Video
January 24, 2025
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January 24, 2025
If You Can’t Beat Them, Join Them!
Market Update
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Not much news this week in the markets, but sometimes the quiet can stir up Wall Street’s imagination, leaving you wondering what might be lurking in the background. This week, rates went up, but next Friday a key inflation report will be released—one of the big factors driving interest rates.
It’s been frustrating for homebuyers lately. Not only have home values risen, but many of you are also facing sticker shock when you see what the mortgage payment will be. It's hard to overcome that feeling.
In response, many buyers are turning to new builds. Why? Because often, you’re not just buying a house—you’re buying a mortgage payment you can live with. Builders understand this and have adjusted to meet that need.
Over the past five years, the percentage of new home sales compared to existing home sales in the U.S. has shifted significantly.
Traditionally, new homes made up about 10% of the market, but that’s been changing. In 2024, existing home sales hit their lowest point since 1995, largely due to high mortgage rates and limited inventory. As a result, new home sales now account for roughly 30% of all home sales. Could lower mortgage payments be the reason?
If you’re selling your home, take a cue from builders. Many sellers aren’t thinking like a business and are missing an opportunity to meet the needs of today’s buyers.
It’s natural to feel emotionally attached to your home. It might be filled with memories like family gatherings and holidays. But buyers aren’t purchasing those memories—they’re buying a place to live with a payment they can afford.
Builders, on the other hand, aren’t emotional about it. Their priority is to sell homes, and they’ve discovered that offering lower mortgage payments is a highly effective way to do that.
If you’re planning to sell your home, think about how you can help buyers with their payments. Offering incentives, such as paying for a 2-1 buydown, can make a significant difference. While this might not lower the payment as much as a builder’s incentive, it can still make your home much more competitive in today’s market.
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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.
