If you’ve been waiting for the right moment to jump into the housing market, now could be your time! With mortgage rates trending down, homebuyers who once felt priced out finally have a golden opportunity to make their move. But this sweet spot may not last long – here’s why you should act now.

Why Lower Rates Matter

As rates begin to drop, think about what that means for everyone else. A recent survey by Bankrate found that more than half of homeowners would be motivated to buy if rates fell below 6%. With rates already in the low 6% range, we’re getting close to that mark. But once rates dip into the 5s, the market is likely to heat up fast.

This increased demand can drive up home prices, which could cancel out the savings you’d gain from a lower mortgage rate. So, while it might seem wise to wait for an even lower rate, rising prices could make homes less affordable in the long run.

Why Now Is the Sweet Spot

Right now, you have a key advantage – fewer buyers are in the market. Many people are still on the sidelines, meaning less competition for you. Recent rate drops have already improved affordability, with mortgage payments on a typical home 7% lower than they were last year and 13% lower than the peak in May 2024.

Plus, the number of homes for sale is higher than it has been in years, giving you more options to choose from. With more inventory and better affordability, you’re in a great position to buy before the market heats up again.

Waiting Could Cost You

Timing the market is tough, and waiting for the “perfect” time to buy can backfire. If mortgage rates drop further, demand is likely to surge, making it harder to find and afford a home. You could end up facing more competition and higher prices, which would eat into any savings from a lower interest rate.

The Bottom Line

Don’t wait until the market heats up and you’re competing with more buyers for fewer homes. Take advantage of this sweet spot now! Connect with a Savvy + Co. Real Estate agent to start your home-buying journey while conditions are still in your favor.

Source: https://www.keepingcurrentmatters.com/2024/10/01/this-is-the-sweet-spot-homebuyers-have-been-waiting-for/