Friday, October 4, 2019

FAQs About Getting a Home Mortgage in the Fall

While it may not feel like it yet, the Fall season is here and we are so excited about what it means to our home buyers. There have been some interesting things happening in the mortgage market, and many homebuyers are finding that the interest rates are phenomenal. From new mortgages to refinancing, this is truly looking to be one of the best seasons to buy. If you have been thinking about purchasing a home at the Lake of the Ozarks over the next few months, here are the answers to a few frequently asked questions that may guide you towards the right decision for you.

Q: Does the season really matter when buying a home?
A: Essentially, no. However, certain things will happen year-round to influence buying trends, price drops, and interest rates. This year has been interesting, as we are seeing some incredibly low-interest rates. It is being fueled by other things that are impacting the housing market and even the world - but it leads to NOW being an excellent time to buy a home.

Q: Can I save money by buying in the Fall instead of the Summer?
A: This is dependent upon your area, but for the Lake of the Ozarks, time of year can play a huge roll in the price of a home. Summer is a busy season, where the area is hopping with excitement, and the homes are at their peak in terms of curb appeal and Summer fun. Summer is also a great time of year for moving, and many more homes are listed during the summer months. However, as we move into Fall, you may find that the inventory goes up, prices come down, and it becomes the best time for you to secure your dream vacation home at the Lake of the Ozarks.

Q: What is happening right now to affect the loan rates?
A: There was a little trade deal with Japan that happened, and with solid housing numbers, and hopeful news on the U.S./China trade dispute, it was enough to cancel out the improvement in rates that we had been seeing. There was also a Fed rate cut, and currently, it looks like there is at least a 70% chance the Fed will cut the overnight Fed Funds Rate by .25% by year-end.

What home buyers and those looking to refinance must understand is that Fed rate cuts do not equal lower home loan rates. Fed rate cuts are designed to keep the U.S. economic expansion alive while promoting inflation, and if the Fed is successful in that endeavor, there is a limit to how low home loan rates can go.

On the other hand, if the Fed is unsuccessful and our economy slows further, and our inflation rate cools further, then we will see lower home loan rates in the future. Think bad news is good for home loan rates. This basically means that home loan rates have essentially moved sideways to slightly higher in the past few weeks, but still remain just above three-year lows making it a great opportunity to refinance or purchase a home.

Now Is The Time To Buy

As we move into the holiday seasons, keep in mind that fewer people will want to take on the task of buying a home. This means that not only are the rates looking really good, but you may also have a LOT to choose from. The first step is getting your pre-approval completed, after that, it is time to start shopping! Visit our website and provide the information needed for the pre-approval for your Lake of the Ozarks mortgage. We look forward to working with you over this season as you make your home purchase!

For Lake area news, resources and tips on financial services, please 

Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065

Direct: (573) 746-7211

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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