Christina Wilson Your Charleston Realtor

Navigating the
Mortgage Market:
A December 2023 Update

Curious about the buzz surrounding mortgage rates and the real estate market as we approach the new year? In this update, we’ll break down the jargon, dissect the latest trends, and unveil some promising news that might just impact your homebuying journey in 2024.

Understanding the Landscape: In the past month, economic reports both in the US and abroad have painted a favorable picture for mortgage interest rates. The Federal Reserve’s battle against inflation, initiated in March 2022, has concluded, resulting in positive developments. Presently, jumbo interest rates for primary homes range between 7.25% and 7.5%, with no points, while conventional rates fall within the same bracket.

Anticipating a Shift: The good news continues as we expect a gradual decline in mortgage interest rates throughout the first half of 2024. Although not an instantaneous drop, this downward trend brings positive implications for prospective homebuyers.

Changes in Conforming Mortgage Limits: The Federal Housing Finance Agency has recently announced annual adjustments to conforming mortgage limits, impacting Fannie Mae and Freddie Mac. For instance, first-time homebuyers can now purchase a home worth $790,258 with just a 3% down payment. Non-first-time buyers can explore homes up to $806,895 with a 5% down payment. Additionally, Fannie Mae’s recent revision allows buyers of multi-unit properties to put down only 5%, signaling confidence in the real estate market.

Strategic Insights: This update serves as a crucial reminder for those planning to enter the real estate market in 2024. As rates drop, the market is likely to witness a surge in activity, leading to increased competition and rising prices. The key takeaway: preparation is paramount.

Next Steps: If you’re considering a move in the coming year, connect with me. I’m here to guide you through the process, provide insights into market dynamics, and ensure you’re well-prepared for a successful purchase. Partnering with some of the best lenders in the Charleston area, I can help you achieve your real estate goals seamlessly.

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