Key Takeaways
- The week of Sept. 29 to Oct. 5, 2024, is the best week to buy a house, according to a recent report from Realtor.com.
- There could be as much as 37% more active listings on the market now than at the start of the year, which could make finding the perfect house easier for homebuyers.
- Average 30-year fixed mortgage rates are nearly 1 percentage point lower than in July, which can help homebuyers save more.
The Federal Reserve’s recent rate cut may have come at the right time for homebuyers. While the Fed does not directly impact mortgage rates, it may influence what lenders charge borrowers. Mortgage rates have already softened from the highs seen over the last year and that’s perfect timing since today kicks off the best week to purchase a house, according to Realtor.com.
With more houses available and a seasonal slowdown in demand, Realtor.com claims that the week of Sept. 29 to Oct. 5, 2024, gives shoppers more home options to choose from. And with average 30-year fixed mortgage rates nearly 1 percentage point lower than in July, homebuyers could also see greater savings now than during the peak summer homebuying season.
Why Is the Week of Sept. 29 the Best Week to Buy a House?
According to Realtor.com, the week of Sept. 29 is one of the best times to buy a house because there are more homes on the market and lower demand for those homes. There could be as much as 37% more active listings on the market now than at the start of the year.
Kirtana Reddy, an Austin-based realtor and author of the weekly newsletter “Selling Austin” said the combination of these factors—higher inventory and lower demand—creates a buyer’s market. Buyers could get a better deal on a home because they won’t pay peak prices and will have more flexibility to negotiate.
Demand for homes may also be lower this week due to the school calendar. Families tend to shop for homes in the spring and summer to move before the school year begins to avoid pulling their kids out of class mid-year. This increases competition between buyers, giving them fewer options. With a new school year in full swing, Sept. 29 signals the start of a seasonal slowdown.
And while home prices are still high compared to pre-pandemic levels, shopping this week could save buyers around $14,000 on average, according to Realtor.com. That’s compared to the summer peak median home price of $445,000. Lower demand and lower mortgage rates could also help homebuyers save. On Thursday, Sept. 26, the average rate on a 30-year fixed mortgage was 6.18%, down 90 basis points from the July peak of 7.08%.
The monthly payment on a $445,000 home with a 7.08% 30-year fixed mortgage rate would be $2,388 (not including property taxes or home insurance, and assuming a 20% down payment). In comparison, the monthly payment on a $431,000 home ($14,000 lower in price) with a 6.18% mortgage rate would be $2,107. That’s a difference of $281 per month, and $101,160 over the course of 30 years.
Are There Other Great Weeks to Buy a Home?
While the week of Sept. 29 is apparently the best week to purchase a home, it isn’t the only week to buy a home. Historical data from Realtor.com shows buying within two weeks of Sept. 29 could also be a good option for buyers. And there may be other times in the year when demand slows and buyers can find a good deal.
Mike Baker, a mortgage lender and the CEO of The Rate Shop in Kansas City, recommends January and February as other good times to buy a home. He says this is right before the spring buying rush, which could give buyers a chance to get a home before demand picks back up.
Should You Buy a Home Right Now?
The state of the economy may have some homebuyers on the fence about whether now is the best time to buy a house. In its last meeting, the Fed announced an interest rate cut of 50 basis points. And that’s likely not the last time the Fed lowers rates this year or next. So should you buy now, or wait for lower mortgage rates?
Lower rates may make homes more affordable, but the savings could be negligible.
“Rate drops may not be significant enough to counter inflation,” said Kevin Weedmark, a real estate broker in Austin, Texas. “Meanwhile, insurance premiums are on the rise and home values continue to increase.”
The housing market, home prices, and mortgage rates can also vary by state. For example, the average home price in New York state was $481,773 in August, according to Zillow. At that same time, the average 30-year fixed mortgage rate in New York was 6.14%. In West Virginia, the average home price in August was $167,282, while the average 30-year fixed mortgage rate was 6.52%.
So, while it could be the best week to buy a house across the U.S., that may not apply to your specific location.
If you’re looking to buy a home, the best time will be whenever the best time is for you. Consider your savings, down payment, income, and more before making a plan to buy a home. Keep an eye on interest rates. And work with a realtor or real estate agent in your area to better understand your local housing market.
How We Track Mortgage Rates
The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.