Homebuyers and realtors, gearing up for the fall market are excited to hear about lower mortgage rates. The lower rates makes homes more affordable and increase the number of homes available for purchase:
•Mortgage rates for September 6, 2024, are near 5.80%, down from last week.
•Rates have been decreasing for several months now as inflation slows and the economy cools.
•Rates are expected to keep going down this year and in 2025.
Mortgage rates have been steadily dropping for four months now, and rates are trending lower in September. Rates on the most popular 30-year fixed-rate mortgage are now below 6% for the first time since early 2023, according to Zillow data.
Rates have inched down this week in response to new data suggesting that the labor market may be cooling faster than anticipated. The latest Job Openings and Labor Turnover Survey, released, showed that job openings fell below expectations in July. As the labor market weakens further, the central bank could decide to cut rates by another half a point. If that happens, we could see mortgage rates drop more substantially soon.
What advantages will buyers have? First, buyers have more homes to choose from. Inventory has been steadily increasing all year, and Realtor.com predicts supply will be 37% higher by late September compared to the beginning of the year. And those homes are staying on the market an average of two weeks longer, giving buyers more time to tour homes and make a decision — with less competition than before.
But the biggest draw is that homes should be priced better, at least compared to summer peaks, the report says. Buyers can expect to save more than $14,000, on average, if they manage to make a deal in early October. In Northern New Jersey, with the inventory of homes for sale still relatively low, finding the right home might still be the biggest challenge. Let my 10+ years of Real Estate experience in Essex, Morris, Union & Somerset County work for you: C973.698.0720