Yes, the FED cut the overnight lending rate by fifty basis points and mortgage rates went higher! Yes, the markets moved higher on the 30-day rates, but have you looked at 45- and 60-day pricing? Pricing on longer term locks is signaling that the markets are betting on the rate market going lower sooner rather than later, and the magical 5% rate market will be within reach and the world of refinances grows even larger, but the real calm before the storm will come from those who will be comfortable trading in their old house with the 3% rate and accepting the new home with a 5% rate. And THAT market is going to SURPRISE many people who won’t even realize it’s happening until that market has passed them!
The key here is to understand the emotion of rates as they move. In many cases it really isn’t about math, it’s about the EMOTION of the number. We all know that 5.99% emotionally far superior to 6%, even though it’s barely noticeable in the payment. The same holds true for buyers who are rate resistant because of their current lower mortgage rate. More and more of those people are seeing the benefits of refinancing from a combined debt perspective, but very few people take the time to view this from the opportunity to get their forever home NOW before the COST of that house gets out of reach!
So, the true calm before this storm is now. You must prepare your list of those people who may benefit from falling rates from a sheer debt consolidation perspective and those who will also benefit just from a PAYMENT perspective; but you also need to have those conversations with every refinance client about LOOKING into the cost of selling and buying their forever home! Not only is it wise to have these conversations, but it is PROFITABLE! There are THREE markets in play!
1. Straight up refinance to a lower interest rate and lower payment.
2. Refinance and debt consolidate for a lower total monthly payment.
3. Sell and move to the forever home and refinance later if possible.
The third one is the hidden gem of this market that most people never share! To go over the specifics of this or any other of my success strategies just email me at This email address is being protected from spambots. You need JavaScript enabled to view it. and let’s talk!
