TEMPLE, Texas — 2023 saw historically high interest rates that prevented millions of people from buying the home they wanted.
However, mortgage rates are expected to improve in 2024, with experts reporting that they expect interest rates to fall in the new year.
The Fed reports that mortgage rates are just beginning to decline, with the 30-year average rate hovering around 7%. This number is even higher in some of the fastest growing regions of the country.
There will be no rate hikes until the end of 2023, which Perryman Group owner Ray Perryman says is always a great sign.
“When you see mortgage rates coming down, you’re going to see more people enter the market,” Perryman explained. “We also see that inventory is building up because we are still short of the number of homes we need.”
Perryman added that the lower interest rates that occurred in this country a few years ago led many homeowners to lock in rates and avoid deals to maintain interest rates.
Still, the average price of a home today is about $300,000, and 62% of adults said they were living paycheck to paycheck, according to the Lending Club report.
Here in Central Texas, the median home value for the average family is only about $250,000.
Blake Loughborough, owner of Two Lakes Real Estate, said Central Texas is becoming one of the strongest markets in the country, but when preparing to buy, there are many options, including down payment and closing cost assistance. He said people should make sure to lower their expectations of receiving incentives. .
“You may not get the same incentives you used to get from sellers,” Loughborough explained. “Know that from an incentive standpoint, getting in there is not as advantageous as it used to be for buyers. Just be prepared to compete to get into real estate.”
In addition, Perryman said it’s also important to accurately price the home and complete any necessary renovations to get the most out of the sale.
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