Interest rates have fluctuated so much in the recent years. Interest rates can have such a huge effect on the amount of money banks are willing to lend. Thankfully since October of 2023 we have seen interest rates coming back down from highs in the 8% range. To a buyers advantage the high interest rates did drive property values down some so we are seeing a decrease in what houses are being listed for. Now that interest rates are coming back down it is a really good time to buy and sell. The market is decently balanced compared to the seller's market we witnessed in 2020.
A lot of buyers always have the mind state of "Should I wait to buy for prices or interest rates to come down?" This is not always the best approach to home buying as the prices could go up just as easily as they could come down. Same goes for interest rates. Thats where using the right lender is so important. The right lender will walk you through the process of how much you can afford and what loan options you have. They can help you buy down points to lower the interest rate of your loan. They can help you improve your credit so that you qualify for more or for a lower interest rate. A lot of lenders also offer first time home buyer programs that offer down payment assistance. Some lenders offer really great loans and programs for first responders and military. Interest rates and home prices do not have to always feel overwhelming and discouraging. With the proper team of professionals anything is possible.
For sellers, though interest rates do not directly affect how much they owe monthly, they do affect how much buyers can afford to buy their home for. Interest rates coming down for the last few months is truly a positive for both sides of the transaction. It is predicted that interest rates will continue to decrease throughout the course of 2024. This will be a great year to get into the market if you are a first-time home buyer, a seller looking to upgrade or change locations or even use the equity in your home to consolidate debt. In the interest of interest, let's hope for a positive year.