#fanniemae – Make Your Move with Mari

Buy Now or Wait for Rates to Drop?

Buyers who are holding out for lower mortgage rates may be missing a key opening in the market.

Mortgage rates are always a hot topic – and for good reason. After the most recent jobs report came out weaker than expected, the bond market reacted almost instantly. As a result, in early August mortgage rates dropped to their lowest point so far this year (6.55%).

While that may not sound like a big deal, pretty much every buyer has been waiting for rates to fall. And even a seemingly small drop like this reignites the hope we’re finally going to see rates trending down. But what’s realistic to expect?

According to the latest projections, rates aren’t expected to fall dramatically anytime soon. Most experts project they’ll stay somewhere in the mid-to-low 6% range through 2026 (see graph below):

In other words, no big changes are expected. But small shifts, like the one we just saw, are still likely.

What Rate Would Get Buyers Moving Again?

The magic number most buyers seem to be watching for is 6%. And it’s not just a psychological benchmark; it has real impact. A recent report from the National Association of Realtors (NAR) says if rates reach 6%:

And roughly 550,000 people would buy a home within 12 to 18 months
5.5 million more households could afford the median-priced home

That’s a lot of pent-up demand just waiting for the green light. And if you look back at the graph above, you’ll see Fannie Mae thinks we’ll hit that threshold next year. That raises an important question: Does it really make sense to wait for lower rates?

Because here’s the tradeoff. If you’re waiting for 6%, you need to realize a lot of other people are too. And when rates do continue to inch down and more buyers jump into the market all at once, you could face more competition, fewer choices, and higher home prices. NAR explains it like this:

“Home buyers wishing for lower mortgage interest rates may eventually get their wish, but for now, they’ll have to decide whether it’s better to wait or jump into the market.”

Consider the unique window that exists right now:

Inventory is up = more choices
Price growth has slowed down = more realistic pricing
You may have more room to negotiate = you could get a better deal

These are all opportunities that will go away if rates fall and demand surges. That’s why NAR says:

“Buyers who are holding out for lower mortgage rates may be missing a key opening in the market.”

Bottom Line

Some people have told us that they are holding off on making their next move in order to see “what happens.” If that means if rates are going to drop, you have your answer. They aren’t expected to hit 6% this year.

But when rates drop, you’ll have to deal with more competition as other buyers jump back in. If you want less pressure and more negotiating power, that opportunity is already here – and it might not last for long. It all depends on what happens next in the economy.

If you’re thinking about entering the market but want to talk it through, we’re here to listen. You can find us at 508-388-1994 or msennott@todayrealestate.com. Let us know how we can help.

Mari and Hank

Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.

What Credit Score Do You Need?

Most homebuyers think they need better credit than they actually do.

According to Fannie Mae, 90% of buyers don’t actually know what credit score lenders are looking for, or they overestimate the minimum needed.

Let that sink in. That means most homebuyers think they need better credit than they actually do – and maybe you’re one of them. And that could make you think buying a home is out of reach for you right now, even if that’s not necessarily true. So, let’s look at what the data really says about credit scores and homebuying.

There’s No One Magic Number

There’s no universal credit score you absolutely have to have when buying a home. And that means there’s more flexibility than most people realize. Check out this graph showing the median credit scores recent buyers had among different home loan types:

Here’s what’s important to realize. The numbers vary, and there’s no one-size-fits-all threshold. And that could open doors you thought were closed for you. The best way to learn more is to talk to a trusted lender. As FICO explains:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single ‘cutoff score’ used by all lenders, and there are many additional factors that lenders may use . . .”

Why Your Score Still Matters

When you buy a home, lenders use your credit score to get a sense of how reliable you are with money. They want to see if you typically make payments on time, pay back debts, and more.

Your score can impact which loan types you may qualify for, the terms on those loans, and even your mortgage rate. And since mortgage rates are a big factor in how much house you’ll be able to afford, that may make your score feel even more important today. As Bankrate says:

“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”

That still doesn’t mean your credit has to be perfect. Even if your credit score isn’t as high as you’d like, you may still be able to get a home loan.

Want To Boost Your Score? Start Here

And if you talk to a lender and decide you want to improve your score (and hopefully your loan type and terms too), here are a few smart moves according to the Federal Reserve Board:

Pay Your Bills on Time: This is a big one. Lenders want to see you can reliably pay your bills on time. This includes everything from credit cards to utilities and cell phone bills. Consistent, on-time payments show you’re a responsible borrower.
Pay Down Your Debt: When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible. That makes you a lower-risk borrower in the eyes of lenders – making them more likely to approve a loan with better terms.
Review Your Credit Report: Get copies of your credit report and work to correct any errors you find. This can help improve your score.
Don’t Open New Accounts: While it might be tempting to open more credit cards to build your score, it’s best to hold off. Too many new credit applications can lead to hard inquiries on your report, which can temporarily lower your score.

Bottom Line

Your credit score doesn’t have to be perfect to qualify for a home loan. But a better score can help you get better terms on your home loan. The best way to know where you stand and your options for a mortgage is to connect with a trusted lender.

If you are not working with a reputable lender, we can connect you with several who we know. Just reach out to 508-388-1994 or msennott@todayrealestate.com. We’re happy to help…

Mari and Hank

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.

