Lower Rates, Higher Mortgages? What The Heck Is Happening?

Fed cuts the rate, but interest rates go up, and prices are plummeting everywhere. In fact, Florida has four of the top ten metro areas with dropping prices. We're going to cover that, what to look for, what to expect, and we're going to do all of it in under five minutes. Let's get to it. My name is George. This is my incredibly talented wife Jackie. We're real estate professionals in the state of Florida. We're here to help you. Solicitations come later. Let's get right to the point. The Fed dropped the rate. Thank you, Powell. Glad you did. The Fed dropped it a quarter basis point. Got an article I want to share with you. Let's jump over to that article. Fed's Powell flags careful but patient approach after rate cut. What the hell does that mean? I got it. They cut the rate. I mean, it's precarious timing in which to do so. You figure the election just finished at this point. They're going to cut the rates. That's great. And our interest rates are still going up. However, we've got this incredibly robust stock market, and the interest rate is tied to the bonds, which is tied to stocks, and we expect that that would actually be a benefit when the stock market is getting better. We expect that. They're cutting the Fed rates, which should ultimately influence, to some degree, that as well. Let's jump back to the article. The Federal Reserve cuts interest rates by a quarter of a percentage point on Thursday as its policymakers begin to take stock in what could become a more complex economic landscape with President-elect Donald Trump coming into office next year. Not bringing politics in there. The politics are over. We've got a new administration coming in. Let's just run with it. The bottom line is, if the economy gets better, we expect that the interest rates will flatten a little bit, but what we're really looking for in economy is we're looking for consumer confidence right now. Because right now, nobody wants to buy, and everybody that wants to sell, they're not sure what the hell they're going to buy anyway. They're not even sure they're going to buy. We don't have a stable housing market. I get that. The interest rate's going down. Great job, Powell. Really grateful that you did that. I totally get that. We've got a surging, surging stock market, which ultimately should be pretty good. That's consumer confidence. Small businesses growing. Love that. Let's see how that plays out over the next, I don't know, 10 weeks until we get the transition of power, which should be peaceful. Let's go back to this. In this second paragraph, you can read through the whole thing. It basically says, because we're deporting immigrants, it has no near-term impact on U.S. monetary policies. I'm not really sure why Reuters felt that was important to put that in there. We're talking about interest rates, and I get that, perhaps the deportation, but why not small businesses doing better, stuff like that. Again, I don't want to go politics on anybody here, because that's not the case. Let's just sum this up, because we're going to keep this in five minutes. They've dropped the rates. I expect, because inflation is under control, great work, glad to have that happen, that we can have those rates go down even a little bit more. If that's the case, we're going to see more buyers in the market. Now, remember, we had that half a basis point cut, and all of a sudden, we had a little bit of a shot in the arm, where buyers were coming into the market again. We're saying, okay, we're starting to see this get down to 6.2% for a rate. If you're buying a conventional mortgage, that's great news, better than seven, but now we're back up. I think that had to do with consumer uncertainty, maybe that's what he's referring to. Since we're on the topic, let's go to it. Our next article, the average rate on a 30-year mortgage in the U.S. rises for the sixth straight week. The rate ticked up to 6.79% from 6.72%, and that's terrific. In our big board, we show it's around 7%, because that's a different way of looking at it, and it doesn't have all the adjustments in there. The bottom line is, if you're interested in buying a home, and you're going to mortgage a property, I would strongly encourage you to buy down for one year the interest rates. I know that we will have lower interest rates coming, no matter what happens. Even if we go through a small recession, which they've said is a possibility as well, our interest rates are going to come down. If you're going to buy, there's more opportunity out there for you, for sure. The sellers are a little bit panicked, as they should be. Quite a few of them we're seeing are pulling their homes off the market, saying, I'm going to wait it out until the spring. Now, this means you've got motivated sellers. Buyers, be aware of that. Buy your interest rates down 1%. Keep your eye on the interest rates. They're going to continue to drop. That's my forecast. Let's go back to the article. Mortgage rates are influenced by several factors, including the yield on the U.S. 10-year Treasury bonds, which lenders use as a guideline to price home loans. Bond yields have been rising following encouraging reports on inflation and the economy. So, now we're back to what I just talked about with the economy. Here's the cool part. If the small businesses start coming back around, if we're keeping