2024 is the Year of the Buyer

2024 is already shaping up to be the Year of the Buyer. Mortgage rates, which remained high through 2023, have steadily declined over the last couple of months, with economists predicting further decreases in the coming months.

The Mortgage Bankers Association, Weekly Application index, showed purchase volume rose another 7.5% in the last week of January, sustaining its early 2024 strength, despite home prices reaching new peaks. In December, the median sales price of homes in the U.S. accelerated by 4% on a year-over-year basis, the largest since October 2022.

After being priced out of homes in the past, buyers are anxious to purchase now — not wait for further rate decreases, bringing increased home prices, competition, and bidding wars.

Millennials are Driving Demand. According to the Mortgage Bankers Association, there are 50 million Millennials in the U.S. between the ages of 30 and 40 who need housing, and it is key to understand how to market to this demographic. Their needs and buying patterns are vastly different from the previous generations.

The homeownership rate of those between 35 and 44 is 63%. The majority of people entering the housing market begin the purchase process in their 30s and 40s. While millennials are known for getting married and starting families later, they are focused on securing stability through homeownership and are going to be a strong force for the housing market in the medium term.
They are looking for a home they can stay in for at least five years and afford at today’s interest rates. The potential of refinancing in a year or two if interest rates decline is an added bonus.
Parents are helping millennials with down payments and co-signing on their mortgage loans.
It takes two incomes to afford most homes, and many millennials are buying with others before marriage.
Current homeowners who are buying up, are using all of the proceeds of the sale as a down payment, whereas in the past, they would have taken the equity out in cash.

Let us help walk you through the entire mortgage process, find out what you can afford and how purchasing now, knowing it may not be your forever home, is a secure investment in a successful future.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.