It’s time for first-time home buyers to get off the sidelines!

It’s no secret that buying a house is more challenging than it used to be. If you follow real estate news, it’s been a lot of doom and gloom the past few years. But we’re seeing some signs that the market is improving, especially for first-time home buyers. So, if you’ve been sitting on the sidelines waiting for conditions to improve before buying your first house, here are some positive factors to focus on.

Favorable market conditions
The summer real estate season is over, and it is good news for first-time home buyers looking to snag a fall deal. The average 30-year fixed-rate mortgage dropped to 6.47% on August 9th, according to Freddie Mac. That’s the lowest it’s been since May 2023. So, how much could that drop save you? Let’s do the math.
In October 2023, mortgage rates were much higher at 7.79%, so with a $400,000 home and a 20% down payment, buyers would have paid an extra $285 a month or $3420 a year. That’s a significant amount of money. It’s almost enough to cover your utilities or property taxes for the year!

The earlier you build equity, the better
Even though mortgage rates have fallen, they still aren’t as low as they used to be, and some buyers would rather wait until they are more favorable or housing prices drop. But if the market conditions in the past few years have taught us anything, you can’t pass up an opportunity when it comes along. Buying a house is a long-term investment. Each year you own your home, the more equity you build. As the real estate adage goes, you marry the house and date the rate. So, if you can buy now and start building equity, you should.

Face your fears
Buying a house is a substantial financial commitment, so feeling anxious about the process is typical. As mortgage loan advisors, we know the feeling and are here to help. Here are some tips to help make the process a little easier.

• Educate yourself: Understanding the home-buying process, from financing to closing, can make it less daunting. Start by meeting with your local PRMI loan advisor to understand your buying power and the mortgage process.
• Work with a professional: A knowledgeable real estate agent can guide you through the process, help you find the right property, and negotiate on your behalf.
• Take it step by step: Focus on one task at a time rather than getting bogged down by the entire process.

We know buying your first home is a bit scary, but remember, it’s also exciting! Right now, market conditions are improving after a rough couple of years, and you may be able to score a great deal on a home you’ll love. So don’t be afraid to start trying. You never know what you may find!