The most recent interest rate drop occurred in the last week of 2023 into the first week of this year, so you must be asking yourself “Should I buy now or wait until spring?”
In our latest blog post, “What will interest rates look like in 2024?”, we shared when the interest rates are predicted to drop this year according to mortgage experts. If you haven’t read that yet, we recommend reading that first and then revisiting this post to better understand. What we know is that mortgage rates are expected to drop three times this year at roughly one quarter of a percent increments.
As mentioned in the beginning of this post, nationally the first rate drop on average went from 6.67% down to 6.61%. This provides a great opportunity for first time homebuyers to enter the market or for current homeowners to sell their homes and move into a new place.
In July 2022, a survey was conducted among a small sample of buyers that purchased a home in 2020. Out of the people that participated in the survey, 722 homeowners responded that they have buyer’s remorse. 72% of respondents said they had regrets about their home purchase and 1 in 3 of those same people said they paid too much money for their home.
Why is this survey relevant this year? Because we are predicting to see the same or similar market this spring and summer and we don’t want you to experience the same feelings.
Now, you may or may not be one of those buyers that regret their purchase but if you are considering buying a different house instead or even buying your first home, you can help yourself get in a better position. We recommend that you get preapproved ahead of time to see how much home you can afford when the rates are expected to drop lower around late summer or early spring. Getting preapproved early can also help you get in the game earlier rather than waiting until spring when the chaos ensues. Be competitive by searching for homes now and seeing what’s out there so you won’t have to go through bidding wars or even feel pressured to purchase a house that you aren’t happy with.
We have a preferred lender that we recommend to buyers and we’d be glad to connect you to them and get the process started. Give us a call at (515) 329-4667 and we’ll give you their information.
