Mortgage Rates and Market Conditions in March 2024
March 8, 2024
FHA home loans are experiencing a surge of interest in 2024, based on reporting by CNBC and Realtor.com.
“The first couple of months of 2024 have proven to be positive for inventory levels, as the number of homes actively for sale was at its highest level since 2020,” according to Realtor.com's chief economist, quoted in a March 6 CNBC news story.
That same article adds a caveat that the housing supply is “well below” the inventory available before the COVID-19 pandemic.
What does all this mean for house hunters in 2024?
FHA Home Loans in Spring 2024
FHA loans, in particular, have benefitted from the early attempts at a housing recovery in today’s market. CNBC said “purchase volume – particularly for FHA loans – was up strongly” in week-to-week comparisons.
Observers note that even small interest rate improvements seem to benefit (in the short term) those interested in using an FHA mortgage.
What to Know About Improving Housing Market Conditions in 2024
If you have never purchased a home before, do you know enough about how mortgage rates work to interpret them properly?
The FHA loan rates you see for March 6, 2024, for example. Who gets those? Nerdwallet listed a typical mortgage loan rate on March 6 as 5.847% or similar. But that rate may only apply to you if you are a well-qualified borrower. Why?
Your Financials Affect Your Rate
Like all other mortgage loan interest rate offers, FHA loan rates are made based on market conditions and your credit report data. That means that all borrowers come to the bargaining table with their credit history as the variable that affects the final rate you may be offered.
Take Some Extra Time to Work On Your Credit And Other Financial Qualifications
Lowering your credit card balances and making sure you make all payments on time for at least 12 full months before you apply for your loan can help you get closer to the advertised rate on the lender’s website.
But if you are not ready to commit to the loan, the advertised rates won’t mean anything to you. Only the rates offered when negotiating the interest rate lock commitment with your lender apply to your transaction.
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Learn About the Path to Homeownership
Take the guesswork out of buying and owning a home. Once you know where you want to go, we'll get you there in 9 steps.
Step 1: How Much Can You Afford?
Step 2: Know Your Homebuyer Rights
Step 3: Basic Mortgage Terminology
Step 4: Shopping for a Mortgage
Step 5: Shopping for Your Home
Step 6: Making an Offer to the Seller
Step 7: Getting a Home Inspection
Step 8: Homeowner's Insurance
Step 9: What to Expect at Closing
“The first couple of months of 2024 have proven to be positive for inventory levels, as the number of homes actively for sale was at its highest level since 2020,” according to Realtor.com's chief economist, quoted in a March 6 CNBC news story.
That same article adds a caveat that the housing supply is “well below” the inventory available before the COVID-19 pandemic.
What does all this mean for house hunters in 2024?
FHA Home Loans in Spring 2024
FHA loans, in particular, have benefitted from the early attempts at a housing recovery in today’s market. CNBC said “purchase volume – particularly for FHA loans – was up strongly” in week-to-week comparisons.
Observers note that even small interest rate improvements seem to benefit (in the short term) those interested in using an FHA mortgage.
What to Know About Improving Housing Market Conditions in 2024
If you have never purchased a home before, do you know enough about how mortgage rates work to interpret them properly?
The FHA loan rates you see for March 6, 2024, for example. Who gets those? Nerdwallet listed a typical mortgage loan rate on March 6 as 5.847% or similar. But that rate may only apply to you if you are a well-qualified borrower. Why?
Your Financials Affect Your Rate
Like all other mortgage loan interest rate offers, FHA loan rates are made based on market conditions and your credit report data. That means that all borrowers come to the bargaining table with their credit history as the variable that affects the final rate you may be offered.
Take Some Extra Time to Work On Your Credit And Other Financial Qualifications
Lowering your credit card balances and making sure you make all payments on time for at least 12 full months before you apply for your loan can help you get closer to the advertised rate on the lender’s website.
But if you are not ready to commit to the loan, the advertised rates won’t mean anything to you. Only the rates offered when negotiating the interest rate lock commitment with your lender apply to your transaction.
------------------------------
Learn About the Path to Homeownership
Take the guesswork out of buying and owning a home. Once you know where you want to go, we'll get you there in 9 steps.
Step 1: How Much Can You Afford?
Step 2: Know Your Homebuyer Rights
Step 3: Basic Mortgage Terminology
Step 4: Shopping for a Mortgage
Step 5: Shopping for Your Home
Step 6: Making an Offer to the Seller
Step 7: Getting a Home Inspection
Step 8: Homeowner's Insurance
Step 9: What to Expect at Closing
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