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        <title>Real Estate Blog</title>
        <link>http://www.minneapolisurbanhomes.com/blog/2025-03/</link>
        <description></description>
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    <guid>https://www.minneapolisurbanhomes.com/blog/buyers-have-more-negotiation-power-heres-how-to-use-it.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/buyers-have-more-negotiation-power-heres-how-to-use-it.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Buyers Have More Negotiation Power – Here’s How To Use It</title>
    <description> <![CDATA[ 



 


You may have heard there are more homes for sale right now. And while that’ll vary depending on the market, it means that overall, things are starting to lean in a more balanced direction. As that happens, some sellers are a bit more open to compromise. Here’s what that means for you.


You may be regaining some negotiating power. That can translate into savings, perks, or even better terms on your purchase – if you know what levers to pull during negotiation.


Why an Agent Is an Essential Part of the Negotiation Process


The complicated part is knowing what is and isn’t on the table. That’s where your agent comes in. According to the National Association of Realtors (NAR), besides finding the right home, the top thing buyers want from their agent is help negotiating the terms of the sale, followed by negotiating the price.


Here’s why. Agents are skilled negotiators and are trained for moments like this. Since your agent is an expert on the local market, they’ll also know what’s working for other buyers (and what’s not), and that can help you get a better understanding of what’s realistic to ask for.


What's on the Negotiation Table?


Here are some of the most common concessions an agent can help you negotiate:




Sale Price: The most obvious concession is the price of the home. And that lever is being pulled more often today. Buyers don’t want to overpay when affordability is already so tight. And sellers who aren’t realistic about their asking price may have to consider adjusting their price.


Closing Costs: Closing costs are usually about 2-5 of a home’s purchase price and include fees for things like the appraisal, title insurance, and underwriting of your loan. To offset the cash you have to bring to the table, you can ask the seller to pay for some or all of these expenses. This was the most common concession sellers made in 2024, according to NAR.


Home Warranties: If you’re worried about the maintenance costs that may pop up after you get the keys, you can ask the seller to pay for a home warranty. Since this concession usually isn’t terribly expensive for the seller, it can be a good negotiation tool for a buyer. It’s not a big cost for them, but it can be a big perk for you.


Home Repairs: Based on the inspection, you're within your rights to ask the seller to make repairs. If the seller doesn’t want to, they could offer to drop the home price or cover some closing costs, so you have more room in your budget to take care of the repairs yourself.


Fixtures: Want that washer and dryer to stay? Maybe the stainless-steel fridge, too? In many cases, you can ask for appliances or even furniture to be included in the deal, which will save you money when you move in.


Closing Date: The closing date is also negotiable. Based on your timeline, you may also request a faster or extended closing window. Depending on the seller’s needs, this could be great for their situation, too.




Of course, negotiating is a complex process. And not every seller will be willing to offer concessions. Again, lean on your agent for expert advice about what’s realistic to ask for and what could turn sellers off.


Because once you’ve found a home you love, you don’t want to risk losing it. But you also want to get the best terms possible on your purchase – and that’s where an agent can make all the difference.


Bottom Line


As inventory grows, buyers are finding they have a bit more leverage. And having the right agent by your side – who can help you approach negotiations strategically – is key.


What’s your biggest concern when it comes to negotiating with a seller? Let me know and we’ll put together a solid plan that makes things less stressful.
 ]]> </description>
    <pubDate>Thu, 27 Mar 2025 15:27:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/why-pre-approval-is-more-important-than-ever-this-spring.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/why-pre-approval-is-more-important-than-ever-this-spring.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Why Pre-Approval Is More Important Than Ever This Spring</title>
    <description> <![CDATA[ 






Spring is here, and so is the busiest season in real estate. More buyers are out looking for homes, which means more competition for you. If you want to put yourself in the best position to buy, there’s one step you can’t afford to skip, and that’s getting pre-approved for a mortgage.


