How to Guide Clients Past Negative News

The national media continues to crank out depressing real estate headlines, harping about rising mortgage rates and lack of homes for sale. But not all of the bad news applies across the board, or to every area. Here's some data to share with prospective or nervous clients.

Home sales are rising in some markets. National headlines don't always apply to regional markets. For example, home sales are gaining momentum this year in some parts of the country. Be sure to remind potential sellers — especially those in more expensive homes — that they may be able to collect the full price you recommend, or even see buyers bidding higher offers.

Wow. Look at that equity. While some potential sellers may be feeling some FOMO (Fear of Missing Out) because they didn't sell during the peak of the market, the equity they've acquired is still impressive. Most homeowners have paid off their mortgages or have at least 50% equity in their homes. Home ownership continues to be a smart investment, even in a fluctuating market.

We're returning to realistic rates. While clients who missed out on 3% mortgage rates may be pining for 2021, sharing historical data may help. The mega-low rates were triggered by a global pandemic which is an extremely rare event. Freddie Mac data shows that 2019 began with 30-year rates over 4.5%. And, more recently, the inflation that helped drive rates higher in 2022 continues to wane.

Source: rismedia.com

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.