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Mortgage Interest Rates: Some Perspective

Sep 19, 2022

While we all have heard about the rising mortgage rates this year, what does that actually look like for your mortgage and monthly payments? We’re here to break that down for you!


We understand the nerves and potential anxiety around a rising interest rate environment. Over the past two years interest rates, as you likely know, have been historically low. But why? The answer is due to economic uncertainty driven by COVID-19. When talking about rates today, it is important to look at the rate landscape over a longer period of time and understand that the rates we are currently seeing are still incredibly low from that perspective. 


While yes, rates have been on the rise over the last 90 days or so, they are expected to settle down and level out. That does not mean that they are going to drop, but it does mean that we are expecting things to steady out and remain relatively level. 


When you think about the cost of waiting, remind yourself that making the decision to purchase a home should never be based on what the rates are doing, but rather about being able to afford the home in terms of a monthly payment. You can head to our latest housing market update for a breakdown of today’s market and the cost of waiting (hint: it could be the difference of a couple hundred dollars…monthly)


Rates are cyclical, and while they have been rising as of late, as mentioned above they are still low from a historic perspective. In the 2000s the average interest rate was 6.29%. At some point in the future (no, I can’t tell you exactly when), we will likely see lower rates that will give homeowners the ability to refinance into a lower rate and payment. 


When starting the home buying process, it’s important to consider several loan programs to find the best solution for you. Again, the most important thing is to ensure no matter what solution you opt for you are able to afford the home you’re buying. No two situations are the same and there are tons of loan products and programs designed to help you reach homeownership in your specific situation.


From an investment standpoint, now is a great time to buy! Rates are historically low and home appreciation is at an all time high. While the rate of inflation may slow, your home will still appreciate in value. Experts are predicting the rate of appreciation to slow to about 4-5% this year compared to 20% last year. That should make you feel more confident, as that is a far more sustainable rate of appreciation making homeownership still the best investment around! 





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Q1 Recap

By Mikaylah Collins • 12 Apr, 2023
We've begun to see signs that the Spring Market is here and could be robust! Here is what we know: According to NAR, home sales were up 14% in February over the previous month which marked the biggest monthly increase since July 2020. While March results are not yet published, the mortgage industry saw an increase in purchase applications for the 3rd straight month; a great sign for the housing market. Driving much of this activity is the stabilization of rates in January & February and lower interest rates this past month. We’re starting to see signs of a slowing economy and the markets are now pricing this in. This week we saw the 10-yr Treasury drop under 3.4%, a level it has not reached for quite some time and the lowest it’s been since September 9, 2022. This is great news for consumers as decreasing rates mean more home affordability. Over the past year, most markets have seen home prices stabilize if not even decline, albeit by a very small amount. This stabilization was still a relief for homebuyers as it helped to offset higher interest rates. As rates continue to decrease, we would expect home prices to again increase due to demand increases. In addition to increased demand, there is still a shortage of homes for sale nationwide and that will continue to worsen as more and more homebuyers enter the market.  So what does it all mean? Now is a GREAT time to buy a home! Rates and home prices are stable, there is not as much competition as there will be when rates do decrease, and buying a home is still extremely affordable for most. Once rates fall, we will likely see home prices rise and the competition for the shortage of homes will increase alongside it making the window of a buyer-dominated market very small.

Q1 2023 Market Outlook

By Sarah Rubin • 10 Feb, 2023
We are well into Q1 and feel confident saying that the market appears to be stabilizing. Before we start looking forward, let’s quickly look back at the end of 2022.

Finding The Right Listing Agent For You

By Sarah Rubin • 15 Dec, 2022
Buying a home is a huge investment and one we talk about often - BUT the flipside is that you have an opportunity to cash in on that investment when you’re ready to sell your home! While you do have the chance to cash-in, a lot more work goes into selling a home than you might think! If you are considering selling your home, working with a listing agent will help you market your home, negotiate with potential buyers, work through paperwork, and ultimately close on your home! So what is a listing agent? In its most basic terms, a listing agent is a real estate professional who represents the seller in a real estate transaction. The listing agent lists the home for sale and works on behalf of the seller to sell the home at the best price and terms for their client. Listing your home is a BIG deal and it is not a place to try and DIY. But why can’t you just grab a sign at Home Depot and try and sell yourself? Well, there are lots of reasons some of which include: Professional consultation: A listing agent will walk you through each step and tell you what to expect along the way! They should understand the specific community you’re in and the current market environment and will help you determine a competitive but realistic asking price for your home. Marketing and selling your home: Your listing agent will list your home on the multiple listing service (MLS) in order to better market your home to potential buyers. They also can make staging recommendations and hire a photographer to best show off your home and its features. They’ll schedule house showings, and can be present to answer any questions. Communication and negotiation: Communication is key to both buying and selling a home in order to minimize stress and misunderstandings. Listing agents take care of this important task, by staying in touch with interested buyers and their agents, fielding questions, handling paperwork, and negotiating the final sale price and terms. Recommendations: Seasoned listing agents might come with a list of professionals who they have worked with in the past that they enjoy working with in order to make the selling process smoother for you! Some of these professionals include: real estate attorneys or title companies, inspectors, stagers, those who specialize in home improvement AND of course trusted Loan Officers. How do I find the right listing agent for my situation? In order to find the right listing agent for you, make sure your agent is licensed and has experience, references, and a professional website where you can learn more about them and their qualifications. Most real estate agents work with both buyers and sellers, but some might specialize in one or the other. Once you find a few agents through referrals or online research, meet with them in person to ensure they meet your needs and work well with your personality. It is also important to ask questions during your meeting with them and it’s imperative that you determine what you’re looking for in an agent so you make sure you are happy with the product being delivered. Selling a home can be stressful, especially for first-time sellers. A listing agent can help by taking on some of the burden and providing the information and resources needed to help sellers make informed decisions. We work with agents on both sides of the transaction – if you have any questions or would like a recommendation for an agent in your area, please reach out to us!
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