After months of a sluggish housing market, realtors are offering deep discounts to close deals and are Mortgage brokers launch programs to protect the value of their customers.
“The fall in.” mortgage rates it creates opportunities for many buyers, because the lower mortgage lowers the monthly payment, “Nadia Evangelou, National Association of Realtors the senior economist and director of real estate research, said in a statement. “At the same time, data shows that buyers are more willing to trade up when homes stay on the market for a long time.”
For example, Evangelou said that real estate agents should lower their initial asking price by 12% on average for homes that have been leased for more than 30 days. Meanwhile, prices have fallen by 15% after properties have been on the market for more than four months.
“Right now, there are very few offers on the list. The average buyer gets a few offers for their home compared to four offers last year when people were in a rush. buyers benefit from 3% historically low prices,” said Evangelou.
Freddie MacThe latest report shows that the 30-year mortgage rate remained at 3.56% last year. After reaching the 7% level in September, the rate fell to 6.15% until January 19. In one week, it decreased 18 basis points.
According to Sam Khater, the chief economist of Freddie Mac, the prices are falling due to lower prices, improving the demand of home buyers and the sentiment of the home builders.
“The reduction in rates is giving a big boost to the housing market, but the supply of housing remains a concern,” said Khater.
Like the market as a whole, Home Loan Offerpad there is also an increase in requests in the first two weeks of January. However, some borrowers are reluctant to buy homes because they believe they can lower mortgage rates.
“Many prospective homebuyers believe that mortgage rates will drop this year and are waiting to buy. their other houses. But if prices fall, the property market will heat up, prices will rise, and the war can start again,” said JR Samsing, vice president of Offerpad Home Loans.
According to Samsing, “that’s why now is probably the best time for customers to take advantage of the current market conditions. The increase in research and better accessibility means that home buyers can negotiate the best deal.
At Offerpad Home Loans, the management team runs an interest protection program, which ensures that if the mortgage falls through, the lender will provide a free payment. The lender will also pay a $500 appraisal fee if required.
The loan company said that the program is valid for three years, but some loans cannot be refinanced for the first six months. Lenders are subject to credit approval.