Some buyers think they can wait until they’ve found a home they love before talking to a lender. But in a season where homes can sell fast, that’s a risky move. Getting pre-approved before you start your search is a much better bet.


Here’s what you need to know about this early step in the buying process.


What Is Pre-Approval?


Pre-approval gives you a sense of how much a lender is willing to let you borrow for your home loan. To determine that number, a lender starts by looking at your financial history. Here are some of the things that can have an impact, according to Yahoo Finance:




Your debt-to-income (DTI) ratio: This is how much money you owe divided by how much money you make. Usually, you can borrow more if you have a lower DTI.


Your income and employment status: They’re looking to verify you have a steady income coming in – that way they feel confident in your ability to repay the loan.


Your credit score: If your score is higher, you may qualify to borrow more.


Your payment history: Do you consistently pay your bills on time? Lenders want to know you’re not a risky borrower.




After their review, you’ll get a pre-approval letter showing what you can borrow. Having this peace of mind is a big deal – it helps you feel a lot more confident in your ability to get a home loan. And the fringe benefit is it can also speed up the road to closing day because the lender will already have a lot of your information.


It Helps You Figure Out Your Budget


Spring is a competitive season, and emotions can run high if you find yourself up against other buyers. Having a firm budget in mind is so important. You don’t want to get too attached and end up maxing out what you can borrow. As Freddie Mac explains:


“​Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.” 


So, use this time to really buckle down on your numbers. And be sure to factor in other homeownership costs – like property taxes, insurance, and maybe even homeowner’s association fees – so you know what you can comfortably afford.


Then, partner with your agent to tailor your search to homes that match your budget. That way, you don’t fall in love with a house that’s out of your financial comfort zone.


It Helps Your Offer Stand Out During the Busy Season


Spring buyers aren’t just competing for homes. They’re competing for the seller’s attention, too. And a pre-approval letter can help you stand out by showing sellers you’ve already gone through a financial check. Zillow explains it like this:


“Having a pre-approval letter handy while you’re shopping for a home can also help you act quickly once you’ve found a home you love. The letter shows potential sellers that you’re a serious buyer who has the financial means to close on the home. In a competitive market, an offer with a pre-approval letter attached will stand out among other offers that don’t include one — increasing the chances of your offer being accepted.&quot;


That means when sellers are choosing among multiple offers, yours could rise to the top simply because you’ve already taken this step.


And here’s one final tip for you. After you receive your letter, avoid switching jobs, applying for new credit cards or other loans, co-signing for loans, or moving money in or out of your savings. That’s because any changes to your finances can affect your pre-approval status. 


Bottom Line


If you’re thinking about buying a home this spring, getting pre-approved should be your first move. It’ll help you understand your budget, show sellers you’re serious, and keep you from falling in love with a house that’s out of reach. Talk to a lender to get started.


What’s your plan to stand out in this competitive market? Let’s chat about how to make sure you’re fully ready to buy.


 ]]> </description>
    <pubDate>Wed, 26 Mar 2025 09:40:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/the-best-week-to-list-your-house-is-almost-here-are-you-ready.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/the-best-week-to-list-your-house-is-almost-here-are-you-ready.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>The Best Week To List Your House Is Almost Here – Are You Ready?</title>
    <description> <![CDATA[ 



 


If selling your house is on your to-do list this year, the time to start prepping is now. That’s because experts say the best week to list your house is coming up fast.


A recent Realtor.com study analyzed years of housing market trends (excluding 2020 since it was an outlier) and found that April 13–19 is expected to be the ideal window to put your house on the market this year:


“. . . we’ve identified April 13-19 as the best week to list for sellers . . . a seller listing a well-priced, move-in ready home is likely to find success. Because spring is generally the high season for real estate activity and buyers are more plentiful earlier rather than later in the year, listing earlier in the spring raises a seller’s odds of a successful sale.”


What Makes This Week Stand Out?


As the quote mentions, spring is almost always a strong season for sellers. But this particular week could give you an even bigger advantage this year. Realtor.com goes on to say what listing during this sweet spot could mean for you:




More buyers looking at your home since demand is high this time of year.


