Rates Schmates! I'm Helping Homebuyers Keep Mortgages Affordable
Greetings from the floor of my living roomGreetings! I hope you are enjoying the dwindling days of summer. Some of you might remember the phrase “it’s the economy stupid” coined by James Carville during Bill Clinton’s campaign against George H W Bush. If you watched this week’s presidential debate you’d agree the economy is top of many people’s mind today. From a housing perspective, inflation and rising interest rates are impacting would-be home buyers.
Recent headlines tell the story. Current mortgage rates negatively impact affordability with some 1984 being the last time affordability was this challenging. Still, July saw a nationwide rise in home prices after months of decline. The median closed price last month is up from a year ago marking the first time prices have increased since 2022. Though still 16% below the peak of April ‘22, they are 15% ABOVE December’s low. So, in addition to the economy, it’s SUPPLY silly! Lack of supply continues to limit sales. The number of new listings are down by 30% month to date and 34% year to date. On the Eastside this translated into July’s median closed price of $1,500,000 up 6% from the same month last year.
Affordability is a real challenge but, as this graph shows, so is the adage that real estate is a sound investment as values rise over time. So what’s a would-be buyer to do? Rates are not predicted to go down significantly any time soon with the Fed indicating a likely additional rate hike in the near future. But people still need to buy and sell. Case in point, my life circumstances have me buying a new home and selling my current one. I’m leveraging Windermere’s Bridge Loan program to tap into the equity of my existing home for the down payment on the new.
Do the rates suck, yep, but life doesn’t stop just because rates are high. To help keep my new mortgage affordable, I’ll be buying down the rate, just like my recent buyers did for the home they are under contract on in Duvall.
The bottom line is, it’s more expensive to wait than to find a creative way to achieve your goals today. So, let’s connect to discuss a strategy for your success.
Considering buying or selling in today’s market? Reach out to me today for expert insights to help you achieve your real estate goals.
Call/text 425-495-0926 - or email me anytime! ginam@windermere.com.
