The Federal Reserve reports that mortgage rates are just starting to decline with the average 30-year interest rate hovering around 7%.
TEMPLE, Texas — The year 2023 saw historically high interest rates that hindered millions from purchasing their desired home.
But 2024 is expected to have a better outcome for mortgage rates as experts are reporting they expect rates to drop at the top of the year.
The Federal Reserve reports that mortgage rates are just starting to decline with the average 30-year interest rate hovering around 7%. That number is even higher in some faster-growing regions of the country.
No rate hikes happened at the end of 2023 and Perryman Group owner Ray Perryman says that is always a great sign.
“Seeing mortgage rates come down will encourage more people to come into the market,” Perryman explained. “We also still see some inventory piling up because we are still in a deficit for the number of houses we need.”
Perryman added that the interest rate drop that occurred in the country years ago caused many homeowners to lock their rates in and avoid trading in order to keep their rates.
Still, the average price of a home right now is around $300,000 and 62% of adults said they are living paycheck to paycheck, according to a Lending Club report.
Here in Central Texas, the average rate for a home is just around $250,000 for the average household.
Two Lakes Real Estate owner Blake Lufburrow said Central Texas is shaping up to be one of the strongest markets in the U.S., but when you’re getting ready to buy, be sure to lower your expectations of receiving incentives like down payments and closing cost assistance.
“Potentially you’re not going to get the same kind of incentives that you were getting from sellers before,” Lufburrow explained. “Just know that going into it won’t be as advantageous as it was for buyers from an incentive standpoint. Just be prepared to compete to get into a property.”
In addition, Perryman said it’s also important to price your homes accurately and complete needed renovations to get the most out of the sale.
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