A faster sale since serious buyers are eager to move before summer.


A better chance of selling for top dollar. According to the study, you could get an average of $4,800 more this week (and $27,000 more than you would earlier in the year).




If You Want Your House on the Market for that Window, Act Now


With just a few weeks left before this prime listing window, you'll need to make a plan to work smart and act fast. That’s where working with a great real estate agent comes in. They can help you:




Figure out exactly what you need to do to get your house ready.


Prioritize the tasks that’ll make the biggest impact in the shortest time.


Decide if there are any quick fixes or small upgrades that could help you attract buyers.




Assuming your house is already in good shape, your focus should be on quick, high-impact updates. As Investopedia explains:


“You won’t have time for any major renovations, so focus on quick repairs to address things that could deter potential buyers.”


Here are a few examples of small projects that can make a big difference according to Redfin:





What If You’re Not Ready Just Yet?


Don’t worry – it’s okay if you don’t think you’ll be ready for this week. Just because April 13–19 is projected to be the ideal week by Realtor.com, that doesn’t mean it’s the only good time to sell. Even if you need a bit more time to get your home list ready, there’s still plenty of opportunity this homebuying season. 


Bottom Line


If you’ve been waiting for the right time to sell, this could be it. But timing isn’t the only thing that matters – how well you prep and price your home is just as important.


What’s one thing you’d need to do before you’d feel ready to list? Let’s connect and figure out the best plan to make it happen.
 ]]> </description>
    <pubDate>Tue, 25 Mar 2025 15:41:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/your-roadmap-to-homeownership.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/your-roadmap-to-homeownership.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Your Roadmap to Homeownership</title>
    <description> <![CDATA[ 









Some Highlights




Buying a home isn’t just a transaction – it’s a journey. And like any great adventure, having a solid roadmap makes all the difference. ​


From building your dream team to getting pre-approved, house hunting, and signing the papers on closing day – each milestone is an achievement.


Your journey starts here. Let’s connect so you have help every step along the way.​




 ]]> </description>
    <pubDate>Fri, 21 Mar 2025 10:13:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/what-you-need-to-know-about-homeowners-insurance.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/what-you-need-to-know-about-homeowners-insurance.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>What You Need To Know About Homeowner’s Insurance</title>
    <description> <![CDATA[ 






Homeowner’s insurance is a must-have to protect what’s probably your biggest investment – your home. And while you never want to think about worst-case scenarios, the right coverage is basically your safety net if something goes wrong. Here’s how it helps you.




Covers Repairs and Rebuilding Costs: If your home is damaged by fire, storms, or other covered events, your policy helps pay for repairs or even a full rebuild.


Protects Your Belongings: Many policies can also cover personal items like furniture, electronics, and clothing if they’re stolen or damaged.


Provides Liability Coverage: If someone gets injured on your property, homeowner’s insurance can help cover medical bills or legal expenses.




In the simplest sense, it gives you peace of mind. Knowing you have protection against unexpected events helps you worry less. And with such a big purchase, having that reassurance is a big deal.


And while your first insurance payment will be wrapped into your closing costs, you’ll want this to be a part of your budget beyond closing day too. That’s because it's a recurring expense you’ll have once you get the keys to your home.


Here’s what you need to know to help you budget for this important part of homeownership today.


Costs and Claims Are Rising


In recent years, insurance costs have been climbing. According to Insurance.com, there are four big reasons behind the jump in premiums:




More severe weather events and wildfires are leading to higher claims.


Insurance companies are pulling out of high-risk areas, reducing options for homeowners in some states.


Past rate increases haven’t kept up with the rise in claims.


The cost to rebuild or repair homes has gone up due to higher material and labor costs.




Basically, disasters are happening more often, repairs cost more, and insurers have to adjust their rates to keep up. Data from ICE Mortgage Technology helps paint the picture of how the average yearly premium has climbed over the last decade (see graph below):





What You Can Do About It


Homeowner’s insurance is a must to protect your home and your investment. But with costs rising, you’ll want to do your homework to balance the best coverage you can get at the best price possible. 


