Mortgage Rates and Homebuying Trends in 2024
Mortgage Rates Surge Again
Heads up, homebuyers! Mortgage rates have taken another leap, hitting 7.17% for 30-year loans and 6.44% for 15-year mortgages. These rates are a far cry from the measly 6.43% and 5.71% we saw last year, making it tougher to secure a loan. But don’t lose hope just yet!
Purchase Demand Remains Steady
Despite the rate hikes, people are still eager to buy homes. Sales of newly built homes have seen a surge since December 2022, indicating that demand is holding strong. It’s a testament to the enduring appeal of homeownership, even in these challenging times.
Home Prices Cool Slightly
The sky-high housing prices we’ve witnessed in recent years are finally starting to moderate. Prices have dipped from their pandemic peaks, but they’re still higher than pre-pandemic levels. The average sale price has climbed a whopping 27.5% since 2020, so it’s still a seller’s market out there.
Mortgage Rates Surge Again: Impact on Homebuyers and Homeowners
Purchase Demand Remains Steady
Despite the interest rate hikes, the demand for homes remains strong. In fact, sales of newly built homes have seen the biggest increase since December 2022. This suggests that many potential homebuyers are still eager to purchase a home, even at higher interest rates.
Home Prices Cool Slightly
While home prices have come down from their pandemic-era highs, they are still elevated compared to pre-pandemic levels. The average sale price of a home has risen 27.5% since 2020. However, home values are predicted to grow by only 1.9% in 2024, which is a slower pace than recent years.
Home Sales Expected to Dip
The number of home sales is expected to dip slightly in 2024. This is due in part to the limited number of homes available for sale. The lack of inventory is making it difficult for buyers to find the home they want, and it is also contributing to the higher home prices.
Homeowners Insurance Costs Rise in Certain Areas
Homeowners insurance costs are rising in many parts of the country, particularly in California, Texas, Florida, and Iowa. These rate hikes are being driven by increased severe weather events and insurance company losses. As a result, homeowners in these areas may need to budget for higher insurance premiums.
Climate Change Impacts Home Insurance
Climate change is having a significant impact on homeowners insurance. More frequent hail and windstorms are leading to higher insurance claims and rate increases. In fact, Iowa is now experiencing similar insurance rate hikes to Texas and California, which are two states that are frequently hit by severe weather.
Credible Resources for Homebuyers and Homeowners
If you are considering buying a home or refinancing your current mortgage, it is important to do your research and compare rates from multiple lenders. Credible makes it easy to compare mortgage options, homeowners insurance plans, and get answers to your financial questions.
- Explore mortgage options and compare rates
- Compare homeowners insurance plans and providers
- Get answers to your financial questions from The Credible Money Expert
Conclusion
The mortgage market is constantly changing, and it is important to stay up-to-date on the latest trends. By understanding the factors that are affecting mortgage rates and home prices, you can make informed decisions about your home financing.
If you are considering buying a home in 2024, it is important to be prepared for higher mortgage rates. You should also be aware of the limited number of homes available for sale and the rising cost of homeowners insurance in certain areas. By doing your research and working with a qualified lender, you can find the best mortgage for your needs.