You Need To Hear This Exciting Market Update

You need to hear about how the market has changed as we enter February.

Today I am excited to share this market update with you because I have some awesome news! As we have moved into February, market activity has gone way up. This encouraging piece of news is a result of inflation cooling and interest rates coming down slightly. Today, the average rate is 6.3%, but I also just had a client who finalized an FHA loan with a 5.5% interest rate! The great news here is that homes are now more affordable.

Inventory is still tight, so it’s still a seller’s market. The market needs more sellers to list their houses, and even though affordability has gone in favor of buyers, the market is still great for sellers. We are in a healthy and active market.

“Market activity has gone way up.”

One more thing I want to talk about today is a 2-1 buydown, which is a program where the seller buys down the buyer’s mortgage rate by two points for the first year of the loan and one point for the second year. Then the rate would go back to normal. To put those numbers into perspective, a 2-1 buydown would lower payments on a $500,000 house by $600 a month for the first year and then by about $300 for the second year. Those savings are huge.