In today’s real estate climate, navigating mortgage rates is challenging, especially with the broader economy adding extra layers of complexity. The recent surge in mortgage rates, fueled by a strong jobs report, raises questions for prospective buyers, sellers, and investors alike.
Lisa Sturtevant, Chief Economist at Bright MLS, points out that mortgage rates hinge on economic factors, particularly the labor market. If job growth continues to beat expectations, we could face even higher mortgage rates or, at the least, a pause on any further declines. With rates already ticking up this week, potential homebuyers may need to plan accordingly.
The Peak and Recent Drop in Mortgage Rates
After soaring to a high of 7.79% in October 2023, average 30-year fixed mortgage rates have gradually come down, stabilizing around 6.12% by early October 2024. This recent dip seems to have rekindled interest among buyers, though the question now is how the housing market will respond as rates drop and inventory rises. Lisa Sturtevant suggests that lower rates could indeed lead to slower home price growth if more sellers enter the market and inventory climbs.
Is Now the Time to Buy?
While lower mortgage rates this fall may seem enticing, experts advise caution. Waiting for even lower rates might risk a surge in buyer demand, which could push home prices up again. With the average mortgage rate already trending down, some buyers are ready to re-enter the market, but they’re advised not to delay if they’re seriously considering homeownership.
In Pasadena, for example, the number of homes sold decreased slightly by 3.5% from the previous month but jumped by 52.7% compared to last year. This shift shows a mixed but ultimately positive picture for the local market, underscoring how demand has held up despite recent rate volatility.
Your Home’s Value and Annual Equity Update
Whether you're buying, selling, or simply curious, understanding your home’s current value can be a game-changer. Visit our website for an annual equity update—a comprehensive report detailing your property’s market worth. Our team is here to assist you with all your real estate needs. Your support matters, and we’re only a call, text, or email away for any questions you have.
As your trusted real estate experts in the DMV area, we’re committed to keeping you informed every step of the way. Please like, subscribe, and stay tuned for more insights into the ever-evolving housing market.
Comments(1)