Why Long Beach Island Real Estate Mortgage Rates May Improve
Long Beach Island Real Estate
Home buyers in the LBI real estate market have been facing three notable challenges: low inventory, high prices, and high mortgage rates. Two of these challenges, inventory and home prices, are unlikely to change positively in the near future, but there may be some relief for buyers with mortgage rates in the coming year. The question is, what impact will lower mortgage rates have on the rest of the LBI real estate market?
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Will LBI Real Estate Mortgage Rates Drop in 2024
Over the last year or so, the Fed has been working on taming inflation. The chief method at the Fed’s disposal is to increase interest rates, which they have been doing and have, in turn, left us with a high mortgage interest rate environment. Thankfully, the Fed has stopped raising rates and signaled that there will be three-quarter point cuts in 2024. This welcomed news means that there is a good chance that mortgage rates in the LBI real estate market will decrease. We have already seen the impact of this decision, with many local lenders dropping their rates. There is talk that we will see interest rates in the 5’s again by Spring or Summer of 2024. All buyers in the LBI real estate market should remember that mortgage rates are volatile, and there are many paths where rates could increase. Buyers should also remember that while mortgage rates do not significantly impact the LBI real estate market, they still have an impact. Lower mortgage rates could entice more buyers to enter the market. This could further strain the already low inventory levels in the LBI real estate market. We will likely see more bidding wars and higher prices if this occurs. Therefore, if rates drop, there is a plausible scenario where a buyer’s monthly payment will be the same a year from now as the potentially higher home price offsets the lower interest rates.
Why Long Beach Island Real Estate Mortgage Rates May Improve
Buyers in the LBI real estate market must remember that there is no way to time the top or bottom of any market. The volatility seen in mortgage rates makes that clear. Rather than timing the market, buyers on Long Beach Island should work to understand the market and recognize what creates value. By purchasing “good” real estate, they can set themselves up for a better market appreciation and a safer overall investment in the LBI real estate market. For more information about Long Beach Island or about the LBI real estate market please do not hesitate to contact me.
By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market