Podcast 3/22/24

🏠📉 Dreaming of a New Home? Let's Talk Mortgage Rates! 📉🏠

If high mortgage rates have put your home buying plans on hold, you're not alone. But there's good news on the horizon! Tune in to our latest podcast, where we discuss how shifting mortgage rates could impact your move. 🎙️📈

Bright MLS data reveals that high mortgage rates have been the top reason for delaying home buying plans. But according to David Childers, CEO at Keeping Current Matters, the tide is turning:
"Three quarters of buyers said 'we're out' due to mortgage rates. Here's what I know going forward. That will change in 2024."

As mortgage rates continue to drop and experts predict rates below 6% by the end of 2024, there's renewed hope for buyers. 🌟 So, what rate are you waiting for to make your move? Whether it's 6.5%, 6.25%, or below 6%, we're here to help you stay informed and ready to act! 💡

And now, presenting our #HouseoftheWeek:

🏡 81 Trevanion Rd, Taneytown, MD 21787

Featuring:
🛏️ 3 bedrooms
🔑 Fully finished basement
🌳 0.29 acres with a partially fenced yard
🚗 Oversized 2-car garage and additional driveway parking
🏡 Deck for outdoor enjoyment
🍽️ Updated kitchen with soft-close drawers and doors
🛁 Luxurious soaking tub in the primary bedroom
🌟 Don't miss out on this charming home! Join us at the open house to see it for yourself:

Ready to make your move? Let's connect and turn your homeownership dreams into reality! 🗝️✨ #RealEstate #MortgageRates #Homebuying

Tom Whalen:

I'm Tom.

Jay Day:

I'm Jay.

Tom Whalen:

Jay Day and the Day Home Team at LPT Realty with our weekly real estate podcast to keep you up to date weekly on all the trends in the industry. Jay, mortgage rates today?

Jay Day:

Mortgage rates. Mortgage rates. I feel like that's all we're hearing these days. Yeah, they're higher than, they're higher, than they've been a

Tom Whalen:

While.

Jay Day:

Yes. Now they're still not at the peak of where we were most recently, but we're hovering at a number that people are struggling with and inflation numbers keep coming out and the numbers are not looking good. I heard that someone actually mentioned recently on, I can't remember what news channel it was, but that may even consider, the Fed may even consider bumping rates up, not down, and that could be create some serious volatility.

Tom Whalen:

Well, it sounds like bumping it up, they're trying to solve a problem. What kind of problem would it solve?

Jay Day:

So the reason how the inflation works is people are spending too much money. So the goal is they make the rates high enough that it stops people spending. So it slows down the demand, which then will make the prices supposedly come down.

Tom Whalen:

Do we have smart people or idiots in charge of this? It's okay. It's just our podcast. It's our podcast. They're not going to come get us.

Jay Day:

No, but my wife will kill me.

Tom Whalen:

It's okay. No, we'll move along forget that question.

Jay Day:

You can read between the lines on that one.

Tom Whalen:

That's not a real estate question. That's a personal question. Go ahead.

Jay Day:

So one of the things that I saw recently were the top three reasons why buyer's policy decision, and this came from Bright MLS, and here's what it was. I mean, you'd probably would guess mortgage rates is number one at 72.1%. So of the buyers that were out there that decided they were going to hold and not make a move, 72 plus percent of them, it was due to mortgage rates, period.

Tom Whalen:

Well it's quality of life situation there.

Jay Day:

Yeah, inventory was number two at 34.4%, and then at 17.4% was affordability, home prices. And the funny thing is the affordability home prices almost ties in with mortgage rates and it also ties into what the prices are, the properties. But the biggest thing has been the affordability and what the rates are looking like. Now at the peak recently rates climb near 8%. We're not there. We've been in the upper sixes, low sevens recently, and it's no sign of anything really changing. Three quarters of the buyers actually made that decision that we're out because of those mortgage rates. And to me, it's crazy. Now, the experts, and I'll say in loose air quotes, they're saying that if rates hit below 6% and they've been estimating those, that will happen by the end of 2024. I can see why, and we've talked about this before, not political because no matter what side you're on, you're blue or red or purple or whatever, it doesn't even, whoever's in power wants to stay in power and whoever wants to get into power is going to make all these promises. And ultimately in election years, interest rates do tend to go down because the powers that be want to stay in control and they know everyone has a short memory. So if you can make everything look good for the last quarter right around when you're getting ready to vote, there can be changes that happen. But I think the problem really lies with the inflation numbers are just so out of control and I don't know how they can get the rates lower or what it's going to do if they do that is going to cause another massive surge and that's going to cause prices to go through the roof is if they already aren't through the roof.

Tom Whalen:

So if I have to sell right now, would I be a dope saying, well, let's just wait until around the election. Maybe they'll drop down below 6% then because Jay said we had an election coming up, that might not be the most stupidest thing in the world to do. That might be your best shot, right?

