When the Federal Reserve dropped its benchmark interest rate on Sept. 18, a couple of wannabe homebuyers in Colorado felt sure it would translate to lower mortgage rates. They hoped that would finally allow them to escape their rental for a townhouse of their own.

But the relief experienced by the Gen Z couple -- a nurse married to an accountant -- was short-lived. Mortgage rates quickly rebounded, edging them back up out of their affordability range.

“We’ve been trying to buy since our baby boy was born three years ago. We saved like crazy to build up a down payment. But unfortunately, we’re still stuck in the tenant mode and feel helpless about that,” says the nurse.

Logan Mohtashami, a home industry analyst for HousingWire, a mortgage industry newsletter, doesn’t know the Colorado couple in this true story. But he empathizes with such aspiring yet frustrated homebuyers.

“This is a very confusing time for consumers,” says Mohtashami, who expects 2024 to mark the third straight year of declining home sales.

Despite the hurdles, he predicts that die-hard buyers will persevere, pushing forward until they reach their goal. But they would be wise to tread carefully.

During a period of mortgage rate volatility like this one, home loan experts caution that it’s always possible for buyers to overspend their budgets.

Here are a few pointers for determined buyers:

-- Realize that overborrowing remains a risk.

Keith Gumbinger, a vice president at HSH Associatess (hsh.com), which tracks mortgage markets for consumers, notes that most lenders work on commission.

“The bigger the loans they make, the higher their profits,” Gumbinger says.

Though household expenses have risen dramatically in many categories, lenders still use mortgage applicants’ gross income as the main gauge of their borrowing capacity.

“Lenders don’t know how much money you have left over after you’ve met all your other obligations ... They mainly focus on the long-term debts on your credit reports, such as car loans and credit card balances,” Gumbinger says.

Before agreeing to take out a mortgage that could make you house-poor, he encourages you to get a grasp of the mortgage lending process and to do a thorough inventory of both your expenses and spending priorities.

-- Review your pay stubs carefully.

It’s not only income taxes and Social Security contributions that come out of typical paychecks. Many people also have their net pay reduced by health insurance premiums as well as group life insurance and retirement savings plan contributions.

Although lenders focus primarily on gross income, “what matters most is the bottom line on your pay stub, not the top one,” says Mark Nash, a longtime real estate broker and author of “1001 Tips for Buying and Selling a Home.”

“When it comes to income, what matters most is the bottom line on your pay stub, not the top one,” Nash says.

-- Include basic expenses in your calculations.

No one knows for sure how much energy costs could ascend in coming years. But energy analysts say it’s far more likely that the costs for heating and cooling a home will rise rather than fall.

Nash says many first-time buyers are especially vulnerable to rising commuting costs when they leave an in-town apartment to obtain a detached home in the suburbs.

“People who commute by car ... should allow space in their budget for increases every year. Likely, their commuting costs will rise more quickly than people who use public transportation,” he says.

Remember, too, that high energy costs can affect many sectors of the economy.

“Energy costs ripple through nearly every element of our daily lives,” Nash says.

-- Take into account your expenses for medical and dental care.

Most working-age Americans with health insurance obtain it through a group policy from their employer. But many employer-based insurance plans are less generous than before. Chances are your share of the premiums is increasing, as are your deductibles and co-pays.

In doing an inventory of your health costs, be sure to take into account the rising cost of dental care.

“Many people have little or no coverage for routine dental visits, such as regular exams and cleanings. But the most overlooked dental expenses are for unexpected procedures, like a bridge or root canal. These are big-ticket items that can really zing your budget,” Nash says.

-- Reserve enough money for your child-related outlays.

Do you hope to have children within the next few years?

If so, you’ll want to factor the costs of child care into your calculations on how large a mortgage to carry, Nash says.

“It’s amazing how many people can’t afford kids because their mortgage payments are too high. The shame of it is they didn’t think through the trade-offs before buying that big house,” he says.

As Nash notes, the cost of day care for a baby can easily rise above the $500-a-week mark, causing some mortgage-strapped families to forgo a second child altogether.

