What's Your Ideal Mortgage Rate to Make Your Move?

Contemplating a home purchase recently brings mortgage rates into sharp focus, and for good reason. They're likely a significant factor in why you might be pausing your home buying journey. Last year, when rates nudged close to 8%, it became apparent for many that the math no longer worked within their financial plans.

According to data from Bright MLS, the primary reason potential buyers are postponing their moving plans is due to elevated mortgage rates (refer to the graph below):

David Childers, CEO of Keeping Current Matters, sheds light on this trend in the latest episode of the How’s The Market podcast, stating, "Three quarters of buyers opted out because of the mortgage rates. But here’s the future outlook for 2024—it's set to change." This shift is anticipated as mortgage rates have retracted from their peak last October. Despite the daily fluctuations, the forecast suggests a continuing downward trend this year, assuming inflation is reined in. Industry insiders are even predicting rates could fall below 6% by year's end—a potential turning point for many.

A recent Realtor.com article captures the sentiment: "The aspiration to own a home remains strong. Yet, attaining this goal for many hinges on the reduction of mortgage rates. Nearly 40% of Americans looking to buy within the next year see this as feasible if rates dip below 6%."

Predicting mortgage rates is notoriously challenging, but current expert optimism offers a glimpse into potential future trends. If you've been on the fence, this could signal a time to reevaluate. Consider what rate would prompt you to actively search for a home again. Whether it's 6.5%, 6.25%, or under 6%, defining this figure is crucial.

Upon determining your ideal rate, the next step is to engage with a local real estate expert. They can provide timely updates on rate changes and alert you when your preferred rate is available.

In Conclusion

If high mortgage rates have caused you to delay your moving plans, it's worth pondering the rate at which you'd feel ready to dive back into the market.

With your target rate in mind, partnering with a real estate professional can ensure you're poised to act when the opportunity arises.

Graham Team Real Estate • (702) 930-9551 • Team@grahamteamnv.com

3007 W Horizon Ridge Pkwy, Ste. 210, Henderson, NV 89052