I saw some revealing information from Fairway Mortgage on a video today. Our 30 year conventional rates are now floating around the 6.5% range. The only times in recent history(Since the ’70s) that they have been lower was during the crash of 2008 (Brought on by crazy lending practices and an over supply of inventory) and during the pandemic. So 6.5% doesn’t look too bad, historically. It’s just that we were spoiled by the rates in the 2’s and 3’s. Unfortunately, We won’t be seeing those rates again for awhile. Now, it isn’t likely, but say that you lock in to buy at current rates and they do drop back considerably, you re finance at that time. There’s very little risk. The folks that are the losers in this market are the renters. With rental rates soaring with increases way above home price increases, these folks are loosing every day. It’s like not liking the current mortgage rates, but your rental payment is like paying 100% interest every year. Now the good news is that, with a few exceptions, the crazy bidding wars are gone. Thank goodness we seem to be going towards a more “Normal” market. The inventory of housing is still relatively low, but improving. The long and short of this is: Whether you’re a buyer or a seller, It’s time to jump in and get your feet wet!
Posted in Buyer Information