The 2024 Mortgage Rate Drop (Should You Buy Now Or Wait For Rates To Drop?)

Should you buy now? Or wait to see if mortgage interest rates drop in 2024? In this video I'll help you compare both options to see which is best for you.
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0:00 Rollercoaster Rates
1:03 Example Rate Drop
3:06 2024 Expectations
5:22 Buyer's Remorse
7:27 Disclaimers
8:10 If You Buy Now
15:09 If You Buy Later
21:36 Bottom Line
24:30 Helpful Team
- DISCLAIMER -
Kyle Andrew Seagraves is Federal Mortgage Loan Originator (NMLS 1701021) licensed in all 50 states with the Dan Frio Team at Allied First Bank (NMLS 203463), an Equal Housing Lender. Separately, Kyle owns Win The House You Love LLC, an education company. Win The House You Love LLC is not a lender, does not issue loan qualifications, and does not extend credit of any kind. This video is only for educational usage. All calculations should be verified independently. This video is not an offer to lend and should not be used directly to make decisions on home offers, purchasing decisions, or loan selections. Not guaranteed to provide accurate results, imply lending terms, qualification amounts, or real estate advice. Seek counsel from a licensed real estate agent, loan originator, financial planner, accountant, and/or attorney for real estate, legal, and/or financial advice. Allied First Bank is not affiliated with the VA, FHA, or any other government agency. This video has not been approved by any government agency.

[@HildaRealtor]

When the interest rate is lower, the housing price will raise higher, you will also need to prepare more for the down payment. The higher the sold price, the higher the annual tax you will have to pay every year until you sold the house. Another to consider is when the interest rate is lower, all the buyers that have been waiting on the sideline would be ready to go too, so you might need to save extra in case of bidding wars. Final point is all the rent you paid, you will never see it again.

[@davidzawistowski4073]

People can’t afford the cost of home ownership regardless of the rate… homes are overpriced and realtors are doing whatever it takes to trick people to buy. Same crap as 2006-8, lies lies lies lies.

[@cammgt3rs370]

They may be bidding wars, you mean they will be bidding wars.

[@jessicas6640]

I LOVE the way you explain things. Your videos are clear, concise and to the point. So many videos out there that are full of fluff, rambling or just clickbait. Not yours.. so thank you!! ❤

[@WinTheHouseYouLove]

Thanks so much, Jessica! I'm definitely trying to add some calm and nuance in the mix of very hyperbolic videos out there

[@tyerrascott6596]

Finally, some common sense. I feel like I'm listening to someone who truly cares. Thank you Kyle! This solidifies my decision to wait until Fall. Get my finances together and not give into FOMO. I'd be house poor for suuuuure right now

[@ddscurtis]

Thank you for the most detailed, down to earth explanations. Not to mention your disclaimers. It’s so hard to try to time interest rates and the market in general. Either way you will be dealing with increased demand anyway as there aren’t enough available homes

[@WinTheHouseYouLove]

Thank you!

[@DoctorFashion]

I’m seeing numbers like this and questioning the 8.249% I was quoted for a home I’m interested in 💀💀😤

[@WinTheHouseYouLove]

7.25% is based on average rates in the nation. Rates are based on lots of factors like your down payment, credit score, home type, etc. Feel free to reach out if you'd like us to help you with a quote [e-mail]

[@williamcathcart387]

When was this?

[@Jayjewelerofficial]

There’s a lot more houses up for sale in my area compared to last year I feel like every neighborhood I go to there a least one house for sale which is a good thing there still pretty pricey tho but they are staying in the market for longer then usual,so I feel like next year going to be a good opportunity to buy a house if your not looking in the lower price range of your neighborhood because that’s the most competitive but the mid range there are going be deals to be had ,the high price range already coming down by good bit

[@WinTheHouseYouLove]

Definitely possible! Thanks for watching!

[@user-no6cy8hb7k]

Thanks for your content extremely valuable. On first home purchase under FHA loan, how long will the buyer have to wait to be able to refinance?

[@WinTheHouseYouLove]

If using an FHA streamline, 7 months. If refinancing into a Conventional loan, there is no waiting period for rate/term refi.

[@veronicallamas9333]

The rate isn’t the problem, it’s the home price

[@BobBuilder-mq9wr]

Your totally correct but nobody wants to hear that, head in sand ! The pandemic boom was a disaster

[@joegutierrez8151]

You are correct, we need prices down at least how they were in 2012.

[@grayanderson9800]

But they might not drop. Don’t think they’ll keep going up but might just sit stagnant for years.

[@WinTheHouseYouLove]

Both are the problem!

[@godlovesyoumorethanyoucane4239]

EXACTLY!!

[@magnetclip6861]

Very well explained!

[@WinTheHouseYouLove]

Glad it was helpful!