more money in the United States, which I think is a good thing, bottom line is, if it helps small businesses, if we can increase our economic stability, it's going to help everybody. It's going to help money in our pocket. It's going to help our loans, as far as buying and selling is concerned, and our comfort level will be affected as well. Now, that's a big if, because it has to actually happen, but let's all as a country be open to the idea that perhaps it will happen, and I get it. There's a lot of you out there that are going to be like, you know what, I can't believe you brought politics into it. Politics are part of our life, okay? The politics, the vote is in. Everybody casts their vote. It is what it is. We just lived through four years with Biden. We're going to live through four years with Trump. So, let's see what we can do to help this work. We wanted Biden to succeed. I swear to God we did. You know why? Because it benefits us. So, let's give the same credit the other direction. That's it for my political statement. I can't not say that. I'm going to go to the next article, because I promised you in five minutes. Home prices fall most since 2011 on Florida's southwest coast. Well, I'm actually here to tell you that's one article, but we're going to jump past that, go right to the next one for time, because it's not just southwest. It's all over. Take a look at this article that just came out today. Florida now has four of the top 10 American cities where home prices are plummeting the most. Now, I'll save you the trouble of reading the entire article, so I'm just going to read the part that's relative. Florida, Miami took first place with 12.4% decrease. Jacksonville finished sixth off, down 6.1%. Orlando and Tampa took eighth and ninth spot with 5.6% and 5.5%. We have too much inventory. Our prices are dropping. There's nothing that's going to happen. If you're selling your home, get in front of the market. That's my advice. Get in front of the market right now. However, if you don't have to sell, remember, I'm talking you out of working with me, working with my partners throughout the entire state of Florida. I've got great partners who are like-minded in how they work and what Jackie and I do. She's the pit bull. And that allows us to be involved in your negotiating and really setting up the property so we can help you across the entire state. In fact, I'll put an ad at the end of this video. Watch it if you want to. It kind of talks about what Jackie and I do, one of our commitments, and you can learn more about what we do in selling homes. Here's the thing. If you're thinking of selling your property, you may want to wait. You may say, if you can't, hold off. Now, I will tell you that the buyers that are out there looking right now are very, very serious buyers. Buy your rate down, buyers. Please buy your rate down. It does make sense. You'll save that money. It'll come back to you, I promise, in just savings alone. Buy your rate down 1%. It's called a one-year buy-down. I've got two lenders that'll do that, and there's zero cost to lender, zero cost of lender refi that they will do after that. After that one year, you can refi what will be a lower rate because we'll be in a better position within a year, guaranteed, guaranteed, for sure. Everybody wait. There, I said it, okay? Don't work with us. I don't plan on having Christmas. Actually, I do. That's Jesus right there. I'm wearing my Emmaus shirt, but wait because it's not the best time. There's a lot of uncertainty still. We haven't kind of settled in. I would wait until the beginning of January, early February, quite honestly, and get your house ready. Give us a call. Let's start working on strategies and what we can do, getting to know the market. If you're interested in selling, we'd love to assist you. We'd love to have our partners assist you because that's what we do, but right now, don't do anything, okay? Do this. Hit the like. Hit the subscribe because that way Jackie and I know we're bringing value to you, and if you want to put a comment down there, I guarantee we're going to talk to you. I guarantee we'll reply to it because that's what we do. We're interested in having conversations with you about real estate. That's our specialty. God bless you all. We love you. Have an amazing day. And my wife just came in signaling that breakfast is ready, so I'm going to go get myself a cup of coffee, some scrambled eggs. Have a great day. We'll get with you real soon. Bye now. You're going to like this. We guarantee to sell your home in under 45 days. Or we'll step in and pay the mortgage until it does. Hi, I'm Jackie Sosa. And I'm George Spilbeck. Let's say that again. Your home sold in 45 days or less at a price you agree to, or we'll step in and pay the mortgage until it does. And the best part is, our guarantee is 100% risk free. If you're not happy, fire us. You're in control. We know you'll be happy because we outsell the average agent over 50 to 1. We're not bragging, we're applying for a job. And don't forget, commission is completely negotiable. After all, it is your house, so you're in control. For a more detailed look at why we outsell the average agent more than 50 to 1, and how you can sell your home for more money, as well as your potential next steps to a secure selling process, simply go to the site in the description and on the screen below. Thank you.