INTEREST RATES 2023

Starting June 2022 the Federal Reserve made a major shift in the interest rates making history to tame inflation. Record breaking 7.0% interest rates reminded us of the 2005 recession era. As of Jan 15th 2023 inflation has dropped enough to decrease the amount of next spike in interest rates. The main purpose is to slow down spending and it ha slowly worked and many homeowners has delayed plans to buy a home or car. The housing inventory has slowly come to life with the new age Generation Z millennials making home purchases due to rising rent.

While mortgage activity has shrunk over the last year, inflationary pressures are easing and should lead to lower interest rates in 2023. The other half of the equation is to bring home prices back in tact for affordability. remember it is no promise 3.0% interest rates are coming back anytime soon. The federal government next meeting is scheduled March 21-23 2023 to determine another spike at .25%.

It's obvious that if mortgage rates drop a half percent, there will be a rush to close in on a home and triggers builders, sellers and buyers to stimulate the housing market. Mortgage rates are unlikely to increase April 2023 until the next inflation report is much worse than expected. Its much better to lock your rate closer to 6% than 7%. Google reports home sales were up almost 50% since December 2022 and months of home supply hovered around three months. Nationally 46% of homes that went under contract had an accepted offer within two weeks compared to this time last year March 27th, 2022 for five days or less. 25% of homes sold above their final listing price and listing to sold ratio is now 98.5% versus 101.5% as per Redfin.

HOMEBUYERS

Homebuyers expect to jump back in the housing market as home prices slowly level out as interest rates rise. Affordability is the key word in this era we face. Purchase power has started with sellers giving incentives to homebuyers along with lenders bringing creative lending within federal guidelines. This was a lesson learned in the 2005 housing market bubble bursting. This has slowly turned into a buyers market, opening up the doors that stop bidding war's, giving buyers back an inspection period and helping buyers with closing cost with vast amount of equity in the seller's house. If you are ready to buy a home, the time is very near for those that were put out of the market is right in front of your eyes. 

TRUSTED ADVISOR

As a trusted advisor, professional realtor and retired military veteran, I am here to serve you and always on the pulse of the housing market for the Dr Phillips and Central Florida area. Always stay in tuned, educated and connected in this volatile housing market to purchase or for the sale of your home. In the absence of trustworthy up to date information, real estate decisions are increasingly being driven by fear, uncertainty and doubt. We as trusted advisors drive the real estate community and always preaching the truth of real estate. I emphasize that education is a must for the community to ensure you are making the right decision. So don't let this shifting housing market delay your dreams, data reveals home values typically appreciate over time and that gives your net worth a nice boost. If you are ready to start your journey contact me today at 850 496-6412 to help begin a new walk to home ownership and all of your real estate needs.