As we enter fall 2024, mortgage rates are trending downward, which may interest potential buyers and those considering refinancing. This shift is largely due to recent signals from the Federal Reserve, potentially creating a more favorable environment for real estate transactions.
Current Market Conditions
Freddie Mac reports that the 30-year fixed-rate mortgage now averages 6.35%. This marks a notable decrease from last year’s average of 7.18%. The Federal Reserve’s indication of a likely benchmark interest rate cut in September is a primary factor in this reduction.
Implications for Buyers
The rate decrease could result in cost savings for those entering the housing market. For example:
- A $400,000 home with a 20% down payment at the current 6.35% rate would have a monthly mortgage payment of $1,991.
- Compared to the October 2023 high of 7.79% ($2,301/month), this represents potential savings of approximately $3,720 annually.
Market Outlook
Despite the recent decline in interest rates, some potential buyers remain cautious, anticipating further decreases. This sentiment is reflected in the mortgage application data, which shows only a modest 1% increase in applications for home purchases.
With the upcoming election cycle, many buyers and sellers may adopt a wait-and-see approach, as political uncertainty often leads to market hesitation. It’s also important to note that both presidential candidates’ policies are expected to be inflationary, adding another layer of complexity. Potential policy changes could impact economic conditions and influence the real estate market.
Impact on Sellers and Landlords
The decrease in mortgage rates could potentially increase demand for those selling or renting properties. As more buyers consider entering the market, we may observe:
- Reduced days on market for listings
- Possible increases in property values and rents
Recommendations
For potential buyers, sellers, or property investors, this may be an appropriate time to review your real estate objectives. Current rates are at their lowest in 15 months, with the possibility of further decreases, potentially creating favorable conditions for various real estate transactions.
At Strider Real Estate Co, we offer guidance to help you navigate these changing market conditions. Whether you’re considering buying, selling, or managing a property, we can provide the information needed to make informed decisions in the current real estate landscape.
We will continue to monitor and provide updates on developments in the mortgage and real estate markets.
Learn More
The Texas Real Estate Research Center is a valuable resource for real estate professionals, investors, and anyone interested in learning more about the Texas real estate market.
Order a Free & Confidential Property Evaluation
If you are thinking about buying or selling, it is important to work with a qualified realtor who can help you navigate the current market conditions. Schedule a consultation emailing info@striderproperties.com.
