The Federal Reserve is still not ready to lower interest rates. At its latest meeting on May 1, 2024, the Fed held the federal funds rate steady. Meanwhile, mortgage rates have eased back under 7% for the first time since April 11.
So, is 2024 a good time to buy a house?
There are many factors to consider. It’s not all about mortgage rates. Housing inventory, finding the best mortgage lender, and getting a fair price on a home are all factors. But you’re not buying the market. You’re buying a house in a city, neighborhood, and block where you want to live. Hopefully, for quite a while.
Let’s consider how 2024 might be the year you buy a house.
Read more: Best time of year to buy a house
Understanding the 2024 housing market
Mortgage rates
Mortgage rates have fallen below their 52-year historical average. Since April 1971, the 30-year mortgage rate has averaged 7.73%, based on data collected by Freddie Mac.
Of course, that’s little comfort to home buyers today who remember when rates were under 3% for much of 2021. Conversely, the highest rate on record was a whopping 18.63% in October 1981.
According to Zillow research, the trend of mortgage rates — whether interest rates are generally rising or falling — may influence whether existing homeowners would consider selling their existing house to move into another. With so many existing homeowners paying a much lower mortgage rate, the study found it would take rates to fall somewhere to between 4% and 5% before they would sell…
