HUD Articles
"Marry the house, date the rate."
December 15, 2023
Waiting for those rates to drop before making a move? Many people are. The only issue you could face is less inventory by the time the rates drop to your liking. This would lead to higher demand and increased difficulty getting the home you want vs. one that isn't "the one".
As of today (12/15/23) the mortgage rate dropped below 7% for the first time since August. Does that sound high to you? Would you believe that the 30 Year Mortgage Rate average in the United States averaged 7.74 percent from 1971 until 2023? While it is not the very low rates we saw a couple of years ago, it's nearly 3/4 of a point better than the historic average.
While there is no crystal ball, many are predicting that the Fed will cut rates next year. If this happens we may see rates in the low six percent range. If that happens we may see more bidding wars, especially in the entry-level market. With that in mind, my recommendation to buyers right now... Marry the house, date the rate. Some other options? Save up a little more money and buy down the rate or keep an eye out for builders offering rate incentives on new construction homes.
