Home buyers look to get into mortgages after recent rate drop

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Homebuyers rush to lock-in mortgage rates

It was widely reported that mortgage rates saw their single largest drop in day since 2009 last week. Home buyers have definitely taken notice. According to the Mortgage Bankers Association,  the volume of mortgage rate applications increased 4% last week as mortgage rates fell to a 6.62% national average.

Rates have edged up slightly, but this is still a great opportunity to lock in a mortgage rate under 7%.

Are we in a buyer’s or seller’s market?

KREM 2 spoke with real estate professionals in the eastern Washington and northern Idaho regions, and asked what they’re seeing locally in the housing market.  The overwhelming takeaway is that they still have low inventory and high demand in the region, but they’re seeing more balance of power between buyers and sellers. One real estate agent stated that, “Buyers are able to look at homes for more than 15 minutes and have to make a decision.”

An investor also stated that he believes the power is beginning to shift from buyers to sellers. He said, “Especially as we move into the colder months, I thnk we’re goin to continue to see a shift and a change in the dynamic of that relationship.”

That’s just one market, but a shift in a large, popular area could signal the start of a greater change.

How are Home Depot and Lowe’s booming in the current housing market?

The housing market might be down from pandemic-fueled highs, but sales at Home Depot and Lowe’s aren’t. Both major home improvement retailers posted strong quarterly earnings this past week, and executives at both companies spoke positively about their 2023 outlook.

They both emphasized that homeowners are looking to ‘improve in place’, meaning that they’re looking to update their existing homes instead of upgrading to a new home. They noted that remodeling isn’t as hot as it was during the pandemic, but it’s still elevated.

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  3. A payroll stub
  4. A bank statement
  5. Loan obligation info (student loans,
    auto loans and credit cards)

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