Although housing market conditions remain challenging, there’s plenty to be thankful for if you’re a homebuyer this Thanksgiving season. Here are five key reasons to feel optimistic about homeownership in 2024.
1. Easing Market Conditions
While it’s still a seller’s market, the housing market is showing signs of improvement. Inventories are growing, with the National Association of Realtors reporting a 19.1% increase in homes available compared to last year. Homes are also staying on the market longer—an average of 29 days compared to 23 days last year—giving buyers more time to make thoughtful decisions.
Seasonally lower home prices are another bright spot. The median price of homes sold in October 2024 dropped 4.6% from the summer peak, creating more affordable opportunities for buyers heading into the winter months.
2. Lower Mortgage Rates Ahead
Mortgage rates have dipped slightly from their 2024 highs, with 30-year fixed rates approximately half a percentage point below peak levels. While rates remain higher than in past years, this modest decline offers some relief. Looking ahead to spring 2025, continued rate moderation could make homebuying more affordable for many Americans.
3. A Strong Economy with Rising Wages
The U.S. economy has shown remarkable resilience, with steady growth for eight consecutive quarters. Rising wages and a stable job market provide a strong foundation for homebuyers. Although inflation remains a factor, moderating costs are helping wages keep pace, making homeownership more attainable for many.
4. Slightly Looser Mortgage Standards
Lenders are introducing innovative mortgage programs to help buyers overcome financial barriers. Options like 0% down loans, 1% down payment programs, and interest rate buydowns for new construction homes are making it easier for first-time and low-to-moderate income buyers to enter the market. Even small adjustments, like lower credit score requirements or higher debt-to-income ratio allowances, are creating opportunities for more borrowers. Ask us about our Home 100 program that offers 100% financing.
5. Rapidly Growing Equity
For those who purchase a home, rising property values continue to build equity at a rapid pace. For example, a homeowner who bought in early 2024 has likely seen a 7.55% equity gain by now. This growing equity can help buyers cancel private mortgage insurance (PMI) sooner, access better refinancing options, or simply enjoy the financial security of owning a valuable asset.
Looking Ahead
Even in a challenging market, homebuyers have plenty to appreciate. Housing market conditions are gradually improving, and better opportunities are on the horizon. Whether you’re buying now or preparing for the spring market, it’s a great time to explore your options.
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All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2024 ML Mortgage Corp. All rights reserved.