony.
• Do not include debt such as monthly utilities — like electricity, water, garbage, or gas bills — or car insurance, television streaming subscriptions, or cell phone bills. You can also exclude health insurance costs and miscellaneous expenses such as groceries or entertainment.

**Buy smart and shop a lot. Relentlessly shop mortgage rates and lenders for the best loan offers and justified fees. Get a written pre-approval from your lender, then shop for a house you can love and can afford.

Instant Reaction: Mortgage Rates June 14th, 2024

Facts: The 30-year fixed mortgage rate from Freddie Mac rose to 7.03% over the last week from 6.94%. At 7.03%, with 20% down, a mortgage payment on the median-priced existing home of $407,600 is $2,176. The typical first-time buyer had a downpayment of 8% last year—with this downpayment, the monthly payment was $2,502

Positive: It can be hard to find the upside in this week’s housing data. Mortgage rates are up, applications are down, and pending home sales are down. But there is always an opportunity when there is less demand. First-time buyers can participate in a slightly less competitive market if they can afford it. High-equity buyers are still dominating the market.

Negative: Higher mortgage rates have impacted the ability of buyers to purchase and created a lock-in effect that has gridlocked the housing market. Sellers who move now are likely in two camps: they either have to move, or they have a lot of housing equity to offset these rates.

Conventional Loan Requirements – 2024 Requirements & How to Qualify!

Even with market fluctuations and economic headwinds, owning a home is still one of the surest ways to increase personal equity and shore up financial security. Conventional loans are how many Americans purchase homes. Requirements for obtaining a conventional loan change yearly. Those standards have changed again in 2024. Click the link to view the new standards!

Have You Heard of NACA’s Housing Program?

Requirements: Not All;

• Purchasers must have a family income at or below the median income. ($98,700)
• Must live in the property for at least five years.
• Homeowner equity is granted at the end of the sixth year and limited at 20% for each
  year of occupancy.

This is a GREAT program, no downpayment, no PMI, no closing costs – Ask me for more info about NACA!

Become Apart of my LoLo Campaign!!

I am proud to partner each month with LoLo by supporting other locally-owned businesses in the area. This thank you is my way of giving back to those who support my business…continue reading