Musings from the Mountains

Good morning.  The first thing on my mind today is real estate mortgage rates.  We all know that rates have risen considerably from the few years where we enjoyed rates in the 3 to 4 percent range.  When the Federal Reserve began raising rates last year to combat the post pandemic inflation, mortgage rates started climbing.  Earlier this year rates climbed to almost 7 percent for a conventional 30-year home mortgage.  I am happy to say that recently rates have begun lowering.  Currently, 30-year mortgage rates for a conventional loan are about 6.125 percent.  FHA mortgage rates are currently at 5.625 percent.  This month I represented a client who received an FHA mortgage loan for 5.25 percent when buying a home.  Of course, I am quoting rates for primary home mortgages.  Secondary home mortgages and investment property mortgages will be somewhat higher.  Sometimes we, as humans, try to “time the market” on rates.  In other words, if rates are declining, we tend to wait until they lower more before we pull the trigger.  Always remember, if rates come down a year or several years after you purchase a home, you can always refinance.  If rates go up, and you have a fixed-rate mortgage, your rate stays the same, no worries.

On another note, the weather here has been wonderful the last couple of months.  We have had some cold mornings, but overall temperatures have been above normal, with warm, sunny afternoons.  I have lived here for almost 50 years, and I can honestly say that winters here are getting milder and milder as an overall trend.  We get many buyers here from Florida, and some now from Texas.  When I ask why they want to live here, or purchase a secondary home here, the most common answer is “I want to get away from the hot summers.”  Our cool mountain evenings in the summer are truly a gift.

By the way, if you’re already fortunate enough to own a home here, and may be thinking about selling, please give us an opportunity to do a market analysis on your home.  It may be worth more than you think.  We really need inventory right now.  We have more buyers currently than we have sellers.

If you’re in the area, stop by and say “Hello”!