Present conditions, expectations, and guidance for sellers, buyers, and homeowners3-Minute Market Update
By Brian Hunton
Happy New Year!
I want to reach out to everyone here and just give you a little bit of a market update and a where we are presently, where we’re expecting to go, and some guidance on those things.
I’m not going to make this super technical cause I know that’s boring. So I just want to give you a quick rundown.
The bottom line is rates have been spectacular, historic lows for years. A lot of that is due to the government, having mortgage-backed security (buying position where they buy these and they hold the rates down).
What we are seeing right now
What we’ve seen right now, is that they have announced that they will be exiting this program. This news had investors pulling back on that and has caused rates to go up a little bit.
They’ve also announced that come April, they will be fully disengaging from that program. So we do anticipate rates to go up in April (2022).
They will be going up enough that there will be an impact on the likelihood of where people can get pre-approved. Whether or not a refinance would make sense for a lot of people.
So the reason why we’re talking about this right now:
If you currently own a house and you’ve been thinking about refinancing it for any reason, cash flow, debt consolidation, getting some money out for any sort of renovation that the time is short on being able to get that money locked in for a very long term at that lower rate.
So does it mean it won’t make sense for some people after April? Of course, it might make sense for some people, but for some of you, it will make sense to do it ahead of time.
If you’re thinking about buying. The price point that you were going to be pre-approved to be in is going to be lowered when that rate goes up.
So if you want to buy more house for less money, now is the time to do that. Get on that and be ahead of it.
Be prepared before the spring market brings out even more buyers. So if you’re in that sort of situation, you’re looking to get pre-approved, let’s get working on that right now.
Looking to Buy/Sell?
Get pre-approved for a mortgage today!
Especially if you’re looking to buy/sell, or only sell. So if you’re not necessarily worried about getting a new mortgage, but you’re worried about selling your house, that’s something you’re going to have to be aware of that the ability to attract the same surplus of buyers might be diminished depending on your price point. Because there won’t be as many people that can qualify at certain levels. So those are the things I want you to be aware of going into this next quarter.
This is where we expect to be, moving forward.
If you have any questions, you know, or you have other people that might have questions or need some help, please just have them reach out anytime, I am happy to help anyone.
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