By Tiffany Hazelwood

As 2023 comes to a close, one of the biggest things we will happily bid farewell to will be the fickle fate of mortgage rates! When the ball drops at midnight, join me in raising a glass to a more forgiving 2024! But let’s take a look at where we’ve been as an indication of where we’re going, and how to get on a magic carpet ride if you need to! The housing market definitely danced to its own tune this year, except the melody and the percussion just couldn’t get in sync.

With the relief of prices finally stabilizing, there was renewed buyer interest, only to be followed by the disenchanting dirge of rising rates. In January of 2023, a 30-year fixed loan on a primary residence was hovering around 6.524% and the rate for a second home averaged around 6.625%. While this seemed marginally painful from what we were used to, new construction opportunities became plentiful again, thanks to supply issues also being alleviated and so many proceeded down that path.

But if you didn’t lock your rate with a one-time close construction loan, you found yourself exposed to the unknown of climbing rates. It’s like an Uber vs. a taxi cab… if you locked early, at least you knew what you were getting. If not, you just got in that back seat not knowing what your fare would end up to be and you just hoped that meter would slow down and stop at some point! Throughout 2023, rates climbed as high as 7.809% and are currently hovering around 7.322% (at the time of publication).

While buying a home during these market conditions may seem indulgent, certain niche markets, like lake properties, continue to captivate buyers. So how should you prepare if buying now is either a need or a want? It’s simple. Dress for the weather. Let’s say it’s raining out, but you have to go to the store to get food. You put on a raincoat and grab your umbrella and go anyway!

Maybe you love to snow ski, but skiing is cold. You bundle up and swish the slopes! Mortgage Loan Officer, Andy Zemon with Novus Home Mortgage, has the following advice for buyers as they suit up for the rain or the cold: “As rates have climbed this year, sellers have seen fewer buyers for their homes and that has put buyers in a better place to negotiate,” Zemon explains. “We’ve seen a resurgence of affordability tools like temporary rate buydowns, seller-paid closing costs and even seller paid debt (VA loans only) pop up as possible again.” Zemon forecasts a look into 2024: “The expectation for continued but modest improvements in the rate environment will spur another round of tightening in inventory. As more buyers compete for fewer listings, this will drive prices higher,” Zemon continues. “What the market needs is more inventory and that’s not happening right now. The best advice I can offer is if you find the right home, create your perfect finance scenario and buy it!”

Coming from a carpe-diem kind of gal, take it from me… life is short – do what you love and don’t put off your dreams! Wishing you all a wonderful holiday season and Happy New Year!

Tiffany Hazelwood

Tiffany Hazelwood has a degree in Journalism from the University of Richmond is a full-time Real Estate Broker with Lake Homes Realty, a lake-focused real estate firm, where she serves as the Anchor Agent for the Lake Anna market. She has been a licensed realtor since 2008 and has been specializing in real estate here at the lake since 2016. She has enjoyed writing the real estate section for the Lake Anna Breeze™ since 2019. In her spare time, Tiffany enjoys jet-skiing and boating on the lake, traveling with her boyfriend, Tom, and time with their 3 dogs.