Real estate thoughts

Boston Real Estate and Condos for Sale

Real estate thoughts

Today, mortgage rates sit at around 6.5%. Per CME FedWatch, there’s a 89% chance the Fed cuts rates on September 17th.

However Fannie Mae predicts rates will stay above 6% through all of 2025 and 2026. So if you’re still hoping for ultra-low rates, you might be in for a long wait.

Analysts and markets are largely pricing in a 25-basis-point reduction due to a softening labor market – but we don’t know if that will be enough to lower the mortgage rates at all.

But let’s say you can save 0.25%.

To put this in perspective, a loan of $1,000,000 has a monthly payment of roughly $7,177 per month at 6.5%. To compare, at 6.25% it’s $7,013/mo. So the $164/mo savings isn’t much of a difference in the big scheme of things.

A small cut in rates might be a catalyst for a few sales, but it probably won’t cause a widespread increase in activity. Many sellers will continue to wait for the market to improve while many buyers will wait for the perfect house at the perfect price, regardless if that actually exists or not.

Real estate thoughts

I wish I had the determination of my girlfriend, who’s still scanning through radio stations as we pull into our driveway.

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I think my girlfriend is on the internet too much viewing condos for sale in Arlington MA.

I finally realized how bad it was when I was scratching her back last night.

“No, not there,” she directed me to. “Scroll down.”

Ford Realty Inc 2024 Google Reviews

Where is Ford Realty Located?

Ford Realty is located in 137 Charles Street in Beacon Hill

Real estate thoughts

Nationally home sales were above expectations in July; however, the three previous months were revised down, combined. New home sales are back to pre-pandemic levels.

With little existing home inventory, it seems likely that new home sales bottomed in mid-2022, and will be up year-over-year in 2023, even with mortgage rates above 7%.

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Both the New York Times and the WSJ wrote articles on how the government is expanding its programs to assist unemployed homeowners, as well as borrowers who owe more on their mortgages than their homes are now worth. Both websites received both positive and negative responses. Here are a few:

WSJ: “Here’s a heretical thought: What if Washington had simply let housing prices fall on their own to find their natural bottom? The pain would have been more severe more quickly for some owners who bought more expensive homes than they could afford. But the pain might also be over by now as housing markets cleared faster, and housing might be contributing to a healthier economic expansion.”

Tara Siegel Bernard from NYT: “But it made me think about what would be at stake if the government did noting at all. A government should consider the greater good over the long term, of course, and not just the immediate question of what is fair.”

What are your thoughts?

Byline – John Ford – Boston Seaport Condo Broker.

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