In a spectacular turn of events last week, the Fed has decided to keep the Fed rate where it is, but they also sent a signal that their plan to curb inflation is working and they project three rate cuts next year. This news has sent mortgage rates plummeting. The biggest two-day mortgage rate drop in decades. The biggest 45-day rate drop ever in history. The news sent some sidelined buyers out looking for homes. Mortgage pre-applications skyrocketed last week during a holiday time that is normally the slowest time of the year.

According to Mortgage News Daily, the NATIONAL AVERAGE rates were DOWN- lowest rates in THREE MONTHS (local rates are often a bit lower):

7.09 conventional 30 yr (down almost a whole point since October)

6.48 conventional 15 yr

6.72 conventional 5/1 arm

7.60 jumbo 30 year

6.50 FHA 30 yr

6.50 VA 30 yr

Non-QM Rates, like bank statement loans and no doc investors loans, are about 1-2% higher.

Mortgage rates are at a three-month LOW! Which is great news but lots of economic data reporting this week and, as we’ve seen over the last year, the Fed Rate hasn’t loved it when folks have gotten overly-optimistic in the past. However with only 39% of adults aged under 39 owning a property and 80% of Baby Boomers owning a property there is a lot of ripe opportunity for owning a new home in the years ahead.

The overall share of Americans with debt in collections is at historic lows.

LendingTree says 35% of Americans hope the housing market will crash in the next 12 months. Most are wanting lower mortgage rates and lower home prices.

However, it is our professional opinion that hoping for a crash is, by far, the worst home buying strategy. Crashes are extremely rare, Market Cooling occurs and Market Corrections happen. There’s only been three “crashes” in the last 100 years, so that is why these massive mortgage rate drops are the opportunity that everyone has been waiting for to do their research and consult for professional help in the pursuit of buying their next home.

One of my favorite sayings for having the right attitude on when to act and buy real estate, is why you should still consider buying now vs later, which is likely to be a busier real estate market :

“Buy the HOME not the RATE”, you can always refinance at the time that the rates drop down a few more points, making the refinance well worth your time with a lower Mortgage payment. If you already bought property, at this moment you already did the hard part of identifying, negotiating and buying your next property. This way is a lot easier & less stressful to plan for the current market conditions, then being able to predict and buy at an all-time Low on Housing Prices and hope that the rates will also be at Historic Low averages.

To think that you will be able to plan and capture the exact moment in time with the Lowest market prices and the lowest rates, is very difficult. At a later time you may discover & regret that you did not invest in real estate before it became a busy sellers’ market again. Think about your Peace of Mind for living in the Now and not putting large life decisions on hold, as life is short. You could discover that you put your life, home security and peace of mind on Hold to wait for the next market crash.

I learned over 24 years ago that many of my smart Buyers bought a great home within their budget, and owned it for 5-10 years, taking advantage of “Putting their Roots Down” and earning the tax write offs and appreciation that goes with Home Ownership Vs Renting.

Then at a later time, used their home equity to sell and move up to their next more perfect property, rather than wait for the “Perfect Storm” to happen.

Should you want to chat and discuss your wish to buy your Dream Home and or a great Investment Property, give me a call, I love to discuss this subject and locating great property to my clients.