Prospective home buyers are holding out for what they see as an ideal mortgage rate, according to HomeLight’s 2024 Lender Insights Report. Here’s what the report reveals:
Target Rate for Buyers: About 56% of buyers are waiting for mortgage rates to fall to between 5.5% and 5.75% before making a purchase. Currently, the national average 30-year fixed rate sits at 6.54%, keeping many potential buyers on the sidelines.
Top Concerns for Buyers: Affordability challenges are at the forefront, with 58% of surveyed buyers identifying high interest rates as their primary worry. This is followed closely by:
Home Price Increases (49%)
Inflation and Savings Impact (40%)
Increasing Demand for Assistance: Nearly 40% of loan officers noted a rise in inquiries about down payment assistance programs, as buyers look for ways to offset high rates and prices.
Economic Outlook and Affordability Challenges: With inflation pressures and economic uncertainty persisting, affordability remains tight. While some monthly payment relief is present compared to last year, it hasn’t fully offset the challenges in the housing market.
Many buyers, especially first-time buyers, are feeling the effects of these conditions, as high rates and rising home prices continue to shape their purchasing decisions.