“I don’t regret the things I’ve done. I regret the things I didn’t do when I had the chance.”
We have seen lots of moving and shaking going on this week in the home financing market. The inflation data ran hot, sending the 10-year bond yield into a spike. When the bond yields spike, it typically bumps up the price of mortgage rates. Rates were up about an eighth of a point. This Richter scale blip could spell higher bumps in the mortgage rates later. When the financial markets move around, you may want to put yourself in a solid place.
Several mortgage clients put themselves in a stable place and are enjoying some bragging rights right now. The Smiths refinanced and lowered their interest rate and freed up a few hundred dollars per month by lowering their mortgage payment. They plan to take part of the extra money and pay off debt. The other part of their savings is to take some memorable vacations.
The Millers have ratcheted down their mortgage rate and eliminated ten years off their mortgage term. Now they can retire without being tied down to a mortgage payment.
I have celebrated with the Garcia’s who took this opportunity to refinance, pull cash out to upgrade, or modify their home. John and Jane Doe bought an additional house.
The Johnsons bought their first home and locked in a fixed-rate mortgage in the high 2’s that will help them build wealth and keep their budget on track. They don’t have to worry about the landlord raising their rent every year.
The opportunity is there now but will be gone one day, and we don’t know when. Do something today, and don’t regret missing the opportunity.
Home prices are steadily rising. The National Association of Realtors announced that the median home price rose 16.2% year-over-year to $319,200. That means the houses selling in the neighborhood where you want to live selling at $200,000 last year are now selling for about $232,000. That is a $32,000 difference over 12 months or a $2666 per month increase.
The Millennial generation leads the home buying market, with Generation Z making their entrance into the real estate market. Demand is predicted to remain strong for home buyers. The lack of homes available to buy is currently continuing to push prices up.
As mortgage professionals, we can win trust and appreciation from our mortgage clients when we listen carefully to what the customer wants to accomplish from the new mortgage. Ask good questions like, “What do you want to accomplish with this mortgage?” “What is the maximum house payment that is personally comfortable for you?” Asking open-ended customer questions like these can move you to the customer’s side of the table. You will be in a better position to help them choose the very best mortgage terms to meet their goals.