Alert! 2024 Housing Market Shift: Your Chance to Save!
If you were priced out of the housing market in 2023, you might have better luck finding an affordable home in 2024. The reason? Mortgage rates are on a downward trend, offering potential homeowners a significant opportunity to save!
Recent housing forecasts suggest that mortgage rates could drop by nearly 1% by the end of 2024, from the current 6.5% to as low as 5.75%. This is excellent news for buyers, as the decrease would translate to a reduction of approximately $200 in monthly mortgage costs for a median-priced home.
As of today, 30-year fixed mortgage rates have already slid to the lowest since May 2023, according to Freddie Mac data. Projections indicate that rates will continue to moderate, with 30-year fixed averages falling below 6% by the year's end.
So, how much could homebuyers save in 2024?
Assuming a 20% down payment on a median-priced home valued at $431,000, monthly mortgage costs could decrease by up to $190. This translates to significant savings over the life of the mortgage, potentially totaling around $68,000 in interest alone.
It's important to note that these calculations only consider the mortgage amount and do not include additional expenses like private mortgage insurance, home insurance, and property taxes.
The decision to buy a home in 2024 will depend on your personal finances and location, so we encourage you to get in touch with us today so we can start working on a plan together!