Mortgage Rates Are Falling, Will Housing Become Affordable?
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- เผยแพร่เมื่อ 22 ก.ย. 2024
- Mortgage rates have dropped in the past couple of weeks bringing relief to home buyers. But will these drops really make an impact on housing affordability? Experts at Redfin seem to think so. Let's talk about it.
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I'm so happy I made productive decisions about my finances that changed my life forever. I'm a single mother living in Melbourne Australia, bought my second house in August and hoping to retire next year at 43 if things keep going smoothly for me.
Congratulations dear. You're really doing well for yourself, I'm 48 and my financial life is in a mess. Any great tips would really go a long way in shaping my life. I want to buy my own house, that's really a big flex
To be honest, investing rightly today can save you a whole lot of stress in the nearest future.
Investing in many source of income that are independent of government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Good assets and digital currencies are still good investment at this time.
This is superb! Information, as a noob it gets quite difficult to handle all of this, and staying informed is a major cause, how do you go about this are you a pro investor?
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Alesia Haas you're such a life saver
I just closed on a house. First time homebuyer. 635k paid listing price 5.2 @ 30/yr fixed. House appraised for 645k. Seller paid all closing costs and real estate commissions. The mortgage after taxes and insurance is 30% of our take home income so we’re happy. We can also REFI for close to no cost in 210 days
what lender did you use?
Downpayment?
@@kimmourino3051 veterans united
@@artoriasoftheabyss1575 0 down. But because of my benefits I don’t have to pay PMI. I still saved up about 60k before moving to cover furniture, needed repairs and have a fully funded emergency fund
Housing prices must come down ALOT.
Yeah, I see prices go down slightly like 2-3 percent and I see them as needing to go down 20 percent for them to be affordable.
I hope not.
Builders and mortgage companies are getting creative. My company's current incentive is $15,000 for the buyer to use towards closing costs and/or rate buy-down. Just last week, I had a buyer that got a 4.9% rate AND paid all his closing costs with free money from the builder. The mortgage company also kicked in $2.500 in closing costs.
To my understanding the 4.9% rate is a buy-down that is really an adjustable rate mortgage. The interest rate will increase each year to the current rate of ~6.5% over (usually) five years.
Home mortgage rates are not tied to the fed rates but tend to correlate over time.
Even if we had a 2% interest rate on a variable rate, or 2.5-3% on the fixed rate, today as it was a few years back, it would still not be equal to the state of the market a few years back. Salaries haven't risen but the inflation ate up the purchasing power as groceries, energy, and many services went up. So even if rates were as low as in 2017, nothing in the economy is the same as in 2017. Lower rates will help, but not enough to make the affordability manifest, not in the next few years at least. Salaries have to catch up, this will take 5-7 years probably. I personally think we are looking at a similar scenario to 2008. People don't remember maybe, but the Canadian real estate market exploded in 2016, before that real estate practically stagnated for 7-8 years.
Love this dynamic duo! Jen hit it right on the head- there is a LOT of money out there!
If I was a seller, I would insist that the buyer's agent not be paid more that 1.5% of the sales price.
It’d depend for me. If it’s already an in demand property and there is decent competition I’d want as many eyes on it as possible to drive the competition and be down to pay 3% to the buyers agent. Could make the sale price higher and net me more
In addition, sellers take into consideration all the projects/ money they've put in as improvements to determine price. It always amazes me when buyers expect sellers to sell low until they want to sell their property super high. 😂
We just closed on our home purchase. Seller paid the commissions, and we also negotiated the seller paying closing due to repairs needed.
@@InimicusSolitus Congratulations 🎊
6.1 doesn't mean you will get 6.1.
The lender I'm working with with the program I'm using says she's still seeing 7 or 7.5
That has to be because of lower credit scores or your lender is just not good. Everyone I know with a good credit is getting in the low 6!
@abhisheksakpal484 well yes. Lower the score the more the rate will be. Them the breaks it seems.
I'll weigh all my options at the time I need to.
Assistance programs shouldn't be like this but here we are.
@ryanoleary4071 well if weighing your options include fixing your credit score then that should be your first priority! Since that takes time but will always secure a good rate for you.
@abhisheksakpal484 I'm alright but I don't want to be in my current place over the winter
Don’t rush into it and have your home become a nightmare. 7-7.5 is pretty bad. You should pay off your debt & save money before getting into a house
Realtors are still pressuring sellers into buyer commission and rebranding it as "concession." Then saying to buyers, sellers are willing to consider all offers -- INCLUDING CONCESSIONS. No!!! Sellers are willing to consider all offers. PERIOD. Ask your buyers to pay you and get some confidence, agents. The good agents will survive, and mediocre ones will not.
As a former realtor in Ohio then SW, FL I would never just encourage people to buy condos without so much due diligence. Condo reserves are non existent in many old complexes, causing now huge assessments and increases in HOA's here in FL, and the new Law is creating havoc for owners. Many
will have to dump these old condos!
Question:
We're considering retirement and moving south to a smaller house. We've been in our Bowie, MD house for 25 yrs. We bought for $154,000 in 1999. (with a 3% mortgage!) Houses in neighborhood selling for $400,000's. When you talk housing market "crash" what do you mean?