Homeowner’s insurance rates vary widely based on location, provider, and coverage. Shop around and compare quotes before settling on a policy. And don’t forget to ask about discounts. Things like security systems or bundling with auto insurance could help lower your insurance costs.


Bottom Line


When you’re planning to buy a home, it’s important to look beyond just your mortgage payment. You’ll also want to budget for your homeowner’s insurance policy. It gives you a lot of protection against the unexpected. And while it’s true those costs are rising, there are things you can do to try to get the best price possible.


What’s your biggest concern when it comes to budgeting for homeownership? Let’s talk through it and make sure you’re set up for success.


 ]]> </description>
    <pubDate>Wed, 19 Mar 2025 10:00:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/rising-inventory-means-this-spring-could-be-your-moment.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/rising-inventory-means-this-spring-could-be-your-moment.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Rising Inventory Means This Spring Could Be Your Moment</title>
    <description> <![CDATA[ 






Want to know two reasons this spring might finally be your time to buy? Inventory has grown and sellers may be more willing to negotiate as a result. That means you’ve got more options and more power than buyers have had in years. Let’s break it down.


1. You Have More Homes To Choose From


The number of homes for sale this February was higher than it’s been in any of the past five Februarys – and that’s great news for your home search. The graph below uses the latest data from Realtor.com to show the supply of homes on the market has grown by 27.5 in just the last year:


More choices for your search is a good thing – and experts also say that inventory is projected to continue rising this year, which is even better. It means it should be easier to find something that checks your most important boxes. But that’s not all this does for you. Danielle Hale, Chief Economist at Realtor.com, explains some of the other perks of more inventory, beyond just having more homes to consider:


“Buyers will not only have more home options . . . but they are also likely to find somewhat lower asking prices and more time to make decisions – all buyer-friendly factors as we inch closer to the busy homebuying season.”


2. You May Find Sellers Are Doing Price Cuts


Now that buyers have more options, some homes are sitting on the market a little longer – especially those that were priced too high from the start. And the result is more sellers are having to drop their prices to draw buyers back in. Just take a look at the numbers.


According to Realtor.com, the number of listings with price reductions has gone up compared to the last few years (see graph below):


This is a sign sellers are more willing to compromise today. If you look back to more normal years in the market (2017–2019), you’ll see that the number of price cuts happening today is much closer to what’s typical – and for most buyers, that’s a big relief.


What does that mean for you? It could give you a better chance to negotiate – whether that’s on price, closing costs, or even repairs. While not every seller will adjust their price, more of them are willing to do it – giving you more leverage than buyers have in quite a while.


Bottom Line


If you’ve been on the sidelines, waiting for the right time to buy, this spring could be the opening you’ve been hoping for.


Of course, every market is different, and working with a local expert can help you work through your options. If you want to talk about what’s happening in our area or get started on your home search, let’s connect.


How does today’s rising inventory impact your homebuying plans?


 ]]> </description>
    <pubDate>Mon, 17 Mar 2025 16:59:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/what-you-need-to-know-about-pre-approval.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/what-you-need-to-know-about-pre-approval.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>What You Need To Know About Pre-Approval</title>
    <description> <![CDATA[ 



 





Some Highlights




Before you even start looking at homes, there’s something you should do first – and that’s get pre-approved for your mortgage.


Pre-approval is when a lender checks your finances and decides how much you’re qualified to borrow for your home loan. This helps you determine your budget and makes your offer stand out for sellers.


​Connect with a trusted lender to get the process started.


 ]]> </description>
    <pubDate>Fri, 14 Mar 2025 10:36:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/is-the-housing-market-starting-to-balance-out.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/is-the-housing-market-starting-to-balance-out.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Is the Housing Market Starting To Balance Out?</title>
    <description> <![CDATA[ 



 


For years, sellers have had the upper hand in the housing market. With so few homes for sale and so many people who wanted to purchase them, buyers faced tough competition just to get an offer accepted. But now, inventory is rising, and things are starting to shift in many areas.


