Mortgage rates were supposed to be going down by now, but what happened? Even in late 2023, many housing market experts predicted that we’d be seeing high to mid six percent mortgage rates at this point and hovering around the high five percent rate mark by the end of the year, but the Fed isn’t showing any sign of lowering rates soon. Some experts even believe rates could go UP again this year as the job market stays hot and the economy sees unprecedented strength. This begs the question: What IF mortgage rates remain high?
It’s a reality many of us don’t want to see, but 2024 could end with minor, if any, rate cuts, keeping monthly mortgage payments high and affordability low. So, what should an investor do in this situation? Sit on the sidelines? Invest in a different asset class? Pray to Jerome Powell? While that last option may be worthwhile, top real estate investors are saying that NOW is the time to buy BEFORE rates fall. What do we mean?
We’ve got the entire expert investor panel from On the Market here to give their take on what investors should do IF rates don’t fall. From house flipping to long-term buy and hold rentals, our nationwide panel of investors shares exactly what they’re doing to make money even with high interest rates. Plus, we’ll give our predictions on when rates could fall, what will happen to housing inventory, what young people should do NOW to get their first house, and why investors need to “reset” if they want to thrive in this high rate housing market.
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In This Episode We Cover
Mortgage rate predictions and when interest rates could finally start falling
What should investors do IF mortgage rates stay high throughout 2024
The “lock-in effect” and whether or not high rates are leading to lower inventory
The homes that are flying off the market in many areas (and the ones that are sitting)
How young people can creatively get into their first home or investment property
Why investors MUST “reset” their expectations if they’re to build wealth in this housing market
And So Much More!
(00:00) Intro
(04:45) When Could Mortgage Rates Fall?
(13:48) Inventory is Getting Gobbled Up
(19:56) Can Young People Make It?
(24:19) Investors Must "Reset"
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-979
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