Key takeaways:
- If you want to beat the competition, now is a great time to buy a house.
- Daily average mortgage rates hit a 14-month low of 6.34% on Monday, giving buyers thousands of dollars in buying power.
- Don’t wait to buy; buyers who were scared off by high rates are poised to enter the market, which may boost prices.
- Total listings are also up 20% over last year, so there’s plenty of inventory to choose from.
On Monday, August 5th, daily average 30-year fixed mortgage rates plunged to 6.34%, their lowest level since April 2023. Other loan products fell to the high-5% to mid-6% range. This came as a result of a surprisingly weak jobs report that bred fears of a looming recession and triggered a global market cooldown.
Following the flurry of events, rates ticked up to 6.52% on August 6th – above Monday’s lows but well below the 7.5% peak in April. In fact, homebuyers today have gained nearly $30,000 (around $200 per month) in purchasing power since just the beginning of July. Many experts now predict the Fed to start cutting interest rates more than anticipated in September, which may push down mortgage rates more.
Total listings are also up 20% compared to last year, as more sellers enter the field. The market seems poised to give buyers a break. So, if you’re considering buying, you might be wondering “should I buy a house now or wait?”
Is now a good time to buy a house?
The short answer: Yes, if you have the means, it’s a good time to buy a house before the market catches up. Waiting for rates to fall further leaves you at risk for increased competition among buyers and subsequent price hikes from sellers.
Buying a house now means you’re also maximizing your investment potential. Lower rates save you money over your loan term and mean more of your mortgage payments can go towards building equity.
It’s worth noting that the market has been topsy-turvy recently, though. For example, higher mortgage rates typically…