Interest Rates, Inventory, and Inflation - Why Homebuyers Should Be Optimistic

More than ever before, the landscape of home buying appears to be a minefield. It might seem like you've missed the boat, but we're here to reassure you that there's no time like the present to invest in real estate. Despite the apparent challenges, the current housing market offers unique opportunities for prospective homebuyers. 

Let's take a closer look at interest rates. After a steady climb from around 2% at the start of 2022 to a staggering 8% in mid-October 2023, the tide is finally turning. Early indicators suggest a swift drop in interest rates. Fannie Mae, the government-backed mortgage giant, reports that 30-year fixed rates have slipped by about 0.50% since the beginning of November, providing a glimmer of hope to those looking to buy. As of 11/20/23, the daily average 30-year rates were hovering between 6.68% and 6.71%, a significant drop compared to the 8% from a month ago. 

Alongside this positive news on interest rates, there's another factor that may sway you towards buying a home right now - inventory. Gone are the days of 2022's housing boom when homes were selling like hotcakes. According to NMLS data featured in this Redfin article, homes stayed on the market for a median of 32 days in October 2023, with almost 39.1% being sold within just two weeks. This slowdown in sales suggests a dip in demand, which in turn is gently nudging home prices downwards on a broader economic scale.

The current market climate is offering an advantageous position for buyers, especially those considering new construction homes. Homes remaining available for longer periods indicate a slowing market, which is priming the stage for potential homeowners. This scenario signifies that the supply of new homes is on an upswing, a circumstance expected to continue. If you're considering a new construction home, the timing could not be more favorable. It's not just about prices; it's about having a wider choice and more time to make the best decision for your future home. Increased availability and a less hurried pace mean you have ample opportunity to thoroughly evaluate each potential home before making your decision.

Now, let's shift our focus to a remarkable deal currently being offered by Kindred HomeLoans. We’ve introduced an attractive 5.99% 5/6 Adjustable Rate Mortgage (ARM) Loan that could be a game-changer for qualified buyers. To qualify for this advantageous loan, you'll need a solid credit history, and a down payment of 20% is required. But don't let that discourage you; remember, these terms are designed to secure a low-interest rate that could potentially save you thousands over the lifetime of your loan. Get in touch with a KHL advisor to learn more about this opportunity here.

But there's more good news. This loan can be combined with Kindred Homes' $20K Your Way promotion. This means that an extra $20,000 can be at your disposal. You can opt to use this to buy down your interest rate even further, or to offset your down payment. Imagine the possibilities! This combination is a compelling reason why now might just be the prime time to invest in a new construction home.

So, don't let the headlines discourage you. The current market shifts, combined with the appealing offers available, make this a favorable time to consider purchasing a new construction home. Interest rates are showing signs of decline, and the new home inventory presents a unique opportunity to make your dreams of owning a home a reality. Plus, with the remarkable offer from Kindred Homes, you can tailor your buying experience to best suit your financial situation. Imagine stepping into your dream home, knowing you seized the moment when the conditions were just right. And right now, those opportunities are looking bright for prospective homebuyers. Buckle up and ride the wave - your dream home is within reach!