[@pratikdatta1974]

Hey Kyle Thanks for the videos you make. Indeed very helpful. I am in NJ. I want to sell my Condo & buy a single family, simply need more space. Do your group help out in NJ? Thanks

[@WinTheHouseYouLove]

Yes! We work in all 50 states! [e-mail]

[@SimplerKitchen]

Hey Kyle, do you have a list of banks that you guys run the application for VA loans?

[@WinTheHouseYouLove]

We have 73 wholesale lenders we use. I can't publish that list due to bank policy, but we can show you the top options when we run an application

[@RiRilove62]

Hey Kyle, what is the difference with Fannie Mae & FHA ? I missed your live...will catch the next one❤🙏🏻

[@WinTheHouseYouLove]

Fannie Mae sets the rules for Conventional loans. And FHA is a type of loan, HUD sets the rules for FHA. We’ll be live today at 2:30 est if you can join us!

[@RiRilove62]

@WinTheHouseYouLove 😊thanku! Yes, I joined the live always great info..

[@onode797]

Hey Kyle question, can you refinance a loan if you got it as a 30 fixed rate? If I bought a house with a 30 year fixed rate, could I refinance in a few years if interests drops down low again? Thanks for your content.

[@WinTheHouseYouLove]

You absolutely can. You can refinance whenever you want. And when you refi, you don't have to go back to a 30 year term. Let's say you refi in 5 years, you could refi into a 25 year loan so you don't stretch out how long the mortgage is for.

[@jzilla2413]

Hello I have a question, when you get pre-qualified does that affect your credit and is there an expiration window?

[@WinTheHouseYouLove]

A credit pull impacts your score 0-5 points. You have 45 days to shop where unlimited inquiries only count as one

[@zjuriel7510]

What mic are you using for your videos?

[@WinTheHouseYouLove]

Neumann TLM 102

[@idkmybffjill9682]

10:45 if you buy and rates go down value will go up and you’ll be happy you bought while you refi later

[@WinTheHouseYouLove]

Sounds likely to me :)

[@Jayg2420]

Buy high then refi

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@CryptiCAmalgaM]

Thoughts on all cash home buying? This is what im considering, then i can focus on investing more thereafter...

[@WinTheHouseYouLove]

You can always do delayed financing. This is where you buy the home with cash to have a competitive offer. Then, after you close on the home you can do a cash-out refinance to get 80% of your cash back. This gives you the benefit of a cash offer while still not tying up your money in one property.

[@moez462]

I just bought a home and with renovation I’ll be at half of the current market value (compared with the recently sold comparable home) my question is I how do I refinance to pay off the cash lander?

[@WinTheHouseYouLove]

If you have a current note on the home, you would just do a refinance they way all refinances work. Refinances pay off the current loan and replace it with a new loan. If you don't currently have a note on the home, you could do a cash-out refinance to pay back any money owed. Cash-outs require you have have the home for at least 6 months.

[@Jayjewelerofficial]

If you can rent the same house for less I wouldn’t recommend buying a house,If you can buy a house and the total monthly payment are lower then rent after mortgage ,insurance ,taxes,HOA then maybe it’s time to buy ,but why buy and pay $1800 a month ,plus a big a down payment for a house that you can rent for $1600 with a small deposit?????🤔🤔

[@Poohbify]

Bad advice. Equity, is something to be mindful of

[@Jayjewelerofficial]

@@Poohbify most first home buyers are probably putting less then 20% down so they will be under water on their mortgage for the first 5 years a least and with current rates in 30 years you’ll have to sell the house for double to break even,this also doesn’t include unexpected repairs that unfortunately pop up that can easily be $5-10k in cost ,a house you live in is not a good investment it more of a peace of mind

[@WinTheHouseYouLove]

Renting definitely has its benefits. Buying is the only way to pay down the principal balance and gain appreciation. But of course comes with potential repair cots, etc. My calculator compares all the costs vs renting www.winthehouseyoulove.com/advisor

[@JPROP-vb7sv]

FED Already clearly stated that rates won't be dropping anytime soon. Believe it was 2 weeks ago.

[@WinTheHouseYouLove]

The Fed Funds rate does not directly affect mortgage rates. The Fed dot plot shows anticipated reduction in the Fed Funds rate through 2024 into 2025

[@knight1fox253]

In my area the HOA prices are what’s pricing me out for listing prices I can afford

[@WinTheHouseYouLove]

Oof, HOAs can really be a killer

[@americaneagle7703]

You did explain it 💯 right. But the price $400K-$450K it’s not for home as of now. But it’s for the apartment for as of now!

[@WinTheHouseYouLove]

Totally get it! Thanks for watching :)

[@Kate-fn8rj]

Why are you not including the cost of renting if you decide to wait it out in your calculation?

