Spring’s in full swing here in Georgia—and the real estate signs are blooming right along with the azaleas. Now, if you’ve been watching mortgage rates hover around 6.88%, you might’ve figured folks would hit pause on buying. But that hasn’t happened. Not even close.
In fact, according to HousingWire, both purchase applications and rate locks have been climbing this season. That tells me buyers aren’t waiting around for the perfect moment—they’re adjusting, getting creative, and making confident moves.
So, Why Are People Still Buying?
Sure, rates are higher than what we saw in 2021, but that hasn’t scared off smart buyers. What we’re seeing now is an evolution, not a freeze. As a result, people are learning how to work with what the market is giving them.
For example, move-up buyers are using their equity to trade up or move into homes that better fit their next chapter. At the same time, others are leveraging flexible loan options to keep their payments manageable, such as:
- FHA loans with low down payments
- Adjustable-rate mortgages for folks who plan to refinance or move later
Not surprisingly, purchase loan locks jumped 7.5% in April. So yes, people are still finding ways to buy—even in this market.
What Could Shift Rates in 2024?
Now, I get it—everyone’s wondering when rates might come down. While no one can say for sure, here are two key factors I’m watching:
1. Tariff Adjustments
There’s been talk of a new trade agreement with China. If it goes through, it could reduce tariffs on building materials. As a result, the cost of building new homes could drop by as much as $22,000. That would not only help lower construction costs, but it could also bring much-needed supply to the market.
2. Inflation Trends
Inflation dipped to 2.3% in April. Although that’s encouraging, it’s still above the Fed’s 2% target. So, if inflation starts rising again, any potential rate cuts could be pushed back—or even reversed—keeping mortgage rates elevated for longer.
Given that, it’s wise to focus on what you can control: your timeline, your budget, and your team.
Affordability Is More Than Just the Rate
Let’s be honest—most folks begin their home search thinking only about the interest rate. However, true monthly affordability involves more than just principal and interest. Here’s what else you should keep in mind:
- Property Taxes: The national average is now $4,172—a 2.7% increase from last year
- Homeowners Insurance: About 67% of homeowners have seen their premiums rise in 2024
- Other Costs: HOA dues, maintenance, and utilities all affect your bottom line
Because of this, we make sure to walk our clients through the full monthly picture right from the start. That way, you’re not surprised later—and you’re making a decision you can live with, long term.
Who’s Winning Right Now?
Believe it or not, buyers are still winning in this market. In particular, if you fall into one of these categories, you may be in a better position than you think:
- You’ve built up equity and are ready to move up
- You’re open to exploring options like VA, USDA, or ARM loans
- You’re budgeting beyond just the mortgage payment
- You’ve got someone in your corner helping you navigate the shifts (that’s where I come in)
In the end, those who stay flexible and informed tend to come out ahead—especially in a place like Tucker where the market moves quick but relationships matter even more.
Final Take: Don’t Wait for “Perfect”
If you’ve been holding off, waiting for a perfect market, you might be waiting a long time. Instead, what if you focused on making a smart move based on where you are today?
When you’ve got a clear plan, a realistic budget, and a team that’s invested in your success, you don’t need the perfect market—you just need the right strategy.
So if buying a home is on your mind this spring or summer, let’s talk. I’ll help you break it all down, explore every option, and light the way forward.
Your next chapter starts right here, right now.
— Art Wood
NMLS #118234
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