How Lower Mortgage Rates Change The Market & The New Unpredictable

Mortgage rates are holding low. If you’ve been paying attention to rates, they’re still very comfortable for home buyers. This encourages a few things. When we see lower mortgage rates, we see home prices rise and more home sales. This year in February, the National Association of Realtors (NAR) showed a slightly different thing though. Home prices rose for the 84th consecutive month of year-over-year gains, but home sales fell 1.8 percent when compared with a year to the sales the year before. The problem, experts believe is home buyers who have been on the fence about making the leap weren’t aware that the rates have fallen. They speculate that if they did know, home buying would increase before the rates go up again, while they are still low.

Interestingly, just a little inflation creates more purchases, because they want to get in before prices rise more. The problem is that while the Fed tries to keep inflation at 2 percent annually, the economy is changing and that’s hard to reflect in economic models. One big issue is focused around gig workers. More people are self-employed.

“The job market has consistently surprised the Fed,” Bloomberg News reported. “America’s unemployment rate has fallen to less than 4 percent from 10 percent in 2009. Despite the decline, employers have found plenty of workers to hire, generally keeping job gains strong, and inflation has responded only weakly.”

Rates were expected to hit 5 percent and keep rising in 2019, but some people are still talking about seeing rates in the 3 percents. In March, the 30-year fixed FHA had fallen to 3.688! One thing to keep in mind as a homebuyer though is that this market is completely unpredictable. Bloomberg News called it “the new unpredictable,” but Professor John Kenneth Galbraith might have put it best in saying, “The only function of economic forecasting is to make astrology look respectable.'”

So, buyers would be wise to take advantage of the obvious, current low rates. Those are here and real now. They could go up again at any time, but if rates drop significantly after buying a home at the current rates, refinancing is always an option.

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Newest Homes for Sale in Dubois County

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This attractive home close to amenities has so much to offer! Three generous bedrooms with a expansive fourth room to use as you wish. A family room that is open to the kitchen, both which are tastefully done in a neutral luxury vinyl floor and white cabinets. Double doors open to patio for entertaining. Raining? Kids? no problem, enter through the mud/laundry room that can double as a hobby room, use your creativity and finish it to your taste. In addition to all the house has to offer, this includes two lots. The second has a large garage with room for storage, a man cave, parking, workshop or anything you make it! $178,500 Active

3016 Leslie Drive Jasper, Indiana

3 Beds 2 Baths 1,624 SqFt 0.440 Acres

Listing courtesy of Cathie Spalding from FC TUCKER EMGE REALTORS.

You won't believe your eyes when you see this luxurious, completely updated 4 bedroom, 2.5 bathroom smart home. As you walk up you will notice all new landscaping in front of a beautiful covered 30 foot front porch. As you step inside you will be wowed with the contemporary open floor plan design and classy updates. The living room features a gas-log fireplace and flows into the dining room with beautiful accent ceiling. The beautiful kitchen has all new cabinetry, granite countertops, and brand new upscale appliances. Off the kitchen is a drop zone featuring the hub of the homes security system. The main level also features a bedroom and a half bath that is so unique you will have to see it to believe it. Upstairs there are three additional bedrooms including a master suite with a TV and electric fireplace, walk-in closet and a master bathroom with double-bowl vanity and extra space for another closet or bathroom storage. There is also full bathroom for the kids. The walkout basement is very functional additional space that could be finished. This well-planned renovation includes washer and dryer hookups both upstairs and in the basement! Outside, you will find a two-car garage as well as a private drive from the alley, and a nice back yard for kids. This fabulous home has all new plumbing, electrical, two brand new, zoned HVAC systems including all new ductwork and nest thermostat, cellulose insulation, roof and decking, energy efficient windows, security system with 4 cameras and and monitoring screen, high end lighting fixtures, build in sound system with Bluetooth capabilities in dining room and master bath, and smart Samsung refrigerator. All of this new mixed with beautiful historic features such as amazing woodwork throughout the house and two restored front windows that are a feature of the house. A covered front porch that wraps around to the back covered patio facing the wooded backyard. All this within walking distance to downtown Jasper. $187,500 Active

1336 Jackson Street Jasper, Indiana

4 Beds 3 Baths 1,761 SqFt 0.180 Acres

Listing courtesy of Steve Lukemeyer from FC TUCKER EMGE REALTORS.

Charming 3 Bedroom brick home located on a near 1/2 acre lot on Jasper's north side and featuring a 30'x36' detached garage built in 2010. Home offers both a Living Room and Family Room with a central Kitchen and Dining area. All Kitchen appliances are included. There's a main floor Master Bedroom suite with an updated full Bathroom with double sink vanity and another Bedroom down the hall next to another full Bathroom. Upstairs, you'll find the third Bedroom along with a spacious common area. Hardwood floors, trim, and doors are in tip top shape. Unfinished basement offers a great amount of storage, bar area, and an extra Bathroom. Home features an attached 1-car garage but the detached garage could be that extra you're wishing for...concrete driveway and floor, 2 car bays with automatic doors, lots of workshop space, and storage galore. Outside you'll love the newly built wood deck overlooking the private and level backyard. Other updates include a new roof and new carpeting! $189,900 Active

2801 Brosmer Street Jasper, Indiana

3 Beds 3 Baths 2,572 SqFt 0.482 Acres

Listing courtesy of Dara O'Neil from FC TUCKER EMGE REALTORS.