Market Update: Rates May be Changing
The guys are back to explain what's been happening in the real estate market and lending. Bryce lets us in on the changes that might be happening to interest rates and what we can do to prepare for our hot market. Jesse and Bryce update us on their team and how this year is wildly different than last.
Jesse: What's up everybody, back again, Jesse Taff, Bryce Gonser, with Buying The 208 and we're just going to share a couple of market updates that we're seeing to start off 2021 and some really cool success stories that we've had. But make sure to watch the whole video because we're going to be dropping some really good insight into what we expect to come over the next few months in the housing market.
Bryce: So yeah, it's been a super, super busy 2021 as we talked about, in some of the videos that we ended with in 2020, just talking about how busy it was going to be. I know for myself, and my team, we've already done over 40 fundings for both primarily purchased, but still, some refinance in there as well, so just a crazy start to 2021, helping out a ton of families with a wide array of either getting into new homes debt consolidation, and I know waypoints been doing awesome with that as well.
Jesse: Yeah, that's awesome to hear. I mean 40, that's a good number to hit and a lot of happy clients I'm sure.
Bryce: Yeah, absolutely.
Jesse: Yeah, we’ve been busy as you guys have probably seen also helping tons of families and individuals buy or sell their properties, and really wanted to share one specific success story of a mutual client of ours and we've said this once before already, and it happened again. We had another client move into their brand-new home, they started building last year, finished this year. $100,000 in equity, their purchase price is now the base model price for the same home in the same community.
Bryce: Just crazy how fast it's shooting up, and what's even more crazy is you get people from out of state, they recognize it, they see it, so it's not just people here but we have clients from out of state, just be like, every week, it's another 10k, it's another 20k, and that's why it's so critical to get in now while it's still climbing. That's awesome.
Jesse: Exactly. Start early, plan early and we can't always guarantee 100,000 and I wish we could, I'd keep buying too, but yeah, you can expect some good investment right now.
Bryce: Absolutely, and then on top of that guys, I sent out an email over to waypoint and some of my other close relatives, but talking about interest rates, a lot of us know now that interest rates are back to low threes, so we're no longer sub threes anymore. Typically, for most conventional FHA, even VA purchases, we're still hovering in those low three ranges, the bond market took a little dip, based on some of the fear from the stimulus package and some of the inflation numbers that are creeping up.
Based on the numbers so far for this year, as we move into later spring, early summer, and some of those that CPI, that consumer pricing index numbers come out, which is basically a measure of the nation's inflation, the bond market could take another tank for the worst. So not to say that rates are going to shoot up crazy, but it's looking like that in June and July, the bond market could then dip again, causing rates to go up, it acts like a teeter-totter, as the bond market comes down rates go up. We got pretty lucky for sub threes for quite a while, but it's just something to look for, especially in this market, where it's very already competitive. If that extra bump in interest rates is going to price you out, it’s better just start looking now.
Jesse: Yeah, exactly. So, no known cause for panic, there's no guarantee it's going to go up or down. This is what you're seeing right now, but if now is the right time, it might be a good one to commit to and try and find yourself a home. Of course, if you guys have any questions on how the interest rates up or down, are going to affect buyer's or seller's because it will affect both, definitely send us a message or a comment, reach out to us individually, and we'd be happy to help and explain some of the scenarios we might: see coming up.