POST TAGSMortgage News
Blog posted On August 16, 2022
Many experts are predicting an upcoming economic slowdown. During times like these, people have historically tended to take a step back from the home buying process. But in today’s market, it could benefit certain home buyers to stay the course.
“Most experts agree that today’s market is unlikely to end in a Great Recession-style crash,” writes Money.com mortgage reporter Leslie Cook. “A recession might even open up more opportunities for buyers who are well prepared and have the financial resources.”
Home sellers may be more flexible
For the past two years, home buyers have been flooding the market to take advantage of record low mortgage rates. But as rates and home prices have risen higher, buyer competition has decreased. Sellers are not receiving countless offers hundreds of thousands of dollars over the asking price. Home buyers are gaining more purchase power.
Mortgage rates could drop
Mortgage rates have been generally trending lower since the middle of June. When economic activity slows, mortgage rates could drop even lower. Because inflation has also been cooling lately, the Federal Reserve may ease up on rate hikes if more signs of a recession grow.
More options, lower prices
Sellers are already making more price cuts to their listings, which is likely to continue. As demand slows, buyers will also see more options open up on the market.
Best home buying and homeowning practices during economic volatility
Your credit score is one of the biggest factors that could influence your loan application and mortgage rate. The higher your score, the better. There are several ways you can boost your credit score quickly.
When economic instability is higher, it’s even more important to create a budget and stick to it. More importantly than ‘timing the market’ is making sure it’s the right time for you to buy.
During times of economic volatility, people like more financial security and liquidity. A Home Equity Line of Credit (HELOC) is a very useful option that allows homeowners to withdraw money from their home equity as needed. Another beneficial resource is our All In One Loan™ -- which allows borrowers 24/7 access to home equity, save tens of thousands on excessive interest expenses, and has no amortized payment schedule.