If you’re considering buying a home, mortgage interest rates can be one of the most important considerations. You may have to postpone your plans for a while. With interest rates rising nearly 8% over the past year, some buyers are finding these numbers don’t make sense for their budgets. It can happen to you too. Bright MLS data shows that the number one reason buyers are putting off their plans to move is because of high mortgage rates (see chart below).
David Childers, CEO of Keeping Current Matters, recently discussed the following statistics on the How’s The Market podcast:
“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”
This is because mortgage interest rates hit their highest level since last October. There is still daily volatility in interest rates, but longer-term forecasts suggest rates will continue to fall this year as long as inflation is kept under control. In fact, analysts say rates could be below 6% by the end of 2024. And that benchmark will be a game-changer for many buyers. According to a recent Realtor.com article:
“Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”
You can’t predict mortgage rates, but the optimism of experts can help you predict what will happen next. If your plans are delayed, there is light at the end of the tunnel. That means it’s time to think about your move. The best questions to ask yourself now are:
How much do you want your rates to increase by the time you’re ready to move?
The exact percentage at which it is convenient to restart the search is personal. Probably 6.5%. Probably 6.25%. or when it falls below 6%. Once you have these numbers in mind, here’s how to do it: Contact a local real estate professional. They help you stay informed about what’s going on. You’ll be the first to know when your rate hits your goal.
