The Cash You Need To Take Advantage Of Market Opportunity
Do you ever look out at the crazy economy and think, “there is such a big opportunity to make money right now… if only I had some more to invest!”
Well, you’re not alone. They always say you need money to make money, right? But it’s not like it’s just growing on trees these days. The world is like a snowglobe was just shooken up overnight and we’re all still trying to find out where we will land.
But one thing is for certain… If you own a home, you are exactly where you need to be.
The housing market is RIPPING!
One of the metrics economists use to judge the health of the housing market is how long it takes for the available inventory to sell through. For context, a pretty good indicator is about 6 to 7 months; October 2019 had a sell through pace of just under 4 months.
Speed of home sales are currently at an all time high with 2.5 month inventory sell through per Reuters.
What does this mean? Well, there are a handful of reasons. First, over 20% of people claim their home is now their office. More time being spent at home means more time looking around at the same walls and having many people yearning for that upgrade. Apparently to much that “Zillow surfing” had become a full time hobby according to the New York Times.
Secondly, people need space now more than ever. When it made more sense to stay in the city due to shorter commute times despite the chaos and higher price, a mass reverse-urbanization is happening across the country. Families are in need of that extra room or yard for the dog and kids to get out of the house while we’re still under house arrest.
Lastly, and most importantly for you, our esteemed Empowered homeowners, mortgage rates are at an all time low.
AP news dropped the hammer on November 19th that the current 30-year mortgage fell to a record low 2.72% with refinance rates being potentially lower. No wonder the Joneses are window shopping the interwebs.
For anyone looking to take advantage of market opportunities, there is no better way to get more money into your pocket than spending less on your biggest expenses, aka mortgage interest.
And for our final act, the mortgage companies are actually lending!
Back when the world first got shaken up and the full blizzarding phase of the snow globe was still in effect, the banks weren’t lending because there was no bottom in sight. With mass uncertainty, rates generally plummet like humpty dumpty off a wall but this free fall can be tough because with a pandemic completely crushing cash flows and creditworthiness, no one wants to extend new credit.
However, this time around is different. We have an end – well vaccine – on the horizon which means banks can mitigate their worries. Remember, whenever the big institutions move money around, they can take fees, so this will certainly be a cost but it is highly unlikely that fees will outweigh the savings from a reduced mortgage payment.
All things considered, Quicken Loans is the national mortgage leader and the biggest household name. They have many programs for borrowers of any type with varying rates and durations (how long you have to pay it back).
Whether you just got a new house or recently refinanced in the last few years, the good thing about mortgages is that when rates drop, a new door will always open. So get some money back in your pocket by refinancing to a lower rate and put that money to work!
You can thank us later…
The Empower Media Team.