It's a Great Time to Buy!

In August 2024, we were hearing from several homebuyers that they were wanting to wait until September, or later in the fall, to pursue a home purchase. Why, you ask? Most potential buyers seemed certain the Federal Reserve would lower the Fed Funds rate in September, leading to an inevitable mortgage rate drop.

For a brief moment, they did, but rates soon began rising again. The driving factor of this is that mortgage rates actually are tied most directly to the movement of 10 year treasury notes than the federal funds rate. Yes, there is some influence and correlation, but not a direct 1:1 correlation.

Like the market at large, I also feel that there will be downward pressure on mortgage rates heading into 2025. Springtime is generally the most robust time of year for home sales in general and if rates do indeed drop as expected, this could add some fuel to the fire for market activity. Every home buying journey is different, but it is likely that this upcoming spring season could have more favorable financial conditions for purchase.

Conversely, historically there is less competition in the buying market over the fall and winter months. A less competitive market stands to be an overall advantage for buyers, as there is less potential for being outbid and sellers could be more amenable to concessions. Additionally, with prospective rate drops in the future, refinancing into a more desirable rate is a viable option and much less expensive than overpaying for a home due to a bidding war situation. Making moves in these upcoming months are likely most advantageous for your overall journey in homeownership!

To our current clients, your confidence in us to handle your home purchases and sales means the world. To our past clients, your continued referrals and loyalty are the foundation of our success. And to our future clients, I look forward to helping you achieve your real estate dreams and reach even greater heights together.

As always, if you or any of your friends and family are looking to make a move – or even just starting to think about your next move, let’s chat! It is never too early to start discussing your future plans with us, so reach out any time to schedule a time for us to connect!