If you’ve been pushed out of the home buying market because of the sharp rise in interest rates over the past year, keep reading. Shanon Tully, a seasoned real estate professional with Platinum Partners Realtors in Downers Grove brings you crucial insights into the ever-evolving real estate market and how you can capitalize on the possible upcoming changes in interest rates.
Is A Shift In Interest Rates On The Horizon?
Recently, Lawrence Yun, the Chief Economist for the National Association of Realtors, made an intriguing prediction. He said that by spring of 2024, we should see interest rates drop to between 6-7%. This is fantastic news for prospective homebuyers, as lower interest rates can significantly improve purchasing power and lower monthly mortgage payments. Read the full article here:
NAR Chief Economist Lawrence Yun Forecasts Existing Home Sales Will Rise by 15% Next Year and Mortgage Rates Will be Between 6-7% by Spring 2024
However, there’s a catch. With the decrease in interest rates, we could also witness another surge in homebuyers vying for the same limited inventory of available properties potentially leading to even more multiple offer scenarios which could push home prices even higher.
The Takeaway: Be Ready!
If you’re one of the buyers who’ve been patiently waiting for rates to come down, you’re not alone. Many potential home buyers found that they could no longer qualify for a mortgage and that home buying was just not attainable. For all of these people that have been waiting for rates to come down, now is the ideal time to take proactive steps to ensure you’re prepared when the opportunity arises. Here’s what you should do:
Contact Your Lender Early: Reach out to your lender as soon as possible. By doing so, you can assess your financial readiness to purchase a home, make necessary updates to your financial documentation that may be required by your lender, and correct any issues that may hinder your mortgage approval.
Read This Blog Article: A comprehensive guide titled "The Home Buyer’s Guide to Getting Mortgage Ready". If you’re like the vast majority of home buyers, you will choose to finance your purchase with a mortgage loan. By preparing in advance, you can avoid the common delays and roadblocks many buyers face when applying for a mortgage. This resource will provide you with invaluable insights and tips to ensure you’re well-prepared for the competitive market.
Contact a Local Real Estate Expert: Do the research required to find the best agent to represent you and meet your needs. For help with this, Downers Grove real estate agent Shanon Tully has created a video where she shares with you her list of important considerations to get you started on the right path! You can watch her video here: How To Select A Real Estate Agent. And don’t be afraid to ask whether they have experience writing offers where multiple offers were being considered.
Stay Informed: To stay informed about the latest real estate trends, updates on interest rates, and more great real estate tips, be sure to like and follow the social media profiles of Downers Grove Real Estate Agent Shanon Tully.
