Ready to unlock the latest insights on Texas mortgage trends? Join Mike Mills as he breaks down rising rates, skyrocketing insurance costs, and what these mean for the summer housing market. Dive in to learn how these trends could impact your next big investment.
In this episode of The Texas Real Estate and Finance Podcast, Mike Mills dives into the current Texas mortgage trends, offering a comprehensive update on the ever-changing real estate market. He begins by examining the recent rise in mortgage rates, explaining the factors pushing rates above 7% and what this means for the summer buying season. Mike also sheds light on the skyrocketing home insurance premiums in Texas, discussing how these costs can impact homebuyers’ loan qualifications. The episode provides valuable insights into the latest housing inventory data for both the national and DFW markets, highlighting increasing inventory levels and their implications for affordability. Additionally, Mike covers important updates on VA loan commission changes and explores various home equity loan options available to homeowners. Whether you're a realtor, investor, or homebuyer, this episode is packed with essential information to help you navigate the Texas real estate market.
Key Takeaways:
Rising Mortgage Rates:
Mortgage rates have recently climbed back over 7%, influenced by strong economic data. Mike explains how factors such as GDP and inflation reports impact these rates and what this means for the real estate market over the summer. Understanding these trends is crucial for realtors and investors to make informed decisions.
Increased Housing Inventory:
Inventory levels are on the rise both nationally and in the DFW area, with a 37% increase in listings compared to last year. This growth provides more options for buyers and can help stabilize home prices. Mike highlights how this trend is beneficial for home affordability and market dynamics.
Skyrocketing Home Insurance Costs:
Home insurance premiums in Texas have seen significant increases, now averaging around $4,000 per year. Mike discusses the reasons behind these rising costs, including the impact of frequent and severe weather events. He emphasizes the importance of getting insurance quotes early in the home-buying process to avoid potential loan qualification issues.
VA Loan Commission Changes:
Upcoming changes to VA loan commission rules could have a substantial impact on veterans and realtors. Starting in August, VA buyers may face challenges if sellers are unwilling to pay agent commissions. Mike shares the latest updates on potential fixes and how these changes aim to level the playing field for VA buyers.
Leveraging Home Equity:
With high levels of home equity and rising credit card debt, homeowners have several options to access their equity, such as home equity loans and HELOCs. Mike explains the benefits and drawbacks of these financial tools, providing listeners with strategies to manage debt and improve cash flow. This knowledge can be a game-changer for realtors looking to assist their clients effectively.
Time Stamped Summary:
0:47 - 1:10
Episode Overview:
1:10 - 1:59
Mortgage Interest Rates:
Discussion on the recent rise in mortgage rates, now over 7%, and the factors driving this increase.
1:59 - 3:15
Economic Data Impact:
Explanation of how economic indicators like GDP and inflation influence mortgage rates.
4:41 - 5:10
Inflation News:
Positive news on inflation from Target's price cuts on common items, reflecting broader economic trends.
5:10 - 5:32
Mortgage Rate Outlook:
Summary of the relationship between inflation, unemployment, and mortgage rates.
5:32 - 6:17
Housing Inventory Trends:
Detailed analysis of weekly housing inventory changes, with a significant increase in listings compared to the previous year.
6:17 - 6:57
Purchase Applications Decline:
Observation of the decline in purchase applications, highlighting seasonal trends and comparing current data with the previous year.
8:09 - 9:48
DFW Housing Market:
Local market insights for Dallas Fort Worth, noting the high volume of home sales and active listings.
9:48 - 10:30
Home insurance Costs:
Overview of the rising home insurance premiums in Texas and other states.
12:32 - 13:20
VA Loan Commission Rules:
Update on upcoming VA loan commission rule changes and their potential impact on VA buyers and realtors.
13:20 - 16:05
Home Equity Loans:
Detailed explanation of different types of home equity loans, including second liens, HELOCs, and cash-out refinances.
17:48 - 21:07
Realtors' Role in Equity Loans:
Encouragement for realtors to reach out to past clients about home equity options.
21:07 - 22:04
Conclusion and Teaser:
Previous Podcast Episode on Home Insurance
Listen to Mike Mills' discussion with Brad Bingham from Allstate on rising insurance premiums.
Podcast Episode: https://www.thetexasrealestateandfinancepodcast.com/rising-insurance-cost/
