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Interest rates remained above 7% this week and pretty much flatlined throughout the week.
Next week…let the new year begin!
Food for thought…
During the previous Trump Administration (Jan 2017 to Jan 2021), the following averages were observed:
• 30-Year Fixed Rate Mortgage: 3.65% to 4.87%
• Gross Domestic Product (GDP): 1.55% (2020 Pandemic Year: -3.4)
• Inflation (CPI): 1.87%
These numbers supported a healthy real estate market. 100%! However, the data above is somewhat skewed due to the onset of the COVID pandemic in 2020.
Excluding the pandemic year, the 3-year averages were as follows:
• 30-Year Fixed Rate Mortgage: 4.16%
• Gross Domestic Product (GDP): 2.53%
• Inflation (CPI): 2.1%
While these numbers are ideal, achieving them again seems unlikely in the near term. However, a 6% 30-year mortgage remains within reach.
On the housing side, according to the Case-Shiller Home Price Index, Las Vegas home values continue to rise despite elevated interest rates.
Right now, it’s as close to a buyer’s market as has been seen in years. Homes are sitting on the market longer, and many sellers are offering incentives like seller-paid closing costs to help buyers move forward with their purchase. For those waiting for the right moment, this could be the opportunity.
The analogy of the buffalo and the cow illustrates this market well. The buffalo runs toward the storm and gets through it much faster than the cow, which tries to run away from it. Right now, the market feels like a storm for many buyers. Elevated interest rates, rising home prices, and uncertainty about what the future holds can make it tempting to wait. But waiting—just like running away from the storm—often keeps buyers stuck longer than necessary.
The truth is, storms pass. Markets shift. Those bold enough to act during challenging times often find themselves ahead when the clouds clear.
Moving forward now, even when the market feels difficult, sets buyers up to be ahead when conditions improve. Just like the buffalo, those who proceed with courage and purpose today will emerge stronger, with an investment that grows over time.
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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.
