"There's no crash coming," said VP and senior loan officer
As 30-year fixed mortgage rates have declined from 7.79% to just 6.2%, homebuyers have gained a staggering $70,000 of additional buying power – according to research from Realtor.com.
Compound this with rising incomes across the board and the current mortgage landscape has undergone a seismic shift. Speaking to MPA, Crista Lowrie (pictured), vice president and senior loan officer at First Citizens Community Bank, said that with agents scrambling to reach out to potential buyers there’s been an uptick in activity, explaining that she has been busier this October compared to previous years, despite typically being busy year-round.
And, for many, these market improvements offer a ray of hope, particularly first-time homebuyers who had been deterred by rising costs.
“I think a lot of people have been worried about inflation,” said Lowrie. “Worried about the cost of goods, worried about the cost of house prices.”
‘What I do for my clients? It’s a lot of extra work’
These concerns, paired with anxieties around credit scores and down payment requirements, often kept would-be buyers on the sidelines. However, with increased affordability, Lowrie has been able to provide them with some optimism.
“[It’s about just] explaining to people that as rates come down, they have a $30,000 increase in what they can afford to buy. They might be able to get a house with an extra bedroom or an extra bathroom.”
Lowrie’s approach to helping clients navigate these opportunities is rooted in deep personalization and careful planning.
“What I do for my clients? It’s a lot of extra work,” she added, outlining her strategy of providing each buyer with a spreadsheet detailing their maximum payment, which she then tailors based on local tax rates. In some cases, this might mean steering clients toward more affordable areas.
“Maybe looking in New Jersey isn’t the best idea. Maybe we just move it over a couple towns where the taxes are lower.”
And Lowrie’s efforts go beyond just the numbers. She emphasized the importance of understanding all factors that go into monthly payments, ensuring her clients are equipped to make informed decisions.
‘There’s no crash coming’
“Once people understand what goes into the payment, then they’re more willing to adjust to what they can actually afford,” she explained.
As for future rate changes, Lowrie is firm in her belief that waiting for even lower rates is not always the best strategy.
“I’m actually not advising people to wait, because I personally think the best time to buy a house is now. I’ve owned over 20 houses in my lifetime, and every single one of them has increased in value.”
Because for Lowrie, the possibility of refinancing at a lower rate down the line outweighs the risk of waiting and potentially facing higher home prices.
“We can always refinance the interest rate - but the house prices are going to be higher,” she said. “There’s no crash coming.”
