Video
July 26, 2024
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July 26, 2024
Are You Prepared for the Market Shift Ahead?
Market Update
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Are you ready?? It’s happening.
There are several things happening behind the scenes with interest rates. It doesn’t look like much yet, but it could happen fairly quickly. Homebuyers and sellers need to start anticipating a move.
What’s been happening?
• Inflation keeps dropping slowly.
• It is almost certain that there will be a Fed Funds rate cut in September.
• Adjustable Rate Mortgages (ARMs), which have been a thing of the past, may actually become very attractive as the interest rate market normalizes.
This news is not front and center. It’s boring! We have a presidential election with all sorts of storylines taking up the airwaves, and that’s not going to change anytime soon.
How will the “lock-in” effect come into play? People want to get on with their lives! They have lots of equity, and they can move to another house.
Assuming those who are “locked-in” can get within 1% of their current interest rate AND/OR use the huge equity gain they have made on their current house to offset their mortgage payment with a larger down payment on the new home, here are the potential number of homebuyers nationally this would “unlock” according to MBS Highway, our trusted resource:
If rates come down to:
• 5.5%: Unlock 9.5 million homebuyers (represents buyers with a current rate of 4.5% or higher)
• 6.125%: Unlock 7.5 million homebuyers (represents buyers with a current rate of 5.125% or higher)
• 6.625%: Unlock 5.5 million homebuyers (represents buyers with a current rate of 5.625% or higher)
We are not that far away! If you blink between now and November, we could be in a completely different market with multiple offers and rising prices again.
So, get educated NOW about what is likely coming in the not-too-distant future. It’s impossible to time the market. However, real estate is long term, and making calculated risks can pay off mightily by understanding what’s ahead.
Featuring:
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.
