How to Buy a Home Now Without Waiting for Interest Rates to Drop

Will Mortgage Rates Drop? What Chicago Suburban Buyers Need to Know

If you’ve been holding off on buying a home in the Chicago suburbs, hoping mortgage rates will drop, you’re not alone. But will rates fall enough to make a significant difference? According to the latest forecasts, rates are expected to decline, but not as much as many buyers hope. If you’re wanting to buy, you may benefit from doing so sooner rather than later.

How Much Will Mortgage Rates Actually Drop?
Earlier this year, experts predicted mortgage rates might dip below 6% by the end of 2024. However, recent projections from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo suggest rates will stabilize between 6.5% and 7%.

If you’ve been waiting for a dramatic drop, you may be waiting longer than expected. And if life events like a new job, expanding family, or relocation require you to move sooner, delaying your home purchase may not be practical.

Creative Ways to Make Buying a Home More Affordable Now

Even if mortgage rates don’t decline as much as expected, there are still strategies to help you afford your dream home in the Chicago suburbs sooner rather than later. Here are three options to explore with your lender:

1. Mortgage Buydowns
   With a buydown, you pay an upfront fee to lower your mortgage rate temporarily. This strategy can make your initial monthly payments more manageable — a key advantage for first-time buyers. In fact, 27% of real estate agents report that more buyers are requesting seller-paid buydowns in today’s market. However, not all sellers are willing to provide a seller-paid closing cost credit - and that is definitely something that is not often accepted in multiple offer situations.

2. Adjustable-Rate Mortgages (ARMs)
   ARMs often start with a lower interest rate than fixed-rate loans, making them appealing if you plan to refinance later or move within a few years. Unlike the risky loans of the 2000s, today’s ARMs require lenders to verify that borrowers can afford future payments, providing more security for buyers.

3. Assumable Mortgages
   Did you know you might be able to take over a seller’s existing mortgage — and their lower interest rate? With over 11 million U.S. homes qualifying for assumable mortgages, this option could be a game changer, especially in a higher-rate environment.

A LOCAL, reputable mortgage lender can go over options - contact us to learn more about how the first step can help set you up for success.

The Glockler Group: Real Estate Since ‘78

Coldwell Banker Realty

(708) 480-2011

(credit: KCM)