Buying a Home This Spring: Ask Yourself These Questions

If you are thinking of Buying a Home this spring in Metro Detroit, I recommend you ask yourself these questions. 

Buying a Home This Spring 2024 | Team Tag It Sold

Buying a Home This Spring? Here’s What You Need to Know

Spring is just around the corner in Metro Detroit, and it’s the prime time for home buying! With better weather and timing for summer or fall moves, it’s no wonder. But, with mortgage rates on the rise, it’s wise to start preparing now. Here are three key steps to take before the spring real estate market heats up:

  1. Boost Your Credit Score: High mortgage rates with a low credit score are even higher. Work on improving your credit by paying down debts and paying bills on time. Avoid applying for new credit for now.

  2. Get Pre-approved: With a better credit profile, get pre-approved for a mortgage. This shows sellers you’re serious and ready to act fast when you find your dream home.

  3. Know Your Options: Even with high rates, you can still find good deals. Talk to lenders about adjustable-rate mortgages and buying mortgage points to lower your monthly payments. Consider locking in a rate now to avoid future increases. Need Mortgage Help?

Are you thinking About Buying a Home? Ask Yourself These Questions

Are you thinking about buying a home this spring? If so, you’re likely keeping a close eye on the housing market. You’re gathering insights from the news, social media, your real estate agent, and chats with friends and family. Home prices and mortgage rates are probably hot topics in your circles. Here are the top two questions you must ask yourself as you decide, along with some data to help you cut through the noise.

1. Home Prices: What’s the Forecast for Metro Detroit?

You might be wondering, “Where are home prices heading?” A solid prediction source is the Home Price Expectations Survey by Fannie Mae. This survey, involving over a hundred experts, forecasts that home prices will continue to rise nationally through 2028. Next, dive deeply into Metro Detroit home prices and trends by city. You have direct access to the data from the Multiple Listing Service (the realtor’s database).

Homr Price Performance the Next 5 Years | Team TAg It Sold

Why does this matter to you? 

While the pace of appreciation might not match recent years, the key takeaway is that prices are expected to rise for the next five years, not fall. This means that buying now could grow your investment, increasing your home equity. Waiting could mean paying more later.

Take control of your home-buying or home-selling journey with direct access to our Multiple Listing Service (MLS) through our unique bridge access feature. Dive into detailed, real-time graphs and trends, and explore home prices across different cities and price ranges at your own pace. Curious about recent selling prices? You’ve got access to up-to-date sold data, too. Skip the headlines and get the facts straight from the source. And if you’re wondering what your home is currently worth in today’s market,  Click Here for an instant report. Start exploring now and make informed decisions with ease!

2. Where Do I Think Mortgage Rates Are Heading?

Over the past year, mortgage rates have spiked due to economic uncertainty, inflation, and other factors. However, an encouraging sign for the market and mortgage rates is that inflation is moderating. When inflation cools, mortgage rates generally fall in response. The Federal Reserve recently signaled that it was pausing its Federal Funds Rate increases and may even cut rates in 2024. Experts are confident that this will lead to a decline in mortgage rates. To track mortgage rates daily, visit “Today’s Mortgage Rates ~ What’s Driving the Change.” Also, to predict where mortgage rates are heading, see “Navigating Mortgage Rates ~ Empower Your Move.” 

Danielle Hale, Chief Economist at Realtor.comexplains:

. . . mortgage rates will continue to ease in 2024 as inflation improves and Fed rate cuts get closer. . . . a key factor in starting to provide affordability relief to homebuyers.”

Today’s Mortgage Rates: What’s Driving the Change

If you’re on the journey to buying a home in Metro Detroit, you’ve likely been monitoring Today’s Mortgage Rates. Most lenders will start with the day-before rate numbers for quotes in the a.m. Then, update rates about mid-day. You’ll know where they are heading by monitoring the 10-year treasury yield. Remember, I track baseline mortgage rates; the mortgage rate doesn’t include points lenders charge to buy down the rate, your credit score, or your down payment. Your mortgage rate will be lower or higher depending on the above conditions. Rates have been everywhere recently, hitting rock bottom and soaring to new highs. Here is where we will review what’s behind those dramatic changes. Let’s look at some key elements that play a significant role. Updated mortgage rates are released between noon and 2 pm. (Live Feed Below.)

 

3. Know Your Home Purchasing Power

Interest rates might not drop by March, but we’re crossing our fingers for June. Knowing how mortgage rates affect your monthly costs and overall budget is key. While we haven’t seen home prices dip, the landscape is steady, thanks to a tight market. We’re not witnessing the skyrocketing prices of the Unicorn Years, yet a decrease in mortgage rates could spark a buying frenzy amid the ongoing shortage of homes in Metro Detroit.

This means prices could rise again. How much? It hinges on demand, recalling the surge between 2020 and early 2021. Now’s the moment to crunch some numbers and pinpoint the optimal time to make your move. Good news: Freddie Mac reports that 30-year fixed mortgage rates have dipped below 7% since late October. Let’s navigate these waters together and maximize your home purchasing power.

Key Takeaway

Staying informed on home prices for Metro Detroit and mortgage rates is crucial when considering home buying. While predictions can’t be made with absolute certainty, having the latest info can guide your decision-making process.

Are you thinking about taking the plunge into homeownership? Let’s stay connected to ensure you have all the information you need. To keep current, consider signing up for our newsletter. We’ll inform you about the latest trends and updates in our local real estate market. This spring could be the perfect time to find your dream home!

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Pam Sawyyer @ Metro Detroit Home Experts

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