The Homebuyer's Dilemma: To Wait or Act Fast in 2024? - Essence Lending

The Homebuyer's Dilemma: To Wait or Act Fast in 2024?

Should you buy a home in 2024? Where will mortgage rates go in the coming year? Read this to get more information.
Dec 20, 2023

For many dreaming of their own slice of real estate, the idea of waiting for those mortgage rates to dip into the dreamy 6% or even 5% range can feel like the ultimate money move.

But hold on a sec—does the waiting game really pay off when it comes to buying your own home?

Okay, let’s break it down. Sure, lower rates can mean big savings. Picture this: a 1% drop in rates on a typical home with a 20% down payment might drop your monthly payment by over $430. Sounds great, right?

But there's a potential challenge that may lie ahead: you won’t be the only one eyeing those lower rates.

Think of it like this—when rates drop, more buyers hitting the market means more competition for fewer houses. And when demand skyrockets and supply takes a nosedive, bidding wars erupt.

Suddenly, those lower rates might not save you as much as you’d hoped as prices shoot up.

Remember those wild times not long ago when everyone was scrambling for homes, and prices were sky-high? Well, that might just happen again.

So, if you’re ready to tackle homeownership, don’t get too caught up in waiting for rates to drop. Timing the market isn’t everything. It’s about being smart with your cash and being ready to handle the responsibilities that come with owning a home.

But if you’re in a good place financially, now might not be a bad time to start looking around the market.

The beginning and end of the year are usually quieter, which means less competition. And sellers might be more open to negotiating.

And here’s a little secret: if you buy now and rates drop later, you can always consider refinancing your mortgage. It might cost a few bucks, but the potential savings could be worth it.

Regardless of when you make your move, preparing is key. Work on your finances, improve that credit score, trim down debts, and save some cash for that down payment.

Check out homes, neighborhoods, and get a feel for the market. And of course, get pre-approved for a home loan so you're ready to make an offer when the opportunity arrises.

So, should you wait

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.