The Federal Reserve recently announced that rates are expected to decline in 2024. This is very welcome news for the many prospective buyers who have been sitting on the sidelines waiting for mortgage rates to drop below 7%. Experts believe that those buyers will come flooding back to the market as soon as mortgage rates get to the 6% range. This means that buyer demand for available homes will increase significantly, which in turn will drive up home prices (again), especially in inventory-strapped areas like Northern California.

Before that happens though, some saavy buyers are realizing that now may be the right time to make an offer on a property while most of the competition are waiting for rates to drop. Although it is true that mortgage interest rates may be higher at the moment, the purchase price will probably be much lower than it would be after rates decline and demand goes back up. Many mortgages can be refinanced after 6 months, so it may make sense to lock in a good deal on a purchase price now and refinance in 6 months. Call me or talk to your mortgage pro to discuss this strategy. It’s always tough to time a market, but for those who are watching, I believe that there are signs along the way that indicate where the opportunity may be. Whether you are considering buying a home in San Francisco or Sonoma Wine Country, I’m here and ready to help.