Mortgage Interest Rates Forecasted to Drop in 2024: Are you prepared?

The Alexander Realty Group 2024 Real Estate Market Forecast: Davidson, NC Lake Norman Charlotte, NC

Current real estate market forecasts for 2024 and into 2025 are showing that the mortgage interest rates will be dropping as we get into spring and summer of 2024. At some point we may even see an interest rate back into the 5% ranges over a period of time. For new home buyers this is an excellent opportunity to have your dollars go a longer way.

But why are we always preaching to buy now as a real estate professional?

The simple answer for our region is because of the overall rate of home appreciation. Home appreciation levels are at an all time high and continue to rise. Year over year we have seen average single family home prices to continuously rise.

The national level of appreciation of a home in 2023 was 7%. We are seeing higher levels in Davidson, NC and Charlotte, NC depending on where you are. Even with a current 6.8% mortgage interest rate or so, you are going to still yield the expected appreciation year over year. If the rates then drop towards 5% then it may make sense to reevaluate if it’s worth refinancing. The actual market value of the home is going to keep going up...

For every 1% of mortgage interest rate drop, 5 million more buyers will be available for the same price range. If and when the interest rates drop, you can expect more competition and a much higher level of competitive bids.

What questions should you be working to plan your future with in home buying for 2024?

-What does the appreciation rate look like for the area I want to live?

-Can I take the profit on my current house to consolidate debts and have an overall financial pictures with less interest as a whole, not just looking at my mortgage payment?

-If I’m looking to live somewhere over 2 years, what do I need to do in order to qualify for a home purchase?

I am preaching to buy now if you find what you are looking for because the bigger picture is going to have pros and cons with appreciation, the actual interest rate, available inventory, etc over time.

If you need help with any answers to the questions I have above, I’m happy to help or connect you with trusted resources to get you the right information to make information choices.