Is it Time to Reconsider Your Home Buying Plans? Here’s Why Mortgage Rates Matter

By March 12, 2024 No Comments

If you’ve been contemplating buying a home, chances are, mortgage rates are a significant factor in your decision-making process. Perhaps they’ve even prompted you to delay your plans for now. Last year, when rates surged close to 8%, many prospective buyers found themselves reassessing their budgets, as the numbers simply didn’t add up anymore. If you can relate to this scenario, you’re not alone.

Data from Bright MLS sheds light on the primary reason behind buyers postponing their moves, and it’s no surprise: high mortgage rates. According to David Childers, CEO at Keeping Current Matters, in a recent 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.”

Handshake of real estate agent and male client after singing document

The good news is that mortgage rates have eased off their peak since last October. While day-to-day fluctuations persist, long-term projections indicate a downward trajectory for rates throughout this year, contingent on controlling inflation. Experts even anticipate rates dipping below 6% by the end of 2024, potentially transforming the game for numerous buyers.

As highlighted in a recent 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%.”

While predicting mortgage rates is notoriously challenging, the optimism expressed by experts provides valuable insights into future trends. If you’ve postponed your plans due to high mortgage rates, there’s renewed hope on the horizon. It might be time to reconsider your move. The crucial question to ask yourself now is:

“What number do I want to see rates hit before I’m ready to move?”

The answer to this question is personal and depends on your financial comfort level. Whether it’s 6.5%, 6.25%, or below 6%, having a target rate in mind is essential. Once you’ve established your threshold, it’s time to enlist the support of a local real estate professional. They’ll keep you informed about market developments and notify you when rates align with your criteria.

Bottom Line:
If high mortgage rates have caused you to pause your plans to move, it’s worth considering the threshold rate that would prompt you to re-enter the market. Stay connected with a real estate professional who can guide you through the process and alert you when the time is right to make your move.

Don’t let high mortgage rates deter you from your homeownership dreams. Reach out to Savvy Estates ATL today for expert advice and personalized guidance tailored to your needs in today’s market!

About Terin Branhan