Looking at Interest Rates with more Love

February 14, 2024

It’s Valentines Day, a time to show love, appreciation and all things sweet!

In today’s Mortgage Mentor session with expert and Mortgage Coach, Michael F. White, we discuss the real “sweet spot” for interest rates. Michael has been in the mortgage industry for over 30+ years and puts the spotlight on the consistency of the interest rates over the years.

In this session, Michael shines a spotlight on how inventory and interest rates are cyclical and have been for years. Unfortunately for the newer group of agents and loan officers, this recent hike in rates does not fall under the “normal” for those who entered the real estate market in the last 5+ years.

The hike or fall of interest rates has not negatively impacted home ownership  over the years as life changes dictate the need to buy or sell, not rates.

Check out some quick notes from Michael’s recent video update:

  1. For the past 30+ years, interest rates have averaged around 7 ¾% .
  2. According to Realtor.com’s 2024 Forecast for Key Housing Indicators,* mortgage rates in 2024 to date are at 6.8% – compared to 6.4% in 2022 and 4.0 as an average from 2013 to 2019.
  3. This rate history corresponds to the rise and speed of home sales and the appreciation that accompanies high demand. But note that the rate of homeownership has only varied 1.6% since 2013 data.
  4. Today home ownership is reported to be 65.8% compared to 64.2% in the historical average of 2013-2019
  5. Personal income has increased over the years, and so has spending, which can impact a buyer’s ability to qualify for a mortgage

What does this all mean?

  • People still buy and sell property, regardless of the interest rates
  • Interest rates are what they are at the moment and can always be refinanced
  • Review your income versus your expenditures to find options to getting qualified for a mortgage.

For more information contact Mike@IMTCoaching.com   
*2024 national housing forecast

 

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