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Are you curious about the future of mortgage rates?
With so many interest rate increases over the last few years, who isn’t?
We've analyzed the market trends and predictions to bring you insight into how future mortgage interest rate drops can and will more than likely, impact the housing market, affordability and inflation.
Before we dive into it, click the like button for me and, if you haven’t already, subscribe to the YouTube channel so I can keep providing you with valuable real estate and mortgage insight.
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Let’s start with the positives:
Affordability: Lower mortgage rates will result in reduced interest payments for homeowners, making homeownership more affordable and accessible to a broader range of potential buyers.
Increased Demand: Lower mortgage interest rates are likely to lead to a surge in housing demand as more people are inclined to purchase properties, potentially driving up the demand for homes. This is great news for homeowners.

Savings: Existing Homeowners can save money by refinancing their mortgages at the lower rates, which can free up extra cash for other expenses or investments.

Upgrading: with the combined benefit in increased home values and lower mortgage interest rates, existing homeowners may find it easier to upgrade to a more desirable property, allowing them to live in a larger, more comfortable residence without sacrificing financial stability.
Here is where things get a little tricky
You may have noticed that most of these benefits apply to existing homeowners.
This is important because most people who are planning on purchasing a home but waiting for mortgage interest rates to drop may be overlooking the Very important factor of DEMAND.
Right now, a lot of people are sitting on the sidelines, waiting for rates to drop and home prices are continuing to rise even our current rate environment, with interest higher than they have been in 20 years.
This is due to low inventory.

IF mortgage interest rates drop, you qualify for a higher purchase price, to spend more, but not necessarily to spend more to get more house because WHEN home prices rise, you’re simply going to pay more, see the difference?
Just imagine how much and how quickly home prices will increase with the demand multiplied by a drop in mortgage rates.
Also, notice my emphasis on “IF” vs “WHEN”.

There is a possibility, even a likelihood that interest rates may drop.
7-8% mortgage rates could be the new normal or mortgage rates could go up.
But history shows us that home prices WILL rise.
Even just a 1 or 2% drop in interest rates can spark a flood of demand on an already low supply of inventory, which could mean that the $500k home that you were thinking about purchasing increases to $700k or more.
If you’re questioning whether or not this can happen, just google 2021 housing data.
To sums things up: if you’re thinking about purchasing and can afford to purchase a home now, don’t try to time the market, purchase your home.
If or when mortgage rates drop, you can refinance but I promise you that you will not be able to pay a 2023 home price in 2024 and beyond.
Contact me with any questions or for a no cost mortgage quote.
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Also, get in on the conversation, Comment below with your thoughts.

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#housingmarket #mortgageindustry #2024 #interestrates
#economicforecast #homebuyers #realestate
#housingforecast #mortgage #marketprojection

For more info on how we can provide you with a successful home purchase, refinance or home equity loan (HELOC) mortgage experience, please visit our website: http://www.HTXMTG.com
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Edward Foy: H Mortgage
281-304-6353
efoy@HTXMTG.com
https://www.HTXMTG.com/LT
Competitive Pricing, Quick Approvals, Close On Time
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About The Home Equity Network, H Mortgage.
We pride ourselves on guiding individuals through the intricate world of real estate & mortgage solutions. Our channel showcases satisfied clients who have successfully navigated the homebuying, refinance, and home equity loan (HELOC) process with our assistance. From insights on purchasing to understanding the nuances of VA Mortgages, our videos aim to educate and empower.
With content that resonates with both first-time homebuyers and seasoned investors, we believe in the adage, 'Don't Wait to Buy Real Estate, Buy Real Estate & Wait.'

We Provide Real Estate & Mortgage Solutions
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Disclaimer: We do not accept any liability for any loss or damage which is incurred as a result of listening to any of our publications. For all videos on my channel: This information is for general & educational purposes only. Always consult with an attorney, CPA, or financial professional for advice based on your specific situation.
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Posted by Edward Foy on July 26th, 2024 12:25 PM

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