Buying a Home in October 2024: Key Trends and Guidance

As we move into October 2024, the U.S. housing market is seeing major shifts in mortgage rates, inventory, and home prices, affecting everyone interested in buying a home. Whether you’re a first-time buyer or looking to relocate, staying updated on these trends can help you make informed choices that fit your financial goals. Here’s an in-depth look at the current market, highlighting how buying a home now could be more advantageous due to recent changes in mortgage rates and housing availability.

Mortgage Rate Trends

One of the most closely-watched factors for homebuyers is the mortgage rate, which plays a major role in determining monthly payments and overall affordability. In recent months, mortgage rates have seen a notable decrease, offering some relief to potential buyers who were hesitant due to high rates earlier in the year.

• Federal Reserve Rate Impact: On September 18, 2024, the Federal Reserve reduced the federal funds target rate by 0.50%, a move that was anticipated by many in the financial world. This decision, while not directly setting mortgage rates, influences them. As a result, we have seen a positive trend in mortgage rate reductions throughout August and September, giving buyers more purchasing power.
• Current Rates: As of September 26, 2024, Freddie Mac reported that the 30-year fixed mortgage rate stands at 6.08%, while the 15-year fixed mortgage rate is at 5.16%. This decline is a welcome relief for homebuyers and has given many the confidence to enter the market. Lower mortgage rates mean buyers can afford more home for the same monthly payment, making the dream of homeownership more accessible.
• Future Outlook: While the recent reduction in the federal funds target rate has helped push mortgage rates down, industry experts predict that much of the rate drop occurred in anticipation of this move. However, if inflation continues to ease, we may see rates remain lower through the rest of 2024, further encouraging buyers to make their move.

Home Inventory Trends for Buying a Home

The availability of homes on the market, or inventory, is another crucial factor for those buying a home. More inventory often means buyers have more choices and face less competition, while low inventory can result in bidding wars and drive up prices, making buying a home more challenging.

• Rising Inventory Levels: 2024 has seen an increase in unsold home inventory. According to the National Association of Realtors (NAR), unsold home inventory increased by 0.7% in August 2024 compared to July. This is part of a larger trend throughout 2024. Inventory levels have been gradually rising, as shown by the chart tracking the year-to-date changes.
• Impact of Lower Rates: With mortgage rates dropping, more buyers are entering the market, potentially reducing inventory as homes get sold. However, the rise in inventory has given buyers more options and more negotiating power, which is a shift from the seller-dominated market of previous years.
• Looking Ahead: Experts suggest that inventory may continue to increase as more homeowners list their properties to capitalize on rising home prices. If interest rates continue to stay low, this could balance out the market. This situation would provide both buyers and sellers with favorable conditions.

Home Pricing Trends

Home prices have been a hot topic over the past few years, with many areas experiencing rapid price increases. While prices are still going up in 2024, the rate of appreciation has slowed compared to previous years. This slowdown is offering some relief to buyers in the housing market.

• Slower Price Growth: Data from the Case-Shiller index shows that while home prices are still increasing, the year-over-year growth has moderated to around 3-5%. For example, NAR reported that national home prices increased by 3.1% in August 2024 compared to August 2023. This marks the 14th consecutive month of year-over-year price increases. However, the rate of growth is slower than in the past.
• Home Equity Gains: For homeowners, this steady price growth is good news. Home equity continues to rise, which offers more financial stability. This increase also provides potential for using equity for other investments or financial needs. For would-be sellers, this is an opportunity to take advantage of rising prices and leverage the equity they’ve built.
• Buyer Challenges: However, for homebuyers, rising prices continue to present challenges, particularly in markets where affordability is already an issue. Even with lower mortgage rates, buyers may still find it difficult to find homes within their budget.

How the National Buyers Agents Association Can Help with Buying a Home

Navigating the housing market in 2024 can be tricky. This is especially true with all the changes in mortgage rates, inventory levels, and pricing trends. That’s where the National Buyers Agents Association (NBAA) comes in. They connect homebuyers with experienced agents who are well-versed in their local markets and can provide valuable guidance throughout the buying process.

• Expert Guidance: Buying a home is a significant financial decision. Having an expert on your side can make all the difference in this process. NBAA agents are committed to representing the buyer’s best interests. They focus on finding the right property, negotiating the best price, and helping you navigate the mortgage process.
• Local Market Knowledge: NBAA agents are familiar with the trends in their local markets. This knowledge is beneficial when buying in a city with rising inventory. It is also useful in a neighborhood that is experiencing strong price appreciation. This local expertise ensures you get the best advice tailored to your specific situation.
• Saving Money: One of the biggest advantages of working with an NBAA agent is their ability to help you save money. On average, buyers working with NBAA agents can save thousands of dollars at closing. This can make a huge difference, especially in today’s competitive market.

Is Now the Right Time in Buying a Home?

Deciding when to buy a home can be difficult, especially with so many factors to consider. However, there are a few reasons why now may be the best time to make your move:

• Mortgage Rates Are Down: The recent decline in mortgage rates has increased purchasing power for buyers. This means you can afford more home for the same monthly payment, making now a great time to buy.
• Rising Home Prices: While home prices continue to rise, they are doing so at a slower pace. Buying now could allow you to lock in a lower price before further price appreciation in 2025.
• Increased Inventory: With more homes available on the market, buyers have more choices and less competition than in previous years. This is a buyer’s opportunity to find the right home without the intense bidding wars of the past.
• Long-Term Equity Growth: Homes are expected to continue appreciating, meaning that buying now can help you build equity over time. This can provide financial security and future investment opportunities.

Tips for Navigating the 2024 Housing Market

If you’re ready to take the plunge and buy a home, here are a few tips to help you navigate the current market. These strategies will guide you through the home-buying process effectively.

• Work with a Buyer’s Agent: A professional buyer’s agent from the National Buyers Agents Association can guide you through the home-buying process. They will ensure you get the best deal possible while navigating the market’s complexities. They can also help you understand local market conditions and negotiate on your behalf.
• Get Pre-Approved for a Mortgage: Before you start house hunting, it’s important to get pre-approved for a mortgage. This will give you a clear idea of your budget and show sellers that you’re a serious buyer.
• Research Local Markets: While national trends are important, real estate is always local. Research the specific market you’re interested in to understand pricing trends and inventory levels. This knowledge will help you identify other factors that may impact your purchase.
• Be Ready to Move Quickly: Even with rising inventory, the best homes tend to sell fast. Once you find a home that fits your needs and budget, be ready to act quickly to secure it.

Conclusion

The housing market in October 2024 offers both opportunities and challenges for homebuyers. With mortgage rates trending down and inventory rising, now could be an excellent time to buy a home. Additionally, home prices continue to appreciate, making it a favorable market for potential buyers. Working with a buyers agent from the National Buyers Agents Association can provide you with the expertise needed to navigate this dynamic market. They offer valuable guidance throughout the entire home-buying process. This support can help you make the best possible decision for your financial future.

By staying informed about mortgage rate trends, you’ll be better prepared to take advantage of the current market conditions. Keeping an eye on inventory levels and understanding home price developments will also enhance your ability to navigate the housing market effectively. With the help of NBAA agents, you’ll have the support you need every step of the way. This includes everything from finding the right home to closing the deal.

If you’re ready to explore your homebuying options, send a request to the National Buyers Agents Association today and take the first step toward homeownership.