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I'm actually on board with this headline. It's been my thesis since the end of last year, but just playing out very slowly. I should have expected it more with a new President wanting to implement their agenda. I underestimated how long it would take to play out. According to Fannie Mae, they expect mortgage rates to come down to 6% by the end of 2025 into 2026. The administration really wants the 10yr yield to come down, and with that, rates will follow. If we do see 6% rates, I believe we will see a mad house of competition for homes and lots of refinancing.
Regardless of rates coming down or not, I will continue to pound the table on being prepared as a buyer if there is any thought at all about buying in the next 3-12 months. The supply has increased nicely and there are a lot more options to look at now. The first order of business would be finding a trustworthy, and responsive mortgage officer/broker.
Here's an example of what happens when a buyer comes to me prepared with pre-approved financing:
- We start our search just last week
- They are decisive, we get into contract before the weekend is over
- We are in contract $7,500 below the current list price, and $25,500 below the original list price 75+ days ago
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