So, is the market finally balancing out? And does that mean buyers will have it a bit easier now? Here’s what you need to know.


What Makes It a Buyer’s Market or a Seller’s Market?


It all comes down to how many homes are for sale in an area compared to how many buyers want to buy there. That’s what ultimately determines who has the most leverage.




A Seller’s Market is when there are more buyers than homes available, so sellers hold the power. This leads to rising prices, multiple offers, and homes selling quickly – often above the asking price – because there isn’t enough to go around.


A Buyer’s Market is when there are more homes than buyers. In this case, the tables turn. Sellers may have to offer concessions and incentives, or negotiate more to get a deal done. That’s because buyers have more choices and can take their time making decisions.




You can see this play out over time using data from the National Association of Realtors (NAR) in the graph below:


Where the Market Stands Now


While it’s still a seller’s market in many places, buyers in certain locations have more leverage than they’ve had in years. And that’s thanks to how much inventory has grown lately. As Lance Lambert, Co-Founder of ResiClub, explains:


&quot;Among the nation’s 200 largest metro area housing markets, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the places where homebuyers will be able to find the most leverage or market balance in 2025.&quot;


Here’s a look at some of the strongest seller’s markets and buyer’s markets today, according to that research:


Do you know how to adjust your plans based on who’s got the most negotiating power? Because an agent does. 


Clever strategies can make buying in a seller’s market easier – and vice versa. And that’s exactly why you need to hire a pro. A local real estate agent knows their market like the back of their hand. They’re super familiar with what the supply and demand balance looks like and how to help their clients get a deal done either way. So, as long as you have a skilled pro by your side, it doesn’t really matter if your town is on the list or not.


With their expertise, you’ll be able to plan ahead and buy (or sell) no matter what the market looks like.


Bottom Line


With inventory rising, the market may be starting to balance out – but it all depends on where you want to buy or sell.


Are you wondering if buyers or sellers have the upper hand in our area? Let’s connect so you can find out.
 ]]> </description>
    <pubDate>Thu, 13 Mar 2025 10:01:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/buying-your-first-home-its-okay-to-feel-nervous.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/buying-your-first-home-its-okay-to-feel-nervous.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Buying Your First Home? It’s Okay To Feel Nervous</title>
    <description> <![CDATA[ 



 


Buying your first home is exciting, but let’s be real – it can also feel overwhelming. It’s a big step, and with that comes plenty of questions. Am I making the right decision? Can I really afford this right now? Will I be able to make ends meet if I have unexpected repairs? What if I lose my job?


Here’s the thing: every first-time homebuyer has these thoughts. 


The homebuying process has always been a mix of excitement and nerves, and that’s completely normal. Here's some information that can give you a bit of perspective, so you don’t have these concerns.


Focus on What You Can Control


Since homeownership is new to you, you’re probably feeling like it’s hard to know what to budget for. And that can be a bit scary. You’ll have the mortgage, home insurance, and maintenance to think about – maybe even lawn care or homeowner’s association (HOA) fees. It’s easy to let the dollar signs be overwhelming. As Zillow says:


“Buying a house is a big decision, and you might feel confused and indecisive as you assess your current financial situation and try to work through whether or not the timing is right. Making big life choices might come with some self-doubt, but crunching the numbers and thinking about what you want your life to look like will help guide you down the right path.”


The important thing is to focus on what you can control. By partnering with a local agent and a trusted lender, you can get a clear understanding of what you can borrow for your home loan, what your monthly payment would be, and how your mortgage rate can impact it. And since that payment will likely be your biggest recurring expense, the key is to make sure the number works for you.


Don’t Stress About Repairs


The maintenance and repairs? Those can be a little bit harder to anticipate. But don’t forget you’ll get an inspection during the homebuying process to give you a better look at the condition of your future house. And with your inspection report in hand, you’ll have a good idea of what needs work. This way, you can start saving up so that you’re ready if and when something breaks.


