As we move into 2024, prospective home buyers are greeted with a mix of optimism and caution. The average rate on a 30-year fixed mortgage has dropped for three consecutive months, now sitting at 6.28%, the lowest since February 2023. This decline in rates enhances purchasing power, allowing buyers to borrow more for the same monthly payment. Additionally, the housing inventory has reached a four-year high, reducing the intensity of bidding wars that characterized previous years. However, home prices remain a significant challenge, with the national median sales price hitting a record high of $426,900. Buyers are encouraged to act now rather than wait for potential market shifts, as competition may rise again if rates drop further. With recent changes in real estate commission structures, buyers also have more negotiating power when hiring agents. Overall, setting realistic expectations and preparing a solid budget are essential for navigating the current market.
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