Understanding Mortgage Rates: What Borrowers Should Know About Interest Rates in the Housing Market Understanding Mortgage Rates: Tips for Homebuyers in 2024
April 12, 2024

Understanding Mortgage Rates: What Borrowers Should Know About Interest Rates in the Housing Market

Purchasing a home stands as one of life’s pivotal and intricate transactions. While a Realtor offers invaluable guidance throughout this journey, being well-informed is key to ensuring a smooth process. A crucial aspect of this knowledge is understanding interest rates. Fear not, as your agent not only sheds light on navigating interest rates confidently but also collaborates with experts like Mortgage Lenders who furnish essential insights for those eager to grasp mortgage rates better.

In today’s market, what should a prospective homebuyer understand about interest rates? To address this query, we’ve teamed up with Scenic Oaks Funding to provide essential answers to pivotal questions every homebuyer should consider before embarking on the journey to secure their dream home.

What should buyers know about interest rates in 2024? What can they expect?

“Well, that’s the million dollar question,” said Jeff Tarbell, Vice President of Sales at Scenic Oaks Funding. “The stock market and investors seem convinced that rates should’ve started dropping by now. However, the Government is being cautious, waiting for inflation to decrease, which is happening but at a slower pace than expected. So, will rates get better? It’s quite likely. My best bet is we’ll start seeing the FED lowering rates by late summer or into fall. Will we hit 3% again? Probably not. But keep in mind, with all this pent-up demand, those holding out for lower rates might find themselves facing more competition and higher prices since inventory remains extremely low. Right now is a fantastic time to snag that dream home and refinance later if rates do drop.”

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How can buyers shop for the best interest rate?

“How do you approach shopping for something as significant as a mortgage? Well, it’s a bit like how you’d go about finding any important item. You start with word of mouth, check online reviews, consult friends, family, and trusted advisors – they’re all reliable starting points,” explained Tarbell.

“But here’s the kicker: is it all really about chasing the best rate? Or should we be asking ourselves, ‘What’s the best scenario for me or my family?’ For instance, splurging on a low rate right now might not be the smartest move if you anticipate refinancing in a year’s time. Plus, what if you snag a rate quote from an unfamiliar lender and the seller gets cold feet because they’re unsure about that lender?

Now, the online versus in-person debate… it’s a good one. And did your lender really ask all the right questions and genuinely approve you, or was it just a cursory review? These are the crucial questions you need to be asking when you’re considering your next mortgage opportunity.”

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Is 2024 a good year to refinance?

“For most folks, refinancing boils down to a math problem, not just a rate dilemma,” explained Tarbell. “It’s all about understanding the purpose behind refinancing. If you’re sitting pretty with a 3% rate right now and aiming to lower it, well, 2024 might not be your golden ticket. But if life throws you a curveball and you’re facing a major life event that demands a refinance or a new purchase, the year and the rate become secondary concerns – it just needs to get done.

Typically, refinancing involves bundling up other higher-rate debts, maybe some home improvements, or even funding a college education. By rolling all those financial obligations into a single, more manageable rate – your mortgage – your monthly living expenses become a whole lot easier to handle.

Remember, every scenario and real estate goal is unique. So, before you make any financial moves in the real estate world, make sure to chat with your trusted agent and qualified representatives.”

Scenic Oaks Funding is an Equal Housing Opportunity Lender (Company NMLS #252939). Scenic Oaks Funding has a business relationship with Lyon Real Estate.

Category Real Estate

Lyon Real Estate

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