Trends in mortgage interest rates for the home buying season

ST. LOUIS — Spring marks the busiest season for home buying and selling. However, the housing market’s high prices and limited inventory have left many sellers and buyers feeling anxious about the process.

Danny Pogue, President of Commercial, Consumer, and Retail Sales at St. Louis-based Midwest BankCentre, and Realtor Kim Ruhl with RE/MAX Results, discussed the current state of the housing market.

With the Federal Reserve expected to make significant cuts, experts anticipate mortgage rates to decrease from the current 7% to below 6% by year-end, presenting favorable conditions for potential homebuyers.

Addressing concerns about inventory and home prices, Pogue highlighted that while home prices may not see a significant decrease due to inventory shortages, there is a projected stabilization in prices, suggesting a more balanced market ahead. Additionally, there’s a pent-up demand from buyers, further tightening inventory levels.

Looking ahead to 2024, Ruhl forecasts a market that favors both buyers and sellers, with transactions expected to increase despite limited inventory. This indicates a market where both parties can find opportunities, albeit with certain challenges.

Ruhl emphasized strategies for homebuyers to improve their chances of securing homes in a competitive market. Key among these is obtaining a solid pre-approval from a local lending institution like Midwest Bank Center, which offers flexibility and accessibility in the home buying process. Alongside price considerations, waiving certain contingencies can also strengthen a buyer’s offer.

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