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Mortgage Rate update 10/27/2020

Hello, Sean Zalmanoff here, with this week’s mortgage rate updates.

Big news just released. It is November, but we just got August Case-Shiller’s numbers and 5.7% increase year-over-year in home value. That is from August of 2019 to August of 2020. Just to break that down simply for you, if you purchased a house for $300,000 in August of 2019, you’d have accumulated roughly $17,000 of equity in your home purchase. You know, a lot of people put 5% down when they buy a house, so you would have already made all of your down payment money back in equity in your home. Just a little bit of food for thought for you to think about there. Now that is the national number. Some of our markets are going to vary a little bit, even here in St. Louis, where we have varying numbers from neighborhood to neighborhood.

We talked last week about this stimulus deal. Well, our great, amazing leaders, yes, I say that incredibly facetiously, have now adjourned Congress until after the election. They come back on November 9th. Well, we will not have a stimulus deal unless some miracle happens where they actually decide to go back and work for us to provide that to us and give stimulus. What does this mean for you? Well, one of the concerns that I mentioned last week that will happen when Congress comes back, and when stimulus is passed, we will have an increase in rates. It may not be significant, but there will be an increase in rates. I can tell you why because the stock market is going to go up when the stimulus deal is passed. It will be very good for the stock market. It will be good for jobs. It will be good for our economy.

Fixed-rate instruments like bonds, which mortgage-backed securities are wrapped up in there, will sell off, and as they sell-off, rates will move a little bit higher. The good news is, is if you’re thinking about refinancing or buying, you probably have at least a good week to two weeks to lock into the rates right now without a lot of fluctuation. Now, I say that, and you have to take that with a grain of salt because a simple tweet or any big news could definitely shift that and make markets move. Don’t you like that? I mean, everybody who always gives financial advice, they’re like, “This is what’s going to happen,” but you know, it may not. To the best of my knowledge and the people I follow and what I’ve learned, this is what I believe right now.

Even when all this happens, this isn’t you got to rush for the fences and find your house right now. Rates are still going to be great after this. We’re still going to be trading near historic lows. It’s my job to keep you updated, and I appreciate you all. Have a great day. Again, I’m Sean Zalmanoff with Better Rate Mortgage, and my team is always here to help you with your financial needs. Remember, when you’re choosing a mortgage professional, you must choose an advisor. We will save you thousands of dollars by putting you in the right loan at the right time for your needs. That’s all I got for you. Peace out, you all, have a great day.

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