Mortgage Rate Update: Rates Drop for Second Consecutive Week

“Are Mortgage Rates Finally Trending Down? What to Know Before Buying a Home”

If you’ve been following the housing market closely, you may have noticed that the average 30-year and 15-year fixed mortgage rates are down for the second consecutive week, according to Freddie Mac. While this is good news for potential homebuyers, the 30-year rate is still hovering over 7%.

Economists are predicting that rates will continue to decrease gradually throughout the year. Both Fannie Mae and the Mortgage Bankers Association forecast that the average 30-year rate will be at 6.4% by the end of 2024. While many people had hoped for faster or more significant drops, this is still a positive sign that rates should go down overall this year.

If you’re considering buying a home, you may be wondering whether to wait for rates to drop further or purchase now. Waiting until later in 2024 could potentially save you over half a percentage point, but it’s impossible to predict what will happen between now and then. In the meantime, you could use this year to save more for a down payment and improve your credit score, which could help you secure a better rate when you’re ready to buy.

However, if you’re ready to buy now and can afford monthly payments with today’s mortgage rates, you might decide it’s worth buying sooner rather than later. And remember, you can always refinance later once rates have dropped more significantly.

When it comes to choosing between a 30-year and 15-year fixed mortgage, there are pros and cons to consider. A 30-year fixed mortgage offers lower payments and predictable monthly payments, but it comes with higher mortgage interest in the long term. On the other hand, a 15-year fixed mortgage has lower interest rates and allows you to pay off your loan sooner, but monthly payments will be higher.

If you’re open to an adjustable-rate mortgage (ARM), keep in mind that the introductory rate is usually lower than a fixed-rate mortgage, but your rate could increase later on. It’s a good option if you plan to move before the intro-rate period ends.

So, is now a good time to buy a house? While rates are relatively high and prices remain firm, it’s still a viable option if your budget can accommodate the higher rates and you’ve found the right home for you. Remember, there’s no perfect time to buy, but if the timing is right for you, there’s no time like the present.

To learn more about mortgage rates, the best mortgage lenders for first-time buyers, and whether it’s better to build or buy a house, check out the links provided. And remember, staying informed and exploring your options can help you make the best decision when it comes to buying a home.