Why now is 'a great time' to buy a house

According to recent Freddie Mac data, mortgage rates are on a downward trend, hovering just below 7%. To provide insights on this development and its implications for the housing market, Melissa Cohn, William Raveis Mortgage regional vice president joins Wealth!

Cohn observes that the dip in rates has sparked "more enthusiasm from buyers," with many potential homeowners viewing this as "a good time to buy." This renewed interest is fueled in part by anticipation of a potential Federal Reserve rate cut come September, which could further impact mortgage rates.

Examining on the current housing market dynamics, Cohn explains, "When interest rates are high, there are fewer buyers in the marketplace because of the affordability issue. So now is probably a great time to get into the market and purchase." She highlights an advantage for buyers in the current market, noting that "as rates do come down, you still have the opportunity to refinance, but the cost of entry is definitely declining."

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Angel Smith

Video Transcript

Mortgage rates have seesaw the last few weeks most recently ticking lower to 6.89% according to data from Freddie Mac.

So how are these swings impacting home buyers?

Joining me now, we've got Melissa Cohen, who is the William Ravis Mortgage Regional Vice President.

It's great to have you here with us.

Ok.

So what are the kind of immediate impacts that we're seeing at least in some buyer activity between what we were seeing in a long term or long standing 7% and thus finally cracking below that and kind of maintaining below that rate for a few weeks now.

Well, I think we're definitely seeing more enthusiasm from buyers as interest rates are starting to tick down and based on what some fed members have said over the course of the past day that the uh thought that a fed rate cut would actually probably happen in September has gotten people to be, you know, excited about coming back into the real estate market and thinking now is a good time to buy.

And so with that in mind where we see it impacts both existing listings out there for uh for starters and, and potential home buyers that are willing to bid in to, to even some existing bidding wars that might be taking place.

Well, I think with the knowledge that it looks like interest rates are really, you know, on the decline and will continue to decline through the balance of the year over the course of the next couple of years that more people are now saying, you know what, maybe I should get back into the real estate market and look at the opportunity to buy now before rates do really come down and real estate prices go back up again.

And when interest rates are high, there are fewer buyers in the marketplace because of the affordability issue.

So now is probably a great time to get into the market and purchase.

Uh Knowing that as rates do come down, you still have the opportunity to refinance, but the cost of entry is definitely declining.

W what do you say to those?

And, and I had these conversations with some friends over the past weekend and, and a couple of weeks, as you know, of course, there are a lot of social functions brewing once you get into the July 4th week and everything, but everybody's trying to figure out, ok. Should I be waiting for that interest rate cut?

That we're now anticipating at least the probability showing that we could see one in September?

Well, I think it's a question of doing the math.

You know if you were to buy today and the value of the home that you're buying is, you know, call it $150,000 less than it will be in a year.

And you're gonna pay a few $100 more a month on a mortgage for that year it pays to buy now and then consider refinancing.