Interest Rate Changes Likely: What It Means As You Shop For a Home

Joe Dunn from First Heritage Mortgage is one of our partner lenders.  He explains why you might not want to wait for interest rates to drop before to buy your next home.

In the video, he explains: "This is Joe Dunn from First Heritage Mortgage. I am a 32-year mortgage veteran and a trusted referral partner with Vertical Builders.  I wanted to talk with you a little bit about interest rates.

We've really started to see interest rates come down based on, the weak employment data that has been lingering for a few months, and most analysts are expecting a half a point rate cut.

That is great news. However, short-term rates and long-term rates are not directly tied together.  What you should focus on is -- if you're building a home and you've got a 6- or 7-month build time -- that I fully expect rates to be considerably lower at the end than where they are now. Currently, 30-year fixed rate conforming loans are in the six and a quarter range with no points, and I do expect those to continue to fall. 

So why are you waiting? The problem with waiting is that the longer you wait (and as rates come down), you're going to see prices go up, because the inventory issue we have in America is not going to be cured in our lifetime.  With First Heritage Mortgage, you have one free float down, which means that once you lock in, the rate between the time you lock and the time you close, as long as you're ten days outside of closing, we can float your rate down one time for free. We also give you an extreme refi discount, when you refi with us within five years. So the point of the whole video is to encourage you not to wait, whether it's building a home with Vertical or buying a Vertical Buyers Spec (A quick move-in home). Take advantage of rate movement in the future. I know: Keegan Muth, Taylor Robertson, Ryan Sedwick and the whole team over at Vertical would love to work with you.  And we would love to work with you as well. So: my name is Joe Dunn, First Heritage mortgage at (804) 543-2261  MLS license #160856. I look forward to hopefully hearing from some of you and talking through the process of not waiting. Have a great day! I look forward to hearing from you."