“It’s sad to think you’re going to give up the larger family you want just to get a bigger house with more bells and whistles,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

After a computer programmer in his late 60s became legally separated from his homemaker wife, the couple was compelled by the divorce court to sell their large bi-level property located on a leafy, bucolic lot in a high-end Minneapolis suburb.

The homemaker was especially resistant to the mandate because the court is demanding the property go on the market before the end of 2024 -- which means a holiday listing.

“I’m really comfortable and happy here. That’s why the thought of selling between Thanksgiving and New Year’s Eve is especially painful. My next place will have to be a small apartment. It will be disappointing to spend the holidays there with my kids,” the homemaker says.

The woman, in her mid-50s, also worries about the financial implications of a wintertime sale. Though her neighborhood is considered desirable, she’s aware that prices have slipped slightly since the pandemic ended. Had she and her husband sold months ago, they would have netted more.

“I need to walk away with enough cash to buy another place,” she says.

It’s very common for homeowners to resist the need for a wintertime sale that disrupts the holidays. But Kate Foster-Bankey, a Compass real estate agent, says it’s wise for wintertime sellers to face squarely the realities of the current home sales market.

“In the winter -- particularly during the holidays -- you’re going to have a smaller buyer pool than in the spring. The number of transactions also drops and buyers get more picky,” Foster-Bankey says.

To make the most of a holiday-season sale, she encourages owners to cover the costs of basic upgrades. She also stresses the importance of pricing a home according to recent sale statistics rather than focusing on prices garnered during the pandemic-period bidding wars, which ended in most areas in the fall of 2022.

“Buyers are a million percent more picky now than during the pandemic,” Foster-Bankey says.

Here are a few pointers for both voluntary and involuntary sellers:

-- Make sure you paint with current tastes in mind.

“Young buyers don’t like bright colors or gray rooms. It’s much better to paint your rooms in soft creamy white tones that are calming. Also, use the same neutral color throughout the house rather than using different colors in the various rooms,” Foster-Bankey says.

In your kitchen, she recommends you replace dated Corian or laminate countertops with quartz or granite. Also, upgrade bright brass hardware handles to ones in a muted metal tone. From your primary bedroom, she encourages sellers remove old ceiling fans, “which can look very old and grimy.”

What’s more, she says it’s important to update bathroom lighting and to replace old-fashioned Hollywood-style light bars with more contemporary fixtures.

-- Don’t try to second-guess the advice of a seasoned listing agent.

Those facing an involuntary home sale are especially likely to challenge the counsel of the listing agent they engage. They frequently seek a higher listing price than what their agent recommends -- on the basis that they can “test the market” and see how it responds. They’re also inclined to question the need to spend on presale home improvements, such as painting or carpet replacement.

“Of course agents aren’t perfect, and there’s always room for discussion. But when it comes to pricing, it’s in your interest to listen to an experienced listing agent who is intimately familiar with your community,” says Eric Tyson, co-author of “House Selling for Dummies.”

But people who face a compelling need to sell should try to avoid conflicts with their agents. The best way to do so is to carefully select a listing agent they trust to give them the best possible advice on their sale.

Tyson says there’s usually good reason to trust an agent who’s sold property in your area for at least two to three years. Also, ask for references of clients who’ve worked with the agent in the recent past.

-- Don’t avoid holiday decor.

For many owners, one plus to showing their property during the holidays is that it can look especially attractive -- assuming it’s tastefully decorated.

“Don’t hesitate to put up colored lights and bring in pine boughs if that’s what you usually do. You can also use a Christmas tree if you’d like, but avoid an oversized tree that can make your place feel crowded,” Tyson says.

-- Ensure that your home is fully accessible as long as it’s up for sale.

These days, many prospective buyers -- especially those with an urgent need to move due to a long-distance job change -- are able to wrap up their property search quickly because they prescreened properties on the internet.

“The internet is vital for home sales in 2024. That’s why most out-of-town buyers have fully researched their target area before they arrive in your town. You could miss the chance to sell to them if you close your place to visitors due to holiday gatherings,” Tyson says.

