Mortgage Rates Ease Slightly, But Are Buyers Waiting for More?

Mortgage Rates Ease Slightly, But Are Buyers Waiting for More?: Mortgage rates are at the lowest level in two months, but home buyers appear to be brushing it off.

Pending Home Sales Waned 4.6% in January

Pending Home Sales Waned 4.6% in January: The Midwest, South, and West saw month-over-month losses in transactions, while the Northeast saw a modest gain.

Do You Know How Much Your Home Is Worth?

 

Do You Know How Much Your Home Is Worth?

Over the past few years, you’ve probably seen a whole lot of headlines about how home prices keep going up. But have you ever stopped to think about what that actually means for your home?

Home prices have risen dramatically over the past five years — far more than usual. And if selling has been on your mind, this could mean a bigger-than-expected payday when you list. So, how much has your home’s value really changed? Let’s break it down.

The Rapid Rise of the Past 5 Years

Typically, home prices go up by about 2-5% a year. But in 2021-2022, there were double-digit increases. And at the peak, prices rose by a staggering 20% or more nationally. Why? There were way more buyers than homes available, which sent prices soaring. While things have normalized since then, you still get to reap the benefits of those massive increases.

Your house has gained way more value than it normally would in such a short period of time – and that means a lot more wealth for you, too.

The map below uses data from the Federal Housing Finance Agency (FHFA) to show that, nationally, prices have gone up by nearly 60% in just the past 5 years alone. Here’s a breakdown that takes that one step further and gives you the numbers by state:

If you’ve been holding off on selling because you were worried about buying your next home at today’s rates and prices, let that sink in. It may be more than enough to help close the affordability gap and get you into your next house.

And what if you’ve been there for longer? That means your home’s value is probably even higher now. You get to stack the abnormal gains of the past 5 years on top of five years of more normal appreciation too. And an agent can help you figure out what that really looks like.

How To Find Out What Your House Is Really Worth

While a percentage is great, you probably want more specific numbers. The only way to get an accurate look at what your house is really worth is to talk to a local real estate agent.

While the map above gives you the average appreciation rate by state, it doesn’t take your local market into consideration. Like, is inventory still low where you live? That may drive prices higher, and faster. Or maybe you’ve done renovation that’ll add even more value to your house. Those are insights you’ll need an agent to provide.

An agent will know what’s happening where you live and can stack that up against the data and the condition of your home to give you the best estimate of its value possible. Only they have the data and expertise to find out your real number today.

Bottom Line

Home values have climbed — maybe more than you expected. Are you curious about what your house is worth in today’s market? Let’s connect so you can find out.

Should I Update My House Before I Sell It?

 

Should I Update My House Before I Sell It?

Some Highlights

• With more homes for sale and buyers being more selective, it’s smart to make strategic updates.​ But how do you decide what’s worth doing? ​You lean on an agent.
• An agent will be able to tell you what buyers want, quick wins that’ll have a big impact, and what projects have the best ROI.
• What projects are on your to-do list before selling? With only a month left before spring, let’s connect so you know what’s worth the time and effort. 

How To Buy a Home Without Waiting for Lower Rates

 

How To Buy a Home Without Waiting for Lower Rates

Many people are hoping mortgage rates will come down before they buy a home. But will that actually happen? According to the latest forecasts, experts say rates will decline, but not by as much as a lot of people want.

The good news? Even if they don’t drop substantially, there are still ways to make buying a home more affordable.

How Much Will Rates Drop?

A few months ago, experts were forecasting mortgage rates could dip below 6% by the end of the year. But recent projections suggest that may not happen after all.

While mortgage rates are still expected to decline some later this year, projections from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo now show them stabilizing closer to the 6.5% to 7% range (see below):

That means if you’re holding off on buying a home in hopes of much lower mortgage rates, you may be waiting a while. And if you need to move because something in your life has changed, like a new job, a new baby, or a marriage – waiting that long may not be an option.

Creative Financing Options in Today’s Market

Since rates aren’t expected to decline as much as originally expected, it may be worth considering alternative financing options that could help you get into a home sooner rather than later. Here are three strategies to discuss with your lender to see if any of these make sense for you:

1. Mortgage Buydowns

A mortgage buydown allows you to pay an upfront fee to lower your mortgage rate for a set period of time. This can be especially helpful if you want or need a lower monthly payment early on. In fact, 27% of agents say first-time homebuyers are increasingly requesting buydowns from sellers in order to buy a home right now.