[@korg47237]

Because it's plainly the cost of the home without other factors. Rent will totally vary based on where you are and your situation. Some people may not even be renting.

[@WinTheHouseYouLove]

I have a rental vs purchase calculator, you’re welcome to email me and I can run the numbers for you. It takes in all sorts of numbers like insurance annual increases, etc

[@Forerunner42]

People like Peter Zeihan are saying the inflation rates are here to stay, which means interest rates will remain as they are or go up in the next few years. According to him, the Fed will never lower rates until inflation is back under control. Inflation is now expected to stick around or worsen for the foreseeable future. I’m not sure who to believe.

[@WinTheHouseYouLove]

No one knows the future!

[@jameslightner8832]

5:49 If your “why” is a bigger yard for your dog, a smaller home, or an extra bedroom, why not just rent a home that meets your needs? To me, the ONLY reason anyone would buy vs rent is financial reasons.

[@WinTheHouseYouLove]

The "why" is for people who already decided to they want to buy. The "why" is not primarily used for deciding buying vs renting.

[@donalddemo]

5 yr cost taken into account minimum is15% inflation - and more like 20% tracking with lowering rate dot plot projections by FED and Fannie Mae mortgage projections? No! Or that after 1 year rates will be 5.5 and of course that's when you buy down rate not now. Marry house, date mortgage. Wait for perfect home and lower rate and you price yourself downward!

[@WinTheHouseYouLove]

Thanks for the additions :)

[@ThatGuysGuitars]

Rates go down, and prices or competitor buyers will increase. If you’re ready (or, qualified) to buy, simply do it. Interest rate be damned. Otherwise, just take the time you’re not shopping to keep saving, to put more down.

[@WinTheHouseYouLove]

Thanks!!

[@rastaman7140]

Inflation has increased in the first quarter. Inflation is sticky at the moment.

[@WinTheHouseYouLove]

Seems like it

[@FijiBlueM00gie]

Rent and interest rate needs to be lower so people will keep renting and sellers will keep selling. There won’t be a lot of people buying due to rent is more affordable.

[@WinTheHouseYouLove]

For sure

[@galinagause6273]

Thank you!🥹🩵

[@WinTheHouseYouLove]

You’re welcome 😊

[@michaelsd284]

Taking a 30 yr fixed mortgage at 5% or more will double the principle amount ($400k home will cost you ~$800k). Also your statement about people not buying based on financials is not true. Over the past decade the percentage of homes purchased for investments has dramatically increased (short-term income like airB&Bs, Flips, passive income, corporate investments). This has changed the market by driving pricing upward. The issue we have today is affordability of housing for the middleclass. Just look at all the historical data from 2015 to today and you will see the home price spike with no justifiable property improvements (adding additional sqft). Rate will hold flat for the remainder of 2024 (Fed will not change rate until very end of 2024). No catalyst to force sales (i.e. 2008 subprime variable rate resets forcing foreclosures). As a buyer you have to look at the home price history and compare to the historical trends to see where your home value is. Value is very different then price.

[@WinTheHouseYouLove]

Of course investors are buying for financial reason. This channel is for first time buyers primarily, I do not make videos oriented at investors.

[@michaelsd284]

@@WinTheHouseYouLove Awesome that you are looking out for the buyers, but they also need to know what drives some of the pricing for areas where investors are active. With the current market and absurd listing prices I would suggest other vehicles to put their money into to better position them with the pending home price correction complete. With current trends we are looking at 18-24 months, so buyers could put $$ in to a CD @ 5% which would be a much wiser decision then jumping into this market and over extend themselves.

[@michaelsd284]

Additional info for your buyers. This was from the USA Today article about the "American Dream" The median sale price for an existing home rose more than 40% between early 2020 and mid-2022, topping out at a seasonal peak just over $400,000, according to the National Association of Realtors. This 40% increase is a result of speculation and not increased value.

[@djevega1]

Inflation come down? just take that off the list

[@WinTheHouseYouLove]

:(

[@MichaelBrown-ny3et]

Worst time in human history to buy. Give it 5 years.

[@WinTheHouseYouLove]

Thanks for watching!

[@ClayJitsu]

date the home, date the rate. don't marry real estate

[@NeoSoulCrew]

Says the lifelong renter

[@WinTheHouseYouLove]

I don't think the date/marry analogy for real estate is helpful

[@dxdon1000]

we doing date, marry and murder game? 😅

[@PhotoColin]

9:46 relieved to hear someone in the industry shy away from this analogy. All sales jargon to make you feel like you’re making a good move with assuming the rates lower later. Thanks for always putting out great content. You were very helpful with the process of my first home (2021) and back in the market next year so I’m re-upping on content. Keep it coming and thanks for all you do!

[@newdecca]

Sleep with the home cheat on it with the rate.