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2024 Summer Housing Market Jumpstarts with Reduced Mortgage Rates Prompting Investors to Buy

Cooler mortgage rates are ushering in the 2024 summer housing market, providing a glimmer of hope for the real estate sector. According to Freddie Mac, the new season kicked off with a rate of 6.87% for the week starting June 20th, down from last week’s 6.95%.

Does this mean market trends will start to evolve over the summer months? Only time will tell, but it’s clear that the season is off to a more hopeful start. Sam Khater, Freddie Mac’s chief economist, reports on this with a promising statement: “Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Fed rate cut.”

Lower Mortgage Rates Kick Off the Summer Housing Market – Real Estate Investors Lock in Lower Rate

Related Article: Mortgage Rates Continue to Drop Signaling a Good Time to Invest in Real Estate

The Onset of Summer Marks a Downward Trend in Mortgage Rates in Time for the Busiest Season

The peak period for buying and selling homes occurs during June, July, and August. This pattern generally happens as spring ends and summer begins, which is an ideal time for relocation. The favorable weather conditions during these months provide a break in areas where winters are typically harsh and wet, making moving challenging.

Additionally, the school year ends in late spring, and schools remain closed for most of the summer, which provides families with a convenient timeframe for moving. Even so, this year’s spring housing market fell short of expectations for many. Contributing factors included elevated mortgage rates, inflated home prices, and a limited supply of properties. As a result, individuals have their sights on the 2024 summer housing market, hoping for better opportunities.

2024 Summer Housing Market

But will there be favorable conditions? Will rates drop further? We’ll have to look at certain elements as the months go on. For instance, mortgage rates are heavily influenced by the market’s anticipation of a potential decrease in rates by the Federal Reserve. As new economic data highlights signs of a weakening U.S. economy, the market increasingly anticipates that the central bank will lower interest rates, and this expectation can lead to a reduction in mortgage rates.

Next Fed Rate Meeting Scheduled for Mid-Summer

The end of July marks the next Fed rate meeting, and we’ll know more at that point if rates will continue to decline. There is, however, uncertainty about whether lower rates will have a softening effect on the high prices the housing market is currently experiencing.

As it stands, despite the relief that lower mortgage rates have brought to buyers as far as monthly payments are concerned, home prices have stayed on an upward trend. This may result in a continued slow pace for the housing market. On a positive note, a slower market will at least offer less competition for those who do move forward with buying, allowing them to avoid bidding wars.

Related Article: Feds Leave Interest Rates Unchanged – Three Cuts Projected for 2024

Increase Your Net Worth Investing in the 2024 Summer Housing Market

Real estate investors are taking advantage of today’s lower mortgage rates and the fact that there’s reduced buyer competition. In doing so, they can maximize their investment returns and increase ROI. Also, by locking in a lower rate now, real estate investors can save a substantial amount of money over the life of the mortgage which reduces overall investment costs.

It’s worth mentioning that market conditions have been constantly changing, so it can’t be predicted if this window of opportunity will be available in the coming months. That said, if you’re on the fence about whether or not to invest in a rental property, now is a good time to dive into the market so you don’t miss out on these opportunities that are presented.

Related Article: Jumpstart Your Wealth: Financial Benefits of Investing in Real Estate Sooner Rather Than Later

Mortgage Rates that are Set Lower than Industry Standards

Because we’re experiencing a housing shortage, many investors are worried that they won’t be able to find a property that performs well. If you have the same fear, know that Morris Invest has a large inventory of new construction rental properties. On top of this, our clients often benefit from mortgage rates that are set lower than industry standards. This is possible because we have partnerships and good relationships with many banks we’ve worked with for years.

When a client decides to move forward with us, we handle every aspect of the investment, from start to finish. On top of this, Morris Invest can put together an investment strategy that’s customized to your goals and unique financial situation. We’re able to do this because we have connections to over 200 banks, providing financing options to those who feel they would never qualify. We also offer guidance on using retirement accounts like your 401(k) to purchase investment properties, as well as self-directed IRAs, which opens new avenues for wealth-building.

Morris Invest has invaluable programs and resources that can set you on the path to financial freedom through real estate investing. With that said, take a moment to view the pages below to get ahead of the game.

Power Resources for Investors

If your interest has been sparked, schedule a call with Morris Invest. We can help you achieve your goal of owning lucrative cash flowing rental properties, as well as answer any questions you may have.

Before you go, head over to the video below that’s packed with related and useful information – Interest Rates are DROPPING: Is Now a Good Time to Buy Real Estate?

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