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Latest on Mortgages With Dale Vermillion

Faith & Finance with Rob West | Jan 20, 2023


Show Notes

Inflation and higher interest rates have taken a toll on home sales … but does that mean prices are coming down? Home sales could drop even further as we head into the winter doldrums when prospective buyers tend to thin out. So is this a good time to buy? We’ll ask mortgage expert Dale Vermillion on this episode of Faith & Finance.

Our guest Dale Vermillion is the author of Navigating The Mortgage Maze: The Simple Truth About Financing Your Home.

  • Dale says mortgage rates may have hit their peak for the foreseeable future. With inflation beginning to taper off a bit, Dale said he expects mortgage rates to stabilize in the months ahead and then potentially drop in 2024.
  • He also explains the key drivers of higher mortgage rates and why he believes that mortgage rates may have crested.
  • Dale notes that home sales have fallen off considerably. The National Association of Realtors index of contract signings on purchased homes actually decreased to the lowest level (outside of a period early in the pandemic) since 2001.
  • Houses sat for an average of 40 days in December before being under contract. That compares to 18 days back in May. There are more properties available to buyers right now because there are fewer buyers in the market.
  • He predicts that home prices, which are largely flat right now at a national level, will likely dip at some point in 2023.
  • Nevertheless, Dale offers reasons why now might be a good time to buy a house.
  • There are several things happening that benefit buyers:

    • 1. Fewer buyers in the market, which means fewer bidding wars
    • 2. Listing prices are lower. You might pay a higher mortgage rate, but that’s offset by lower listing prices in some areas (with more parts of the country likely to see lower prices soon).
    • 3. Sellers are once again willing to make certain concessions to buyers, such as covering certain closing costs or agreeing to a contingency purchase.
    • 4. Higher interest rates provide tax benefits that help to offset the cost of higher interest rates.
  • Learn more about Dale Vermillion at DaleVermillion.com

On this program, Rob also answers listener questions:

  • How do you determine if now is a good time for you to buy a home?

Remember, you can call in to ask your questions most days at (800) 525-7000. Also, visit our website at FaithFi.com where you can join the FaithFi Community, and even download the free FaithFi app.

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