As we move through the second half of 2024, the housing market has experienced notable changes, leading many people to ask “Should I buy a house now? Or should I wait?” Mortgage rates have recently dropped to their lowest since April 2023, but home prices remain high, and future rate trends are still influenced by Federal Reserve policies. Before deciding to buy a home, whether in Trenton, NJ, or Bridgeport, CT, it’s important to evaluate your financial stability, job security, credit score, and down payment savings. Read on to figure out whether you should buy a house now or wait.
What is the housing market like in 2024?
Before deciding if now’s the time to buy (or not) let’s break down some recent macroeconomic changes and what they mean for buyers.
Mortgage rates
As of late, mortgage rates have dropped. On August 5th, the daily average for 30-year fixed mortgage rates fell to 6.43%, the lowest level since April 2023. Although home prices have also declined, future mortgage rates will still be shaped by the Federal Reserve’s policies. Investors expect rates to decrease gradually, but significant drops beyond current levels are unlikely. With inflation being a key factor behind the high rates, potential economic changes may lower rates further. It’s crucial to carefully consider whether to lock in a rate now or wait.
Home inventory and affordability
While mortgage rates have dropped recently, many buyers remain cautious. Some are holding off, expecting mortgage rates to fall further after the Federal Reserve’s anticipated rate cuts, while others await clarity on the new National Association of Realtors (NAR) rules or the outcome of the upcoming presidential election.
Despite these uncertainties, home inventory is showing signs of improvement, with new listings up 3.7% year-over-year and overall listings rising 16.6%. This expanding inventory, spurred by lower mortgage rates, offers buyers more choices, even though pending sales have…