” I Have a 3% Mortgage, Why Would I Move?”

If you have a 3% mortgage rate, you’re probably pretty hesitant to let that go. And even if you’ve toyed with the idea of moving, this nagging thought may be holding you back: “why would I give that up?”

But when you ask that question, you may be putting your needs on the back burner without realizing it. Most people don’t move because of their mortgage rate. They move because they want or need to. So, let’s flip the script and ask this instead:

What are the chances you’ll still be in your current house 5 years from now?

Think about your life for a moment. Picture what the next few years will hold. Are you planning on growing your family? Do you have adult children about to move out? Is retirement on the horizon? Are you already bursting at the seams?

If nothing’s going to change, and you love where you are, staying put might make perfect sense. But if there’s even a slight chance a move is coming, even if it’s not immediate, it’s worth thinking about your timeline.

Because even a year or two can make a big difference in what your next home might cost you.

What the Experts Say About Home Prices over the Next 5 Years

Each quarter, Fannie Mae asks more than 100 housing market experts to weigh in on where they project home prices are headed. And the consensus is clear. Home prices are expected to rise through at least 2029 (see graph below):

While those projections aren’t calling for big increases each year, it’s still an increase. And sure, some markets may see flatter prices or slower growth, or even slight dips in the short term. But look further out. In the long run, prices almost always rise. And over the next 5 years, the anticipated increase – however slight – will add up fast.

Here’s an example. Let’s say you’ll be looking to buy a roughly $400,000 house when you move. If you wait and move 5 years from now, based on these expert projections, it could cost nearly $80,000 more than it would now (see graph below):

That means the longer you wait, the more your future home will cost you.

If you know a move is likely in your future, it may make sense to really think about your timeline. You certainly don’t have to move now. But financially, it may still be worth having a conversation about your options before prices inch higher. Because while rates are expected to come down, it’s not by much. And if you’re holding out in hopes we’ll see the return of 3% rates, experts agree it’s just not in the cards.

So, the question really isn’t: “why would I move?” It’s: “when should I?” – because when you see the real numbers, waiting may not be the savings strategy you thought it was.

Bottom Line

Keeping that low mortgage rate is smart – until it starts holding you back.

If a move is likely on the horizon for you, even if it’s a few years down the line, it’s worth thinking through the numbers now, so you can plan ahead.

When the time comes, where’s next for you? Let’s have a conversation about how increasing mortgage rates will impact your next move. That way, you can make an informed decision about your timeline.

You can reach us at our new business cell phone numbers (508) 388-1994 [Mari] or (508) 338-9928 [Hank]. Talk soon…

Mari and Hank

Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.

Should I Buy My Home Now or Continue to Wait?

At some point, you’ve probably heard the saying: “Yesterday was the best time to buy a home, but the next best time is today.”

That’s because homeownership is about the long game – and home prices typically rise over time. So, while you may be holding out for prices to fall or rates to improve, you should know that trying to time the market rarely works.

Here’s what most buyers don’t always think about: the longer you wait, the more buying could cost you. And you deserve to understand why.

Forecasts Say Prices Will Keep Climbing

Each quarter, over 100 housing market experts weigh in for the Home Price Expectation Survey from Fannie Mae, and they consistently agree on one thing: nationally, home prices are expected to rise through at least 2029.

Yes, the sharp price increases are behind us, but experts project a steady, healthy, and sustainable increase of 3-4% per year going forward. And while this will vary by local market from year to year, the good news is, this is a much more normal pace – a welcome sign for the housing market and hopeful buyers (see graph below):

And even in markets experiencing more modest price growth or slight short-term declines, the long game of homeownership wins over time.

So, here’s what to keep in mind:

Next year’s home prices will be higher than this year’s. The longer you wait, the more the purchase price will go up.
Waiting for the perfect mortgage rate or a price drop may backfire. Even if rates dip slightly, projected home price growth could still make waiting more expensive overall.
Buying now means building equity sooner. When you play the long game of homeownership, your equity rewards you over time.

What You’ll Miss Out On

Let’s put real numbers into this equation, because it adds up quickly. Based on those expert projections, if you bought a typical $400,000 home in 2025, it could gain nearly $80,000 in value by 2030 (see graph below):

That’s a serious boost to your future wealth – and why your friends and family who already bought a home are so glad they did. Time in the market matters.

So, the question isn’t: should I wait? It’s really: can I afford to buy now? Because if you can stretch a little or you’re willing to buy something a bit smaller just to get your foot in the door, this is why it’ll be worth it.

Yes, today’s housing market has challenges, but there are ways to make it work, like exploring different neighborhoods, asking your lender about alternative financing, or tapping into down payment assistance programs.

The key is making a move when it makes sense for you, rather than waiting for a perfect scenario that may never arrive.

Bottom Line

Time in the Market Beats Timing the Market.

If you’re debating whether to buy now or wait, remember this: real estate rewards those who get in the market, not those who try to time it perfectly.

Want to take a look at what’s happening with prices? Whether you’re ready to buy now or just exploring your options, having a plan in place can set you up for long-term success.

Let’s connect at 508-360-5664.

Mari and Hank