Marry the house, date the rate!

What you need to know about financing or refinancing your home in the current market

For the majority of the last two years, lenders and realtors alike have used the verbiage, "marry the house, date the rate", as the financing used to purchase a home would likely not be a long-term loan. Seller credits and loan programs such as temporary rate buydowns have aided affordability, allowing clients to purchase with a temporarily reduced payment and refinance as rates come down.

Early August home loan rates hit the best levels of the year! Refinance activity was up significantly, highlighting the need for lower rates in housing and the overall economy. This dip in rates also stirred up new buyer activity when Fed Chair Powell opened the door to a rate cut in September. Financial markets are pricing in as many as four rate cuts by the end of the year.

Mortgage rates are expected to come down through the end of the year, but their path will not be linear. The market reacts to different economic data released daily and extreme volatility continues. Unfavorable economic data fuels fears of recession and pushes down mortgage interest rates quickly for brief periods.

Current homeowners awaiting refinance opportunities will benefit from getting their application started so they can capitalize on these 24-48 hour windows of opportunity we have been seeing. There is no cost to apply and being in the position to lock at a moment's notice will pay huge dividends. The same goes for prospective buyers who can lock in great rates on "lock and shop" programs to secure their rate even prior to identifying their home.

Overall, there is inventory and great opportunity exists to identify a home before rates drop more dramatically and competition increases. Marry the house and date the rate!