November 16th, 2022 10:03 PM by Scott Bray
Interest rates have been moving higher slowly ever since the Federal Reserve went to war on inflation in the US. We all feel the pinch on the grocery store shelves, at the gas station or out for entertainment. Prices have risen over 8% or more as some news agencies reported highest in 40 years...
Since we are a mortgage company and we like to talk about the housing industry in our local Florida market, I felt house prices had risen too quickly (rents too) over the last few Covid plagued years. Employers allowing some employees to work from home and some were designated "remote workers" so some employees if allowed to work remotely lifted up roots and moved to Florida. I felt this was a migration to our sunshine state and I read that over 700,000 moved to Florida. Our local residents are having a hard time competing with out of state families who can make more that our local families. These sometimes well qualified out of state buyers started bidding up our home value quickly. Highest and Best Bid was common and some houses our buyers were trying to buy had 15 bidders!! Ugh!
Today with the rise of interest rates by the Federal Reserve we are seeing housing prices falling and the days of multiple bids are turning into interested parties and sometimes an offer... So we can say the housing market is returning to "normal" again.
It's soooo important to pay the right price for your home as this price you pay is FIXED you could loosely say is like a marriage.. You won't be changing the price you paid for you home. The current higher interest rates are one of the reasons why housing prices are falling and interest rates are presently in the 5-7% interest rate range (QM - Conventional, FHA or VA) depending on type of program, credit score, term and overall qualifications to buy or refinance a home today. So even though rates are high you can refinance later when the Gov't starts lowering rates. So I say you are "Dating" the interest rate as we can assist you and do a quick refinance to a lower rate fast.
So as home prices drop and rents still rise... now would be a good time to start the process. We can look at your credit, discuss your income and get you pre-approved to buy a home with week or in the weeks to month to come. No obligation. Feel Free to call us 7 days a week. We serve all of Florida - our phone is (321) 777-7277.
We will you much Health & Happiness! AmeriBest Mortgage Nmls #325885. Written by Scott Bray, Branch Mgr Nmls #230075 on 11.16.22