Epic Real Estate Investing - Did You See What the Mortgage Rates Just Did? (not since Feb 2023) | 1351

Episode Date: September 14, 2024

In this episode, we delve into the significant decline in mortgage rates, which have now reached their lowest levels since February 2023. With rates currently hovering just under 6%, this marks a substantial decrease from last year’s rates, which were over 7%. This dramatic drop is largely attributed to the bond market’s growing expectation of future Federal Reserve rate cuts, leading to improved mortgage spreads and more favorable conditions for borrowers. We examine how this shift is fueling a surge in mortgage applications and reigniting interest in the housing market. Whether you're a prospective homeowner or a real estate investor, this episode offers valuable insights into how the current rate environment could impact your financial strategies. We discuss the potential for long-term savings for new homeowners and the unique investment opportunities emerging in the real estate sector. Additionally, we emphasize the urgency of acting swiftly to take advantage of these favorable conditions before increased market demand potentially drives prices up again. Tune in to understand how these changes could affect your housing decisions and investment plans, and learn why now might be the optimal time to make a move. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-i-a-s.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Mortgage rates just flipped for 2024. Did you hear? If you're a buyer or an investor, this might be the break that you've been waiting for or at least the very beginning of it. But there is more to the story. What's driving the drop? And what could it mean for the housing market? Well, stick around because the opportunities here could be opening up. But did you hear about the Chase Diamond secret that real estate mobiles used to impress their spouses and call the shots without lifting a finger or spending a dime? Visit no-cost capital. dot com for the details. All right, so let's break down today's news with mortgage rates. They have just dipped to the lowest we've seen in 2024, actually the lowest all the way back to February of 2023. And some buyers are even locking in rates just under 6%, which is a huge shift compared to last year's highs of over 7%.

That 1% difference might seem small. It certainly sounds small, but it's massive when you factor in the long-term savings on a 30-year mortgage. I mean, let's talk numbers. On a $300,000 loan, just a 1% drop in rates can save you nearly $200 a month. Over time, that's a lot. It adds up. So what's causing this drop? Well, it's all about the bond market reacting to the possibility of the Federal Reserve cutting rates. The Fed hasn't officially cut rates yet, but the market is certainly anticipating it. And if you look at the CME watch tool, it has it at a 100% certainty that rates will be cut rates. on the 18th. So in other words, investors are comfortably betting on these lower rates and mortgage lenders, they're following suit. Everybody's getting ready. This is why we're seeing mortgage spreads improving. The difference between the 10-year treasury yield and mortgage rates has narrowed, dropping by 0.8% from last year's worst levels. But here's where things get even more interesting.

Mortgage applications are starting to rise. In fact, we've had nine positive weeks out of the last 14. It's not a full rebound yet. Home sales are still at historic lows, but this drop in rates is sparking new interest. Think of it as a dam that's starting to crack. Lower rates are the pressure release that could see more buyers flood to the market. But let's put this into perspective. I mean, imagine that you've been eyeing a property for months. You've been thinking about it. You've been dreaming about it. But the high mortgage rates have kept you on the sidelines. Well, now with rates dropping, that same property becomes more affordable overnight. It's like getting to you. It's like getting a sudden discount on something that you thought was out of reach. For real estate investors,

this is really an opportunity. Lower borrowing costs mean better cash flow, whether you're looking to buy rental properties or if you're looking to flip homes. And with the market still in recovery mode, you can find properties at a discount compared to the inflated prices that we saw during the post-pandemic boom. In short, you're getting cheaper financing and possibly cheaper deals. That's a double win. But that little window won't be open for long. Once that dam does break and more buyers flood to the market, that means competition, that means demand, and we know what happens to the prices when demand rushes the market, prices go up. And that's not forget inflation either. With inflation showing signs of cooling, the pressure on the Fed to keep rates

high, that's fading away. This opens the door for even lower rates down the line, which is almost a certainty as well, with two to three more rate cuts projected in the next four to six months, and that will certainly fuel the real estate activity. So if you're a private investor, the window for locking in low rates might not stay open for long. In addition or in combination with the lower opportunities with regard to purchase price, that little window might not stay open for long. It's a bit like catching a wave. Get on it early, and you'll ride it all the way to the shore. If you wait too long, you could miss it. The key takeaway here, whether you're a first-time home buyer or a seasoned investor, this dip in mortgage rates could be your ticket to

better deals and higher profits. Keep your eyes on the market because the conditions are improving. The vines are ripening for better opportunities. It's certainly here right now, and they're likely only going to get better. You want to get in early before the competition rushes in and messes up the whole price thing. But at least you got the rates. At least you got cash flow. I'll see you next time.

Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. and when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I.

Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us, we got the dash low. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.