Mortgage Rates Dropping!
Mortgage Rates Down a Full Percent from Recent High Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. And if you’re someone who’s looking to make a move, you’ve probably been waiting eagerly for rates to come down for that very reason. Well, if the past few weeks are any indication, you may be getting your wish. Mortgage Rates Trend Down in Recent Weeks There’s big news for mortgage rates. After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February. To help show the downward trend, check out the graph below: Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see a 3% mortgage rate again, you’re waiting for something experts agree won’t happen. As Greg McBride, Chief Financial Analyst at Bankrate, says: “The hopes for lower interest rates need the reality check that 'lower' doesn't mean we're going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.” And with the decrease in recent weeks, you’ve got a big opportunity in front of you right now. It may be enough for you to want to jump back in. The Relationship Between Rates and Demand If you wait for mortgage rates to drop further, you might find yourself dealing with more competition as other buyers re-ignite their home searches too. In the housing market, there’s generally a relationship between mortgage rates and buyer demand. Typically, the higher rates are, the lower buyer demand is. But when rates start to come down, things change. Buyers who were on the fence over higher rates will resume their searches. Here’s what that means for you. As a recent article from Bankrate says: “If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.” Bottom Line If you’ve been waiting to make your move, the recent downward trend in mortgage rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too. If you’re ready and able to start the process, reach out and let’s get started.
Are Home Prices Going To Come Down?
Are Home Prices Going To Come Down? Today’s headlines and news stories about home prices are confusing and make it tough to know what’s really happening. Some say home prices are heading for a correction, but what do the facts say? Well, it helps to start by looking at what a correction means. Here’s what Danielle Hale, Chief Economist at Realtor.com, says: “In stock market terms, a correction is generally referred to as a 10 to 20% drop in prices . . . We don't have the same established definitions in the housing market.” In the context of today’s housing market, it doesn’t mean home prices are going to fall dramatically. It only means prices, which have been increasing rapidly over the last couple years, are normalizing a bit. In other words, they’re now growing at a slower pace. Prices vary a lot by local market, but rest assured, a big drop off isn’t what’s happening at a national level. The Real Estate Market Is Normalizing From 2020 to 2022, home prices skyrocketed. That rapid increase was due to high demand, low interest rates, and a shortage of homes for sale. But, that kind of aggressive growth couldn’t continue forever. Today, price growth has started to slow down, which is a sign the market is beginning to normalize. The most recent data from Case-Shiller shows that after being basically flat for a couple of months last year, prices are going up at a national level – just not as quickly as before (see graph below): The big takeaway? So far this year, there’s been a much healthier pace of price growth compared to the pandemic. Of course, that’s what’s happening now, but you may be wondering what’s next for prices. Marco Santarelli, the Founder of Norada Real Estate Investments, says: “Expert forecasts lean towards a moderation in home price growth over the next five years. This translates to a slower and more sustainable pace of appreciation compared to the breakneck speed witnessed in recent years, rather than a freefall in prices.” It’s all about supply and demand. Increasing inventory plus limited buyer demand, due to relatively high mortgage rates, will continue to ease some of the upward pressure on prices. What This Means for You If you’re thinking about buying a home, slowing price growth is welcome news. Skyrocketing home prices during the pandemic left many would-be homebuyers feeling priced-out. While it’s still a good thing to know the value of the home you buy will likely continue to go up once you own it, slowing price gains are making things feel more manageable. Odeta Kushi, Deputy Chief Economist at First American, says: “While housing affordability is low for potential first-time home buyers, slowing price appreciation and lower mortgage rates could help — so the dream of homeownership isn't boarded up just yet.” Bottom Line At the national level, home prices are not going down. And most experts forecast they’ll continue growing moderately moving forward. But prices vary a lot by local market. That’s where a trusted real estate agent comes into play. If you have questions about what’s happening with prices in our area, reach out.
Big Bear Lake Inventory Rising
Big Bear Lake: A Closer Look at the Real Estate MarketAs the real estate market continues to evolve, it's crucial for both buyers and sellers to stay informed about the latest trends and developments. In this blog post, we'll be focusing on Big Bear Lake and exploring various aspects of its real estate market, including sellers, real estate news, and the importance of relying on a local agent for accurate pricing. So, let's dive right in!Sellers in Big Bear Lake are currently facing a unique set of challenges. The inventory of homes for sale has seen a significant increase, resulting in more competition among sellers. This increase in inventory has given buyers more options, making it crucial for sellers to price their homes correctly in order to attract potential buyers.One of the trends that sellers need to be aware of is that homes are taking longer to sell in Big Bear Lake. With an increase in inventory, buyers have more choices and can afford to be more selective. This means that sellers must be patient and prepared for a potentially longer selling process. However, with the right strategies and support, sellers can still achieve their desired outcomes.One of the key factors in successfully selling a home in Big Bear Lake is working with a local agent. Local agents have an in-depth understanding of the market dynamics and can provide valuable insights into pricing strategies. They have access to the latest market data and trends, allowing them to accurately price homes in line with the current market conditions. By relying on a local agent, sellers can avoid overpricing or underpricing their homes, both of which can deter potential buyers.In addition to the challenges faced by sellers, it's important for both buyers and sellers to stay updated with the latest real estate news in Big Bear Lake. Staying informed about the market trends, mortgage rates, and any changes in regulations can help buyers and sellers make informed decisions. Real estate news can provide valuable insights into the direction of the market and help buyers and sellers stay ahead of the game.Beyond the market trends and real estate news, another essential aspect to consider when exploring Big Bear Lake is the neighborhood. Big Bear Lake offers a picturesque setting with stunning views and a close-knit community. The neighborhood's proximity to the lake and various recreational activities makes it an attractive destination for both locals and vacation home seekers. Additionally, the area boasts a vibrant arts and culture scene, family-friendly events, and a wide range of outdoor activities throughout the year.In conclusion, the real estate market in Big Bear Lake is experiencing some shifts, with an increase in inventory and homes taking longer to sell. To navigate these challenges successfully, sellers should rely on the expertise of a local agent to price their homes accurately. Additionally, staying updated with the latest real estate news and understanding the unique characteristics of the neighborhood are essential for both buyers and sellers. With proper research and guidance, navigating the Big Bear Lake real estate market can result in successful outcomes for all parties involved.
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