Seize the Moment: Why Now May Be the Perfect Time to Buy Your Dream Home
Last week marked a significant milestone in our industry as the Federal Reserve hinted at potential interest rate decreases in 2024. The media frenzy that followed had everyone talking about the promise of lower rates in the future. While this is undoubtedly good news, the key is not to let the excitement overshadow the fantastic opportunities available to you right now.
In the wake of the Fed's announcement, there has already been a noteworthy 1%-1.5% decrease in interest rates over the past few weeks. This not only boosts your buying power but also provides the peace of mind that you won't be investing in a home with interest rates at 20-year highs. It's a win-win situation that shouldn't be overlooked.
Looking ahead, the prospect of even lower rates in 2024 could trigger another homebuying frenzy, potentially leading to increased property prices. Here's a crucial point to remember: every 5% increase in home appreciation negates the benefits of a 0.5% reduction in interest rates. So, what's the takeaway? Start your home search today, and don't wait for rates to drop further.
Why the Urgency?
By initiating the homebuying process now, you not only capitalize on the recent rate declines but also position yourself to secure a property before prices soar due to heightened competition. And here's an added bonus: when rates do go down, you can leverage our Refine Your Rate Guarantee1 to refinance at an even lower rate with no loan origination fee.
Ask your Mortgage Consultant about our exclusive Rate Rollback Buydown2, which reduces your mortgage payment further during the first year of the loan. It's all about making the most of the current market conditions to secure the best deal for your dream home.
But what about Sellers?
While waiting until spring or summer might fetch a higher price for a home, there will be stiffer competition and potential price appreciation when buying their next property. Sellers should consider taking the same approach we recommend for buyers: list and sell their home today at what is still considered a good price, avoiding heightened competition and price appreciation on their new purchase.
Wrapping It Up:
the stars are aligning for homebuyers in today's market. With interest rates already down by 1%-1.5%, there's no need to wait for potential future drops. Start your home search now to maximize your buying power and avoid the pitfalls of increased competition and rising prices. The promise of even lower rates in 2024 adds another layer of opportunity, especially when coupled with our Refine Your Rate Guarantee and the Rate Rollback buydown. It's a win-win for both buyers and sellers – secure your dream home today and enjoy the benefits for years to come. Happy home hunting!
Edina Realty Mortgage does not offer financial advice. This information is provided for informational purposes only and does not constitute legal, tax, or financial advice.
1This promotion is valid on purchase loan applications completed through Edina Realty Mortgage between 11/21/2022 — 06/31/2024. Loan must close within 60 days from the date of completed purchase loan application. Borrowers may be eligible to refinance 180 days after purchase loan closes. Subsequent refinance loan must close with Edina Realty Mortgage by 12/31/2025. Eligible borrowers will receive a lender credit toward closing costs on the Closing Disclosure of the refinance loan, secured by a first mortgage or deed of trust (New Loan), subject to qualification, approval and closing with Edina Realty Mortgage. Loan must close within 60 days from the date of refinance loan application. Lender credit may not exceed $1,695 or a borrower's out of pocket closing costs. Eligibility certificate must be presented at the time of application for refinance loan, and all eligibility requirements must be met no later than 2 days prior to the New Loan closing date. Only one lender credit permitted per New Loan. This lender credit is void where prohibited and is non-transferable, subject to the terms herein, and valid on complete applications. By refinancing an existing loan, your total finance charges may be higher over the life of the loan. Not all borrowers will qualify. If you have a current lock-in agreement, this is NOT an inducement to transfer your loan. This promotion may not be combined with any other offers, discounts or promotions. Standard credit and collateral underwriting guidelines apply. This is not a commitment to lend. Edina Realty Mortgage will be able to offer a loan commitment to qualified applicants upon verification of application information, satisfying all underwriting requirements and conditions, and providing an acceptable property, appraisal, and title report. See a mortgage consultant for details.
2Available for conventional, FHA and VA fixed-rate loan products only. A temporary rate buydown may not be the best
