by Catherine "Cookie" Miller, PA | Apr 23, 2025 | For Buyers, Mortgage Rates
In today’s unpredictable housing market, mortgage rates seem to shift daily — sometimes even hourly. For homebuyers and homeowners looking to refinance, this uncertainty can feel overwhelming. But the good news? You can take control, even when mortgage rates are a moving target.
Here’s a practical guide to navigating rising and falling rates, so you can make confident, informed decisions.
🔍 Why Mortgage Rates Fluctuate
Before diving into what to do, it helps to understand why rates change in the first place. Mortgage rates are influenced by several factors, including:
- Inflation
- The Federal Reserve’s monetary policy
- Economic growth indicators
- Bond market performance
Because of these variables, rates can change quickly — sometimes without much warning.
🏦 1. Get Pre-Approved and Set a Budget
Why it matters: A mortgage pre-approval not only tells you how much you can afford, but it may also lock in a rate for 30 to 90 days. That gives you some breathing room if rates rise during your home search.
Bonus tip: Even if you’re pre-approved, continue monitoring rates. Some lenders offer updated rate quotes if you haven’t closed yet.
📈 2. Monitor Market Trends and Mortgage News
Stay informed by tracking mortgage rate trends through financial news, lender websites, and mortgage calculators. Pay attention to:
- Federal Reserve announcements
- Economic data like inflation reports and job numbers
- Real estate market updates
Key takeaway: Timing your move in the market isn’t about guessing; it’s about staying informed.
🧑💼 3. Work With a Mortgage Broker
Mortgage brokers have access to multiple lenders and loan products. They can help you:
- Compare rates quickly
- Find special programs or first-time buyer incentives
- Navigate rate lock options or flexible terms
Pro tip: A good broker can help you react quickly to market changes — a huge benefit when rates are shifting.
🔒 4. Use a Mortgage Rate Lock (With a Float-Down Option)
When you’re under contract, consider locking in your mortgage rate. This protects you if rates rise before closing.
What’s a float-down? Some lenders allow you to “float down” to a lower rate if the market drops significantly before you close. Be sure to ask about this feature when comparing lenders.
💸 5. Explore Adjustable-Rate Mortgages (ARMs)
If current fixed rates feel too high, an ARM might be a good temporary solution.
How ARMs work:
- You get a lower initial rate for the first 5, 7, or 10 years.
- After that, your rate adjusts periodically based on the market.
Best for: Buyers planning to move or refinance before the fixed period ends.
🎯 6. Consider Buying Mortgage Points
Mortgage points are upfront fees paid to lower your interest rate. This strategy can lead to long-term savings, especially if you plan to stay in your home for several years.
Example: Paying 1 point (equal to 1% of your loan) might reduce your rate by 0.25%.
Rule of thumb: Use a mortgage point calculator to see when your break-even point occurs.
🔁 7. Plan to Refinance When Rates Drop
If you need to buy when rates are high, keep refinancing on your radar. When the market improves, you can refinance to a lower rate and reduce your monthly payments.
Just be aware of:
- Closing costs
- Potential prepayment penalties
- How long you plan to stay in the home
✅ Final Thoughts
Yes, mortgage rates are unpredictable — but that doesn’t mean you’re powerless. With the right tools, timing, and team, you can make smart moves no matter what the market is doing.
Remember:
- Get pre-approved and lock in when the time is right.
- Explore adjustable-rate options and mortgage points.
Be ready to refinance when rates improve.
by Catherine "Cookie" Miller, PA | Jan 11, 2025 | Buying Tips, For Buyers
As a veteran or active-duty service member, you may be missing out on one of the most valuable benefits available to you: the VA Loan. This government-backed mortgage offers unique advantages that make homeownership more accessible and affordable for veterans, yet many remain unaware of its full potential.
1. No Down Payment Required
The most significant benefit of a VA Loan is that you don’t need a down payment. While traditional mortgages often require 5% to 20% down, VA loans allow you to finance 100% of the home’s purchase price—making it easier to become a homeowner.
