Let’s face it. Many of us have a lot of things going on around this time of year. It’s the holidays! From maybe just after Thanksgiving through the first week of the year, things are buzzing with activity. But can it also be a good time to buy and finance a new home? Maybe, let’s take a closer look.

First, mortgage rates have continued their gradual march downward over the past several weeks. The Fed even recently indicated that the next few moves might very well be to start  lowering rates if signs of any future depressed economic activity starts sneaking around. And as you’ve read in this very column, mortgage rates anticipate what the Fed is going to do or not to do. 

That’s one of the reasons rates have been gently falling. But on the opposite side of the coin, the Fed is not a soothsayer. The Fed could be guessing wrong and the economy just might start to  make a stronger than expected turnaround. No one knows. The bet here is to play it safe and if something works for you now, take advantage of the opportunity.

Next, let’s look at homes for sale during the holidays. Sellers also know there’s a flurry of activity during this period and homebuyers may be more interested in getting presents wrapped or making travel plans instead of shopping for a  home. That said, in order to get someone’s attention, they price their home accordingly. This means below market pricing compared to recently sold homes in the area. 

This also means it might very well be one of the better times to buy a home. There will certainly be less inventory during this period, as sellers and buyers know when the buying and selling season begins in earnest. But the inventory out there during the holidays just might be one of your better bargains.

So, when we combine softer home prices, motivated sellers and lower rates, it can look pretty favorable to buy and finance a home. Not much will be happening, commerce wise. Economic activity will slow down considerably even after the first of the year. It's a quiet time when all the presents are unwrapped and the New Years Eve parties are in the rear view mirror.

It might very well be the perfect time to buy a home. Pay close attention and let your real estate agent know you’re ready to buy when the ‘just right’ home hits the market.