Are Interest Rates Dropping? (2024)

August 20, 2024

In the summer of 2024, the mortgage interest rate has been dropping to the point that it has reached below 6.5% for the first time in 15 months. This new low is a big deal, prompting current homeowners to consider refinancing their mortgages and others to purchase their next home. Are interest rates really dropping, and what does it mean for homebuyers in 2024?

Are Interest Rates Dropping in 2024?

As mentioned above, the significant dip is newsworthy. At the same time, economic forecasters have mixed messages about what to expect for the future of interest rates. Some say that they will even out at 6.5% or higher, while others believe they might drop even lower in September. You can read a more in-depth report here. The interest rate has certainly dropped presently, but the long-term picture could look different.

Should You Wait to Purchase Your Home?

The affordability of the market can influence your decision. However, personal factors also influence when you buy your new home. Even if today’s homes have an interest rate above 6.5%, your life course might dictate that you purchase a home now rather than when the interest rate plummets. 

Keep in mind that should the interest rate drop significantly after you buy a house, you can always refinance it according to the new rate. You should refinance if the rate drops low enough and you plan to live there long enough for the refinancing costs to be worth it. Then again, be aware of the different kinds of interest rates out there.

At the end of the day, remember to keep today’s interest rate in perspective. This chart of the interest rate over the decades shows that it is by no means unprecedented.

The Benefits of Building a New Home

Remember, building a new construction home is not out of reach and could be a great investment for you. Building a house might seem more expensive than buying an existing home, but it has financial perks like mortgage buydowns, preconstruction incentives, and more. Ameri-Star Homes is here to help you save on your mortgage in Maryland!

Let Ameri-Star Homes Build Your New Custom Home!

Ameri-Star Homes was built on the idea that a home is not complete until the homeowner is 100% satisfied. That’s right, completely satisfied homeowners. Whether you want a home built on one of our home sites or on your own land, count on the same high quality from Ameri-Star. We have set out to exceed all your expectations of integrity, affordability, and customer satisfaction. Build lasting memories for years to come with Ameri-Star Homes. 

For more information, contact us today at 410-590-1000 or through our contact page. For more helpful custom home tips, keep in touch with us through Facebook, Twitter, LinkedIn, and Pinterest!