I hope you’ve had a wonderful week! Between keeping up with the family and keeping a close eye on the housing market, it’s been a full week over here. There is a lot shifting right now, so I wanted to break down what it all means for your pocketbook – no matter where you are in your real estate journey.
What’s Happening with Rates and the Fed?
We’ve seen some real volatility lately. Under the leadership of our new Federal Reserve Chairman, Kevin Warsh, the focus remains heavily on fighting sticky inflation, which was pushed higher this month by rising oil and energy prices.
While mortgage rates recently spiked to some of the highest levels we’ve seen in months, we also saw a quick recovery this week on hopes of geopolitical relief in the Middle East. Overall, rates actually ticked down slightly week-over-week. It’s a great reminder that the market moves fast, and we are prepared to react just as quickly.
Creative Pathways to Homeownership
If you’ve been sidelined by affordability, there is some incredibly encouraging news. According to a new Realtor.com report, median down payments have dropped 19% year-over-year, hitting a four-year low! Because inventory is rising, buyers have more negotiating power, and we are seeing a massive shift toward flexible government loans like FHA and VA options.
A recent TD Bank survey also showed that first-time buyers are getting wonderfully creative. From utilizing family support to tapping into retirement accounts, people are finding ways to make their real-estate dreams happen. Surprisingly, though, only 27% of those buyers have spoken to a mortgage broker yet. If that’s you, let’s chat early so we can map out a safe, smart strategy before you start falling in love with homes!
The Hidden Value of New Construction
Finally, if you are struggling to find the right home, don’t overlook new builds. A new study shows that lower energy bills and fewer maintenance costs could save buyers an average of $25,335 over the first 10 years compared to a 20-year-old home. Sometimes, looking at the total cost of ownership completely changes the math in your favor!
If you’d like to chat about your next best move based on your financial goals, please reach out! You’re always welcome to send me an email or call/text me at 818.307.6072.
Wishing you a wonderful and safe Memorial Day weekend as we pause to honor those who have served our country and those who have given the ultimate sacrifice.
