Sept. 19, 2024

Mortgage Rates Are Falling

f you’ve been hesitant to list your house because you’re worried no one’s buying, here’s your sign it may be time to talk with a Fehrman Realty agent! 

After months of high rates keeping buyers on the sidelines, things are starting to shift. Rates are already coming down due to a number of economic factors. And yesterday the Federal Reserve cut the Federal Funds Rate for the first time since they began raising that rate in March 2022. And while they don’t control mortgage rates, this sets the stage for mortgage rates to fall even further than they already have – especially since more cuts from the Fed are expected into next year. And lower mortgage rates are bringing more buyers back into the market. Lisa Sturtevant, Chief Economist at Bright MLS, says:

“A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”

The best part? You can take advantage of that renewed buyer interest.

As Rates Fall, Buyer Activity Goes Up

The graph below illustrates the relationship between falling mortgage rates and rising buyer activity. The orange line represents the average 30-year fixed mortgage rate, while the blue line shows the Mortgage Bankers Association (MBA) Mortgage Application Index, which tracks the number of mortgage applications.

As you can see, as mortgage rates (orange) come down, the Mortgage Application Index (blue) rises, showing more people start to re-engage in the process (see graph below):

What This Means for You

According to the National Association of Realtors (NAR), home sales increased in July, which was a welcome shift after four straight months of declines. If you're a homeowner thinking about selling, this uptick in buyer activity works in your favor.

More buyers means more competition, which can lead to higher offers and shorter time on the market for your house. And, according to Edward Seiler, AVP of Housing Economics at the Mortgage Bankers Association (MBA), this trend is expected to continue:

“MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”

All in all, the market is becoming more accessible to a wider range of buyers, which could result in even more people looking to purchase a house like yours.

With more buyers entering the market, now’s the time to start getting your house ready to sell.

Bottom Line

The recent decline in mortgage rates is already driving more buyers into the market, and experts project this trend will continue. Let’s work together to take advantage of this increased buyer demand and get your house ready to sell. Reach out to Fehrman Realty for a FREE market analysis of your property's value in today's market! 812-537-1700

Aug. 6, 2024

A Wonderful Place to Call Home!

Benefits and Beauty of Southeast Indiana

Southeastern Indiana has a small-town feel where people know one another. Generation after generation have raised their families here with the benefits of living in a small community while in close proximity to both Cincinnati and Northern Kentucky. You could easily say those who live here have the best of both worlds! You will find beautiful landscapes and rolling hills with views of the Ohio River. We have a rich diversity in our area from a wide range of homes to farms, recreational and hunting ground, commercial investments, multi-family housing and condos!

Southeastern Indiana also has wonderful school systems with small-town pride and rivalry included! Friday nights light up the landscapes with sports events, trips to local restaurants and pizza parlors. South Dearborn High School encompasses Aurora, Manchester, Moores Hill and Dillsboro Elementary Schools. It sits atop a hill in Aurora. Lawrenceburg School System is in the heart of Lawrenceburg, and is located only miles from the border of Ohio and Northern Kentucky. East Central School system is the largest of our school systems and is located in St. Leon, IN, conveniently located right off of Interstate 74. Ohio County Schools are located in Rising Sun, where a trip there offers a wonderful and scenic view of the Ohio River. Switzerland County Schools are located in Vevay and are more remote than the other school systems.

For recreation, we have Perfect North Slopes where the adventurous seek thrills on the white powder to ski, snowboard, and tube in the winter. We also have Durbin Bowl and Greendale Cinemas for entertainment. There are many wonderful restaurants and unique shops located in our small towns. Boaters, skiers, and fishermen can be seen on the Ohio River.

Our area has an abundance of festivals and community events throughout the year. Aurora is home to the oldest festival in Indiana - Aurora Farmer's Fair - which takes place the first weekend in October every year. Lawrenceburg has Fall Fest that draws big name acts such as Bret Michaels, Hank Williams Jr., Dwight Yoakam, Cole Swindell, just to name a few. From car shows, to fundraising events, to church festivals, there are numerous events you will want to check-out in Southeast Indiana!

 

Posted in Southeast Indiana
Aug. 6, 2024

The Equity You Have in Your Home May Be Higher Than You Realize!

What Every Homeowner Should Know About Their Equity




Curious about selling your home? Understanding how much equity you have is the first step to unlocking what you can afford when you move. And since home prices rose so much over the past few years, most people have much more equity than they may realize.

Here’s a deeper look at what you need to know if you’re ready to cash in on your investment and put your equity toward your next home.

Home Equity: What Is It and How Much Do You Have?

Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.

Recent data from the Census and ATTOM shows Americans have significant equity right now. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below):

No Caption ReceivedToday, more homeowners are getting a larger return on their homeownership investments when they sell. And if you have that much equity, it can be a powerful force to fuel your next move.

What You Should Do Next

If you’re thinking about selling your house, it’s important to know how much equity you have, as well as what that means for your home sale and your potential earnings. The best way to get a clear picture is to work with your agent, while also talking to a tax professional or financial advisor. A team of experts can help you understand your specific situation and guide you forward.

Bottom Line

Home prices have gone up, which means your equity probably has too. Let’s connect so you can find out how much you have in your home and move forward confidently when you sell.