happy young couple doing purchase on internet together at home

Should you wait for low interest rates or buy now? With US home prices falling and mortgage rates expected to drop sometime in 2024, buyers may be wondering if they should wait until next year to get a deal. cheaper.

But in the current economic climate, buyers shouldn’t worry about when to buy.

The average interest rate on the benchmark 30-year Treasury note reached 7.08% on Monday. However, with the economy expected to slow and potentially fall into recession, many recent forecasts call for rates to fall to 6% or lower in 2024, including Fannie’s forecast May of 5.2%.

A 1% down payment on a mortgage equal about $200 in monthly mortgage payments, for a 30-year fixed-rate home loan of $300,000. Meanwhile, home prices are trending up and down 2.7% from their peak in June, according to the S&P Case-Shiller Home Price Index. Forecasts are mixed, but most expect prices to stabilize or continue to fall 1% to 10% from the 2022 high. Should you buy a home in 2023 or 2024?
While
it may be tempting to hold off on buying a home until a better deal comes along, there’s no guarantee that mortgage rates will drop or homes will be more affordable in 2024, real estate analysts and experts say.

Despite predictions of low mortgage rates in 2024, don’t expect them to hit a decade-long record low, said Lawrence Yun, chief economist at the National Association of Realtors. “Going back to 3% or 4% mortgage rates will not happen, in my opinion,” says Yun, who explains that historical rates are high. The low prices in 2020 and 2021 are “special” and those who get them are “lucky”, he says. In addition, if “mortgage rates go back to that level, people can still borrow money,” Yun says.

As for housing prices, price corrections should be short-lived due to chronic housing shortages. Low mortgage rates can also stimulate demand, which can drive up prices. It’s also important to note that housing trends vary by region, which means that home prices in your area may not fall in 2023 or 2024. “I’m not going to wait to see if you can get the best deal because it’s hard to time the real estate market,” says Cristian deRitis, vice president of economics at Moody’s Analytics. say. His company predicts another 5-10% decline in sales over the next 18-24 months, after which prices will start to rise again. While professional home buyers may worry about short-term changes in home prices and interest rates, home buyers who plan to stay in their home for more than five years should be concerned about time. market, he said.

The near-term forecast as per me, Buy when you find something you like as you will

  1. Replace your rent with mortgage which will help you get some tax refunds,
  2. Buying home help to build equity.
  3. If rates go low, then many will flock to buy and thus raising price of homes again and this adding more equity in your home.
  4. You can refinance and take out equity and then buy more homes or invest in Index universal Life Insurance.
  5. If you decide to wait when rates drop, you will find same long lines, more higher bids, more competition and thus what you thought of saving, you will end up paying more.
  6. Also, as we are in hyperinflation so dollar is losing its purchasing power so if you leave dollars in bank than you might earn 1% or less but you will lose 7-8% on inflation.
  7. When you rent, you might pay more rent next year as low inventory, making homes rents go high.so as realtor and financial pro, I highly suggest buying now before it’s too late.

Call me if any questions or book time to meet me at bitly.com/retire4free

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