Podcast Episode Details

What’s Up With Mortgage Rates? With Dale Vermillion

Episode 330

Dale Vermillion is the author of Navigating The Mortgage Maze: The Simple Truth About Financing Your Home.

HOW WOULD YOU DESCRIBE THE CURRENT TREND IN MORTGAGE RATES?

Mortgage rates are stabilizing, currently fluctuating around 6.25% to 6.5%, expected to gradually decrease over the coming months.

• Rates have become more stable recently, bouncing around a consistent range.
• Predictions indicate a potential drop below 6% by the end of the year.
• Stability and future trends are largely influenced by inflation and bond market conditions.

WHAT IMPACT MIGHT THE FED'S EXPECTED INTEREST RATE CUTS HAVE ON MORTGAGE RATES?

Though Federal rate cuts don't directly correlate with mortgage rates, significant cuts are expected to improve mortgage rates.

• The Federal rate and mortgage rates often move independently, but significant Federal cuts could lead to lower mortgage rates.
• Analysts expect mortgage rates to fall under 6% by year's end.
• Inflation reduction and bond market improvements are key to driving mortgage rate reductions.

WHAT ARE THE EXPECTATIONS FOR HOME VALUES IN THE COMING MONTHS?

Home values are expected to increase by about 3.2% this year, slower than last year's 7.1% increase, due to adjustments for affordability.

• Growth in home values is slowing but still expected to rise.
• Listing price adjustments for affordability are influencing the slower growth rate.
• Despite the slowdown, the market remains favorable for buying.

HOW IS THE INVENTORY OF HOMES CHANGING?

Inventory levels are improving, with expectations for a significant increase in available homes by year-end, aided by new construction.

• Inventory has significantly increased from last year and is expected to continue rising.
• New construction is contributing to the improvement in inventory levels.
• Anticipated inventory increase to over 800,000 units by year-end will create more buying opportunities.

WHAT ADVICE DO YOU HAVE FOR SOMEONE CONSIDERING BUYING A HOME SOON?

Prospective buyers financially ready to purchase should proceed now rather than waiting for further rate reductions to avoid future market competitiveness.

• Financial readiness and affordability should be the main considerations for buying now.
• Waiting may lead to increased competition and potentially higher prices as rates decrease.
• The current market presents an opportune time for prepared buyers.

IS RENTING A BETTER VALUE THAN BUYING RIGHT NOW?

Despite current high home values and mortgage rates, buying a home remains a better long-term financial decision than renting due to appreciation, tax benefits, and wealth accumulation.

• Rents are increasing faster than incomes, offering less stability and no appreciation compared to homeownership.
• Homeownership provides significant tax benefits and potential for appreciation.
• The financial advantages and wealth accumulation of owning outweigh the costs compared to renting.

ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:

• After my divorce, I realized filing a quitclaim deed doesn't remove my obligation from the mortgage. Is there any way to get my name off the mortgage if my ex can't refinance?
• My wife believes tithes should only go to our home church, but I think giving to ministries where we see need should also count. What's your perspective?
• My wife and I have $90,000 saved and are unsure how to invest it wisely. What would be the best and most secure investment for us, considering the curr

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  Published on 1 year, 10 months ago