Is It A Good Time To Buy A House [April 2024]

April 2024 is a good time to buy a house.

This unbiased article examines current mortgage rates, recent home values, and market sentiment to highlight why now is a good time to buy your first home.

The main reasons are:

1. Today’s mortgage rates are low and headed lower
2. Home buyers drastically outnumber home sellers
3. Home sellers are increasing their greed

The article also touches on first-time home buyer grants and programs, such as the FHFA First-Time Home Buyer Mortgage Rate Discount, which help with home affordability.

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March 2024: A Good Time to Buy Your First Home

Mortgage Rates Are Improved

According to Freddie Mac, mortgage rates for conventional mortgages are down 100 basis points since November 1, giving the typical first-time home buyer an eleven percent boost on their purchasing power.

At Homebuyer.com, where today’s mortgage rates are lower than the national average, home buyers have a 16% purchasing boost.

Key drivers behind today’s lower mortgage rates include :

• Inflation rates slowing from 9% per year to below 3 percent
• The Federal Reserve being done with its rate hikes
• The mortgage-backed securities market getting a moment to recover

Eligible first-time buyers also get an automatic, extra mortgage rate reduction via the FHFA First-Time Home Buyer Mortgage Rate Discount, which lowers rates by as much as 1.75 percentage points.

The government’s temporary discount program applies to all conventional mortgage types, including three-percent down mortgages such as HomeReady, Home Possible, and the Conventional 97.

FHA-backed home buyers are getting a discount, too.

In 2023, the Federal Housing Administration reduced mortgage insurance premiums on all new FHA loans for the first time since the mid-2010s. The move lowered monthly payments by $300 per year per $100,000 borrowed and boosted home affordability.

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Average 30-Year Fixed-Rate Mortgage Rates

Homebuyer.com uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
Data: Freddie Mac. Do not reprint without permission.

Home Values Are Rising

The most recent Existing Home Sales report from the National Association of REALTORS® showed home buyers dramatically outnumbering home sellers in the April housing market.

• Each state averages approximately 21,000 homes for sale
• The majority of homes sell within a month
• Homes between $100,000-$250,000 get sold in 27 days, typically

The report also shows that every MLS-listed home would be bought at the current sales pace in 2.9 months. Considering that a six-month home supply is a market in balance, the home sales data suggests we’re deep in Seller Market territory.

Many people want to buy a home this month, but few want to sell. With the real estate market this far out of balance, the best price you can get on a home may be the price you get today.

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FHFA Home Price Index

Homebuyer.com uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
Data: FHFA House Price Index. Do not reprint without permission.

The Psychology Of Selling A Home

Real estate is a financial transaction. But, for sellers whose home is their primary residence and buyers who meet the first-time home buyer definition, real estate is often an emotional transaction, too.

Greed can affect how much you’ll pay for a house.

In a down housing market or bad economy, fear overtakes greed. Sellers worry their homes won’t sell. They cut prices aggressively and negotiate more frequently. For buyers, fear can lead to good deals.

In a strong housing market, though, greed suppresses fear. Sellers want money and know they can get it.

As greed levels rise, sellers push buyers and their buyer’s agent to bid over a home’s listing price and occasionally waive contingency clauses, such as the buyer’s right to a home inspection. NAR reports that 25% of home buyers now waive their right to an inspection, up 4 points from the last monthly reading.

Sellers may also be less likely to give seller concessions, which buyers can use to get a lower mortgage rate.

Buyers take on more risk when seller greed rises.

Getting Starting With Your Purchase

16 First-Time Home Buyer Programs [2024]

If you plan to buy a home, start with a mortgage pre-approval.

Mortgage pre-approvals are a dress rehearsal for your eventual home purchase. Pre-approvals use today’s current mortgage rates to show precisely how much house you can afford to buy, while setting a realistic boundary for your purchase price and budget.

Pre-approved home buyers can get access to more than a dozen low down payment mortgages for first-time buyers, and find discounts and deals based on their job type.

There are special mortgages for nurses, mortgages for teachers, and mortgages for first responders.

Pre-approved buyers can also get access to first-time home buyer grants and programs, including mortgages with forgivable loans for down payment.

Pre-approved buyers do better, so get pre-approved today.