Tag Archives: Realtor

Thinking About Tapping into Your 401(k) To Buy a Home? Read This First.

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Thinking About Tapping into Your 401(k) To Buy a Home? Read This First. Simplifying The Market

Lately, headlines have floated an eye-catching idea about tapping into your 401(k) to cover a down payment on a home. Maybe you’ve caught the buzz and wondered whether that money could get you into a home faster, especially with affordability as tough as it is. 

Here’s what you need to remember. Pulling from your retirement savings is a big decision, so take time to weigh all your options first and be sure to talk with a financial expert before you do anything.

Why Dipping into a 401(k) Can Be Tempting

Data from Empower shows many Americans have built up considerable retirement savings. The median 401(k) amount for anyone in their 40s-60s is six figures (see graph below):

a graph of green barsAnd when you’ve got a good chunk saved and your dream home is right there, reaching for it can feel like an easy call.

But dipping into your retirement savings to buy a home could cost you a penalty and set back your finances later on. That’s why it’s a good idea to explore other options for your down payment first. As Redfin says: 

“If you’re struggling to save enough for a down payment, you may be wondering if tapping into your 401(k) is the right option. While it’s possible, doing so comes with significant risks, like early withdrawal penalties and lost investment growth.“

Before you decide, have a financial advisor help you compare the upsides to the risks. Bankrate points to a few of each (see visual):

a screenshot of a computer screen

Other Options Worth Exploring First

Your 401(k) isn’t the only way to finance a home purchase. Redfin outlines a few other options to look into before you decide what to do:

  • Low and No-Down Payment Loans: FHA loans, for example, allow qualified buyers to put down as little as 3.5% of the home’s price, depending on their credit scores.

  • Down Payment Assistance Programs: Many national and local programs can help reduce what you pay toward your down payment or closing costs.

Make a Plan Before You Make a Move

No matter which route you take, talk with a financial expert first. The buyers who come out ahead build a solid plan with the right professionals before starting their journey to homeownership. As NerdWallet puts it:

“Even if you’re convinced a 401(k) loan is the way to go, it’s important to understand the risks at the outset.“

Bottom Line

Affordability is definitely a challenge, but that doesn’t mean tapping your 401(k) is your only way in if you want to buy.

If you’re considering using your 401(k) savings for a down payment, weigh all your options and talk with a trusted financial advisor before you make any decisions. They’ll help you make a plan to fit your goals and your budget. 

Sellers Are Cutting Prices To Meet Buyers Where They’re At

Affordability, Buying Tips, For Buyers, Home Prices, Real Estate, , , , ,

Sellers Are Cutting Prices To Meet Buyers Where They're At Simplifying The Market

You’re scrolling through listings on your phone and everything looks good until you see the price (or the estimated monthly payment). Then you close the app. 

Because even if you love the house, the numbers feel impossible. But here’s the thing.

Nationally, there are more homes sitting on the market than there are people out there looking. And when sellers need buyers more than buyers need sellers, that shows up in the price.

Lower asking prices. More price cuts. And homes priced for what buyers can actually afford – not what sellers hope someone might pay.

And it may be enough to make buying more doable than you’d think. 

4 Out of 10 Sellers Are Cutting Their Price 

One of the clearest signs sellers are adjusting? Price cuts. HousingWire Data shows more than 40% of sellers are dropping this price.

That’s just slightly behind the volume we saw last year (see graph below):

a graph of a price reduction

That’s more than 4 out of every 10 homes listed. Think about what that means. That’s thousands of sellers deciding they’d rather lower their asking price than keep waiting for someone willing to stretch their budget. 

They know that to sell, they have to be willing to do some give and take. And when no buyers are biting, they’re pulling their biggest lever to draw buyers back in – their price. As Danielle Hale, Chief Economist at Realtor.com, explains:

“This is a market where people are adjusting and showing up rather than giving up. Sellers are meeting the market with more realistic asking prices, which is helping deals get done.”

This July Saw the Lowest Median List Price for Any July in Five Years

What about the other 6 in 10 sellers? A lot of them started with a lower asking price to begin with rather than test the higher price and get crickets from buyers.

That may be why July 2026 had the lowest median list price of any July in the past five years, according to Realtor.com (see the white line in the graph below):

a graph of sales and prices

Now, that doesn’t mean home values are falling or that everything’s suddenly a steal. Prices are still above where they were before the pandemic. But what it does mean is this.

Sellers no longer banking on bidding wars or expecting buyers to pay whatever they ask. Instead, many are listing at prices that better reflect today’s market from the very beginning. 

