HOME MORTGAGES-2023

Success Strategies for the 2023 Home-Buying Market

By Michelle Bobart Certified Mortgage Advisor –Guaranteed Rate

In my 25-plus years in the mortgage industry, I’ve partnered with more than 3,500 clients and real estate agents to create customized mortgage solutions to fit each individualized portfolio in every economic situation.

Experts agree: 2023 homebuyers will experience a more balanced market. Last year’s higher mortgage rates and increased home prices resulted in a much-needed accumulation of supply bringing the housing market back into a healthier balance. With housing supply levels normalizing, how does this translate into your home-buying decision making?

According to David Stevens, former Assistant Secretary of Housing, “Be advised…this may be the one and only window for the next few years to get into a buyers’ market. Remember…as the Federal Reserve data shows…home prices only go up and always recover from recessions no matter how mild or severe. Long term homeowners should view this market…right now…as a unique buying opportunity.”

In my mortgage advisory role, here is what I recommend:

1. Prepare early to compete with cash offers.

The housing market can heat up quickly when mortgage rates decline. Experts agree that housing supply will remain a long-term concern. As demand increases, a return to competitive bidding and multiple-offer scenarios is likely. Experienced mortgage advisors should provide a solid pre-approval letter. A pre-underwritten approval letter is an even stronger tool to help you compete with cash offers.

2. Don’t try to time the market.

Stay engaged with your home search. If your ideal home appears, move forward and don’t look back. Take advantage of this narrow window to access the increased buying power currently available. From a lender perspective, I am seeing a significant amount of pentup demand with borrowers who are pre-approved and ready to purchase a home, but who have waited for lower home prices or mortgage rates that may not appear. Savvy investors do not try to time the market. Research shows the cost of waiting to invest, in the stock market or to buy a home, often exceeds the benefit of even the best timing. In the past 10 years, home prices have increased 110%. In the last two years alone, we have seen appreciation accelerate 39%. Over the long term, homeownership still wins as one of the keys to building generational wealth, no matter when you purchase.

3. Date your mortgage rate.

It’s the latest cliché, but it’s true: Marry the house, date the rate. The average lifespan of a typical mortgage is under 10 years. Even with a 30-year term, most people refinance or move within 10 years of taking out their original mortgage. Should rates continue to fall, some lenders can reduce or eliminate lender costs to make it more cost effective for you to refinance into a lower mortgage rate sooner rather than later, if one becomes available.

I would love to strategize with you to discuss how you can best leverage cutting edge mortgage tools available in a way that keeps your best interests at heart. Please contact me for your complimentary mortgage consultation. (312) 953-7365

Michelle Bobart, Certified Mortgage Advisor

Guaranteed Rate - Equal Housing Lender

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