“Team Jacy’s list of 10 GOOD NEWS items”

I wanted to share some encouraging news for buyers! From one of my trusted lender her in the Magic Valley, I Hope this helps all of you as you navigate the new market! 

Let’s first address the elephant in the room, the ONLY bad news is rates are higher!  The good news in my opinion trumps the bad news 10-fold!

GOOD NEWS

1. Prices are lower than they were a year ago!
2. More homes on the market to choose from.
3. Buyers are not paying over the asking price of homes – many customers in 2020 and 2021 paid over asking price – possibly bought a home they didn’t LOVE due to the buying frenzy.
4. Sellers are more willing to accept offers from 1^st time homebuyers, FHA, VA loans and offers that are contingent
5. Sellers are offering to pay buyers closing costs and help buyers buydown the interest rate, buy out mortgage insurance etc.  – Now many clients are only coming in with their down payment verses a year ago paying all out of their own pocket.
6. Buying a home can positively impact taxes due to the IRS as homeowners can write off mortgage insurance, mortgage interest and property taxes.  A suggestion would be to claim additional dependents monthly to have more cash flow coming in to help offset a higher mortgage payment knowing that a tax deduction at the end of the year will take place.  (Always consult an accountant for your specific scenario) Publication 936 (2021), Home Mortgage Interest Deduction | Internal Revenue Service (irs.gov) – Owning a home is better for taxes than renting.
7. Statistics show the average time a borrower holds a mortgage in the US is 4.2 years.  The rate most borrowers lock today, they will not keep FOREVER!
8. Buyers can MARRY the house and DATE the rate!  
9. We all said rates would be lower in 2024 but look at these articles – borrowers could date the rate for a shorter period  Fannie Mae says in 2023 rates will go back down and you would have the opportunity to refinance Fannie Mae says fixed mortgage rates could fall to 4.5% next year (cnbc.com)  Why We Expect the Fed to Cut Interest Rates in 2023 | Morningstar
10. Most clients select a fixed rate mortgage –meaning the mortgage payment is the fixed (unless property taxes adjust) rent is variable meaning the payment is only fixed until the term of the lease is up. 

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