A recent Fed rate cut has sent mortgage applications soaring by 30%, with 30-year rates dipping near 6.39%. The team discusses the benefits of refinancing now versus waiting, along with insights on adjustable-rate mortgages. They also tackle the realities of the purported $100 trillion wealth transfer and the risks of relying on inheritances. Plus, they explore strategies for navigating cooling land prices, including infill lot splits and seller financing to enhance equity and cash flow.
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insights INSIGHT
Refi Rush After Rate Drop
Mortgage applications surged ~30% after 30-year rates fell to ~6.39%, driven mostly by refinances.
Many owners who bought at 8–9% are chasing a tangible rate drop now rather than waiting for future cuts.
volunteer_activism ADVICE
Lock A Refi If It Improves Cash Flow
Do consider refinancing now rather than waiting for hypothetical lower rates.
Lock improved cash flow when you can, because mortgage rates can move unpredictably despite Fed signals.
insights INSIGHT
How Today's ARMs Work
Modern ARMs provide an initial fixed period (e.g., 3–5 years) before adjustments, making them less risky than pre-2008 ARMs.
Borrowers can refinance again after the fixed period or ride the ARM if it still pencils.
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Fed rate drop, refinance rush, and a land price reset: what does it mean for the housing market now. Henry Washington, Kathy, and James explain why refinance applications jumped roughly 30 percent after 30-year mortgage rates slipped near 6.39 percent, how today’s ARMs actually work, and why locking a refi now can beat waiting for future interest rates to fall. They outline a practical housing market prediction and forecast, expecting more transactions rather than a surge in home prices or housing prices, plus timing tips for listing into the spring when buyer activity historically rises. You will also get a reality check on the “great wealth transfer” and reverse mortgages, along with a land strategy playbook for a potential price decline, from targeting big-lot houses and infill splits to using seller financing to create equity and cash flow.
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