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Weekend Update: Rates Dropped! What Impact Will This Have on Demand?
Good afternoon and happy Friday! This week's main video is more of a GIF, which is nice because that means: 1). it's short and 2). you don't have to listen to me talk. Rates had a *sizable* drop this week driven by lower than expected treasury issuance (with more focus on shorter terms), statements from the FED that they'll allow natural runoff from their balance sheet, and job reports that weren't "bad", but not as favorable as expected (which in the fun world of mortgages, usually helps rates). The flip side of lower rates: *a lot* of households can get priced back into the market. Keep in mind, these are households who at one point over the last couple of years could afford to buy a home, for one reason or another they did not, then found themselves on the outside looking in when rates hit 8%. Buying a home wasn't even an option. As rates drop, it becomes an option again. Time will tell how many of them jump back into the housing market, but this is a dynamic worth noting and relaying to potential buyers who can afford to buy now. Rates dropping leads to more competition, which can potentially put upward pressure on prices. This weeks featured videos in the sidebar: - How Mortgage Rates Work - Is Now a Good Time to Buy in Oregon? - Are There Tax Benefits to Buying a Home in This Rate Environment? - Should You Wait for Interest Rates to Drop Before Buying a House? Also including an accompanying infographic for the last video: what higher interest rates have done to buyer demand (and what to expect if rates reverse). For more information on what's driving the mortgage rate environment (and what to look for moving forward), visit this page:https://www.gavinhamiltonloaninfo.com/resource/94741/ For more information on what's driving home prices, visit this page:https://www.gavinhamiltonloaninfo.com/resource/99201/ Please contact me any time this weekend if I can be of any assistance! (310) 422-4731 (call or text)
What’s actually happening with housing prices?
Feeling confused about what's happening to housing prices? You're not alone, there are multiple pricing metrics and *a lot* of conflicting information out there. This page explains: - The differences in reporting metrics (and how they're calculated) - An overview of what "housing crashers" need to happen in order for prices to drop - A snapshot of the new construction market (& addressing the question about whether or not that will over-saturate the housing market) - Why inventory remains low (& why it's supporting prices) - Why housing experts say this market is nothing like 2008's Excerpts from posts athttp://www.mortgagereels.com: "With all the talk about a possible recession a common question we’re getting is what impact that would have on housing prices. The assumption most people make is that a recession will lead to a housing crash, due to their memories of the Housing Crisis of 2008-2009. But if you look back over time 2008 was very much an outlier compared to other recessions – in most cases the housing market remained flat or even slightly appreciated during recessionary periods..." (full article with infographics here:http://mortgagereels.com/2022/08/27/what-happens-to-housing-prices-in-recessions-and-what-happened-in-2008/) "We’re going to gloss over the 'fuzzy math' in the above tweet and focus on the question at hand: why did homeowners walk away in 2008, and would that same thinking cause homeowners to walk away if values dropped again? To start this off, it’s important to understand that values alone didn’t cause homeowners to walk away in 2008. Check out the first couple paragraphs from this article from February 2008...Like everything related to 2008, there’s a lot to unpack here. But in a few short sentences, it mentions three times the trigger to consider walking away was that the payments were about to spike..." (full article with infographics here:http://mortgagereels.com/2022/09/15/revisiting-2008-the-housing-crash-started-because-of-payments-not-prices/) For additional information call or text me at (310) 422-4731 or click the link below to register for upcoming free 15 minute webinars on this topic and a variety of others Gavin Upcoming Webinar Link:https://www.gavinhamiltonloaninfo.com/resource/99538/ Additional Resources:https://www.gavinhamiltonloaninfo.com/resources/
Bought a home in 2021 or 2022 with FHA or VA loans and concerned about your equity position? Here’s what is happening with housing prices (and some details about FHA/VA loans you should know)
Bought a home recently and concerned about your current equity position? With rates increasing and sales activity slowing over the past several months, many headlines have been dedicated to pointing out the potential dangers recent homebuyers face with the prospect of declining values. While being *aware* of these concerns is necessary as a homeowner, it is also important to fully understand what data to consider, what options you have as a homeowner, and use that information to make a strategic decision based on your own financial scenario. Included here are a few one-minute videos outlining: - A 5% Drop in Home Prices Could Put 200,000 Homeowners Underwater on Their Mortgage: Who Does This Impact (& What Protections Do They Have in Place)? - What Is a FHA 40 Year Loan Modification? - Why Is Inventory So Low (& Why Are Prices Remaining Stable)? - Are Home Prices Dropping, Rising, or Staying Flat? - Why Is This Market Nothing Like 2008? For more information, click the link below for future 15 minute webinars, or call/text me directly at (310) 422-4731. Upcoming Webinars:https://www.gavinhamiltonloaninfo.com/resource/99538/ Additional Resources:https://linktr.ee/gavinhamilton