Mortgage Interest Rate Forecast for Summer 2024: What to Expect
If you’re like me, you’re probably wondering what on earth is going to happen with mortgage rates this summer. Well, I’ve been doing some digging and talking with the experts, and I wanted to share some insights with you all.
Where We Stand Now
We’ve all felt the pinch of rising mortgage rates over the last few years. Rates have jumped from those sweet 2-3% lows in 2021 to around 7% now. This has made things tricky for both buyers and sellers. Dr. Selma Hepp, a chief economist at CoreLogic, points out that this rise has cooled buyer demand and has some sellers reluctant to give up their current lower rates. It’s a tough spot!
What Experts Are Predicting
So, what’s the forecast for summer 2024? Here’s the scoop:
Forget About 3% Rates: According to Hepp, those rock-bottom rates are a distant memory unless we see a major economic downturn, which isn’t on the horizon. Tai Christensen from Arrive Home echoes this sentiment, suggesting we won’t see those rates again anytime soon, if ever in our lifetime.
Seasonal Market Trends: Traditionally, spring and summer are bustling times for real estate. Families like to move when school is out, and the weather’s nice. But with these higher interest rates, it could slow things down a bit. However, demand still outstrips supply, which could keep prices up.
Should You Buy Now or Wait?
This is the million-dollar question, isn’t it? Here are some thoughts to help you decide:
Consider Buying Now If:
•You have a solid down payment (20% or more).
•Your credit score is excellent, and you can snag the best rates.
•You’re planning to stay in your home for a while.
•You’re open to a 15-year mortgage, which usually has lower rates.
•You’re ready to refinance when rates eventually dip.
Waiting Could Be Smart If:
•You’re hoping for lower rates later in the year.
•You want less competition by buying in the fall or winter.
•You’re not in a rush and can hold out for better economic conditions.
My Take
Ultimately, buying a home is a personal decision that depends on your financial situation, goals, and timing. If you find your dream home and are ready to buy, don’t let the current rates scare you off. Remember, you can always refinance down the road. And if you decide to wait, that’s perfectly fine too. Patience can pay off in a market like this.
Stay informed, stay positive, and as always, if you need any guidance, I’m here to help. Let’s navigate this together!
Johnny Apple
