Mortgage Rates: A Window of Opportunity
Mortgage rates have fallen below 6.5%, offering a rare opportunity for both buyers and those looking to refinance. This drop, driven by softer employment data and economic uncertainty, has sparked a surge in refinancing activity, which rose by 35% over the past week. If you’re considering buying, now could be the time to act before rates potentially fluctuate later in the year, driving up competition (and likely home prices). Don’t miss out—explore your mortgage options today to lock in these favorable rates. If you're in a position to refinance, consider this your cue to pay closer attention to interest rates ahead of the September 18th Federal Reserve meeting, where many analysts are predicting a rate cut (a first for the Fed in quite a while). Reach out to us to discuss how refinancing now could save you money in the long run.*
Buyer Activity: A Competitive Landscape
The lower mortgage rates have spurred more buyers into action, but with inventory still tight, competition remains relatively high. For prospective buyers, it’s crucial to be pre-approved and ready to move quickly. This is where tools like CompetitivEdge come into play. With a fully underwritten pre-approval and a bona fide Commitment Letter, CompetitivEdge positions you as a serious contender in a competitive market. Contact us today to get pre-approved and give yourself the best chance of securing your dream home.
Sellers: Maximizing Your Position
Sellers currently find themselves in a favorable position, with increased buyer interest due to lower rates. However, the potential for further rate cuts later in the year makes timing critical. Listing now could enable you to take advantage of the current low inventory, but pricing your home correctly is essential to attract serious buyers without leaving money on the table. Leveraging insights from your local market data can help you price strategically and maximize your return—just ask a Listing Agent! Ready to list? Let’s discuss how you can make the most of these market conditions.
Economic Outlook: Key Factors to Watch
The market’s trajectory will depend on upcoming economic indicators, such as the Consumer Price Index (CPI) and further employment reports. While current trends suggest continued rate declines, any major shifts in the economy could alter the landscape (per CME Group). Staying informed and being prepared to adjust your strategy will be crucial in making the most of these market conditions. Have questions? We’re here to help you navigate these changes with confidence.
Wrapping It Up
August 2024 is shaping up to be a pivotal time in the housing market, with falling mortgage rates driving buyer interest and creating strategic opportunities for sellers. The current rate drop below 6.5% presents a rare window for both buyers and those considering refinancing. However, tight inventory means competition remains fierce. Utilizing tools like CompetitivEdge can give buyers the advantage they need, while sellers should act quickly to capitalize on favorable conditions. Don’t wait—reach out to us today to explore your options and make the most of this unique market moment. As always, staying informed and working with experienced professionals is key to navigating these changes effectively.
Prosperity Home Mortgage, LLC does not offer financial advice.
This information is provided for informational purposes only and does not constitute legal, tax, or financial advice.
*By refinancing an existing loan, your total finance charges may be higher over the life of the loan.
1. HomeSURE Advantage is not a final loan approval or a guarantee to lend. A Commitment Letter is based on verified information and documentation provided by the borrower and a review of the borrower's credit report. The interest rate and type of mortgage used to approve borrower for a specified loan amount is subject to change, which may also change the terms of approval. If the interest rate used for credit approval has changed, borrower may need to re-qualify. Information provided by borrower is subject to review and all other loan conditions must be met. After a borrower has chosen a home and the purchase offer has been accepted, final loan approval will be contingent upon obtaining an acceptable appraisal and title commitment. Additional documentation and loan qualifications may be required. Not all borrowers will qualify. May not be available in all areas.
2. Some restrictions may apply. The Closing Guarantee is only available on HomeSURE Advantage-designated, conventional, FHA and VA loans with a valid Commitment Letter issued by Prosperity Home Mortgage, LLC (“Prosperity”), in writing prior to execution of fully ratified sales contract. Some jumbo loan programs may be eligible at the sole discretion of Prosperity. Brokered jumbo loans are NOT eligible, and any jumbo loan programs requiring investor preapproval are NOT eligible. The Closing Guarantee is NOT available on renovation loan products, loans for the purchase of cooperative housing units, or loans involving any sort or type of bond, grant, down payment assistance, mortgage credit certificate, or any other non-profit, municipal, or housing authority program. For conventional loans, FHA loans, and VA loans, an acceptable appraisal must be received and approved by Prosperity at least ten (10) business days prior to closing or loan is not eligible for Closing Guarantee. The Commitment Agreement has an expiration date, which, solely for purposes of eligibility for the Closing Guarantee, may not be extended. The loan must close on or before the expiration date contained in the initial Commitment Agreement issued by Prosperity. Subject to acceptable appraisal of property value at or above contract sales price. The Closing Guarantee is subject to the satisfaction by the Borrower(s) of all loan conditions identified in the Commitment Agreement at least three (3) business days prior to closing or as otherwise determined by Prosperity in its sole discretion. The Closing Guarantee is not valid if either Borrower(s) or Seller terminate the purchase contract, extend the settlement date, or otherwise choose not to consummate the transaction for any reason whatsoever. The Closing Guarantee is invalid if there is a substantial change in the Borrower’s financial condition or to the terms of either the loan, loan product, loan type, or the purchase contract between Borrower(s) and Seller. The Closing Guarantee is void in the event closing is delayed or cancelled as a direct result of an unforeseen disruption of service; an act of God; a national, state, or local emergency; pandemic; natural disaster; or other public health declaration. This offer is void where prohibited and is non-transferable, subject to the terms herein, and valid on all complete applications received on or before 12/31/2024. The Closing Guarantee is limited solely to the transaction and subject property identified herein.
Interest rate and annual percentage rate (APR) are based on current market conditions as of 08/15/2024, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 08/15/2024 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
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