2. No Private Mortgage Insurance (PMI)
Unlike conventional loans, VA Loans don’t require PMI, even with no down payment. This saves you money each month and lowers the overall cost of the loan.
3. Lower Interest Rates
VA loans often come with lower interest rates compared to traditional mortgages, meaning you’ll pay less over the life of your loan.
4. No Prepayment Penalties
You can pay off your VA Loan early without any prepayment penalties—giving you more flexibility and the chance to save on interest.
5. Higher Loan Limits
While there are limits based on the county and home price, the VA doesn’t impose a hard cap on the loan amount. In higher-cost areas, you can often qualify for a larger loan than you might think.
6. Flexible Eligibility Requirements
VA loans are available to veterans, active-duty service members, National Guard members, and qualifying surviving spouses. Eligibility is often more flexible than traditional loans, making it easier for veterans to qualify.
7. Closing Costs Are Limited
The VA limits the amount you can be charged for closing costs, which helps make the homebuying process more affordable.
8. Affordable Funding Fee
While there is a one-time funding fee, it’s typically much lower than private mortgage insurance (PMI), and it can be rolled into the loan.
9. Streamline Refinance Option
If you already have a VA loan, you can take advantage of a Streamline Refinance (IRRRL) to lower your rates with less paperwork and fewer fees.
10. No Minimum Credit Score Requirement
The VA doesn’t set a minimum credit score for eligibility, giving veterans with less-than-perfect credit a better shot at homeownership.
Final Thoughts
The VA Loan is one of the most powerful tools available to veterans, but many don’t fully understand its benefits. If you’re eligible, take advantage of these incredible perks—no down payment, no PMI, lower rates, and more—to make homeownership a reality.
Talk to a VA-approved lender today and start your journey toward owning a home. It’s a benefit you’ve earned, and it’s time to put it to use!
by Catherine "Cookie" Miller, PA | Jan 10, 2025 | Buying Tips, For Buyers, Mortgage Rates
Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, fewer homes are listed for sale in the fall. It’s a predictable, seasonal trend in real estate. But this year, mortgage rates came down at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came to the market.
The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year.
As the green circle in the graph below shows, the typical September decline in homes coming to the market didn’t happen – that number actually went up (see graph below):
Ralph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise:
“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”
So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move.
What Does This Mean If You’re Looking To Buy a Home?
It means more fresh options to choose from than you’ve had in a while – not the ones that have been sitting around, unsold.
But keep in mind, mortgage rates have been volatile lately, ticking up slightly in recent weeks, which could limit the number of people who feel comfortable with the idea of selling in the months ahead. And in this market, it’s mortgage rates that are largely driving homeowner decisions.
Why Buy Now, Rather Than Wait?
Whether you’re looking for a starter home, an upgrade, or hoping to downsize, you have more homes to choose from right now. And if you can find what you’re looking for, know that these new, fresh options won’t be on the market forever. So, staying on top of what’s available in your local area with a trusted agent is key.
And remember, one month doesn’t make a trend. So, what does that mean going forward? Whether more homeowners than normal continue to put their houses on the market will largely depend on what happens with mortgage rates and the economic factors that impact them, like inflation, employment, and the reactions by the Federal Reserve.
With that in mind, now might be your moment, while more homes are available – if you’re ready, willing, and able to buy this fall.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”
Bottom Line
As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. And working with a trusted local real estate agent is the best way to take advantage of your new options before they’re all scooped up.
by Catherine "Cookie" Miller, PA | Jan 7, 2025 | For Buyers, For Sellers, Home Prices
Recent headlines have been buzzing about the median asking price of homes dropping compared to last year, and that’s sparked plenty of confusion. And as a buyer or seller, it’s easy to assume that means prices are coming down. But here’s the catch: those numbers don’t tell the full story.
Nationally, home values are actually rising, even if the median price is down a bit. Let’s break down what’s really happening so you can make sense of the market without getting caught up in the fear the headlines create.
