Tag Archives: #givingtuesday

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

Lessons Learned from a Thanksgiving Open House

We hosted an Open House this past Friday at a cute, three bedroom, one bath home in Yarmouth with central AC, a new interior paint job and beach rights. It was appropriately priced in the below $300,000 range.

When we arrived shortly before the 12:30pm start, there were potential buyers already lined up. And they didn’t stop coming. By 2:30pm, when the Open House ended, more than 35 separate groups had toured the home.

By Saturday’s 7:00pm deadline, we had multiple offers, Not surprising, the one that was accepted was for over asking price.

For sellers, who continue to sit on the sidelines, the lesson is clear. What are you waiting for? Our experience Friday was no different than many of our colleagues at their Open Houses. In fact, Mari accompanied a client to an Open House yesterday where there was another large crowd.

Buyers are active, interested, pre-approved, and in many cases aggressive. As Jeff Tucker from Zillow notes below waiting to sell is a potential money loser.

For buyers, the lesson is not to be discouraged.

Recent data from the National Association of Realtors indicates that 62% of buyers now spend 3 months or more looking for a home, an increase from 58% one year ago. A primary cause for the delay is the heavy competition today’s buyers face when making an offer on a home. The average house in today’s market receives 3.4 offers before it’s sold. This means for every buyer who purchases a home, two or three buyers have to begin their search all over again.

Experts anticipate home prices will continue to increase into 2021, and the incredibly low interest rates we’ve seen this year are also forecasted to rise as the economy strengthens. Potential homebuyers, who decide to hold off on their search until there’s less competition, run the risk of finding a more expensive housing market when they start looking again. If affordability is a key motivator behind your decision to buy a home, this winter is still the best time to make it happen.

The most important lesson from the current real estate market is that whether you’re thinking about buying or selling, playing the waiting game is a losing proposition.

Helping our clients make the best decisions has been our full time job for 21 years, not a part time hobby. If you’re ready to review your options, please contact us at 508-568-8191 or msennott@todayrealestate.com. Talk soon…


Tomorrow is Giving Tuesday, an opportunity for us to support our non-profits that are playing an even larger role than usual in supporting our community.

Local food pantries have been especially challenged as people, who never needed help before, have turned to them to put food on the table. We’re regular donors to the Sandwich Food Pantry. We also support the Cape and Island United Way, where Mari chairs a grant review committee.

These organizations — and so many others across the Cape — continue to need our help as we head into the holidays and a predicted spike in virus cases.

Tomorrow, please consider supporting any non-profit that is close to your heart. They help many more of your friends and neighbors than you realize. Thanks.

Stay healthy. Stay optimistic.

Mari and Hank