BiggerPockets: Why Now is the Time to Buy a House
After peaking near 8 percent in late 2023, mortgage rates have been trending lower in recent months. That’s starting to thaw out the housing market, as seen by a rising number of real estate listings. Plus, the spring months are seasonally some of the strongest months for housing.
That could mean interested investors should make the move now, rather than wait for the Federal Reserve to lower interest rates and wait for mortgage rates to drop further.
With rates still high compared to the last 10 years, many potential real estate investors may be on the sidelines. With a new mortgage costing over 6 percent right now, and most existing mortgages are far under that amount, housing inventory has been tight.
That’s why 2023 saw new home construction lead sales over existing homes for the first time in history.
Declining mortgage rates and an unlocking of the housing market should lead to further home price appreciation.
That means investors who sit on the sidelines for better rates may miss out on potential gains. And by the time they’re ready to buy, higher home prices may offset a drop in rates.
Overall, the housing market has gotten ahead of itself, then slowed down considerably as interest rates jumped higher. That trend is likely to reverse this year, and buying sooner rather than later makes the most sense.