Important points
According to a recent report from Realtor.com, the week from September 29 to October 5, 2024 is the best week to buy a home. The number of active properties on the market now could be up to 37% higher than at the beginning of the year, potentially making it easier for homebuyers to find the perfect home. The average 30-year fixed mortgage interest rate is nearly 1 percentage point lower than in July, which could encourage homebuyers to save.
The Fed’s recent interest rate cuts may have come at the right time for homebuyers. Although the Fed doesn’t directly affect mortgage rates, it can affect the amount lenders charge borrowers. Realtor.com says mortgage rates are already softening from last year’s highs and the timing is perfect, as the best week to buy a home begins today.
Realtor.com offers more home options for shoppers to choose from for the week of September 29 – October 5, 2024 as more homes become available and demand slows seasonally. It is claimed that it will become like this. Additionally, average interest rates on 30-year fixed mortgages are nearly 1 percentage point lower than they were in July, meaning homebuyers could potentially save even more than they did during the peak summer homebuying season.
Why is the week of September 29th the best week to buy a home?
According to Realtor.com, the week of September 29th is one of the best times to buy a home because there are more homes on the market and less demand. The number of active listed stocks on the market today could be up to 37% higher than at the beginning of the year.
Kirtana Reddy, an Austin-based real estate agent and author of the weekly newsletter Selling Austin, said the combination of these factors – increased inventory and decreased demand – creates a buyer’s market. Buyers may be able to get a better deal on a home because they don’t pay a peak price and have more negotiating flexibility.
Housing demand may also be low this week due to school schedules. Families tend to buy homes in the spring and summer to move in before the new school year starts to avoid pulling their children out of class mid-year. This increases competition among buyers and reduces choice. September 29th, when the new school year officially begins, marks the beginning of the seasonal slowdown.
And while home prices remain high compared to pre-pandemic levels, buyers could save an average of about $14,000 by shopping this week, according to Realtor.com. This compares to the median home price during the summer peak of $445,000. Lower demand and lower mortgage rates could also lead to savings for homebuyers. On Thursday, Sept. 26, the average interest rate on a 30-year fixed mortgage was 6.18%, down 90 basis points from its July peak of 7.08%.
If you purchase a $445,000 home at a 30-year fixed mortgage rate of 7.08%, your monthly payments would be $2,388 (not including property taxes or home insurance and assuming a 20% down payment). By comparison, a $431,000 home with a 6.18% mortgage rate (priced $14,000 less) would have a monthly payment of $2,107. That’s a difference of $281 per month, or $101,160 over 30 years.
Are there any other best weeks to buy a home?
The week of September 29th appears to be the best week to buy a home, but it’s not the only best week to buy a home. According to historical data from Realtor.com, purchasing within two weeks of September 29th may also be a good option for buyers. There may also be other times of the year when demand slows and buyers can find good deals.
Mike Baker, Kansas City mortgage broker and CEO of The Rate Shop, recommends January and February as other good times to buy a home. He said it’s just before the spring buying rush, which could give buyers a chance to snap up a home before demand picks up.
Should I buy a home now?
Due to economic conditions, some home buyers may be wondering whether now is the best time to buy a home. At its last meeting, the Fed announced a 50 basis point rate cut. And this likely won’t be the last time the Fed cuts rates this year or next. So should you buy now or wait for mortgage rates to drop?
Lower interest rates may make housing more affordable, but the savings could be negligible.
“The drop in interest rates may not be big enough to combat inflation,” said Kevin Wiedmark, a real estate broker in Austin, Texas. “Meanwhile, insurance premiums are trending upward and home values continue to rise.”
Housing markets, home prices, and mortgage rates can also vary by state. For example, the average home price in New York state in August was $481,773, according to Zillow. During the same period, the average 30-year fixed mortgage rate in New York state was 6.14%. In West Virginia, the average home price in August was $167,282 and the average interest rate on a 30-year fixed mortgage was 6.52%.
So while it may be a great week to buy a home across the United States, it may not apply to your specific location.
If you’re looking to buy a home, the best time is the best time for you. Before making plans to buy a home, consider your savings, down payment, and income. Be careful about interest rates. Also, work with real estate agents and real estate agents in your area to better understand the local housing market.
How to track mortgage interest rates
The national and state averages listed above are based on the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score of 80%. Provided as is via. Range 680-739. The resulting interest rate represents what a borrower should expect when receiving a quote from a lender based on their qualifications and may differ from the advertised teaser rate. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.
