10/18/2022
Right now the interest rates have increased to levels that are scaring away many potential home buyers. This means a few things, we are seeing a wide spread reduction in home prices, which means it has shifted from a sellers market earlier this year to a buyers market currently.
This gives you more opportunity to negotiate and be more specific in your home search, since you are not competing against the volume of buyers we had in the past 2 years. While home inventory is still low, the volume of sales has decreased. The positive aspects about a buyers market is that you will have more leverage when wanting to preform second appraisals, inspections and asking for things like seller concessions to cover closing costs and other things.
Recap on the market
Con's:
High interest rates - means higher cost of monthly mortgage payments
Pro's
Sales price reductions - higher negotiation power
Unique programs - low sales volume is driving Lenders and Builders to offer unique programs (See below)
Better buying experience - gone are the days of having to write offers $20k over asking and waiving appraisals, take more time to find the house you love, in the area that is growing and appreciating.
On the topic of rates and seller concessions, many home buyers are hearing about the rates on the news or from friends and steering away from the market, but did you know that you can currently ask for the seller to help cover the cost of buying the rate down for you? Right now Gapital is offering a 2-1 Buydown program with a no cost Refinance down the road for potential borrowers to help secure a lower rate. A quick breakdown of this program Looks like this:
The 1st year of your mortgage will be 2% lower than your note rate, then the 2nd year of your mortgage will be 1% lower, then your 3rd year will be your note rate. With the intention of refinancing in the 3rd year to a lower rate to secure a long term rate that will be comfortable for you. This will allow you to gain some equity in the home, and hopefully when refinancing assume better terms to lower the monthly payment.
Programs like this are not commonly known for buyers and even real estate agents so its important that you have a close relationship with a Broker like Gapital Mortgage.
You can find my contact information at my ecard linked below!
https://dot.cards/afopp
As Always,
Be Great
Mortgage Loan Officer
