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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Unbelievable is the only word that can describe this 4 bedroom, 3 1/2 bath home built in 2024 on 13.14 acres located just 12 minutes from Patoka Lake, in Birdseye, Indiana.  If you are looking for that perfect home on acreage in the country with top of the line everything, or an AMAZING weekend getaway by Patoka, then look no further.  This custom built home features 3031 square feet of finished living space with Bosch appliances, granite counter tops, hardwood floors and tile showers that will satisfy the most particular of owners.  Enjoy the new pond, do some hunting on the surrounding wooded acres, camp on the open ground, and then clean up in the free standing outside bath house.  Wired with an alarm and security system and cameras and wired for a generator if you so choose to add one, this home has had attention to every detail imaginable.  The massive open kitchen/dining/living room lends to great entertaining.  The basement has a large overhead garage door to the living area for great entertaining / grilling / possible boat storage in the winter.  The master bedroom is on the first floor adjacent to the laundry room, and bedrooms 2 & 3 are in the lower level with the 4th bedroom on the upper level.  This magnificent home has so much to offer and is ready for immediate possession. $849,000 Active

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Listing courtesy of Andrew Welsh from SELL4FREE-WELSH REALTY CORPORATION.

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321 W 8th Street Jasper, Indiana

3 Beds 1 Baths 1,405 SqFt 0.11 Acres

Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.

Welcome to this impeccable 4-bedroom, 1.5-bath home nestled on 1.73 Acres and Beautifully Landscaped! Step inside to find the gorgeous, remodeled kitchen and baths that add elegance to everyday living. The updated flooring enhances the flow throughout, while newer appliances make this home move-in ready. Enjoy the perks of an above-ground swimming pool with a spacious deck, ideal for summer fun and weekend entertaining. Whether you're sipping morning coffee on the charming front porch or unwinding on the private back deck, relaxation is always just steps away. The home also features a sleek concrete driveway leading to an attached 2 car garage. A partially unfinished basement provides flexible space for storage. Recent upgrades include a roof installed just 6 years ago, new windows added in 2024, and the furnace and central air system was replaced only 5 years ago—ensuring comfort and confidence in every season. Stream your favorites with High-Speed Orange County Fiber Internet. $389,900 Active

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Listing courtesy of Opal Sermersheim from SELL4FREE-WELSH REALTY CORPORATION.