Timing the Market can put Money in your Pocket

We often see and hear news reports about the housing market and its continuing price increases. However, there is much more to the story. While prices generally increase throughout the year, those increases fluctuate throughout the year and can be very nuanced from neighborhood to neighborhood, even within the same city.

In some cases, just one month can mean a difference of hundreds of thousands of dollars. So, if you plan on selling, it may not necessarily be worth trying to “Time” the market for the end of school, especially if closing in April instead of June means an extra $200,000 or more!

Take, for example, the neighborhood of Trossachs located in Sammamish. Trossachs has just under 1,700…

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  •         Sales of previously owned homes decreased 4.3% from the prior month.
  •         30-year fixed mortgage jumped by nearly a quarter percentage point to 7.1%

The U.S. housing market is coming under renewed pressure, buffeted by mortgage rates that rose above 7% again and uncertainty over changes to the commission system for buying and selling a home.

The average rate on the standard 30-year fixed mortgage jumped by nearly a quarter percentage point to 7.1%, according to a survey of lenders released Thursday by mortgage-finance giant Freddie Mac. That is the highest level since late 2023 and the largest weekly increase in nearly a year.

Low inventory continues to fuel competition among area buyers in Western Washington However.…

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CHOOSE CARY AND KEENAN TO HELP YOU BUY YOUR NEXT HOME

At The Cascade Team we understand first and foremost that it isn't about "Us". It's all about "You"! We are dedicated to giving each of our clients the best experience imaginable. Simply Outrageous Service isn’t just a catch phrase for us. It’s how we do business!

From day one we’ll be with you every step of the way. We’ll keep you informed, we’ll be there through the tough negotiations, and we’ll help you make the right decisions for your family.

Our dedication to your successful dealings (buying or selling) are unwavering. We firmly believe in the WOW factor. And when you work with The Cascade Team that’s what we intend to deliver. Service and Quality that are so far beyond your expectations,…

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The premise of a mortgage rate lockdown is simple: so many American households have such low mortgage rates that some will never move once rates rise, which then locks up housing inventory. Said another way; A homeowner planning to relocate or downsize might find the higher costs related to higher mortgage rates too much of a hurdle to clear.

This is something I’ve never considered in my real estate career because we hadn’t had a period where mortgage rates moved up so quickly and then held higher for an extended period. But now this is a real risk.

For many Americans, homeownership became a reality during the years of ultra-low mortgage rates following the 2008 financial crisis, an environment that essentially lasted all the way up until the…

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Although slightly, mortgage rates dropped further this week. The average rate on a 30-year fixed mortgage fell to 6.27% from 6.28% the previous week. With inflation moving closer to the Fed's 2% target, mortgage rates are expected to decrease further in the coming months, likely to be below 6% by year's end.

Meanwhile, these falling mortgage rates create opportunities for many buyers. A lower mortgage rate brings down the monthly payment for a home loan. If rates drop to 6%, 3.1 million more households will once again be able to afford to buy the median-priced home compared to the beginning of the year. And, 1 in 3 of these households are younger than 40. Last year, 1 in 5 mortgage purchase originations had a rate higher than 6%.

Some sellers…

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Mortgage Rates Just Hit a 4-Month Low, but Do Homebuyers Even Notice—or Care?

Recognize that media outlets and social media influencers are competing for scoops and eyeballs. As a result, their reports sometimes exaggerate issues, don’t tell the whole story, or get it wrong…. And the same thing can be said about the local housing market.

Mortgage rates are down again this week, which means things are looking up for homebuyers.

The average rate for a 30-year fixed-rate mortgage ticked down 2 basis points to 6.13%, according to Freddie Mac, continuing a pattern of rates seesawing lower since topping 7% in the fall. In fact, mortgage rates are at their lowest levels since mid-September 2022.

Yet, while lower borrowing costs are a boon for…

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Mortgage rates continued their plunge from a peak of 7.08% in November, marking their biggest three-week drop in 14 years.

“Mortgage rates continued to drop this week as optimism grows around the prospect that the Federal Reserve will slow its pace of rate hikes,” says Freddie Mac chief economist Sam Khater.

Mortgage rates this week

30-year fixed-rate mortgages

The average 30-year fixed-rate mortgage dropped to 6.49%, down from 6.58% the week prior, Freddie Mac reported Thursday. A year ago, the 30-year rate averaged 3.11%.

Mortgage rates began to slide below 7% after the most recent inflation data was released in mid-November. The consumer price index was at 7.7%, coming in below economist's expectations.

“Data shows that mortgage…

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What a difference just a few months can make. As the year comes to a close, the red-hot housing market has been brought to its knees by soaring mortgage interest rates.

  •          “Seattle, Phoenix, San Francisco could all see 20% price drops.”
  •          Wolf, of Zonda, expects prices could fall by 15% nationally over the next year
  •          “A really important thing to remember is housing is cyclical,” says Wolf. “We came from a massive run-up in prices, sales, demand in the housing market, and now it’s contracting. This is not new.”
  •          Nationally, home list prices rose 40.6% in just over two years’ time
  •          So, a 10%, 15%, or even 20% drop over a two-year span isn’t as significant as it might seem at first.

It now…

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The home selling process has changed considerably over the past year. Last year sellers could throw their homes on the market with little to no prep work done, throw a few pictures online and still expect multiple offers and a final sale price well over asking price. This red-hot sellers’ market was unprecedented in history and certainly not the norm.

Currently the market is in a state of readjustment and is trending back to a more normal balanced market. This adjustment may be perceived as scary by many sellers who are seeing their neighbors home prices fall in price and sit on the market for months. This slowdown can be directly correlated to raising interest rates and a huge increase of properties on the market.

The news for sellers in the…

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“As for the interest rate ‘elephant in the room,’ the time has come for buyers and sellers to revisit financing methods from previous markets,”

  •          “Mortgage programs are offering below-market rates with various buydown options – something we have not seen for years!”
  •          Buydowns, adjustable-rate loans, carrying back second deeds of trust, and closing cost allowances as possible options.
  •          Sellers need to be “laser focused on price and condition
  •          “What your neighbor’s house sold for six months ago has very little bearing on your home’s value today.”
  •          This is the new normal until interest rates go down.”

KIRKLAND, Washington (November 7, 2022) – Brokers with Northwest Multiple Listing Service…

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