Mortgage interest rates are directly tied to the 10YR Treasury Bond. Historically, rates have been 2% higher than the bond rate. The recent bond rate hovered around 4.5%. Yet rates have consistently been higher. The promising news is rates are working their way back to a normal situation. That would put rates at about 6.5%. The trend is already underway!
Mortgage applications rose 3% from the previous week. Buyers are sensing the lower rates and getting ready. Sales are projected to increase 15% YoY in 2024 but the # of Homes for Sale continues to be at historic lows. From all the market news I study to stay on top, this inventory situation may continue for some years to come.
Buyer demand did slow in the 2nd half of 2023 but was still above pre-pandemic numbers. There are numerous buyers in all price ranges who are waiting something out. “I’m waiting for prices to drop a lot” …” I’m waiting for 4-5% interest rates” Unfortunately, all projections say this will not happen anytime soon.
Buyer demand is ramping up again. When we hit 2024, it will move higher as rates continue their slow correction down to normalcy. All these past 3 years of bidding on a home with countless other buyers seems to be a strong possibility again. Opportunity exists right now to find your home and beat the pending rush.
Allow me to help you plan, prepare, find, & buy the house you have been wanting to call Your Home.
#RealEstateCharlie #FirstTimeHomeBuyer #ExperiencedRealtor