And honestly, whether they’re pricing competitively from day one or adjusting after a few weeks on the market, the message for you is the same:

Sellers are more willing to meet you where you’re at.

Because in many markets throughout the country, you’re not fighting over a house anymore. Sellers are fighting over you. And that’s information you can use to get a better deal.

Yes, affordability can be a real challenge. And the monthly payment you take on definitely does matter. But if you’ve been assuming everything is out of budget, there may be more wiggle room than you think.

Bottom Line

Right now, sellers are flexible on the price in ways they weren’t before. Reach out to a local agent to take advantage of that flexibility.

You may be surprised by what’s available – and how willing today’s sellers are to work with buyers.

Worried About a Housing Crash? The Numbers Tell a Calmer Story.

For Buyers, For Sellers, Home Prices, Inventory, Mortgage Rates, Real Estate, , , , ,

Worried About a Housing Crash? The Numbers Tell a Calmer Story. Simplifying The Market

A recent survey from Talker Research asked Americans to pick one word to describe how 2026 has felt so far. The winner? Stressful. And honestly, there’s been a lot going on.

So, it’s understandable if you’ve been putting off buying or selling a home until things settle down. But you may be waiting on something that’s already happened. While everything else has felt shaky, the housing market has become one of the steadiest things out there. Look at the data.

Home Prices Have Leveled Out

After years of fast increases, data from the National Association of Realtors (NAR) shows home prices have been remarkably steady for the past 4 years (see graph below):

a graph of blue linesAnd experts say that’s what to expect going forward, too. As Selma Hepp, Chief Economist at Cotality, explains:

“In 2026, we expect home prices to remain broadly stable, with modest appreciation at a national level.”

No wild swings. Just slow, steady growth. That’s a healthy market. Of course, that pace can vary a bit depending on where you live. But nationally, steady growth like this makes it easier to plan your budget, whether you’re buying or selling.

The Supply of Homes for Sale Has Steadied

For years, the supply of homes for sale was a moving target. It dropped fast during the pandemic and has been climbing pretty reliably ever since. Now, that pace of growth has slowed down. According to Realtor.com, inventory today is very close to where it was this time last year (see graph below): 

a graph of blue linesThat’s helpful no matter which side you’re on. When the number of homes for sale isn’t changing much, you know what you’re walking into – how many options you’ll have as a buyer, and how much competition you’ll face as a seller.

Mortgage Rates Found Their Range

Yes, rates jumped dramatically back in 2022. But since then, Freddie Mac data shows they’ve stayed between 6% and 7% for the better part of the last 3 or so years (see graph below):

a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph ofYes, there was one brief spike above that threshold, but overall, rates have stayed in that range for a while now. That predictability helps when you’re planning a move. 

And now that this seems to be a longer-term trend, people have accepted it as the new normal. Buyers have gotten comfortable purchasing in that range, and sellers have gotten just as comfortable listing in it.

That comfort’s important because when both sides know what to expect, they keep making moves. In other words, the market isn’t frozen waiting for something to change. It’s moving calmly.

Bottom Line

The rest of the world may feel unpredictable right now, but the housing market doesn’t have to. Prices, inventory, and rates have all found solid ground.

If stability is what you’ve been waiting for, it’s already here. Connect with a local real estate agent if you want to talk through what that means for your move.

Most Home Sales Close – Here’s How To Keep Yours on Track

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Most Home Sales Close – Here’s How To Keep Yours on Track Simplifying The Market

Few things are as rattling as the thought of your home sale falling through at the last minute, right before closing. All that waiting, all that progress, out the window.

But if you’re getting ready to sell, here’s what you should know. Even in today’s market, it rarely comes to that. Buyers who are moving at today’s rates and prices are generally moving because of some big life change. That means they’re motivated, and eager to get all the way to the closing table.

According to the latest data from Redfin, only about 1 in 7 pending sales are falling through. Meaning the vast majority make it all the way to closing.

And the single biggest thing that puts a deal at risk is the one you have the most power to prevent. It just takes a little smart planning before your house hits the market.

Why Some Deals Fall Apart Before Closing

A Redfin survey sheds light on the most common things that trip up a sale (see visual below):

a blue and orange chart with text

Here’s a bit more information on each one.

  • Inspection or repair issues. This is the big one. When a buyer’s inspector finds a problem, whether with the roof, the plumbing, the foundation, or elsewhere, the buyer can push back, ask you to make repairs, request a credit so they can do it themselves, or see if you’ll lower your price. If they don’t get what they want, they may walk away from the deal altogether.

  • The buyer’s financing fell through. Their mortgage loan has to be fully approved in time for closing day. If the loan doesn’t come together, the sale can’t move forward. 

