Video
February 9, 2024
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February 9, 2024
Real Estate Is a Long-Term Investment!
Market Update
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It was status quo this week with rates. While the Mortgage News Daily rate went above 7% on Monday, we did dip below that number as of today on Friday.
There were no market-moving reports this week, as Wall Street is still trying to digest the Fed comments from last week.
The Fed is still holding onto their "we're not fully convinced' viewpoint that inflation is fully under control despite clear signs significant progress has been made.
Right now, the consensus among Wall Street traders is the Fed won't cut the Fed funds rate until at least May 1st and maybe not until June.
That said, we're likely to see interest rates go sideways with little improvement up or down until that time. This may give some prospective homebuyers a little bit more time to jump into the market before rates drop and more buyers come in.
The Fannie Mae Home Purchase Sentiment Index (HBSI) came out showing 83% of consumers do not think it's a good time to buy. When nobody wants to buy is when you can generally get more bang for your buck!
Those 83% who don't buy now will say that the 17% who do are lucky they bought when they did. Don't be on that 83% side! Get into the 17%!
The other thing is real estate is long term, and buyers can be very myopic, focusing just on the here and now. "What am I paying now?"
Our friends at MBS Highway went back to 1942 to see if home values went up 10 years after the initial purchase. Guess what? There was only 1 year that real estate did not go up in value over a 10-year period.
The average 10-year return: 63%. Make sure to look at the long-term picture!
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The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
Mortgage News Daily (MND) is a trademark of Brown House Media, Inc. Zillow is a trademark of Zillow, Inc. CrossCountry Mortgage has not been authorized, sponsored, or otherwise approved by Brown House Media, Inc. or Zillow, Inc.
Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call (858) 259-8700 for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the federal government. CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office or any government agency. Certificate of Eligibility required for VA loans. By refinancing, the existing loan total finance charges may be higher over the life of the loan.
