Committing to the Journey of Homeownership in December 2023
Introduction: As we approach the end of the year, the prospect of homeownership becomes even more enticing, especially for first-time buyers. In this blog post, we’ll delve into the compelling reasons to prioritize buying a home in 2023, supported by current market insights and a recent video discussing the opportune time to enter the real estate market.
Is It A Good Time to Buy a House? [December 2023] If you’re a first-time homebuyer, December 2023 presents a favorable opportunity to make your homeownership dreams a reality. Despite initial hesitations, the current mortgage rates, housing market conditions, and market sentiment suggest that now might be the perfect time to take the plunge.
Let’s explores four key ideas:
- Mortgage rates are dropping
- First-time homebuyer programs are still available
- There’s a scarcity of homes for sale
- Home sellers are increasing their greed
Now, let’s break down why December is an excellent time for first-time buyers to enter the housing market.
How’s The Housing Market For First-Time Buyers? [December 2023]
1. Mortgage Rates Are In The 6s: Mortgage rates have dropped consistently for five straight weeks, now back in the 6-percent range. Recent adjustments by the Federal Reserve signal a potential shift in the Fed Funds Rate, making it a favorable time for holiday season homebuyers.
2. First-Time Home Buyer Discount Programs: Eligible first-time homebuyers can still access discounted mortgage rates through programs like the First-Time Home Buyer Mortgage Rate Discount. This program, available on Fannie Mae and Freddie Mac-backed loans, reduces mortgage rates for low- to moderate-income buyers without stringent credit score or down payment requirements.
3. Home Buyers Outnumber Home Sellers: The shortage of homes for sale is growing, with approximately 22,000 homes available per state. With 68 percent of homes selling within a month, the market favors sellers. Acting in December may provide better pricing opportunities.
4. Home Sellers Are Testing Their Pricing Power: The psychology of home sellers is shifting towards greed. Buyers who act quickly can access the best homes and prices in the current market. Waiting until 2024 may lead to reduced affordability.
5. You Can Buy A Home Without A Big Down Payment: Contrary to common belief, you don’t need a substantial down payment to buy your first home. Various low- and no-downpayment mortgages, down payment assistance programs, and discounts based on your profession are available.
6. What To Do Next: Get Pre-Approved To Buy Your Home: If you’re planning to buy a home in the coming weeks or months, securing a mortgage pre-approval is crucial. It serves as a dress rehearsal for your home purchase, utilizing live mortgage rates and market conditions to determine your affordable home range.
In addition to getting pre-approved, consider reviewing your credit report for errors, boosting your credit score, and researching down payment assistance programs in your area using the HUD website.
Conclusion: As we stand on the brink of a new year, the possibilities for homeownership are abundant. By understanding the current market dynamics and taking proactive steps, you can make 2023 the year you turn the key to your dream home. Happy house hunting!