I’m a little bit ashamed, embarrassed, pissed off, and proud, depending on who’s comments I’m reading. The way some salespeople and/or business owners have reacted and portrayed the act of buying or selling a home as it relates to The Federal Reserve cutting rates to almost 0% is all over the freakin’ board.
One of my REALTOR friends in Charlotte, David Upchurch, went blunt about it, and perhaps the best, quick explanation came from my KW friend and leader in Greenville, SC, Moses Nickerson. See both quotes below.
That all said, the professional and responsible thing to do is contact your mortgage broker/banker. If nothing else, send them a text ping. Frankly, they are expecting it, and so is their staff. If you or anyone you know would be interested in contact names/contact info I love and trust, please give anyone on our team a call/text/email and we will tell you what we know regarding each lender’s specializations, as every broker/bank is different. I’m at 803-447-8683 and Franklin@TheNeighborhoodRE.com.
Here’s an article that explains the difference between Fed Reserve interest rates and mortgage rates.
Are we in a time whereby it may be advantageous to your family/portfolio to buy, sell or invest in real estate? For sure, but everyone’s situation is different.
My best advice that has served me well over the years – Be safe, wise, and steady.
Check my friend’s quotes below…
Franklin Jones
“If your Realtor is telling you, Feds cut rates so you need to buy a new home now. You need a NEW Realtor. Not the same thing.” David Upchurch – REALTOR Charlotte, NC.
“Okay folks… federal reserve rates do not immediately affect mortgage rates. However they will likely create some opportunities we haven’t seen in decades over the next few weeks. It’s a great time to start that conversation and watch as this unfolds. It could very well create a phenomenal opportunity to buy or sell in different ways.
As interest rates drop, it does create crazy opportunities. For instance at the beginning of 2019, rates were often around 5%… now they’re bouncing all over from low threes to 3.5% and whatever your loan officer tells you that hour. 😂However… even though they’re bouncing around; money is still effectively around 15% cheaper then it was at the beginning of 2019. (I’m not talking crazy volatility today; I’m talking a year and a half trend here)
So for you bargain hunters… that means the mortgage cost for a 200,000 home is going to be about the same as a 170,000 home at the beginning of 2019. Or if you’re not the bargain hunter but the “buy one get one” kinda person who wants the most for your money… for the same approximate monthly cost; you could now buy about a 230,000 house instead of a 200,000 house at the early 2019 rates and monthly cost.
So… either real estate is ~15% off or you can get ~15% more for your money in comparisons to ~15 months ago. Lots of 15s. 😂
Most important thing in all this; find a mortgage professional you can trust and get the numbers for your unique credit situation. Let me know if we can help connect you with some great ones! Text or message me: 864.660.9876.” Moses Nickerson – REALTOR – Greenville, SC.
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