The Real Estate Show

Market Shift Alert! The Real Estate Show Unlocks How to Navigate Today's Mortgage Market

By Eric Willner, Host of The Real Estate Show, America’s longest running daily radio show about real estate.

Welcome to the Real Estate Show – Wednesday Midweek Mortgage & Market Report Edition

Opening Question:

Have the news, media, and economy left you wondering if now is a good time to buy or sell real estate?

Introduction:

Welcome to the Real Estate Show – South Florida’s #1 Real Estate Radio Show and America’s longest-running daily radio show about real estate. My name is Eric Willner, known as the Voice of Real Estate and founder of America’s longest-running daily radio show about real estate. I am also the creator of The Automatic Landlord System for Owning Cash Flowing Real Estate “Profitably and Hassle-Free.” This show is a virtual real estate seminar in every episode.

This is the Wednesday Midweek Mortgage & Market Report Edition of The Real Estate Show. Today, we will discuss why NOW is the right time to buy real estate using the theme of: Unlocking the Door to Success: A Step-by-Step Guide to Buying Real Estate

Did You Know?

Did you know that understanding the intricacies of buying real estate is essential to your success? Today’s show is all about unlocking the door to success in real estate and the importance of knowing how it works to create a solid plan.

Special FREE Workshops:

Before we get into the meat of the show, let me remind you of this week’s special FREE Workshops:

1. Next Tuesday 8 pm: Path To Home Ownership Introduction – Online by Invitation. Text "Home" to 561-861-2366.
2. Wednesday night 8:30 pm: Financial Edge University “Financial Edge 101 Overview” – Online by Invitation. Text "Edge" to 561-861-2366.

Financial Challenges:

Do finances challenge you? Most people say YES! Here is the Financial Edge. It’s the education and knowledge that moves the needle. We are your Financial Team. Let's talk about it...

Our 3-Pronged Approach:

1. Homeownership: Everyone should buy a house and be a homeowner.
2. Financial Order: Everyone should have their house in financial order with a written financial/life plan.
3. Business Ownership: Everyone should own a business that pays them and gives them tax benefits.

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Real Estate Insights:

Today, we will continue to discuss why NOW is the time to buy real estate. We'll use insights from Monday and Tuesday’s shows and today's real estate headlines to understand how affordable housing can help you gain independence and peace of mind. Understanding the news helps you get organized and gives you a financial edge.

Trending Topics:

Here are the top trending topics for today’s update:

1. Mortgage Refinance Demand Drops Further, Despite Homeowners Sitting on $17 Trillion in Equity

• Refinance Applications Decline: Applications to refinance homes dropped for the fourth consecutive week, down 2%. Despite the recent surge in home prices, homeowners are hesitant to refinance due to higher interest rates.
• $17 Trillion in Home Equity: Homeowners collectively hold $17 trillion in equity as of Q1 2024. This substantial equity gain—$1.5 trillion in just one year—should encourage refinancing, but the cost of pulling out cash is now prohibitive.
• Interest Rates and Incentives: The average contract interest rate for 30-year fixed-rate mortgages decreased to 7.00% from 7.03%. However, most borrowers lack sufficient incentive to refinance at current rates.
• Purchase Activity: While refinance demand declined, applications for home purchases increased by 1% during the week. Notably, FHA and VA applications drove this slight pickup.
• Stagnant Mortgage Rates: Despite Federal Reserve Chair Jerome Powell’s recent testimony, mortgage rates remained unchanged. However, this may shift following the release of new economic data, including the consumer price index.

Summary: Homeowners’ substantial equity hasn’t translated into a surge in refinancing due to high-interest rates. Purchase activity remains steady, and market watchers anticipate rate movement after economic updates.

2. It Suddenly Looks Like There Are Too Many Homes for Sale. Here’s Why That’s Not Quite Right

• Supply Dynamics: Currently, there is a 4.4-month supply of both new and existing homes available for sale. This metric, known as “months’ supply,” estimates how long it would take to sell all available homes at the current sales pace. Traditionally, a balanced market between buyers and sellers is achieved with a six-month supply.
• New vs. Existing Homes: The recent increase in supply is primarily seen in the new home market, rather than existing homes. Currently, there is a nine-month supply of newly built homes for sale, nearly three times that of existing homes.
• Unusual Market Dynamics: In June 2022, there was an unprecedented divergence: new home months’ supply (9.9) significantly exceeded existing single-family home months’ supply (2.9). This unique situation highlights that evaluating market inventory cannot focus solely on either existing or new homes—it’s a complex interplay.

Summary: While it may appear that there’s an excess of homes for sale, the intricate interplay of supply, demand, and historical context paints a more nuanced picture. Home prices continue to rise despite the apparent surplus, defying conventional expectations.

If you want to gain a financial edge in real estate, text "EDGE" to 561-861-2366 for exclusive insights and updates!

Summarized Key Points:

1. Refinance Applications Decline: Despite high home equity, high-interest rates deter refinancing.
2. $17 Trillion in Home Equity: Significant equity gains haven’t led to a surge in refinancing.
3. Purchase Activity: Slight increase driven by FHA and VA applications.
4. Stagnant Mortgage Rates: Rates may shift after upcoming economic updates.
5. Supply Dynamics: Complex supply and demand dynamics are affecting the market.

Conclusion:

Remember, it’s a stone-cold fact that real estate is THE best investment. Period. So get yours today!

Today’s Show is Brought to You By: TimeToFixMyCredit.com, text "Credit" to 561-861-2366.

Summarizing today’s show:

• Refinancing trends and homeowner equity.
• Current supply dynamics and market complexity.
• The importance of financial planning in real estate.
• Upcoming free workshops for homeowners and investors.
• The role of interest rates in real estate decisions.

Tomorrow’s Preview:

Don’t miss tomorrow's Thursday ATM Edition of The Real Estate Show, where we provide updates on what’s happening in the real estate world. Thank you for listening! Use our show to get started in real estate investing and tune in every weekday for a literal seminar in every episode. Don’t forget to attend our free online workshops!

For full transcripts and more information, visit www.AutomaticLandlord.com.