November 5th, 2023 6:31 PM by Eric Willner
Radio Show Notes 11/01/23 Wednesday:
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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 Eric Willner, your host, also known as the Voice of Real Estate, and the founder of America's longest running daily radio show about real estate. Today, we gather for the "Wednesday Midweek Mortgage & Market Report" edition of The Real Estate Show, where we continue to explore why NOW is the time to buy real estate, with our focus on:
THEME OF THE WEEK: The three Styles of Investing in Real Estate – DIY, DWY, and DFY. But before we dive into that, here's a thought-provoking question for you:
Question of The Day: Did you know that investing in real estate can provide a hedge against inflation, making it a smart financial move in today's market?
Before we jump into today's topic, let me remind you about this week's special FREE Workshop:
Tonight - Wednesday night at 8:30 pm, it's the Financial Edge University Overview – Online by Invitation. You can join by texting EDGE to 561-861-2366.
Now, let's continue our conversation about why NOW is the time to buy real estate, with a specific focus on the three Styles of Investing in Real Estate – DIY, DWY, and DFY.
Throughout the show, we have four strategically placed calls to action for you. You can text the word EDGE to 561-861-2366 to access valuable resources and insights that can help you make informed decisions.
Now, let's discuss some recent headlines in the world of real estate and the economy. These headlines are essential because they impact your journey to financial independence and peace of mind. Stay tuned, as we break it down for you.
THE LATEST MORTGAGE RATES
On Wednesday, November 01, 2023, the current average interest rate for the benchmark 30-year fixed mortgage is 8.06%, which increased by 2 basis points from a week ago. If you're considering refinancing, the current average 30-year refinance interest rate is 8.15%, which decreased by 2 basis points compared to this time last week.
Adjustable-rate mortgage demand jumps nearly 10%
In recent news, the demand for adjustable-rate mortgages (ARMs) has surged by nearly 10%. With mortgage rates climbing to the highest level in over two decades, homebuyers are exploring riskier mortgage products to help them enter the housing market.
The ARM share of mortgage applications has now reached the highest level in nearly a year. While applications for home purchase loans fell by 1% for the week and were 22% lower year over year, the increased interest in ARMs indicates a willingness to take on more risk to navigate the current market conditions.
SPONSOR'S BREAK
Before we continue, let's take a moment to thank our sponsor. Today's show is brought to you by FixMyCredit.com, your trusted source for improving your credit score. Whether you're looking to secure a mortgage or better interest rates, FixMyCredit.com has you covered. Visit their website today to learn more about their services.
Don't forget to text the word EDGE to 561-861-2366 to stay connected and access essential resources for your real estate journey.
New homes are faring better in the housing market
In another headline, Realtor.com's Danielle Hale reports that new homes are faring better in the housing market. This suggests that new construction could be an attractive option for those considering entering the real estate market. We'll continue to keep you informed about the latest trends and opportunities in the housing market.
The Federal Reserve may not hike interest rates next week
Turning our attention to the broader economic landscape, the Federal Reserve is expected to announce no rate hike at the end of its two-day meeting next week. While this may provide some relief for borrowers, consumers are still likely to feel the effects of higher rates and persistent inflation.
IMPACT ON MORTGAGE RATES
The Federal Reserve has already raised interest rates 11 times since last year, marking the fastest pace of tightening since the early 1980s. Despite this, the consensus among economists and central bankers is that interest rates will remain elevated for an extended period.
IMPACT ON CREDIT CARD RATES
Consumers continue to face sky-high borrowing costs. Credit card rates have soared, with most credit cards now carrying an average rate of more than 20%. Without a rate hike, APRs may continue to rise, further straining consumers' finances.
Mortgage rates have also risen, with the average rate for a 30-year, fixed-rate mortgage reaching 8%, the highest in 23 years. The increase in rates is partly due to inflation and the Federal Reserve's policy moves.
IMPACT ON AUTO LOAN RATES
Auto loan rates are on the rise, with the average rate for a five-year new car loan now at 7.62%, the highest in 16 years. Rising car prices and interest rates are pushing up costs for motorists, resulting in larger monthly payments for many.
IMPACT ON STUDENT LOAN RATES
Federal student loan rates have increased, affecting undergraduate students who take out new direct federal student loans. These rates have risen from 4.99% in the 2022-23 academic year to 5.50% in the current year. Interest is now accruing again for those with existing debt, ending the pandemic-era pause on student loan payments.
IMPACT ON DEPOSIT RATES
While borrowers are facing challenges, savers are benefiting from rising deposit rates. Savings account rates at some banks are now paying over 5%, marking the most substantial returns for savers in nearly two decades. Shifting your money to a high-yield savings account can be a simple way to increase your earnings.
CONCLUSION
These economic factors and trends have a direct impact on your financial well-being, especially if you're considering real estate investments. The information we provide here on The Real Estate Show can help you make informed decisions and develop a financial edge.
That's a wrap for today's "Wednesday Midweek Mortgage & Market Report" edition of The Real Estate Show. Thank you for tuning in and staying informed about the latest developments in the real estate and financial markets. Don't just listen; take action, use our show to get started in real estate investing, and share this valuable information with others who should own real estate.
Today's show was brought to you by FixMyCredit.com. Improve your credit score and secure your financial future. Visit FixMyCredit.com today. I'm Eric Willner, the Voice of Real Estate, and I'll see you in the next episode. Have a fantastic day!
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. You can reach Eric Willner at eric@therealestateshow.com or 888-595-7779.
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