  • The buyer’s current house didn’t sell. Some buyers need to sell their own home before they can close on yours. If that takes longer than expected, you may run into some issues with your timeline or even see them give up on their move.

  • There was a change in buyer’s financial situation. A new job, a big purchase, or new debt can change what a buyer qualifies for on their mortgage loan, even after they were pre-approved.

Where Your Agent Makes the Difference

Some of those reasons are outside your control, like whether a buyer’s loan clears or whether they sell their own home in time. But according to Zillow, there are a few proactive things you can do to help make sure your sale goes as smoothly as possible:

  • Save yourself the headache and get a pre-listing inspection. That’s when you get your own inspection before a buyer gets theirs. It lets you find the big issues before a buyer’s inspector does, so you can fix them or disclose them on your terms, instead of scrambling once you’re under contract. In this situation, your agent will help you decide what’s worth addressing and what to just disclose. Handle it now, and the biggest risk to your sale is behind you before a buyer ever brings it up.

  • Look at more than just the offer price. Your agent will help you weigh the whole offer, including the buyer’s timeline and any contingencies attached. When a buyer’s offer depends on selling their own home first, the success of your sale rides on a second deal you can’t see. Sometimes, a slightly lower offer with fewer strings is the safer one. Your agent will help you weigh your options and make a plan that works well for you. 

One of those is something you can’t do until you have offers in hand, but the other is something you can get ahead of right now. The pre-listing inspection.

That relatively small cost upfront can save you the much bigger hassle of a deal falling apart later. And while getting your own inspection before listing may not make sense in every market, your agent can tell you whether it’s worth it based on your market, your house, and what buyers are prioritizing in your area.

Sometimes the smartest move is staying one step ahead.

Bottom Line

Most home sales still close, and the biggest thing that could get in the way of yours is the one thing you can actually do something about.

With the right prep, your sale has every reason to make it to the finish, and a good local agent can help you get there.

One Number Could Change Everything About Your Next Move

Downsize, Equity, For Sellers, Move-Up, Real Estate, Selling Tips, , , , ,

One Number Could Change Everything About Your Next Move Simplifying The Market

When’s the last time someone told you what your house is worth? Not what some online valuation tool guessed. Not what your neighbor’s house sold for. What yours is actually worth right now.

For a lot of homeowners, it’s been years. And if you’ve been thinking about moving, but higher home prices or mortgage rates have made you hesitate, here’s why it’s time to take a second look at that number.

Your House May Be Worth More Than You Think

Home values have climbed significantly over the past 5-10 years. And even though today’s market is more balanced, homeowners are building wealth every day just by owning their homes. That’s how equity works. As home values rise, and as you make your monthly payments, your equity grows. And it adds up fast.

According to Cotality, the typical homeowner with a mortgage now has $310,500 in equity. That’s not a small number. It’s six figures.

And that’s only the national average. In many states, homeowners have built even more equity than that. Take a look at the map below and see where your state stands. The darker the blue, the more equity the typical homeowner has there (see map below):

a map of the united statesEven though every local market is different, the question you should be asking right now is the same: How much equity have you built up?

Because if you don’t know that number, you’re missing out.

This Could Be the Missing Piece in Your Move

Most people assume that because prices are higher and rates aren’t at 3% anymore, moving just isn’t realistic right now, especially if they already have an ultra-low rate. And that’s understandable – those are real factors.

But they’re not the only factors.

When you have that much equity in your house, you’re not starting from scratch. You’re not scraping together a down payment or hoping the numbers work. You’re walking into your next move with more of an advantage than you think. And that changes the math. 

What Your Equity Can Do for You

Maybe you’ve outgrown your current house or you’re ready to downsize… The equity you’ve built could help bridge the gap between where you are today and where you want to be next.

Yes, your next house may cost more than your last one did. But your equity could cover a big chunk of that difference. Depending on how much you’ve built, it could help you:

  • Lower your monthly payment on your next home. The bigger your down payment on your next place, the less you have to borrow. And with today’s rates, borrowing less can make a big difference in what you pay every month. 

  • Buy your next house with all cash. This surprises a lot of people, but some homeowners have built enough equity to buy their next home outright, in cash. According to the National Association of Realtors, more than one-quarter (26%) of repeat buyers paid all cash for their home in July. 

  • Transform the home you already have. Love your neighborhood but not your floor plan? You don’t have to move. Your equity could help fund renovations that make your home fit your life today while potentially adding value for tomorrow.

Your equity doesn’t erase the challenges of the current market. But it does mean you’re walking into your next move with a lot more power and flexibility than you think.