Homes on the Market Right Now Are Smaller
The biggest reason for the dip in median price is the size of homes being sold. The median price reflects the middle point of all the homes for sale at any given time. And that’ll be affected by the mix of homes on the market.
To show you how this works, here’s a simple explanation of a median (see visual below). Let’s say you have three coins in your pocket, and you decide to line them up according to their value from low to high. If you have one nickel and two dimes, the median (the middle one) is 10 cents. If you have two nickels and one dime, the median is now five cents.
In both cases, a nickel is still worth five cents and a dime is still worth 10 cents. The value of each coin didn’t change. The same is true for housing.
Right now, there’s a greater number of smaller, less expensive homes on the market, and that’s bringing the overall median price down. But that doesn’t mean home values are declining.
As Danielle Hale, Chief Economist at Realtor.com, explains:
“The share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per-square-foot prices grow further.”
And here’s the data to prove it.
Price Per Square Foot Is Still Rising
One of the best ways to measure home values is by looking at the price per square foot. That’s because it shows how much you’re paying for the space inside the home.
The median asking price doesn’t take into account the size of different homes, so it may not always reflect the true value. And the latest national price per square foot data shows home values are still increasing, even though the median asking price has dropped (see graph below).
As Ralph McLaughlin, Senior Economist at Realtor.com, explains:
“When a change in the mix of inventory toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year.”
This means that while smaller homes are affecting the median price, the average home’s value is still rising. According to the Federal Housing Finance Agency (FHFA):
“Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.”
So, while headlines may make it sound like prices are crashing, you don’t have to worry. With a closer look and more reliable data, you can see that prices are still climbing nationally.
But it’s important to remember that home prices can vary by region. While national trends provide a big-picture view, local markets may be experiencing different conditions. A trusted agent is the best resource to explain what’s happening in your area.
Bottom Line
The decrease in median price is not the same as a decrease in home values. The median asking price is down mostly due to the mix of smaller, less expensive homes on the market.
The important thing to focus on is the price per square foot, which is a better indicator of overall market value—and those prices are still going up. If you have questions about what home prices are doing in your area, reach out to a local real estate agent who can provide insights on your specific market.
by Catherine "Cookie" Miller, PA | Jan 7, 2025 | Agent Value, Buying Tips, For Buyers, For Sellers, Selling Tips
When it’s time to buy or sell a home, one of the most important decisions you’ll make is who you’ll work with as your agent. That choice will have an impact on your entire experience and how smoothly it goes.
As you figure out who you’ll partner with, it’s important to know what to expect and what to look for. Unfortunately, there may be some myths holding you back from making the best decision possible. So, let’s take some time to address those, and make sure you have the information you need to find the right agent for you.
Myth #1: All Real Estate Agents Are the Same
You might think all agents are the same – so it doesn’t matter who you work with. But, in reality, agents have varying levels of experience, specialties, and market knowledge, which can have a big impact on your results. For example: you’ll get much better service and advice from someone who is a true expert in their field. As Business Insider explains:
“If you were planning to get your hair done for a special event, you’d want to visit a stylist who specifically has experience doing that type of work — you wouldn’t make an appointment with someone who primarily does kids’ hair. The same concept applies to finding a real estate agent. If you have a smaller budget, you probably don’t want to work with an agent who exclusively sells multimillion-dollar properties.”
Take some time to talk with each agent you’re considering. Ask about their experience level and what they specialize in. This will help you find the one that’s the best fit for your search.
Myth #2: You Can Save Money by Not Using an Agent
As a seller, you may think you can save money by not working with a pro. However, the expertise, negotiation skills, and market knowledge an agent provides generally saves you money and helps you avoid making costly mistakes. Without that guidance, you could find yourself doing something like overpricing your house. And that’s a misstep that’ll cost you when it sits on the market for far too long. That’s why U.S. News Real Estate says:
“When it comes to buying or selling your home, hiring a professional to guide you through the process can save you money and headaches. It pays to have someone on your side who’s well-versed in the nuances of the market and can help ensure you get the best possible deal.”
