Rising Prices

Hey Neelam, Great question, as in these past few months, the interest rate fluctuations significantly impacted the listing activity in our office, particularly for sellers unwilling to adjust their prices. This suggests there has already been some price correction relief. Moreover, interest rates have generally been decreasing over the past few months, providing additional relief. Regardless, buyers can count on us to assist them in navigating any market conditions and ensuring their best interests are prioritized. In summary, there is no way to determine what will happen, however, one thing I do know is the government isn't going to let people not be able to afford a home forever...People gotta go somewhere and I have TIME! lol. hope this helps, feel free to reach out anytime at 832-696-8100 or Pate@pateherrold-cbarealtors.com

Neelam! Don't we all wish we had THAT crystal ball!? haha! Truth is, it's always speculation any which way we choose to answer this, UNLESS we've got that crystal ball or some insider information. Matter of factly, I can tell you that over the past year, I have gotten INSANE deals for my buyers, so they definitely saw relief, though I am not aware if other agents were seeing/doing the same. The interest rates stalled the heck out of my listing activity for sellers who weren't willing to move on price, so that is another indicator that there actually already has been some price correction relief going around. Also, interest rates have been mostly trending downward for the past few months, so that relief is already here too. Either way, lucky for the buyers, we are here to help them navigate ANY type of market and do whats right by them!

Neelam! Don't we all wish we had THAT crystal ball!? haha! Truth is, it's always speculation any which way we choose to answer this, UNLESS we've got that crystal ball or some insider information. Matter of factly, I can tell you that over the past year, I have gotten INSANE deals for my buyers, so they definitely saw relief, though I am not aware if other agents were seeing/doing the same. The interest rates stalled the heck out of my listing activity for sellers who weren't willing to move on price, so that is another indicator that there actually already has been some price correction relief going around. Also, interest rates have been mostly trending downward for the past few months, so that relief is already here too. Either way, lucky for the buyers, we are here to help them navigate ANY type of market and do whats right by them!

I dont think this is a good time to buy unless you have no choice. Interest rates usually drop after an election. If they can hold off just 6 months interest rates should be a lot better. Feds just dropped the rate and promised not to raise it for awhile.

Great Question! Interest rates are dropping now and we should see more in the future.

They have been dropping and the Fed says there will be more.

Interest rates just dropped considerably over the last 3 weeks. From high 7's to low 5'sAlso, there is more money for first time home buyers in the form of grants that our clients are receiving and using to buy down their interest rates even lower. Rates are always subject to where you borrow the money from. Try to find a Mortgage Broker who works with WHOLESALE LENDERS whose rates are 1 to 1.5 lower than RETAIL LENDERS.

Although interest rates are dropping a tad bit, the rates seem to be pretty steady. However, the prices of homes are decreasing, which comes natural. Naturally while interest rates are higher the prices of homes decrease. This is the markets way of balancing out. Theoretically its better to purchase while rates are low because youre getting a cheaper home. Then when the rates decrease you can refinance to gain a lower rate to go with that cheaper home!!!

At the end of 2023, with inflation easing, the Federal Reserve hinted that it would start cutting interest rates in 2024. Projections from the Fed's December meeting forecasted the federal funds rate to fall to 4.6 that's down from the current target range of 5.25-5.5. The Fed's actions and comments prompted mortgage interest rates to start falling to close out the year, and there could be room for further mortgage rate decreases in 2024. However, many experts have a relatively subdued mortgage rate forecast for 2024. If rates do fall more, many experts predict a small change, based on current data, especially after the latest inflation report showed an uptick last month. Not sure what mortgage interest rate you'd qualify for? Find out here now.

My humble opinion is that interest rates will gradually come down.

Hi Neelam! Forecasters were predicting the Fed would drop rates in 2024, but then we had a less than stellar economic report in the last quarter of 2023. Now it seems they are expecting rates to hover around where they are currently for the first quarter/half of 2024 until the Fed knows more about what is going to happen with the economy. Mortgage rates have been slowly creeping down, and we've seen the market pick up a little bit after the holidays, but I don't see any major relief for buyers just yet. The best relief for homebuyers right now might be finding lenders that are offering great programs to help buyers borrow, such as low down payment options, the lowest interest rate possible, point buy downs, maybe bonuses and help with closing costs (new constructions), etc. I agree with the previous commenter that home prices probably will not come down. They will likely stagnate or rise slightly. However, if interest rates do keep creeping downward and more pent-up buyers start coming out to buy, home prices will start going up. Supply and demand! Just my humble opinion!

Interest rate drops don't seem to be a given at the moment. The 10-year treasury yield is on the rise again, and the strength of the economy could convince the Fed that cutting rates aggressively this year may not be the right move.December's HAR report showed some improvement. Inventory's are down some to 3.3 months, but so are the number of units sold. If I had to bet on it, I would say prices will remain flat to slightly up this year, especially if the Fed keeps rates close to where they are now.