2. Adjustable-Rate Mortgages

Adjustable-rate mortgages (ARMs) typically start with a lower mortgage rate than a traditional 30-year fixed mortgage. This makes them an attractive option, especially if you expect rates to drop in the coming years or plan to refinance later.

And if you remember the housing crash, know that today's ARMs aren’t like the risky ones back then. Lance Lambert, Co-Founder of ResiClub, helps drive this point home by saying:

“. . . ARM products today are different from many of the products issued in the mid-2000s. Before 2008, lenders often approved ARMs based on borrowers ability to pay the initial lower interest rates. And sometimes they didn’t even check that (remember Ninja loans). Today, adjustable-rate borrowers qualify based on their ability to cover a higher monthly payment, not just the initial lower payment.”

In simple terms, banks used to give loans without checking to see if buyers could afford them. Now, lenders verify income, assets, and jobs, reducing the risks associated with ARMs compared to the past.

3. Assumable Mortgages

An assumable mortgage allows you to take over the seller’s existing loan — including its lower mortgage rate. And with more than 11 million homes qualifying for this option according to U.S. News, it’s worth exploring if you want or need a better rate.

Bottom Line

Waiting for a big decline in mortgage rates may not be the best strategy. Instead, options like buydowns, ARMs, or assumable mortgages could make homeownership more affordable right now. Connect with a local lender to explore what works for you.

How does this impact your homebuying plans this year?

Will Lower Mortgage Rates Make Home Buyers More Confident?

Will Lower Mortgage Rates Make Home Buyers More Confident?: The 30-year fixed-rate mortgage has remained just under 7% for five consecutive weeks, offering more stability for prospective buyers to plan ahead.

The Return to Urban Living — Why More People Are Moving Back to Cities

 

The Return to Urban Living — Why More People Are Moving Back to Cities

After years of suburban and rural migration during the pandemic, cities have been making a comeback in the past couple of years. According to the National Association of Realtors (NAR), the percentage of people moving to cities has risen to 16%. While that may not sound like a big number to you, it is the highest level in a decade – and that’s a big deal (see graph below):

And data from BrightMLS seems to confirm this trend. In a recent survey, 1 in 5 (20.6%) people looking to buy say they want to live in the city.

So, what’s behind this ongoing shift back to urban living? Let’s break down the top three reasons why people are trading quiet suburbs for bustling cityscapes. You may find out you want to sell your house with a big yard and move to an urban oasis, too.

1. Vibrant Culture

Cities have always been hubs of culture, entertainment, and community. They’re packed with energy and there are always endless things to do. During the pandemic, a lot of that excitement was put on pause. But the last couple of years? Cities are buzzing again.

There’s nothing quite like being able to walk to your favorite coffee shop, pop into a local gallery, see a live concert or show, or grab a last-minute dinner at a great spot down the street. It’s a lifestyle that’s easy to love — and one a lot of people want today.

2. Being Close to Work

Remote work is still a thing, but most companies are moving to hybrid schedules or even bringing employees back to the office. That makes living closer to work way more convenient. Whether it’s cutting down a long commute or having more chances to network in person, being close to the office is a big plus — especially for industries that thrive on face-to-face connections.

3. Easy Access To Everything You Need or Want

One of the best things about living in a city? The convenience. Public transportation, top-notch healthcare, and so much more are all within easy reach. For a lot of people, having everything nearby just makes life easier — and it’s a big reason they’re drawn to urban living.

What To Do If You Want To Move To the City

Let's say you moved to a suburban area during the pandemic and you’re missing the excitement of living right off city streets. You’re probably thinking: how can I afford to move back into the heart of things with how mortgage rates and home prices are? Here’s how other people are doing it.

According to data from the Federal Housing Finance Agency (FHFA), home values have gone up by 57.4% in the last 5 years alone. And that means your house is probably going to sell for more than you bought it for.

If you already own a home in the suburbs, you may be able to sell that house and use the equity you get back to fuel your move. Sure, you may have to compromise and be happy with a smaller, urban space – but if it’s the lifestyle you’re craving – that trade-off is going to be worth it. To find out what’s possible and what it costs to live in an urban area, lean on a local real estate professional.

Bottom Line

The urban renaissance is real. Whether it’s the vibrant culture, being close to work, or having easy access to everything you need, cities are once again calling — and people are answering.

What’s your favorite thing about life in the city? Let me know.

I’d love to find you a home you love where all the hustle and bustle makes life a bit more exciting.