Finally Fall has arrived! If you’re anything like me, then this is a welcome change in season. I’m looking forward to falling leaves, cooler temperatures, and crisp nights around a fire. At least those are my expectations for this time of year. How about you? What good things are you expecting this Fall?
Speaking of expectations, we’ve all been expecting the FEDS to cut rates for a VERY long time now, and…drumroll, please…they finally did it! They cut rates by .5%. That’s a pretty significant drop. In fact, it’s the first drop since March, 2020. And it’s also the largest. Of course that made a lot of people happy and brought a whole new set of expectations; especially for buyers and the housing market.
Let’s take a look at just a few:
- Lower Mortgage Rates. This is definitely at the top of the list for buyers. For them, decreased mortgage rates means home loans will be more affordable.
- Increased Purchasing Power. With lower rates buyers may be able to afford more expensive homes, or even secure a lower monthly mortgage payment.
- Refinancing Opportunities. Buyers with existing mortgages may find it beneficial to refinance and lower their monthly mortgage payments.
When I look at the market, it’s clear these three key expectations stand prominently at the top of the list. While it’s true they’re all positive and likely to bring joy to many people, it’s important to consider some other factors that influence their impact.
Now let’s take a look at the opposite side of the coin.
- Lower Mortgage Rates. The full effect of the rate cuts will take time to materialize and filter down to consumers. There’s actually a delayed effect as lenders adjust their pricing strategies.
- Increased Purchasing Power. There’s a charge to the buyer when securing a desirable interest rate. That charge comes in the form of points, which is what it costs the buyer for a particular rate. That can be a lot like shopping for a can of Chicken Soup. Grocery stores charge different prices for the same can of soup. Lenders do the same. Buyers must decide how much they’re willing to pay for a loan and its corresponding interest rate.
- Refinancing Opportunities. Homeowners with existing mortgages must still qualify for refinancing. If their credit is less than stellar they may not be able to secure a lower interest rate or lower monthly mortgage payment.
I feel the biggest takeaway here is for buyers to realize that securing a loan means they’re going to pay a charge in the form of points. And shopping for points is a lot like shopping for a can of chicken soup. It’s the same for homeowners looking to refinance. They’re also out in the market shopping for the most affordable can of chicken soup.
Whether it’s a buyer securing a new home loan, or an existing homeowner wanting to refinance, they all need some guidance to make the best decisions possible. Yours Truly here is an expert on chicken soup…and…ahem…helping people secure a home loan. I can help buyers looking to make their first purchase, and I can help homeowners lower their interest rate and monthly payment. Give me a call and I can show you how.
So, here’s to a cozy Fall and all it has to offer. And certainly, here’s to lower interest rates!
John Fleming, Jr.
Mortgage Banker
Stockton Mortgage
Loan Originator | NMLS 1850409
(865) 745-5626
john.fleming@stockton.com
P.S. If you know someone who’s looking to take advantage of lower rates and refinance their home, send them my way. I can help them lower their interest rate, and lower their monthly mortgage payment. I can help them secure the best loan possible. Send them my way. My number is (865) 745-5626.
Food For Thought: The Knoxville housing market stays strong and is still showing upward trends. Home prices are increasing but homes are selling quickly. Median prices are up by about 5.6% over last year according to authorities. Even so, people are on the move and people are still looking for homes with the very best mortgage lending opportunities. I can help people find those opportunities. I’m committed to helping home buyers find the best loan possible. Call me at (865) 745-5626 to discuss options.
Happenings:
Ah…fall…the temperatures are cooler and the air is crisp. There’s the familiar crunch of leaves under your feet. Cinnamon spiced apples and pumpkin spice everything is all around. Fall just feels like a cozy blanket. And it’s filled with all kinds of fun things to do! What’s better than a corn maze or a pumpkin patch? For me, that really says fall. Corn mazes and pumpkin patches are just about everywhere so why not treat yourself and your family to a little fun? There are some good ones close by. You might want to check out Kyler Farms Corn Maze in Sevierville, or Deep Well Farm in Lenoir City. And don’t forget Blackburn Farm, which is also in Lenoir City. These are just a few, but make sure to go. Get lost in the corn. Pick the perfect pumpkin. Savor the spicy cider. And by all means have a Happy Fall Y’all!