In 2024, mortgage interest rates have been higher than they’ve been for more than a decade. If you’re a first-time homebuyer hoping to find a starter home, you may wonder whether to buy a home now or wait until the interest rates come down. Many potential homebuyers are also waiting for rates to drop, so if you wait, you may find a more competitive market, which pushes housing costs higher. It’s a conundrum.
The limited housing inventory means that the cost of buying a home likely won’t go down anytime soon. If you’re hoping to acquire a home at the lowest possible price, therefore, you may be better off buying now and refinancing when the rates hopefully do fall under five percent. Before making a final decision, though, consult the Team at GoPrime Mortgage in West Asheville, where you receive insight and advice about the current market.
What Do the Analysts Predict about Interest Rate Trends?
In August 2024, mortgage interest rates finally started to drop slightly. Even though they’re going in the right direction, most housing market experts don’t expect mortgage rates to go below five percent in 2024 or even in 2025. Interest rate predictions for a 30-year fixed-rate mortgage include:
- Fannie Mae predicts a rate of 6.7 percent at year-end 2024.
- Freddie Mac says rates probably stay above 6.5 percent through 2024.
- Mortgage Bankers Association predicts rates will drop to 6.6 percent by the fourth quarter of 2024.
No one can predict for sure what interest rates will do, since they rely on a combination of factors relating to the economy. But it’s most likely that if you’re hoping for a mortgage interest rate below five percent, you can expect to wait until at least 2025…and maybe later.
What Are Some Signs That It’s a Good Time to Buy a House?
There are several factors to consider when deciding whether it’s a good time to buy a house besides the interest rates. Buying now means you can start building equity right away, while avoiding the potential of further rate increases. It may be a good time for a first-time homebuyer to buy a house if:
- You’ve saved enough for a down payment without wiping out your savings.
- Your credit score is strong.
- You have stable employment.
- You expect to stay in the house for at least five years.
Selling a house within two years of buying it has tax implications. Before deciding to buy a house, make sure you have enough income and savings for the mortgage, as well as for repairs, maintenance, taxes, and insurance.
First-time homebuyers may be eligible for down payment assistance from the NC Housing Finance Agency (NCHFA). If you’re looking for tips on getting mortgage approval, work with an independent mortgage lender who knows the area well. Your go-to relocation specialist in WNC is Zachery Adam. Contact GoPrime in West Asheville today for service and advice.
Sources:
https://www.bankrate.com/real-estate/should-i-buy-a-house-now-or-wait/
https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/
https://www.businessinsider.com/personal-finance/mortgages/will-mortgage-rates-go-down-this-year