That’s why the value of your home isn’t something you should have to wonder about. 

If you’re even thinking about a move – or if you’re just curious what your options might be – the smartest thing you can do is get a Professional Equity Assessment. It’ll give you a real, market-based evaluation of what your house is really worth right now and how much equity you’re working with.

Because once you see the number, maybe it’s not about whether you can afford to move – it’s about what kind of move makes sense for you.

Bottom Line

If it’s been a while since you’ve gotten a professional look at your home’s value, it’s time to change that. 

Reach out to a local real estate agent for a free, personalized Home Equity Assessment that estimates what your house could sell for, how much equity you’ve likely built, and what that could mean for your next move.

You may have six figures of equity without even realizing it. And that’s enough to change everything about your next move.

Higher Rates Could Actually Help Housing Supply – Here’s How.

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Higher Rates Could Actually Help Housing Supply – Here’s How. Simplifying The Market

You may have heard the number of homes for sale isn’t growing like it was. And maybe that has you worried you won’t find a home you love when it’s time to make your move.

But that may be about to change. Here’s why your pool of options may actually start ticking back up again.

Growth Has Slowed, But It Hasn’t Stopped

Active listings were up 2.1% year-over-year in July, according to Realtor.com. Back in January, inventory was up 10%. And in May of 2025, it was up 31.5%. So, growth has cooled off a lot over the last year.

The past 3 months, though, have all seen inventory growth land in roughly the same range, which is a sign this slowdown may be nearing its floor (see graph below):

a graph of growth in a blue background

So, what does that mean for you?

Homes are still coming onto the market. Every single one of these bars shows a period where inventory grew. So, don’t be discouraged or let this make you think you’re out of options. Plus, we’ve seen more stability in the numbers lately, which is a good sign.

The Most Homes for Sale Since 2019

Compared to the rock-bottom lows of 2021, inventory has climbed back substantially. Nationally, the number of homes for sale has been up year-over-year consistently now for 33 months. And inventory has almost doubled in just a few years. So don’t get too hung up on the pace of that increase.

This July was actually the best July for inventory since 2019 (see graph below):

a graph of blue bars with white text

Now, the market still needs about 150k listings to get back to pre-pandemic levels, but things are quickly approaching normal. And experts think we may even be back to 2019 levels by the end of this year, even with the slowdown we’ve already seen.

And that’s thanks to one unlikely factor: mortgage rates. 

Why Higher Rates May Actually Help Inventory Grow

It works like this. When mortgage rates climb, inventory tends to climb with them. As Mike Simonsen, Chief Economist at Compass, explains:

“When rates rise; inventory rises. When rates fall; inventory falls. So, from July last year to March this year, rates ease lower and all the inventory growth of the past several years evaporated. If rates move higher from here or stay elevated for [a] longer period of time, then we should expect supply to build again.”

Well, rates are expected to hold in the mid-to-upper 6% range for a while longer, and Realtor.com‘s latest forecast has inventory ending 2026 up 3.6% year-over-year.

That means 2 things:

  • Inventory growth is forecast to pick up a little bit throughout the rest of the year.

  • And, inventory is projected to close the year at a historically normal level, right about where it stood at the end of 2019.

For buyers, that’s a win. Even if today’s rates aren’t your favorite, they’re helping the number of homes on the market to grow. And more homes for sale means more choices, more room to negotiate, and less pressure to rush your search.

Bottom Line

The number of homes for sale is growing slowly but surely, and that means more options for your move. Want to see what’s available in your area? Reach out to a local real estate agent.

The Kind of House Buyers Are Willing To Pay More For

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The Kind of House Buyers Are Willing To Pay More For Simplifying The Market

That spare room on the main floor. The finished basement with a kitchenette and its own entrance. The bonus room you’ve been using for storage.

To you, it’s extra space. But to a growing pool of buyers, it’s the reason they’d pick your house. Here’s why. Multi-generational homebuying is on the rise.

Millions of Families Are Living Multi-Generationally

The number of multi-generational households is climbing. That’s when 3 or more generations live under one roof. And data shows those households grew from 3.2 million to almost 4 million between 2014 and 2024, according to Realtor.com.

And each year, more people are shopping for a larger home that fits their combined needs.

While the appetite for this type of house is rising across the board, data from USAFacts shows multi-generational living is more common in some states than others. The darker the state in the map below, the more common it is in that area (see map below):

a map of the united states

Where does your state fall? Depending on where you are, the pool of buyers looking for a house like yours could be even bigger than you’d think. But the overall bottom line is this.

