Season 2 E214 2024 Housing Market Forecast and Predictions - Part 4 MORTGAGE RATES

Believe it or not, mortgage rates may actually go down next year - but will that really make homes more affordable? David reveals the builders' "magic number" that had buyers flocking to purchase inventory.

You'll also learn why becoming a homeowner sooner rather than later has huge financial benefits long-term. And get this - institutional investors are slowing down, leaving more opportunities for regular folks like us.

If you want insider info on how to navigate the crazy market, listen to the final episode of David's forecast series now. The housing revolution starts with your next move - will you join in?

Here are some key topics from today’s conversation:

• Mortgage rate predictions for 2024
• Builders' "magic number" for selling inventory
• Long-term impacts of owning a home on payments

Episode Highlights:

[11:57] The Magic Mortgage Rate

The home builders figured out the perfect mortgage rate to get people off the fence and into their empty homes. By slowly dropping the rates a little at a time, they noticed things didn't really move until they dipped below 6%. But once they hit 5.99%, buyers came out of the woodwork! In no time at all, the builders' unsold homes were scooped up as people jumped to snag those ultra-low interest rates. This showed the builders exactly how sensitive home shoppers are to that interest rate - even a small tweak could be the difference between moving or not moving those houses.

[21:29] The Forced Savings of Home Equity

Your mortgage is like a hidden savings account! With each monthly payment, you're slowly paying down the loan principal and building up equity in your home. Over 30 years, this adds up - you could end up with hundreds of grand in value just from making your regular payments. And best of all, you can use that equity later on however you want. Need cash for a new car or kitchen reno? Just tap into your home savings. Ready to upgrade to a bigger place? Your equity can cover most or all of the down payment. Talk about a sweet deal!

[25:05] Who's Paying the Realtor Fees?

 

There are currently hundreds of lawsuits working their way through the courts that could impact who pays realtor fees when buying a home. Currently in most areas, sellers cover at least part of the buyer's agent commission.But if these lawsuits are successful, that standard may change. Plaintiffs want to pass the full cost of the buyer's realtor onto home purchasers rather than having sellers foot the bill. This could mean buyers having to come up with an extra 2-3% on top of other closing costs, a significant amount on high-priced properties.