CINCINNATI — If you are thinking about buying a home, you have probably been watching mortgage rates closely.
The spring home-buying season is heating up in the Tri-State, and navigating the market carefully is essential, so you don't waste your money.
Recent rate dips and daily market swings
According to Freddie Mac, mortgage rates are currently around 6.2% for a 30-year loan.
While rates have fallen slightly over the past three weeks, Jason Kunkel, president-elect of the Realtor Alliance of Greater Cincinnati, said small day-to-day swings are keeping uncertainty high.
Kunkel said current mortgage rights are "pretty volatile" and can change on a day-to-day basis.
"So much of that is determined by economic factors kind of beyond the mortgage industry's control," Kunkel said. "A lot of what's happening in the Middle East, oil prices affect the economy, and everything trickles down."
WATCH: What you need to know about mortgage rates for the spring home-buying season
More inventory means more opportunities
Still, the housing market itself is gaining momentum. Kunkel noted a 25% increase in total inventory compared to this time last year, giving buyers more options to choose from.
"If you look at total sales across Greater Cincinnati, which is Hamilton, Butler, Warren and Clermont and Clinton counties, we saw about a 1.9% drop in total number of sales for the first quarter of this year. But for the month of March, sales actually jumped up 7%," Kunkel said. "And we've seen an increase in the median sales price. I think that's indicative of where we're going with the market."
Overcoming affordability hurdles
Melonny Thompson, a mortgage broker with United Direct Lending, said even with more options, affordability remains a major hurdle for many buyers.
"Affordability is still an issue for home buyers, especially first-time home buyers, and so as a lender, we have to get really creative on structuring their loan and using some of the advantages that we have right now," Thompson said.
To help lift the barrier to entry, buyers can take advantage of current market factors to save money. Thompson told us a few key ways that buyers are finding financial relief:
- Creative loan structuring: Lenders are finding new ways to build loans that work for a buyer's budget
- Closing costs: Sellers are increasingly offering to pay these fees for the buyer
- Home repairs: Sellers are paying for necessary repairs before closing
Expert advice
Kunkel said he advises buyers to speak with a local loan officer and a local realtor to understand their capabilities. Lenders will look at factors like your debt-to-income ratio, credit score and the type of property you want to buy to find the best package.
"There's a lot of different loan products out there to serve folks, especially for first-time home buyers. Now is a really good time for them," Kunkel said.
Instead of waiting for the perfect moment or a massive drop in rates, experts suggest focusing on what you can afford today.
"As one of the lenders I've talked with recently told me, it's about your time in the market, not trying to time the market," Kunkel said.
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