December 27, 2024
I need to be honest about what the recent Fed rate cuts mean for mortgage rates – not much right now!
While we’d normally expect short-term borrowing rates to influence mortgage rates, we’re actually seeing the opposite happen.
The Message
The real story isn’t about the rate cuts themselves. It’s about the Fed’s message.
They indicated that future cuts would likely slow down and might be reduced in some cases next year.
The market reacted badly to this news, and mortgage rates jumped up a full point.
What This Means
While these changes might seem challenging, there are actually several advantages for buyers in today’s market:
Less Competition in the Market
Higher rates have pushed down buyer demand, but remember – your down payment isn’t just a fee you’re throwing away. It’s your money.
Think of it like any other investment and look at your potential returns. Real estate has historically been one of the best investment vehicles out there.
More Homes to Choose From
Higher rates mean properties are moving more slowly, creating more inventory.
You can take your time looking at homes and make better decisions without the pressure of constant bidding wars.
While some areas still see bidding wars, it’s much less common now.
Focus on Long-Term Goals
Your rate matters, but don’t let it overshadow your bigger financial goals.
When you rent, you’re basically agreeing to a “variable rate” – and not the good kind.
It’s the type that only goes up each year, never down. When you own, you’re building your own wealth instead of your landlord’s.
Conclusion
I’ve learned that today’s market still offers great opportunities for people willing to invest in themselves. That will always be true.
Despite higher rates, the real estate market continues to offer solid investment opportunities.
The key is understanding your options and focusing on long-term wealth building rather than getting caught up in short-term rate fluctuations.
Want to explore your options? Let’s talk about using equity for your first investment property, buying your first home, consolidating debt into one fixed payment, getting a second home, setting up an Airbnb, or looking into cash flow coverage loans for investors. These are all great possibilities worth discussing!
Adam Buice
Sr. Loan Officer
404-416-6380 Cell
[email protected]