Mortgage Rates: The Drop You’ve Been Waiting For?

by Gianna Silvaggio

Mortgage Rates: The Drop You’ve Been Waiting For?

If you’ve been eyeing mortgage rates and hoping they’d drop to make your home buying dreams more affordable, the news lately might be just what you’re looking for. Recent trends suggest that mortgage rates are finally heading down.

Rates on the Decline

Good news—mortgage rates have recently dipped, thanks to the latest economic updates and comments from the Federal Reserve. According to Freddie Mac, rates are now at their lowest since February.

If you’re tempted to wait and see how much lower they might go, it’s important to keep a few things in mind. The ultra-low rates we saw during the pandemic are likely a thing of the past. Greg McBride, Chief Financial Analyst at Bankrate, points out:

“The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates. The best we might see over the next year is 5.5 to 6%.”

The Impact of Lower Rates on the Market

Waiting for rates to drop even further might mean facing increased competition as more buyers jump back into the market. Generally, when mortgage rates go down, buyer demand picks up. As Bankrate highlights:

“If you’re ready to buy, now might be the time to act. Home prices are rising due to a shortage of available homes, and if rates fall below 6%, expect more buyers to enter the market, which could drive prices up even more and spark bidding wars.”

What’s Next?

If you’ve been holding off on buying, the recent drop in mortgage rates could be your chance to jump back in before the competition heats up. Rates are at a low point, making this an opportune moment to start the process.

Ready to make a move? Reach out to us to get started.

GET MORE INFORMATION

Name
Phone*
Message

By registering you agree to our Terms of Service & Privacy Policy. Consent is not a condition of buying a property, goods, or services.