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Seems like interest rates are constantly in the news these days! With another rate hike this week many are left wondering what the outlook for mortgage interest rates and what their home buying power looks like now.
Today we are talking with Morgan Mayer Wise, a mortgage broker with Bridgewater Capital. Check out Morgan’s perspective on the market and find out more about what Bridgewater Capital can offer clients interested in purchasing a home in today’s market.
Predicting future rates is challenging in this market and subject to many variables; however, what we do know, according to the latest FED announcement this past June, is that the inflation rate is slowly coming back down, and the FED took a break from increasing their rates after raising them ten times in the last ten meetings. As inflation starts to drift back down and the uncertainty of 2024 being an election year, you could potentially see rates drift down over the second half of the year, which should get the real estate market moving again.
Whether or not you should buy a property depends on various factors beyond just interest rates. I would tell buyers to talk to a mortgage broker (like myself) and consider your financial situation, long-term goals, housing market conditions, and your ability to afford the current mortgage payments. Rates are unpredictable, however, rates tend to fluctuate over time if you look at historical trends. Seeing that next year is an election year, inflation is leveling out, and tends to be positive sides we will see rates start to slowly move back down. You can always refinance down the road, but that house you can afford TODAY might not be available 6 months-1 year down the road.
Being a mortgage broker in this vulnerable industry is the best place I could be right now. I’ve been with the broker channel for 13 years now and as a broker, we have access to so many programs depending on the buyers needs. I think being able to assist with the first time home buyer needing 100% financing, to the repeat investor client, or even the self employed buyer that writes off all their income is VERY Important. It gives buyers outlets to purchase NOW!
I would look at ways to lower their payment for the first 1-2 years until they can look at options to refinance but also, I would also add that house values continue to rise, so even if rates are to dip down in the next year, the house values continue to rise, so the house you’re looking to buy down at 500k could be 550k/600k the following year putting you out of the market for your current price point.
Investing in real estate has multiple benefits and it can bring you a good bit of wealth as well with the immediate equity a lot of homeowners are seeing. Property prices continue to rise across the board and mortgage rates are still “relatively low” but keeping in mind, you can always refinance when rates start to decline as well, bringing you even more savings. There are also tax advantages you can take advantages of being a home owners as well.
The Zahn Group is a dynamic real estate group serving the great Charlotte, NC area and upstate South Carolina. We specialize in helping buyers and sellers in the South Charlotte area. Contact us to learn more.
