Published May 24, 2024

Why Buy Now: Take Advantage of Current Market Prices

Change can be an excellent thing—like moving into a new home you’ve always dreamed of owning, perhaps in a new town filled with excellent schools, a wonderful assortment of dining and shopping destinations, and an exciting collection of parks and social centers. Change like that can open up a world of new opportunities and experiences for you and your family. However, in the case of escalating home prices, change can potentially be an obstacle to the growth you seek.

Take the Leap Before Home Prices Follow Suit

At David Weekley Homes, we’ve been Building Dreams, Enhancing Lives for more than 45 years. Our long-standing reputation and award-winning quality give you the confidence that your investment is secure. Over the decades, we've watched home prices climb slowly but steadily, but in recent years, we’ve witnessed a more rapid rise with the occasional plateau. If you’re looking to buy a home, the best time is now—before home prices begin trending upward again.

Knowing that home prices are unlikely to decrease, we understand that some homebuyers may be taking a wait-and-see stance, hoping that interest rates will fall. While it’s true that interest rates are higher than they were in 2021 when they hit a historic low of 2.65% for a 30-year fixed mortgage, they’re still much lower than the historic high of 18.63% in 1981. According to Freddie Mac*, since it first began tracking rates in April 1971, the median 30-year mortgage rate has historically been 7.41% as of April 2024. While they tend to fluctuate daily, the 30-year fixed rate currently remains right around that average, with a 15-year fixed rate well below the median.*

Why Interest Rates Shouldn’t Be a Roadblock to Home Sweet Home

If history has taught us anything, it’s that home prices will rise. According to U.S. Market Conditions Historical Data from the Department of Housing and Urban Development, the average cost of a new single-family home in 1971 was just $25,200*. That said, interest rates tend to fluctuate based on various economic factors – such as government policies to slow down inflation. Amid the stubborn nature of inflation in the U.S., according to recent Consumer Price Index data from the Bureau of Labor Statistics*, the timeline for much-anticipated rate cuts by the Federal Reserve keeps shifting forward.

Moreover, just as Economy 101 taught us, interest rates are also subject to the laws of supply and demand. When demand is high, interest rates tend to trend upward, too. As the housing market continues to prove competitive among buyers, interest rates are unlikely to fall dramatically anytime soon.

In the long run, waiting to buy a home until interest rates go down can actually cost you more money than buying now due to escalating home prices. For example, a $500,000 loan with a 6% interest rate will cost about $80,000 less over the life of the loan than a $600,000 loan at a 5% interest rate.

What You Can Do to Move the Needle in Your Favor

If you’re eager to move or have already found the home of your dreams – hopefully in a David Weekley Homes community, there are several things you can do to ensure you’re getting the best price on a home at the best interest rates you can find…

1)   Find a Lender You Trust: A great mortgage lender will do the legwork for you to find the best mortgage options to fit your budget. They’ll also keep an eye on market conditions, and once interest rates fluctuate downward, they’ll contact you about refinancing options.

2)   Use Your Builder’s Preferred Lender: If you don’t already have a trusted lender, you might forge a relationship with your builder’s Preferred Lender. They occasionally offer special incentives like lower interest rates or money toward closing costs on select homes or during promotional periods. David Weekley Homes welcomes the chance to introduce you to our Preferred Lenders.

3)   Consider Purchasing a Quick Move-In Home: By purchasing a home that’s already built and in a builder’s inventory or nearing completion, you can lock in the home’s price and current interest rates. The builder may also offer special incentives to keep their inventory moving. When building from the ground up, you may increase the home price by adding upgrades and more expensive design options, and it’s not always easy to gauge where interest rates will be when it’s time to head to the closing table.

We hope to welcome you to one of our David Weekley Homes communities soon! To start exploring homes now, visit www.DavidWeekleyHomes.com and fill out a Contact Us form.