Epic Real Estate Investing - This RARE Drop in Mortgage Rates Could Change Everything | 1327

Starting point is 00:00:00 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-a-eas.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Starting point is 00:00:27 Let's go. What you're looking at behind me is a snapshot of today's mortgage rates. And then got a story to tell. So if you're wondering when will be the best time for your next real estate purchase, you won't believe where this story is headed. This rare drop, it could change everything, despite the murmurs of a global economic crash and a looming recession. That's arrival is at least two years later than what most were predicting.

Starting point is 00:00:48 But will it stick? Well, I've got that and a bunch more on the housing market for you today. And while everyone was scrambling in fear on Monday, nobody seemed to be noticing this free source of money right now. And it's surprising that banks don't promote this more. Banks right now are offering 0% lines of credit amid all this chaos. And here's how to qualify. If you have a 680 credit score, no open collections, no bankruptcies in the last seven years,

Starting point is 00:01:10 Citibank is offering 0% interest capital for real estate investments and businesses. This program, it's still available. I've secured up to $150,000 per three different clients real estate businesses in just the last 14 days. It might not be around forever, but for now, it's still a little. open to the public at no costcapital.com. Now, regarding mortgage rates, they're not at zero percent, but they are now at their lowest level in over a year. Last year, they shot up to almost 8%. They just nicked it for a second, I believe, which really slowed down the housing market. And because of that, people have been waiting for rates to drop. And guess what? They finally have. Right now,

Starting point is 00:01:46 the 30-year fixed rate is under 6.5%. This is huge for many because it makes buying a home more affordable, say on a $500,000 house. The difference amounts to about $400 in your monthly payment. So if you happen to be in Los Angeles, San Francisco, Miami, Boston, New York, or Seattle, you're going to save about $800 to $1,000 a month on the average home. But here's the kicker. This drop in rates, it took so long to get here. It's look like some potential buyers might have just given up and decided to wait until next spring, the real traditional buying season. Because we're at a crucial point where if rates stay low, we could see. see a jump in demand. More people might start buying homes, which means prices would stabilize or even go up. I mean, it seems crazy to say considering all the blood flowing in the streets in the last 24 hours, but that's how supply and demand works. So for those already in the market, kind of your lucky day. But with the hysteria around the markets Monday, it's, and what's likely to continue in varying degrees, it might not feel much like luck. But if you're shopping, hey, it just got a little bit better for you. But here's what we do know. A 25 basis point drop by the three.

Starting point is 00:02:51 Fed in September, that's a 100% certainty and the odds of us seeing a 50 basis point drop. That's about a 74.5% chance per the CME Fed watch tool as of the recording of this. It can change quickly, but that's what it says right now. And this is important for you as a real estate investor to know because when the Fed lowers the rate by 50 basis points, which is just a fancy way of saying half a percent, banks that borrow money from the Fed also get a cheaper deal. And because banks get cheaper money, they usually lower. the rates they charge people for loans, like for mortgages when you're buying a house. So if the Fed

Starting point is 00:03:26 drops the rate, you can expect that mortgage rates are going to come down to, making it cheaper for people to borrow money, to buy homes. And this often makes more people want to buy homes because it's the rate that impacts the monthly payment for a home. And if you were to wait, there's a good chance. You could see at least one more drop in October or November. There's a great deal of confidence around that happening as well, or maybe even both months, depending on how the economy or regresses from here. But there's a hidden danger in waiting for rates to drop. If you wait too long and everyone starts to come out to shop at the same time,

Starting point is 00:04:01 that's kind of how the population or how people work. That's what we call demand. And that's what drives prices up. So there's a tricky dance that goes on here between rates and prices. Yet there's even more to this because inventory is also an interesting piece of the puzzle. You know, we've got the demand of the people, the inventory, that's the supply. And we saw a slight increase, about 6,000 more homes. homes on the market than we did last week. But the growth rate is slowing down, which is typical for

Starting point is 00:04:26 this time of year, states like Texas and Florida, which have been adding a lot of inventory, they might be peaking. And maybe we'll stop hearing the Florida market's crashing stall and that's been on heavy rotation the last few months. The inventory that we've got right now is probably what we're going to get. Now, what about sellers? Well, new listings, those are slightly up, but not by much. Many homeowners with low mortgage rates are holding off on selling. They've got equity and don't feel pressured to move unless they really have to. Now, in terms of contracts, there's a slight uptick. About 66,000 single family home went into contract this week. So this is a good sign, a good sign that the market still has a pulse, that it is still out there and things are happening. But overall sales are still

Starting point is 00:05:05 lower than they were last year. So what does this all mean for you, the private real estate investor? Well, if you've been on the fence, now might be the time to make a move and look for the motivated sellers out there. Lower rates mean better affordability. And with inventory growth slowing, although it's still growing, it is slowing. You could find some good deals. And with even lower rates less than 30 days away, by acting now, you could see yourself enjoying the best of both worlds, a lower price with a lower rate. But I have to imagine that will be a small window when you can get both pieces. Just my two cents, but time will reveal all as it always does. The bigger thing here to consider, though, is 90 days from now, what action will you have wished you had taken today? That's all for now.

Starting point is 00:05:47 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.

Starting point is 00:06:03 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 cash flow. This podcast is a part of the time.

Starting point is 00:06:38 of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.

Epic Real Estate Investing - This RARE Drop in Mortgage Rates Could Change Everything | 1327

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.