Your Exciting Fall Real Estate Market Buying Season Is Here
With the recent rise in mortgage rates, many potential homebuyers in this fall real estate season may wonder how this impacts their decision to buy or sell a home. Despite the Federal Reserve’s recent rate cut, mortgage rates have jumped, with the average 30-year fixed-rate mortgage increasing to 6.4%. This shift has surprised some, especially those hoping for lower rates to make their home purchase more affordable in the NELA real estate market. Fewer buyers, less competition, and more inventory are all green lights forward for the savvy of future home buyers.
FALL REAL ESTATE SEASON
FEDERAL RESERVE RATE CUT
It’s important to understand that the Federal Reserve doesn’t directly set mortgage rates. Instead, these rates are primarily influenced by the 10-year Treasury bond yield, which has risen due to investor expectations about future Fed policies. Additionally, mortgage lenders factor in their own costs and desired profits, and your individual rate will depend on personal factors like your credit score, loan size, and loan type.
Even though rates have increased recently, they are still lower than last year. This has led many homeowners to refinance their mortgages, especially those who purchased when rates were higher. So, where are mortgage rates headed after the Federal Reserve rate cut? Predictions suggest that while rates may not return to the historic lows of 2021, they are expected to stabilize around 6% by the end of the year, with a slight drop to about 5.8% next year.
NELA REAL ESTATE MARKET
For potential NELA real estate market homebuyers, the fluctuating rate environment may raise the question: should you wait for rates to fall or start shopping now? Experts generally advise against trying to time the market. If rates do drop after you buy, you can always refinance. On the other hand, if you wait and rates increase further, home affordability could become more challenging. Additionally, home prices tend to rise over time, so waiting may result in higher costs overall. With fewer buyers, less competition, and more homes on the market, now is the time to buy!
FEWER BUYERS LESS COMPETITION
In the NELA real estate market, we see signs of increased inventory and homes staying on the market longer, suggesting that the market is becoming less competitive. Mortgage applications have also dipped for three consecutive weeks. For buyers, the fall real estate season could present a prime opportunity. With fewer buyers and less competition, there may be more room for negotiation, making it an ideal time to enter the market. Moreover, Fannie Mae forecasts a 10% increase in home sales next year, suggesting that demand will continue to grow. Now may be the time to secure your home in the NELA real estate market before prices and rates climb.
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Mls Disclaimer:
Based on information from the / Association of REALTORS® (alternatively, from the /MLS) as of [date the AOR/MLS data was obtained]. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information
