Latest / Connor with Honor: AI, Real Estate and Real Life / 4 percent interest rates coming, probably not even close to that in the mortgage rate this Fed Meeting 261-2024
Transcript
- 0:00September 17th, 2024 good day everybody I'm Connor with honor this is your Santa Clarita real estate update in the last seven days we've seen a lot of activity we've watched as real estate listings are taking a little bit longer to sell in addition I've been reporting about the Fed funds rate meeting that's gonna be today and tomorrow so we'll find out if in fact that's going to cause an overall reduction the mortgage rate which I believe it will that's probably gonna spear off somewhat of a refinance market I did do a blog post yesterday on refinancing just be wary what you're paying and also make sure refinance makes sense you're moving into the next year and you're gonna pay a few thousand dollars to have your house refinance to a lower interest rate at the end it might not make sense because you're gonna be out of here anyway it's just going to depend so make sure you talk to your trusted advisor any question you have on the lending front when you do talk to your lender I'm a realtor when you talk to your lender maybe you can patch in your real estate agent as well just to have them watch over that process as I know lenders that do the same when they refer people to real estate agents so it's not bad to have a second set of eyes on whatever process you're gonna go under if you're gonna be buying a house citing a buyer broker agreement or maybe tying up with a lender and having a refinance done or even so suggesting or using the actual agents lender that they know and they trust that's also a good idea to kind of keep the loop together just to best protect yourself now as far as the last seven days twelves coming soon listings 82 new listings have hit the market 77 price changes these are mostly reductions these are sellers that maybe were overzealous in the beginning when they listed their properties for sale another reason why you need to be wary of the syndication websites out there when it comes to pricing real estate because a lot of them have the algorithm dialed up to a list at some sort of a response depending on who they believe you are if you're the owner of the house the price might be a little different if you're a buyer for a potential house the price might show up a little bit differently so it's really important to look at the actual real estate data when it comes to pricing your residence so you don't get caught up and have to do several price reductions to bring it to a point buyers are willing to move forward in making offers incredibly important advice for the buyers out there that are considering purchasing they talk about marry the house not the interest rate I get that but there are costs involved to doing a refinance as well couple different sources the mortgage holder that you're originally going to have assigned owning your mortgage the one you're writing the check to every month that's definitely an option for a refine and of course if you like the lender that you used to purchase the residence via the first loan that particular lender then maybe you can ask them hey can you help me out with a refine what does that look like and then get the numbers written down in an email or on a piece of paper so you understand exactly what you're going to be paying now through this particular market we currently have 537 active units on the market for sale as you know I do this every day so that number has gone up from the fours early fours and even high threes and even mid threes closer to the beginning of this year so we do have additional inventory however that have that slowed home sales at all the thing that's holding back sellers from putting their properties on the market is that ultra low interest rate now there's information about loans that can actually be assumed by a buyer so if you're a seller that has a VA or an FHA loan and certain types of conventional loans they might be willing to allow that loan to transfer to a new buyer now that's gonna give that new buyer a much lower interest rate than they would get in this market especially if you were in the twos or threes watch out for these promises of being able to transfer a rate by an agent by a lender by whomever just make sure it's actually feasible for you and it's gonna make sense another question that I would have is how's that money gonna come back to me as far as the difference because if I have a 2 and 3% interest rate on my house I probably have multiple hundreds of thousands of dollars in equity because of the time I bought and where the market is today versus back then we're much higher today so where's that money gonna come in and if I'm a buyer if I'm gonna be paying that extra to purchase the house or whatever that makes up fair market value well how am I gonna get a loan for that and what's that going to cost that might be something because those particular that company the one that's gonna loan you the money they're gonna be in a secondary position and that's that primary loan is gonna be first which as long as there's enough equity to take care of two in the event you default they're happy but in some cases maybe those numbers won't make sense thereby you'll be paying higher interest because of a more risky loan for that second one and you might have washed out whatever advantage you're gonna get by doing this assumable assumable home and assuming that loan that that current has wow that was hard to get out I hope everybody has a fantastic week that's your current realist and updating here in Santa Feta Valley we're watching the feds gonna be meeting today and tomorrow I'll let you know tomorrow and the next day when this trickles down what's gonna happen this is Fed meeting just FYI it is not the mortgage rate they're talking about the Fed funds rate this is the rate and this is what everybody talks about mortgage rates are impacted by that and also the 10 year bond and also the economy so you have unemployment inflation those also affect interest rates if you notice lately interest rates have been trickling down slightly and that then the Fed didn't even meet last time I believe they met was July now they're meeting in September July they didn't even adjust the fed funds rate that's the rate at the bank which the banks get to trade money so that's that rate it does impact the mortgage interest rate but there are other things that impact that as well let's see what happens over the next few days there's conjecture that these rates are gonna come down somewhere in the in sixes maybe high fives force were talked about by some of the fancy people out there on their World Wide web when they're discussing real estate magically what's gonna happen if the rates get in the force well if it does it's gonna kick this market off into a place it hasn't been for a few years we're gonna have multiple offers on every single property which we still see that from time to time but the frequency with which that happens now is nowhere near where it was 3 4 years ago if the market does go to force we're probably gonna see that court that response from buyers where people are gonna really start to climb over each other to try to get into it very important to have a solid advisor and then you're gonna be as a buyer signing a buyer broker agreement one of the things that I might suggest is make sure that you're the only one competing with this particular agent for this particular house if this agent has multiple liars buyers for the same residence so maybe and I don't I there's a form for this there is a form that talks about agency and who's representing who there's also another form there might be other buyers interested on a particular residence this agent could be representing them also whatever is issued to you in contract if you don't want to accept it you don't have to that might be one of those things I would consider in this market because now you could be responsible for paying the age of the represent you their commission I would probably want that agent to be extra loyal to me and if they have other buyers for residents I'm sorry that's of no interest I want to be their only buyer for this particular residence if that makes sense I hope everybody's well try to factor that in I'm sure I'll get some hate on that everybody have a fantastic day we'll talk to you next time I'm Connor MacIvor - Connor with honor over and out depending on who owns the paper