Here are 3 reasons to jump off the fence and buy now!The FED doesn't control mortgage rates! It does control short-term rates on things like car loans and credit cards, and The Fed's rate changes do
Why Buy Now?
Dated: April 6 2023
Here are 3 reasons to jump off the fence and buy now!
- The FED doesn't control mortgage rates! It does control short-term rates on things like car loans and credit cards, and The Fed's rate changes do have an affect on the economy. Don't assume mortgage rates are going up when you hear about rate hikes.
- According to Justin Westover w/ OneTrust Home Loans (soon to be BlueBird Home Loans), the economy affects mortgage rates. Stocks are high risk investments that are less appealing to investors when there is volatility in the market/economy. During these times investors seek safer options, namely bonds. Mortgages are a bond investment option when bundled together in Mortgage-Backed Securities (MBS). Justin concisely explains that MBS is many "investors investing in bundles of many home loan notes vs just one at a time". Think safety in numbers! More money in the investment of loans means that banks can charge less and that means lower interest rates. This is happening as we speak!
- Marry the house and date the rate! No need for spousal jealousy here, it's a win-win! I'm a perfect example of a Realtor who has a number of buyer clients who have either been priced out of the market in recent years or who are waiting for rates to come down. BUY NOW, while home prices are lower, and position yourself to get a better priced home that you can refinance as rates continue to improve. Once rates come down, then the market will be flooded with buyers and home prices will go back up. Lenders like Justin and OneTrust Home Loans are offering incentives where they "will pay for the appraisal and waive processing/underwriting fees".
Feel free to reach out with questions!
Life is full of experiences and I passionately believe, and work to ensure, that my clients' buying and selling experience is nothing short of exceptional. My desire to become a Realtor percolated for....