Myth #3: Agents Will Push You To Spend More
You may also be worried an agent will push you to buy a more expensive house in order to increase their commission. But that’s not how that should go. A good agent will respect your budget and work hard to find a home that truly fits your financial situation and needs. With their market know-how, they’ll point you toward the best option for you, rather than try to pad their own pockets on your dime. As NerdWallet explains:
“Among other things, a good buyer’s agent will find homes for sale. A buyer’s agent will help you understand the type of home you can afford in the current market, find listed homes that match your needs and price range, and then help you narrow the options to the properties worth considering.”
Myth #4: Market Conditions Are the Same Everywhere, So Why Do I Need a Pro?
Maybe you believe housing market conditions are the same no matter where you are. But that couldn’t be further from the truth. Real estate markets are highly localized, and conditions can vary widely from one area to another. This is why you can’t pick just anyone you find online. You should choose an agent who’s an expert on your specific local market. As a recent article from Bankrate says:
“Real estate is very localized, and you want someone who’s extremely knowledgeable about the market in your specific area.”
You’ll know you’ve found the right person when they can explain the national trends and how your area stacks up too. That way you’re guaranteed to get the full picture when you ask: “how’s the market?”
Bottom Line
Don’t let myths keep you from the expert guidance you deserve. With market knowledge and top resources, a trusted local real estate agent isn’t just helpful, they’re invaluable.
In what could be one of the biggest financial decisions of your life, having the right pro by your side is a game changer. Connect with an agent to make sure you get the best outcome possible.
by Catherine "Cookie" Miller, PA | Jan 6, 2025 | Affordability, For Buyers, New Construction
Even though affordability is improving, buying a home can still feel tough right now. But here’s some good news: builders are focusing their efforts on building smaller homes, and they’re offering key incentives to buyers. And both of these things can be a big help if you’re worried about finding a home that’s right for your budget.
Builders Are Building Smaller Homes
During the pandemic, homebuyers were looking for larger homes—and many could afford them. Builders responded to that demand and created bigger spaces to help people with things like working from home, setting up home gyms, and having extra rooms for virtual school.
Now, with affordability as tight as it is, builders are turning their focus to smaller single-family homes. Data from the Census shows how significant this trend toward smaller new homes has been over the last couple of years (see graph below):
But why would builders want to build smaller homes right now? At the end of the day, builders are going to focus on building homes that meet current market demand – because they want to build what they know will sell. And the number one thing homebuyers are looking for right now is better affordability. Since smaller homes typically come with smaller price tags, both buyers and builders have shifted their focus to homes with less square footage. The National Association of Home Builders (NAHB) reports:
“. . . home buyers are looking for homes around 2,070 square feet, compared to 2,260 20 years ago.”
And according to Orphe Divounguy, Senior Economist at Zillow:
“Not only are cash-strapped buyers continually seeking out lower-cost options, but developers are changing what type and size of home they’re producing to try and meet that need.”
How a Newly Built Home Can Help You Achieve Your Homebuying Goals
So, if you’re having a hard time finding something in your budget, it may be time to look at brand-new homes that have a smaller footprint. When you do, you may get a few other fringe benefits that can help on the affordability front – like price reductions or mortgage rate buy-downs.
According to the most recent data from Zonda, more than half of builders are offering incentives, some of which are mortgage rate buydowns. And those perks could help lower your future monthly housing payment too. John Burns, CEO of John Burns Research & Consulting, shares:
“The monthly payment matters more than anything else and builders have responded with smaller, more efficient homes.”
Not to mention, with new home construction, you’ll also get brand new everything, have fewer maintenance needs, and get some of the latest features available. That’s worth looking into, right?
Bottom Line
With builders focusing on smaller homes, you have more budget-friendly options when it matters most. If you’re thinking about buying a home soon, work with a local real estate agent to see what’s available where you want to live.