And, is it better to pay cash for our new house or keep a small mortgage? Thanks!
If you are retired, eliminate all debt and buy your replacement home for cash. Your MD home increased in value by an average compound rate of 4% annually, which is less than the increase in building/replacement costs.
If anyone has a bank/mortgage company in the 5%'s please reply with the name of the company please, trying to get the lowest rate possible, my home will be in Delaware. Thanks Guys and Gals❤
House prices will never go down until the amount of people who are buying them slows, way down. (Called, supply and demand). By the Fed. lowering interest rates, they are trying to keep the party going. They are convincing you as a consumer that it is a good time to buy now, keeping prices high. The rates need to stabilize for a period of time (Say 2 - 4 yrs.) before moving again. If you want house prices to drop, you need rates around 6.5% - 7.5% and the average house to site on the market for roughly 4+ months. Sellers will see they will have to lower their price to sell.
You didnt lose 25,000... you paid for a place to LIVE!!! You werent homeless.. you paid for a service.. Why is that wrong to do? I dont get why paying rent + throwing money out the window? If you dont have a downpayment if homes are too expensive if rates havent come down enough... then why would you still buy? NO, rent and dont feel bad about renting and keep saving your money...if its meant to be will happen. ALSO dont buy a home thinking to make money in a year a two... thats not how its supposed to work. A rarity has happened this past couple of years BUT its not supposed to be this way.. and it wont! If you are buying NOW thinking in 2 years you gonna make 100K you going to be disappointed. Rent is $2K but mortgage would be $4,500.... I take the rental hahahaha. Save me the $2,500 a month.. ON TOP OF all the repairs etc. Something breaks down I call the landlord.. Its not a bad financial decision.. be smart..Eventually buy when you can..dont be pushed to buy.
This is what we are doing after selling with $600,000 Equity🙏🙏
Everyone knows that the Fed is going into a rate cutting cycle starting in September, so why would buyers buy now when the mortgage rates will be significantly lower in the next 7 months?
@@duanejahn2368 sometimes the situation calls for it
Because of many personal reasons, their perfect house, timing, moving, job change and they can always refinance next year since there are going to be 10 more cuts in the future. Also once the rates are falling more there will be buying frenzy and competitors outbidding you in 7 months.
Think about all the competition when rates go down. The demand will drive prices up, it happens every time. The best time to buy is when you can afford it. Trying to time the market when rates go down will lead to people getting into bidding war/paying over listing price and waiving things like inspections and covering closing costs.
So if you want to build, you should check the timing and why you want to do it BUT if it comes to buying existing, waiting is stupid and you will lose money by renting. 🧐
My realtor just modified our buyer broker agreement that because the seller of the property is only offering 2.5% and he wanted 3% but he was fine with taking the 2.5%
What am I doing with my money 💰? I am saving it. I pay $1630 for a 2 bd 1 bath duplex here in Northern CA. The mortgage on this duplex would be about $3k. I can wait as long as I need to for prices to come down either in real terms or nominal terms. Also, I won’t be paying more than 2% to my agent when I am ready to buy. If the seller offers another 1% to my agent, I will offer 1% less on price. Renting is NOT throwing money away. You are using the property which is depreciating and will need repairs, maintenance, and upgrades. People act like home are always an appreciating asset. That’s only true when they are maintained and updated which costs a LOT of money. A lot of people who purchased during the pandemic are now paying the price for their stupidity. Here in Northern California, prices have declined by 10-20% and are now declining further. Those that move from the Bay Area to East Sac are trying to sell and move back to the bay as they are no longer able to work from home.
You remind me of a guest star on Seinfeld
Shouldn't realtors refrain from the liability of discussing and steering people into a stock market?
Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts with experience since the 08' crash.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well.
NICOLE ANASTASIA PLUMLEE' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
RE is dead. Peeps losing jobs and will go bankrupt. Govs and bizes are bankrupt. Insurance and maintenance costs exploding.
And, by the way, I looked today and found over 10,000 houses in he USA for sale under $200K, many in metro areas. Many of those were at or around $100K. Move to where you can afford to live.
Yeah but many of those are going to be problem houses, or really old houses built in the 1950's with one gross bathroom, lead paint, and asbestos or outright tear-downs (or "town homes" that have significant maintainance fees). I saw some houses that while older were slightly under 200k looked decent until I looked at the flood plain map.
Plus, nothing much to do, terrible school system, and the weather sucks.
What about the crime in those area?
Despite all the financial struggles I and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord
The money you invest into Crypto will always earn you more money which the bank won't give you for saving your money in the bank
Exactly, the simplest medium to attain prosperity is to allow your money work for you, Don't just stay there and watch others making it really big, also set up your own investment so you can also make huge profit.
Talking too much nonsense joke wasting time. No longer listening this channel.
Bye.
Jackie, I genuinely love your content especially as a fellow New Jerseyan!! I’d love for you have my aunt on for a future video, she gives REALLY good insight into the mortgage business. Her name is Paola Gomez and she’s at Cross Country Mortgage! If you reply with your email or contact, I’d love to help you two connect!
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