“You’ll regret it if you preclude out-of-town buyers from seeing your place when their time is short,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

After a computer programmer in his late 60s became legally separated from his homemaker wife, the couple was compelled by the divorce court to sell their large bi-level property located on a leafy, bucolic lot in a high-end Minneapolis suburb.

The homemaker was especially resistant to the mandate because the court is demanding the property go on the market before the end of 2024 -- which means a holiday listing.

“I’m really comfortable and happy here. That’s why the thought of selling between Thanksgiving and New Year’s Eve is especially painful. My next place will have to be a small apartment. It will be disappointing to spend the holidays there with my kids,” the homemaker says.

The woman, in her mid-50s, also worries about the financial implications of a wintertime sale. Though her neighborhood is considered desirable, she’s aware that prices have slipped slightly since the pandemic ended. Had she and her husband sold months ago, they would have netted more.

“I need to walk away with enough cash to buy another place,” she says.

It’s very common for homeowners to resist the need for a wintertime sale that disrupts the holidays. But Kate Foster-Bankey, a Compass real estate agent, says it’s wise for wintertime sellers to face squarely the realities of the current home sales market.

“In the winter -- particularly during the holidays -- you’re going to have a smaller buyer pool than in the spring. The number of transactions also drops and buyers get more picky,” Foster-Bankey says.

To make the most of a holiday-season sale, she encourages owners to cover the costs of basic upgrades. She also stresses the importance of pricing a home according to recent sale statistics rather than focusing on prices garnered during the pandemic-period bidding wars, which ended in most areas in the fall of 2022.

“Buyers are a million percent more picky now than during the pandemic,” Foster-Bankey says.

Here are a few pointers for both voluntary and involuntary sellers:

-- Make sure you paint with current tastes in mind.

“Young buyers don’t like bright colors or gray rooms. It’s much better to paint your rooms in soft creamy white tones that are calming. Also, use the same neutral color throughout the house rather than using different colors in the various rooms,” Foster-Bankey says.

In your kitchen, she recommends you replace dated Corian or laminate countertops with quartz or granite. Also, upgrade bright brass hardware handles to ones in a muted metal tone. From your primary bedroom, she encourages sellers remove old ceiling fans, “which can look very old and grimy.”

What’s more, she says it’s important to update bathroom lighting and to replace old-fashioned Hollywood-style light bars with more contemporary fixtures.

-- Don’t try to second-guess the advice of a seasoned listing agent.

Those facing an involuntary home sale are especially likely to challenge the counsel of the listing agent they engage. They frequently seek a higher listing price than what their agent recommends -- on the basis that they can “test the market” and see how it responds. They’re also inclined to question the need to spend on presale home improvements, such as painting or carpet replacement.

“Of course agents aren’t perfect, and there’s always room for discussion. But when it comes to pricing, it’s in your interest to listen to an experienced listing agent who is intimately familiar with your community,” says Eric Tyson, co-author of “House Selling for Dummies.”

But people who face a compelling need to sell should try to avoid conflicts with their agents. The best way to do so is to carefully select a listing agent they trust to give them the best possible advice on their sale.

Tyson says there’s usually good reason to trust an agent who’s sold property in your area for at least two to three years. Also, ask for references of clients who’ve worked with the agent in the recent past.

-- Don’t avoid holiday decor.

For many owners, one plus to showing their property during the holidays is that it can look especially attractive -- assuming it’s tastefully decorated.

“Don’t hesitate to put up colored lights and bring in pine boughs if that’s what you usually do. You can also use a Christmas tree if you’d like, but avoid an oversized tree that can make your place feel crowded,” Tyson says.

-- Ensure that your home is fully accessible as long as it’s up for sale.

These days, many prospective buyers -- especially those with an urgent need to move due to a long-distance job change -- are able to wrap up their property search quickly because they prescreened properties on the internet.

“The internet is vital for home sales in 2024. That’s why most out-of-town buyers have fully researched their target area before they arrive in your town. You could miss the chance to sell to them if you close your place to visitors due to holiday gatherings,” Tyson says.

“You’ll regret it if you preclude out-of-town buyers from seeing your place when their time is short,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)