Monthly Archives: November 2022

Mortgage Rates Will Come Down, It’s Just a Matter of Time

This past year, rising mortgage rates have slowed the red-hot housing market. Over the past nine months, we’ve seen fewer homes sold than the previous month as home price growth has slowed. This is due to the fact that the average 30-year fixed rate mortgage r has doubled this year, putting the breaks on escalating prices.

This was the goal of the Federal Reserve when it raised rates: to cool down the market.

This month, the average rate for financing a home briefly rose over 7% before coming back down into the 6% range. But we’re starting to see a hint of what mortgage interest rates could look like next year.

Inflation Is the Enemy of Long-Term Interest Rates

As long as inflation is high, we’ll see higher mortgage rates. Over the past couple of weeks, we’ve seen indications that inflation may be cooling, giving us a glimpse into what may happen in the future. The mortgage market is eagerly awaiting positive news on inflation. As Ali Wolf, Chief Economist at Zondasays: “We are watching for any additional stability in the MBs market, signs of cooling inflation, and/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.”

What Does This Mean for the Future of Mortgage Rates?

As we get through the inflation battle and start to see that coming down, we should expect mortgage rates to follow. We’ve seen nods of this over the past couple of weeks. As the Federal Reserve works to bring inflation down, mortgage rates will come down as well. Bill McBride from Calculated Risk says: “My current view is inflation will ease quicker than the Fed currently expects.”

Not every mortgage lender is the same. They offer different options and different rates. For example, local banks that have their own portfolios and don’t sell their mortgages to investors have different financing opportunities when compared to mortgage finance companies that do sell their mortgages. So, it’s important to shop around.

As a buyer, it’s a questionable strategy to sit on the sidelines waiting for your magic number when it comes to interest rates. We know for sure that the chances of seeing rates of 3% or less are almost non-existent. Consider meeting with your financial advisor or lender and determine what the impact of rates in the 4% to 6% rate range, can have on your personal financial situation. You could miss out on the home you really want while waiting for a rate that will never be available.

And remember: mortgages can be re-financed to lower rates.

If you don’t have a working relationship with a lender, we can recommend several who we work with on a regular basis. Please contact us at 508-360-5664 or msennott@todayrealestate.com. With inventory increasing every day, be in the position to make your move when you find your next home.


We were happy to host our Third Annual Thanksgiving Pie Party last Tuesday at JD’s Burgers and Sushi in Sandwich. More than 70 of our client-friends turned out to re-connect with people they met last year and make new acquaintances.

We donated the pies that were not taken to the Sandwich Food Pantry, which reminds us that tomorrow is Giving Tuesday. Please take a moment to support a charity or non-profit that is close to your heart. Thanks…

Mari and Hank

Top Questions About Selling Your Home During the Holidays

In our blog two weeks ago, we made the suggestion that you should consider selling your home before or during the holidays.

That led to several questions.

1. But, doesn’t it make more sense the wait?

Even though the supply of homes for sale has increased in 2022, inventory is still low overall. That means it’s still a sellers’ market. The graph below helps put the inventory growth into perspective. Using data from the National Association of Realtors (NAR), it shows just how far off we are from flipping to a buyers’ market:

Top Questions About Selling Your Home This Winter | MyKCM

While buyers have regained some negotiation power as inventory has grown, you haven’t missed your window to sell. Your house could still stand out since inventory is low, especially if you list now while other sellers hold off until after the holiday rush and the start of the new year.

On Cape Cod, we have a 2.2 months inventory of homes which means that if nothing else would become available, it would take 2.2 months to exhaust the supply. A “normal” market is considered six months.

2. Are there buyers still out there?

If you’re thinking of selling your house but are hesitant because you’re worried buyer demand has disappeared in the face of higher mortgage rates, know that isn’t the case for everyone. While demand has eased this year, millennials are still looking for homes. As an article in Forbes explains:

At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.”

While the millennial generation has been dubbed the renter generation, that namesake may not be appropriate anymore. Millennials, the largest generation, are actually a significant driving force for buyer demand in the housing market today. If you’re wondering if buyers are still out there, know that there are still people who are searching for a home to buy today. And your house may be exactly what they’re looking for.

3. If I sell, can I afford to buy my next home?

If current market conditions have you worried about how you’ll afford your next move, consider this: you may have more equity in your current home than you realize.

Homeowners have gained significant equity over the past few years and that equity can make a big difference in the affordability equation, especially with mortgage rates higher now than they were last year. According to Mark Fleming, Chief Economist at First American: “. . . homeowners, in aggregate, have historically high levels of home equity. For some of those equity-rich homeowners, that means moving and taking on a higher mortgage rate isn’t a huge deal.” 

For us, that meant that we were able this spring to use our equity to make a significant down payment on our new home, then market our old one. We didn’t have a home sale contingency in the offer to purchase our new home.

If you’re intrigued about the idea of selling your house before year’s end, let’s connect at 508-360-5664 or msennott@todayrealestate.com to review your options. Remember: your home never looks better (or is more marketable) than during the holidays.

Thursday is Thanksgiving and we would be remiss if we did not wish everyone a blessed and memorable day. We’ve all come to appreciate this holiday more because we lost the chance to celebrate it during the height of the pandemic. So we hope you enjoy the chance to spend time with family and friends.

Mari and Hank

What Impacts Home Affordability

Every time there’s a news segment about the housing market, we hear about the affordability challenges facing today’s buyers. Those headlines are focused on how much mortgage rates have climbed this year. And while it’s true rates have risen dramatically, they’ve also dropped to much less media coverage and comment.

