If you’ve been holding off on buying a home because of high mortgage rates and rising prices, you might want to rethink your strategy. The market is shifting, and recent trends show that right now might be the sweet spot buyers have been waiting for.
After months of affordability challenges, mortgage rates have started trending downward, and there’s been a noticeable improvement in buying conditions. This unique moment presents an opportunity that may not last long, making now an ideal time to consider making your move.
The recent dip in mortgage rates is opening the door for many potential buyers who were previously priced out. According to a survey from Bankrate, more than half of homeowners said they would be motivated to buy if rates dropped below 6%. We’re already in the low 6% range, so that threshold isn’t far off. As more buyers step back into the market, competition will increase, and home prices could begin to climb again.
As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), explains:
“The downside of increased demand is that it puts upward pressure on home prices as multiple buyers compete for a limited number of homes. In markets with ongoing housing shortages, this price increase can offset some of the affordability gains from lower mortgage rates.”
Pro Tip: In a shifting market, being prepared is key. With more buyers expected to re-enter the market soon, you’ll want to be ready to move quickly when you find the perfect home. Take advantage of your employee homeownership benefits to get pre-approved at no cost, giving you a head start on other buyers. Plus, schedule a free financial fitness consultation to ensure you’re in the best position to make a strong offer. This way, you can secure your dream home without delays and potentially save thousands on closing costs!
With easing mortgage rates, the cost of buying a typical home has already come down. Mike Simonsen, Founder of Altos Research, highlights:
“Mortgage payments on the typical-price home are 7% lower than last year and are 13% lower than the peak in May 2024.”
That’s a significant drop and a great opportunity to buy a home before rates rise again or competition intensifies. At the same time, the supply of homes is higher than it’s been in years, giving you more options to choose from. According to Ralph McLaughlin, Senior Economist at Realtor.com:
“The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%, a 10th straight month of growth, and now sits at the highest since May 2020.”
This means you’re more likely to find the right home without feeling pressured by a limited selection.
Pro Tip: Navigating the current market is easier when you have the right team supporting you. By using your employee homeownership benefits, you gain access to trusted real estate agents who are familiar with your program’s exclusive savings opportunities. These agents not only understand your needs but can also guide you through the process seamlessly—whether it’s finding hidden gems in your desired neighborhood or securing a pre-approval for free. With their help, you’ll have everything you need to make a confident offer and unlock significant savings when it’s time to close!
If you’re waiting for the perfect time to buy, it’s important to remember that timing the market is nearly impossible. The longer you wait, the more likely it is that conditions will shift in a way that makes buying harder, not easier.
As Greg McBride, Chief Financial Analyst at Bankrate, warns:
“It’s one of those things where you should be careful what you wish for. A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”
This means that if you wait too long, you might find yourself competing with a flood of new buyers, driving prices up and reducing your chances of securing the home you want.
Pro Tip: It’s a great time to buy, but competition could increase quickly as more buyers enter the market. Stand out from the crowd by using your program benefits to get pre-approved early and have a personalized buying plan in place. A complimentary consultation with your Benefits Advisor will show you how to make the most of your exclusive perks, such as reduced closing costs and special discounts, potentially saving you thousands on your home purchase.
Right now, with fewer buyers in the market and more homes available, you have a rare opportunity to buy with less competition and greater negotiating power. This buyer sweet spot might not last long, so don’t wait until conditions change.
Ready to take the next step? Reach out to us today and see how you can make your homeownership dreams a reality while saving money and your employee benefits.
Category: Homebuyers