On the purchase side, meanwhile, affordability challenges remain a significant hurdle for many borrowers. Still, the growing prominence of downpayment assistance loans is helping narrow the gap to homeownership for many hopeful buyers, with a larger amount up front also whittling down the monthly payment shock.
At wemlo, “we’ve been getting really comfortable with those types of loans,” Balak said, “understanding the guidelines around them and how we continue to maneuver in that kind of atmosphere.”
What’s in store for 2025?
Of course, the bumpy market seen throughout this year means predicting the outlook for 2025 is no easy task. The general trend of falling rates in the second half of the year, though, is cause for cautious positivity, according to Balak.
It might not be a straightforward path to a busier market – “but I think we’ll see a strong spring season,” she said. That’s partly because the effect of the so-called “lock-in” effect, which is keeping Americans in their current homes at ultra-low rates instead of having to finance a costlier mortgage elsewhere, appears to be fading somewhat.
Plenty of homeowners may have locked in extremely low rates, “but you can only stay in a smaller home for so long before it gets to the point where you have to bite the bullet and make the move,” Balak explained. “So I think we’ll start to see that edge fall off for a lot of those homebuyers who are locked in at those lower rates but really do need to make the move.”
