3 Mistakes You Must Not Make When Mortgage Rates Drop

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A young couple shops for a house.

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As reported byRedfin, the median sale price for a U.S. home was $433,229 as of August 2024.

This represents a 3.1% year-over-year median price increase.

This is down from a recent 7.79% high in October 2023.

But, be careful not to make a hasty decision and purchase a home you cant afford.

This will most certainly result in higher home prices due to increased demand for an already limited housing stock.

So, waiting longer may not be the best financial move.

However, mortgage rates wont necessarily drop further in the near term just because the federal funds rate drops.

Many lenders tend to include predicted rate cuts on their current rate offers.

So a 0.25-0.50 basis point reduction may not lead to an equivalent decrease inmortgage ratesright now.

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