HAMPTON ROADS, Va. — If you want a home, now may be a good time to start the buying process. As of early February, mortgage rates were dropping.
For prospective home buyers, turning a for sale sign into a sold sign can be difficult, and that process may get harder.
“The market, now, is starting to increase," said broker and SLH Real Estate Owner Steven Hargrow.
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He said decreasing mortgage rates were causing more people to buy and sell homes which means more competition for prospective buyers.
“To be prepared, you want to make sure you’re pre-approved with a lender," Hargrow emphasized. "You want to make sure you have some type of, we’ll call it cash, funds, to pay for your own closing costs. Because as it gets competitive, sellers won’t have to assist with buyer's closing costs."
According to the Real Estate Information Network, housing sales in Hampton Roads increased slightly during November and December 2023, leading to about 3,500 residential listings being active in December.
According to Freddie Mac, as of Feb. 1, 2024 the average rate of 30 and 15 year fixed rate mortgages had dropped to 6.63% and 5.94% respectively.
That’s the second drop in 2024 after rates increased much of 2023, reaching a 23-year high in October.
“Most people qualify for more than they want to take on for a mortgage payment," Southern Trust Mortgage Loan Officer Pat Miller said.
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Miller said if you’re going to get a loan to buy a house, start by contacting a loan officer and know how much you’re comfortable spending for a monthly mortgage payment.
“That’s where we start," Miller explained. "That’s the loan officer’s job, to advise the client on ‘If you’re comfortable with this much monthly for a mortgage payment, we’re going to cater your search to that.'”
As of Feb. 5, Southern Trust Mortgage also had Federal Home Loan Bank Grants available for buyers.
"For first-time home buyers, we have a $12,500 grant. Then, also, for veterans and first responders we have a $15,000 grant and you do not have to be a first-time home buyer," Miller said. "It's a great way for clients to make a down payment, cover closing costs."
When asked if he expected business to pick up as mortgage rates continue to drop, he said business had already picked up.
“In the month of January, Southern Trust Mortgage did more applications than we did any other month in 2023," Miller said.
Another sign now may be the time to get into the housing market.