But, it’s important to remember that mortgage interest rates aren’t the only factor in the affordability equation.

Here are three measures used to establish home affordability: home pricesmortgage rates, and wages. Let’s look closely at each one.

1. Mortgage Rates

This is the factor most people are focused on when they talk about homebuying conditions today. So far, current rates are almost four full percentage points higher than they were at the beginning of the year. As Len Kiefer, Deputy Chief Economist at Freddie Mac, explains: “U.S. 30-year fixed mortgage rates have increased 3.83 percentage points since the end of last year.”

The increase in mortgage rates is impacting how much it costs to finance a home purchase, creating a challenge for many buyers as it’s pricing some out of the market. While the current global uncertainty makes it difficult to project where mortgage rates will go in the future, experts do say that rates will likely remain high as long as inflation does.

But, it’s important to remember that individual lenders offer different rates and different options. You have many potential sources for your mortgage from banks, to mortgage finance companies and credit unions. Be sure to shop them all before deciding what you can or can’t afford.

2. Home Prices

The second factor at play is home prices. Home prices have made headlines over the past few years, because they skyrocketed during the pandemic. nationally have decelerated for a fifth consecutive month. (shown in green in the graph below):

Key Factors Affecting Home Affordability Today | MyKCM

This deceleration is happening, because higher mortgage rates are moderating demand, and as a result, easing the buyer competition and bidding wars that previously drove prices up.

What’s worth noting though, is how much higher home prices still are than they were before the pandemic (shown in blue in the graph above). Even now, we have a long way to go to get to more normal levels of home price appreciation, which is historically closer to 4%. When both mortgage rates and home prices are high, affordability and your purchasing power become a greater challenge.

But while prices are still elevated in many markets, some areas are seeing slight declines. It all depends on your local market.

On Cape Cod, prices are moderating. Property is not being sold in a weekend and there are more price reductions. Those crazy bidding wars seem to be over. Open houses have returned to normal as those lines down the driveway are gone. Sellers are seeing more competition from their neighbors.

3. Wages

The one big, positive component in the affordability equation is the increase in wages. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have grown over time. This year is no exception.

Key Factors Affecting Home Affordability Today | MyKCM

As the Bureau of Labor Statistics (BLS) reports: “Median weekly earnings of the nations 120.2 million full-time wage and salary workers were $1,070 in the third quarter of 2022. This was 6.9% higher than a year earlier.”

So, when you think about affordability, remember the full picture includes more than just mortgage rates. Home prices and wages need to be factored in as well. Because wages have been rising, they’re a big reason why serious buyers are still active.

The decision to buy is not as simple as the so called experts and commentators would like the public to believe.

It’s important to work with a reputable lender, who can keep you appraised about the impact mortgage rates are having on what you can afford. If you’re not connected with a lender, we can put you in touch with several who we work with.

If you’re looking to sell, as well as buy, you should know the value of your current property. Please visit our website to find out what your home is worth and how much equity you may have.

Finally, please sit down with us to review your options whether buying, selling, or both. Let’s connect at 508-360-5664 or msennott@todayrealestate.com.

Earlier this year, we sold our home and bought something that better suits our lifestyle. So, hopefully our experience can help you make the best decisions for your situation. Talk soon…

Mari and Hank

Selling Your Home Before the Holidays

As you look ahead to the winter, you’re likely making plans about what you want to accomplish before 2022 ends. If the location or size of your current home no longer meets your needs, finding a house that better suits your lifestyle may be a top priority. But with today’s cooling housing market, is this really a good time to sell, or should you wait?

If you’re ready to make your move, here are three reasons why you may want to decide selling before the holidays.

1. Get One Step Ahead of Other Sellers

Typically, homeowners are less likely to list their houses toward the end of the year. That’s because people get busy around the holidays and deprioritize selling their home until the start of the new year when their schedules and social calendars calm down.

Selling now, while other homeowners are holding off, can help your house stand out. Start the process today so you can get your property on the market and be ahead of your competition.

It’s also around the holidays that we often complete minor maintenance projects, because relatives and friends will be visiting. We paint the extra bedroom, fix a broken step on the back deck or give the guest bathroom a quick touch up. These are all tasks that will also help in marketing your home.

2. Get in Front of Serious Buyers

Even though housing supply has increased this year as buyer demand has moderated, it’s still low overall. That means there aren’t enough homes on the market today, especially as the millennial generation reaches their peak homebuying years. As Mark Fleming, Chief Economist at First Americansays: “While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”

Serious buyers will continue to look this winter and your house may be exactly what they’re searching for. If you list your house now, you’ll be able to get in front of the eager buyers, who are hoping to make a move before the year ends or by early in 2023.

3. Seize a Great Chance To Move Up

Don’t forget, that as a homeowner you quite possibly have a substantial amount of equity. According to CoreLogic, the average amount of equity per mortgage holder has climbed to almost $300,000. That’s an all-time high. That means the equity you have in your house right now could cover some, if not all, of a down payment on your next home. (That’s what we did.)

As you weigh the reasons to sell before winter, don’t lose sight of why you’re thinking about moving in the first place. Maybe it’s time to buy a house that’s in a better location, has the space you and your loved ones have been craving, or simply gives you that sense of home.

Bottom Line

If you’re thinking about selling your house so you can find a home that better suits your needs, don’t delay your plans. Let’s connect at 508-360-5664 or msennott@ todayrealestate.com so we can develop a marketing plan for your current home and begin the search for your new one.

The Friday, November 11, is Veterans Day, a federal holiday set aside to honor the men and women who have served in our Armed Forces.. We thank all of them for their service and sacrifices. We are forever grateful.

Mari and Hank