The uncertainty of today’s housing market has left many eager and potential homebuyers “in a rut.” As a result, many are unsure what the future may hold for the market, but there is hope that the challenging conditions of 2023 may be relaxing. But, how and when that will happen are both still up in the air, especially following the Federal Reserve’s policy meeting on March 20th.

Spring could mean the thawing of the frozen market and historically the start of one of the busiest times of the year, so let us address some of your questions and concerns. What exactly does it mean for rates to remain stable? What is the Fed’s goal and what can you do to get the most out of this season of change?

The Housing Market Today

Although unclear, many remain hopeful that the housing market will cool over the course of 2024. Looking back at the steady growth in 2023, it appears the market may have hit a peak in housing prices and mortgage rates with the potential for progressing downward over the next few quarters. According to recent data, inflation has been steadily slowing to the target rate of 2%. Which could mean the Fed is preparing to lower interest rates which could in turn potentially lower mortgage rates. Throughout 2024, market participants expect to see three interest rate cuts.

The Federal Reserve’s Goal

We know that the Federal Reserve is important to the housing market, but why? What exactly are they working towards? In short, the Fed’s aim is to achieve the highest employment and keep prices stable. By changing interest rates, consequently, they are able to drive inflation back down to where they want it – about 2%. This is crucial to make sure that the monetary environment maintains stability and fosters economic growth.
The Fed maintaining a consistent Fed Funds rate may have positive trickle-down effects that could spur an uptick in mortgage activity.

Stable Rates

When the Federal Funds Rate stays consistent, mortgage interest rates have the potential to follow suit with minimal fluctuations. Therefore, this could prove advantageous for real estate agents since it may make advising clients and forecasting a bit easier. Similarly, it also has the capability of establishing a more confident buyers and sellers dynamic.

The concept of stability contributes to a sense of comfort, consequently enabling confident decision-making when it comes to planning, budgeting, and securing a favorable mortgage rate for purchasing a home. However, buyers should stay informed about market conditions and consult with their Mortgage Loan Originator (MLO) to make decisions based on their individual circumstances.

Tips for Today and Tomorrow

What can you do during this season? Plan, plan, plan! It is key to use this time to plan and understand your financial situation. How might this affect you directly? Being strategic about your finances can allow you to be more accountable and smarter regarding buying a home. Take into account what might make the most sense for your lifestyle and budget.

Unsure of where to start? Discussing options with your MLO could give a clearer insight into what steps you should take. They will also be able to educate you on current rates, trends, and other crucial factors for buying a home in today’s budding market.

Many individuals find themselves in a position where they cannot afford to delay their move. Whether it’s because of a big life change, snagging a new job, or just feeling the itch to relocate. Silverton Mortgage is here to help support you in buying a home. One option to explore is Down Payment Assistance (DPA) programs. These programs were created with the purpose of helping families and individuals who are struggling to pay for the down payment of their home. There are varying DPA programs with potential eligibility depending on certain criteria.

Other Options

Another option that potential homeowners can explore is Rate Drop Protection. In conclusion, when you find that perfect home, don’t wait! Purchase your dream home now and finance with Silverton. If rates drop, you can refinance with us within three (3) years, and we’ll waive the lender and appraisal fees. * Take control of your homeownership journey. Get peace of mind knowing you can take advantage of a future interest rate decrease and refinance with lower costs.

Wherever you are on your homebuying journey, we have options for everyone! Our expert team will guide through the mortgage process every step of the way. We are dedicated to informing and supporting our clients in order for you to achieve your dreams of homeownership.