Are You Ready to Pounce?

I sat down this morning to tell you about the rapidly dropping mortgage rate, which dipped below 7% this week.

Rates dipped quickly because the most recent reports show inflation is coming down rapidly. That caused the bond and mortgage market to reduce rates in anticipation of the Fed reducing rates shortly.

But as I write this, the nation's job report just dropped - and it exceeded expectations.

And while it is good news that more people found jobs, it likely means that the Fed will be more cautious and leave rates where they are for longer.

Suppose rates do stay relatively flat for a while. Many homeowners will continue to delay desired moves, and we'll continue to have an inventory problem.

For home buyers, home prices will rise despite higher mortgage rates because there are still more home buyers than home sellers out there.

So what to do?

Buyers with the means should act now. You should take advantage of a slower winter market and buy before a potentially hot Spring market.

Homeowners need to ask themselves how long they are willing to put off a desired move and what the rate has to be for it to make sense. (Hint: the rates will never be as low as the one you are sitting on now).

Just know that no matter what you decide, there will always be trade-offs.

The best thing you can do is keep your eyes open to the trade-offs, prepare yourself, and be ready to pounce before the market leaves you behind.

Reach out, and let's strategize!