A look at the current real estate market and hope for a better market condition.

We are nearing mid-year, and let’s take a look at how the real estate market is faring. I had a chat with Matt Stancato from Guild Mortgage to help me out with the latest market update. Here are some of the main points that we talked about, and some projections for the coming months.

To get the slightly disappointing news out of the way, rates may not drop soon, but there are still options if you’d like to get lower interest rates. It might be disappointing that we are not getting rate relief soon, but the Federal Reserve isn’t likely to cut rates until late fall, and there is even a chance of another increase to beat inflation.

However, despite higher rates compared to recent years, Guild Mortgage offers programs with rates 1% to 2% below market value in specific zip codes. If you are buying a property in those specific areas, these programs require minimum down payments and additional incentives.

“It is important to have a long-term perspective and not be discouraged by slightly higher rates.”

Another good thing to mention is that, unlike other countries, the U.S. mortgage system is flexible. It allows you to refinance your loan and pay it off completely at any time without penalty. Although there's a cost to pay when refinancing, Guild Mortgage offers a one-time free refinance to its customers. 

But let’s say you want to refinance again in the future. The question to ask yourself is whether the potential interest rate savings outweigh the refinancing expenses and effort involved in refinancing. If the answer is yes, then by all means grab the opportunity when it becomes available.

It is important to have a long-term perspective and not be discouraged by slightly higher rates, which are still historically favorable. Even though high rates are intimidating, it should not stop you from getting your dream home. As the market improves, you can always refinance to secure a lower rate in the future. 

Ending on a positive note, there is an increase in inventory, and buyers are actively securing mortgage pre-approvals. This indicates that the market is moving beyond all-cash purchases. Overall, we are looking ahead with positivity. We are nearing the end of the market’s challenges and a brighter future.

If you have any questions, please feel free to call us or send us an email. We’re here to help you navigate the real estate market.