Are Mortgage Rates Rebounding?
That is good news for those house hunting and uncertain about the future. Some financial pundits say if rates continue the downward trend following the Fed’s actions, we could be looking at an actual interest rate rebound in the earliest days of the spring house hunting season.
What Do Falling Mortgage Rates Mean for Buyers in 2023?
Some of the same pundits expect buyers to return to the housing market as rates go down. That could create some extra competition for housing inventory. Will there be enough houses to meet the spring demand? That’s an important factor going forward.
If the demand outpaces the inventory, will we see a return to a seller’s market similar to the one in 2022? It may be too early to speculate on that, but it is worth noting that house prices may not fall the way interest rates have fallen. They don’t operate in tandem.
It may take a combination of factors to change housing prices, including the size of the available housing inventory, how crowded the marketplaces for buyers, and whether property values are on the rise or not.
Getting Ready to House Hunt In 2023
The more competitive you can make yourself as a borrower, the better. Chances are good that many in the planning stages of buying a house have taken our advice in past articles about working harder on your FICO scores and credit history in a tough housing market.
If that is you, and your credit strategies are working, you may have an easier time when you want to commit to buying a specific property.
If you need more time, it’s smart in the current market to take that extra time and come to the FHA loan application process when you are fully prepared to get the loan.
Shopping for a Home When Rates Are Falling
It’s important to be mindful of your competition when searching for a home in the best of times, but when rates are falling you’ll want to give yourself every advantage.
For some, that means saving more for a down payment, for others it may mean not asking for things like seller concessions. If you can afford such negotiations, try them! If you can’t, you may need to shop around more aggressively for a seller willing to work with you.
But what it should NOT mean, even when the housing market is at its most competitive? Buying a home with an FHA loan or any other type of mortgage without getting a home inspection. Don’t let a seller pressure you into doing this, the inspection is for YOUR protection.
Home Equity Can Secure Your Second Mortgage
Consider the Advantages of Discount Points
FHA Limits are Calculated and Updated Annually
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