But even then, if this is something that’s still really nagging at you, talk to your agent about asking the seller to throw in a home warranty. Those can cover repairs for some of the bigger systems in the house, like the HVAC, if they break within a specific time frame. While this isn’t a huge expense for the seller, the likelihood of a seller agreeing to one depends on what’s happening in your local market and how competitive it is right now.


It’s Okay To Stretch – Just Not Too Far


And remember, chances are that money will be a little tight – at least at first. And that’s kind of to be expected. A lot of times when someone buys their first home, they cut down on things like shopping and eating out for a while until they get a better idea of how their expenses will shake out in the new home.


But if you’re crunching the numbers and you won't have enough money left for things like gas, food, etc. – it's a sign you’d be stretching yourself too far. The last thing you want is to take on a payment that’s too much to handle. But stretching a little? That’s different. That’s normal.


Your Job Will Probably Change – And That’s Okay


And don’t forget, you’ll likely earn more down the road, so that slight stretch now won’t seem so bad as time wears on. As you advance in your career, you’ll probably start to make more money too. So, as your paycheck grows, the payments will get easier. Renting is a short-term option – and it’s one you deserve to get out of. Buying a home is a long-term play.


And just in case you’re worried about what happens if you do lose your job, you should know there are options, like forbearance, designed to help you temporarily pause payments on your home loan due to hardship.


Bottom Line


Buying your first home is a big decision, and it’s okay to feel a little nervous about it. But if you’re financially ready, don’t let fear keep you from moving forward. These emotions are normal, and great agents help their buyers get through them.


What makes you nervous when you think about buying your first home?


Let’s connect so you have an expert on your side to explain everything along the way.
 ]]> </description>
    <pubDate>Wed, 12 Mar 2025 16:36:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/mortgage-rates-hit-lowest-point-so-far-this-year.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/mortgage-rates-hit-lowest-point-so-far-this-year.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Mortgage Rates Hit Lowest Point So Far This Year</title>
    <description> <![CDATA[ 



 


If you’ve been holding off on buying a home because of high mortgage rates, you might want to take another look at the market. That’s because mortgage rates have been trending down lately – and that gives you a chance to jump back in.


Mortgage rates have been declining for seven straight weeks now, according to data from Freddie Mac. And the average weekly rate is now at the lowest level so far this year (see graph below):


While that may not sound like a significant shift, it is noteworthy. Because the meaningful drop from over 7 to the mid-6’s can change your mindset when it comes to buying a home. Especially when the forecasts said we wouldn’t hit this number until roughly Q3 of this year (see graph below):





Why Are Rates Coming Down?


According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), recent economic uncertainty is playing a role in pushing rates lower:


&quot;Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024.&quot;


And the timing of this recent decline is great because it gives you a little bit of relief going into the spring market. Just remember, mortgage rates can be a quickly moving target, so you should expect some volatility going forward. But the window you have as they’re coming down right now might be the sweet spot for your purchasing power now.


What Lower Rates Mean for Your Buying Power


Even small changes in rates can make a difference to your monthly payment. Here’s how the math shakes out. The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house when rates were 7.04 back in mid-January (this year’s mortgage rate high), versus what it could look like if you buy a home now (see below):


In just a matter of weeks, the anticipated payment on a $400K loan has come down by over $100 per month. That’s a significant savings. When you’re making a decision as big as buying a home, every bit counts.


Just remember, shifts in the economy drove rates down faster than expected. But that can change, making rates volatile in the days and months ahead. So, if you’re waiting for rates to fall further before you buy, think hard about the current window of opportunity if you’re ready to act.


Bottom Line


Mortgage rates have dipped, giving buyers a bit more immediate breathing room. If you’ve been waiting for rates to ease before jumping in, this could be your window.


Would a lower monthly payment make buying a home feel more doable for you? Let’s break down the numbers and find out.
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