Jay Day:

Well, I mean if anything, if we were going on history, that may be a good thing. But as we've talked about on this podcast,

Tom Whalen:

Nothing,

Jay Day:

There's been no predictable.

Tom Whalen:

Nothing's predictable these days.

Jay Day:

So I can tell you right now that we're getting multiple offers, we're getting waived inspections again, we're getting home selling 30, 40, $50,000 over asking. I can't say that's going to happen later. If interest rates go down and people feel confident in what's going on, yeah, it could probably be even better. But what I always say is you don't know things are changing and going to the negative. So let's say we're still in the upper trajectory. It's flatlined a little bit, but we're still seeing increase in values. You won't know you hit the top until you start dropping. It's like that rollercoaster.

Tom Whalen:

Sure.

Jay Day:

Do you want to wait? And then if you wait too long, it could burn you.

Tom Whalen:

Makes sense.

Jay Day:

I don't know. As I always tell people, my crystal ball is broken. And even when you try to base things off history, there's been so much the last four or five years, it just made it so weird.

Tom Whalen:

I mean, yeah, you did have stats that you could count on up until the pandemic hit. Everything went out the window, man, nothing is like, you can't count on that.

Jay Day:

Oh yeah. And then we had, the rates came down towards the end of last year and we had a huge spike the last quarter of home selling and then interest rates surge back up and again, inventory tightened up again and things slowed down. So I don't even want to try to predict on that one. I can say that I think people need to start getting comfortable with the idea that if they can get an interest rate in the sixes, that's pretty darn good.

Tom Whalen:

That's pretty good. Yes. Yeah, I don't think it's going to get any better than that.

Jay Day:

Yeah, I mean eights and up, that's a little scary. I understand that because we'll talk to people that bought and sold in the past and they're like, well, my interest rate was 12%. And I'm like, yeah, I understand that. But the home was also $110,000. It's a whole different story where now, and you and I have talked about this in some parts of Frederick County, if you want a town home, you're going to pay over half a million dollars.

Tom Whalen:

Unbelievable. But the reality.

Jay Day:

Yeah, and I mean, again, there's a good and bad of being so close to DC it's very transient. And again, with the government, there's lots of money. People get paid extremely well, and that unfortunately pushes out the average everyday person or the person that doesn't have a huge income. It's become very challenging. I mean, it's unfortunate. We have a lot of clients that we end up selling their homes and they have to move and they have to move. They just can't afford the area anymore. Can you imagine being in that situation where you're like, I just got to go. I just can't afford this.

Tom Whalen:

I know that I'm blessed and no, I can't imagine being in that situation of a home that I've come to love and I raised my kids in something like that. Yeah, that's heartbreaking.

Jay Day:

Yeah, I mean it really is. Now, if you're older and you do have a limited income, I will say Frederick County is very good. They have lots of things for those that already own a home and they're on a fixed income and they will make adjustments for their real estate taxes and things like that to allow them to stay. But it all depends on what your income is and if you fall into those brackets.

Tom Whalen:

It's nice to hear that anyway, because the back end of life is so savage. At least we got one thing going for us there in Frederick County, got a home of the week.

Jay Day:

I do, 81 Trevanion Road in Taneytown, single family home under 400,000. This home has three bedrooms. There is a half bath on the main level. The upper level has a full bath plus in the primary suite, owner suite, master bedroom, whatever you want to call it. They have a soaking tub, a full size, huge corner soaking tub. So we can call that a half or a quarter bath, I don't know. But if you want to just sort lounge around in your hot tub, you don't need to go to the Poconos. You can do it right there in Taneytown in your home.

Tom Whalen:

That's nice. Yeah.

Jay Day:

This one has a full finished basement. It's on 0.29 acres. It is partially fenced. There's an oversized two car garage. So for those of you who are into your cars, or let's say you have a landscaping business and you need to be able to park some of your equipment in places, plenty of room for that and a huge driveway for additional parking. In addition, there's a large shed. There's a deck in the kitchen. They actually have soft closed drawers and soft closed doors. If you don't haven't experienced that, it's awesome. If you're in a house and you have the heavy handed people or children that tend to slam things, those soft closed doors for your cabinets are super nice. I mentioned the primary bedroom having the soaking tub. They are as also a cedar lined window box. You can sit in there to take in some books, do some reading, a formal dining room. The main level family room is huge. And also in the kitchen there's stainless steel appliances. If you want to check out this home, go to wfre.com and look up Tom and Jay's real estate podcast.

Tom Whalen:

I'm Tom.

Jay Day:

I'm Jay.

Tom Whalen:

of Jay Day and the Day Home Team at LPT Realty with our weekly real estate podcast, our weekly home of the week. Thank you for listening. Tell your friends all about it.

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