What goes down will come back up and vice versa. Over the past three weeks we have seen extreme volatility in mortgage- backed securities and the bonds market, which has in turn shown us a volatile rate environment. Many consumers are shocked as we watched rates lower into the high 5s and then move up overnight back into the high 6s. Don’t be scared home buyers! This is normal as rates rise a lot faster than they fall. This volatility is to be expected. We all would love to see rates nosedive down back into at least the 5s, but the reality is that when rates drop it looks more like a heartbeat monitor and that is exactly what we are experiencing this week in the market. The high side of the heartbeat has not been a fun surprise for those who have gone under contract within the past few weeks and understandably has given a few second thoughts about purchasing.
One constant has stayed true over the last 6 months and that is to date the rate and marry the house. Stomach the higher monthly payment for the house you love until the opportunity to refinance comes later on. Speaking of projections for lower interest rates, this could happen as soon as later in the year such as Q3 or Q4 of 2023. Without being too nerdy, May 10th is a date that we have marked on our calendars as the next step towards lower interest rates. On this date many old reports will be replaced with new, and the new numbers are supposed to help slide interest rates further down. For you homebuyers this is not the invitation to wait to buy but to potentially refinance. With lower interest rates comes more competition and a constant low inventory market. Winning a home over the next few months is going to be more obtainable than later in the year. Millennials currently make up over 40% of homebuyers in this market. Some are taking advantage of the deals out there now, but we fully expect a larger number to flood the market as soon as rates are lower. At the end of day none of us can control the market.
Rutherford Yeates
Assurance Financial
MLO NMLS: #2096232
Company NMLS: #70876
205-913-3498
ryeates@assurancemortgage.com
