October 18th, 2024 7:32 PM by Eric Willner
Radio Show Notes 10/16/24 Wednesday:Read a summary of the show below orListen HereWatch Live Facebook Video Here
Why Housing Is the Key Issue Shaping This Election: What Buyers and Investors Need to Know
By Eric Willner, Investor, Coach, and Host of The Real Estate Show, America’s longest running daily radio show about real estate.
Key Points:
? Today’s Theme: "Housing is a Key Issue This Election." The show discusses how current real estate trends and housing policies are set to influence the economy as the election approaches.
? Current Mortgage Rates: The national average for 30-year fixed mortgages is at 6.55%, which has risen in recent weeks. Despite this, 42% of survey respondents believe rates will drop in 2024, though many buyers are waiting for rates below 5% before making moves.
? Weekly Mortgage Demand: Mortgage demand fell 17% last week, with refinancing applications dropping 26%. However, first-time homebuyer applications remained steady, indicating continued interest despite high rates.
? Assumable Mortgages: Buyers are exploring assumable mortgages as a way to secure lower interest rates (around 3%) by taking over existing loans. FHA and VA-backed mortgages have seen a significant increase in assumptions in recent years.
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! I’m your host, Eric Willner, known as the Voice of Real Estate and the founder of this show. I’m also the creator of The Automatic Landlord System for Owning Cash Flowing Real Estate “Profitably and Hassle-Free.” If you’re just joining us, get ready for a virtual real estate seminar in every episode!
Today is our “Wednesday Midweek Mortgage & Market Report” edition, and we’re diving deep into the topic: Housing is a Key Issue This Election. As we edge closer to the election, it’s clear that housing policies and real estate trends are going to play a critical role in shaping the future of the American economy. But what does that mean for you as a buyer, investor, or homeowner?
These are just a few of the realities shaping the current real estate market and why understanding them is so important, especially with the election looming.
Before we dive deeper into today’s theme, let me remind you about our FREE workshops happening this week:
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So, why is housing such a hot topic this election? Let’s look at what’s happening in the market:
Today's National Mortgage Interest Rate Trends According to BankRate.com, as of Wednesday, October 16, 2024, the current average 30-year fixed mortgage interest rate is 6.55%. Rates have edged up in recent weeks, with the Federal Reserve’s decisions playing a significant role. Greg McBride, CFA, chief financial analyst for Bankrate, notes that the market is “recalibrating” to the reality that rates won’t fall as quickly as previously expected. Despite this, there’s still optimism, with many anticipating a rate drop in 2024.
However, some buyers are playing a waiting game, hoping rates dip under 5% before making their next move. While rates have cooled slightly from their highs earlier this year, they remain above the levels many potential homeowners feel comfortable with.
Weekly Mortgage Demand Tanks 17% as Interest Rates Hit Highs A recent report highlighted that mortgage demand dropped 17% last week as rates hit their highest point since August. Refinancing fell 26% week-to-week, and applications for new mortgages were down 7% for the week. This decline is partly due to the ongoing uncertainty around the economy and the upcoming election, as many buyers and sellers take a "wait and see" approach before making any major moves.
But there’s still a silver lining: FHA purchase applications remained steady, showing that first-time homebuyers are still looking for opportunities despite the rate increases. And with improving inventory conditions, some buyers are finding new options on the market. It’s clear that even with higher rates, those who are ready to buy and have the right strategy can still make their homeownership dreams a reality.
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As mortgage rates remain high, some savvy buyers are exploring a lesser-known option: assumable mortgages. This rare type of mortgage allows buyers to take over an existing mortgage at its current rate. That means if the original mortgage had a 3% rate, a new buyer could assume that same rate, offering a significant advantage in today’s market. This was more common in the 1970s and 1980s, but due to regulatory changes, it became less prevalent—until now.
Recent numbers show a rise in assumable mortgages. In 2023, FHA-backed mortgage assumptions increased by 59% compared to 2021, while VA-backed mortgage assumptions saw a 713% increase. With nearly 25% of homes on the market being eligible for assumption, this is an option worth exploring if you’re looking for a better rate.
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The housing market is front and center in the 2024 election, with interest rates, inventory, and economic uncertainty all playing a role in shaping the future of real estate. Understanding these trends is crucial, whether you’re looking to buy, sell, or invest. Remember, real estate remains one of the best ways to build wealth—no matter the market conditions.
Thank you for joining me on today’s edition of The Real Estate Show! Don’t just listen—take action. Whether you’re starting your investment journey or looking for expert advice, our show is your daily resource. Tune in tomorrow for the “ATM Edition – About The Money” where we dive into more financial strategies and tools to make your real estate dreams a reality.
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Want to know more? If you are serious about real estate and paying off debt, then find out more on today and every day’s episodes and learn more about Real Estate Investing and learn HOW TO by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 9 o’clock (EST) on Florida’s Money Talk Radio stations WWNN AM1470, FM 95.3 and FM 96.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share this and our Facebook updates.
Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.
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