The New “What did you do with your Z today” (with off topic replies)

vtec to vvel

The LO in this article is on the right track in terms of refinancing to a lower rate when they drop. As with anything, the real estate market is like a roller coaster and there will be periods of times when rates rise and drop.

What this LO, and many others, fail to make the focal point, though, is: IF you have the means and ability to buy now, then buy. High rates is a concern but we are in a severe short-supply environment, so if a LO can offer a 2% rate, but no home to lock this on, the rate doesn't do anyone any good. So focus on finding a home and getting under contract and THEN worry about refinancing to a lower rate later down the road.

Many people are listening to the media and holding back on purchasing a home due to high rates. But what those potential buyers fail to see, and seem to have forgotten, is the chaos when rates were in the 2% range:

1. Bidding Wars
2. Having to submit upwards of 40+ offers and hoping 1 will get accepted
3. Having to go in offering over the asking price on the initial offer
4. Having to pay the overage out of pocket, since the bank will only loan up to the appraised value
5. No chance of seller credit/concessions and sellers asking the buyers to waive the contingencies built-in to protect the buyer (i.e. inspection, appraisal, etc.)

Fast-forward to now, though the market is still a seller's market (due to short supply), buyers now have some leverage and room for negotiations:

1. No bidding wars
2. Sellers are dropping price (though they are still higher than pre-pandemic levels)
3. Buyers can ask for credits/concessions/repairs/etc.
4. Sellers more likely to help buyers with credits/concessions, which can go towards items such as closing costs, buying down the rate, etc.
5. Less likely of having to overpay for a home by not having to offer over asking price

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