A Realtor.com article came out just in time for valentines day that asserts homeownership could be the latest humble brag, but is it really? We agree and disagree on this while also batting around the idea of accessing Home Equity, insurance companies leaving homeowners high and dry in high risk areas, and review the latest loan delinquency data.
Clashing factors are digging their heels in when it comes to housing. The Federal Reserve held rates as expected, but rising housing prices have voters putting the pressure on legislators. Who will budge first, Fed Policy or Policy Makers?
It may seem counterintuitive to think that demand would increase at the same time that rates are inching back up again. But once we look at the data, and we match that with our borrower’s sentiment, goals and personal aspirations…it makes sense. And what about that generation that’s hunkered down and aging in place?…Is this normal, abnormal, and is it a fad or the new trend among retirees and soon to be retired?
If you told us in 2023 that we would see the return of buyer bidding wars, the number of homes experiencing price drops would be in decline, and that serious mortgage delinquencies lowest since 1999….we probably would have laughed. But here we are at the end of January and this is REALLY happening in the market. While we can’t ignore the other signs that could spell trouble in the months and quarters ahead, it’s work making a pitstop on these results to ask ourselves – WHAT THE HECK IS ACTUALLY GOING ON IN THE REAL ESTATE MARKET!?!
As we declared in 2023, we are going to see some very creative solutions come to the market as we confront the highest interest rates in 22 years, lowest affordability in more than 40 years, and home prices not giving up! A few school districts are testing a new model that could help provide housing to teachers, but will it work? And is it a model for the future of housing educators? If this model is successful, can the same strategy be applied to other industries?
Overall the housing market ended the year much stronger than most people were expecting, and we also discuss what makes Gen Z a different kind of homebuyer. Spoiler alert, some of what they care about most isn’t what you’d think!
Mortgage Rates are paving the way for a great end of 2023 and a strong start to 2024. As we wrap up this chapter of some of the most tumultuous mortgage landscape seen in decades, there’s brewing hope on the horizon that 2024 and beyond will shape a housing recovery that looks different than any one we’ve seen previously. Creativity, patience, preparation, and a healthy dose of “get-to-it-ness” will benefit homeowners and aspiring buyers in this next chapter to be written.
We’ve been hoping for good news for so long now and finally we have some! Jerome Powell and the Fed delivered some great news about interest rates and some forward-looking progress about potential rate cuts in 2024. And ALREADY we are seeing buyers of 2022 and 2023 the advantage of their VA IRRRL as rates slide below 7%!!!
Looks like pressure is mounting on the Fed to make rate cuts in 2024. Could we actually see numerous rate cuts on the horizon? And whether we get those or not, the housing market is showing signs of a healthy rebound from the challenges of 2023. The conclusion of this year is already looking more promising than the fall, and everyone is really eager for a strong year in 2024!
We’re ending 2024 on a semi-positive note with mortgage rates falling as we head into December 2024. It’s a nice change coming from the fall where we saw pending home sales drop to a record low (even worse than the numbers seen in the great financial crisis of 2008/2009. So what’s the future hold in store for mortgage and real estate in 2024?!?
Mortgage rates were trending down for their third straight week. Mortgage application demand increased in response to the decline. This is such welcome news relative to the highs from just a few short weeks ago. Hopefully this sets a precedent moving towards the end of 2023, because Lawrence Yun, Chief Economist of NAR is expecting a 15% increase of existing home sales – and – mortgage rates to stay in the 6-7% range in spring of 2024.