There’s a real market out there for larger homes with room for multiple generations under one roof, especially since affordability is still so tight. And if you own a house like that, it’s in demand.

Multi-Generational Houses Sell at a Premium

And that extra room carries real value with the right buyer. According to Realtor.com, in 2025 the median asking price for a multi-generational house was $709,000 – roughly 65% higher than the $429,900 median for a standard house.

Some of that is simply size. But compare multi-generational homes to regular homes with the same amount of square footage, and they still come out on top – $262 per square foot versus $215.

That’s a 22% premium you could command for special features like in-law suites, second kitchens, and separate entries (see graph below):

a graph of a home sales

When you sell, this could help you walk away with more money in your pocket, especially when your agent highlights your home’s multi-generational-friendly features in your listing.

And Buyers Aren’t Getting Sticker Shock

And even with slightly higher price tags, buyers aren’t flinching. Multi-generational houses drew 13.5% more online views than standard ones, and they still sold just as fast – in about 59 days – per the same Realtor.com report.

Hannah Jones, Senior Economic Research Analyst at Realtor.com, explains:

“The strong demand and steep premiums we are seeing in inventory-constrained markets point to a real mismatch between what buyers are looking for and what is actually available. For sellers in these markets, this type of home can be a significant asset.”

Basically, when buyers want something that’s very specific, the house that checks the box tends to stand out.

Bottom Line

Your multi-generational-friendly, or simply larger-than-average, house might meet criteria a lot of buyers can’t find in a standard one. That’s what gets attention. And offers. So, talk to a local real estate agent about what it could get you in your market right now.

Who Has the Upper Hand in Today’s Housing Market?

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Who Has the Upper Hand in Today's Housing Market? Simplifying The Market

Ask around and almost every homebuyer out there wants to know if there’s a way to get a better deal. And just about every seller wants to know if they’ll still get top dollar.

The interesting thing is… both can be right at the exact same time. It just depends on where you live.

That’s because today’s housing market isn’t moving in one direction anymore. Some markets clearly favor buyers. Others still favor sellers. But most are sitting somewhere in the middle.

And knowing which market you’re actually in can completely change the strategy you use to buy or sell (and what expectations you should have). Let’s break it down.

One Number Tells You Who’s Got Leverage

So how do you know which market you’re in? There’s one number that tells the story faster than anything else: the months’ supply of homes for sale. It’s the clearest signal of who’s got leverage – and what strategy you’ll need. Think of it like this.

Imagine no additional homes were listed starting today. Months’ supply tells us how long it would take to sell everything that’s currently on the market based on today’s demand. 

Generally speaking, if months’ supply is:

  • Fewer than 4 months: Sellers usually have the advantage.

  • 4 to 6 months: Buyers and sellers are on more equal footing.

  • More than 6 months: Buyers can usually negotiate for a better deal.

Right now, the National Association of Realtors (NAR) data says that number is 4.6 and that puts the overall market back in balanced territory (see graph below):

a graph of a market

That means, as a whole, the market has finally moved back into a much more balanced range after years of being tilted in sellers’ favor. While that may look like the scales have tipped only slightly, it’s enough to make a real difference in what strategy you’ll need for your move – at least in most places.

The Tale of Two Markets: Why ‘Balanced’ Doesn’t Mean the Same Thing Everywhere

Redfin data helps shed some light on how this shakes out across the country. It breaks down which cities are leaning in either direction (see graph below).

  • Some markets give buyers more leverage. Those are in blue.

  • Some still favor sellers. That’s the orange.

  • Others fall somewhere in between. Those are gray. 

a graph of a marketNotice anything? A lot more places are seeing more buyer-friendly conditions right now.  In fact, this is the most buyer-friendly market we’ve seen in nearly 6 years.

But don’t take that as buyers have the upper hand everywhere.

There are still cities where sellers still have the power. And if you’re in one of them, your approach to selling or buying looks completely different than it would in a buyer-leaning market.

The Biggest Mistake You Can Make Right Now

That’s why the biggest mistake isn’t thinking it’s finally a buyer’s market. And it isn’t thinking it’s still a seller’s market either. It’s making any assumption without talking to an expert agent first.

Today’s market is incredibly local. In one market, a buyer may be getting thousands of dollars in concessions from a seller. And a homeowner may have to consider dropping their price.  

But in another, a buyer may be stressed about coming in with their best offer, or they may lose out on the home to another buyer. And a seller may still be seeing strong demand and prices inching higher.

Same overall housing market.

Very different experiences.

The truth is what’s happening in your back yard affects everything from pricing your house to making an offer to negotiating repairs or concessions. And that’s why an agent’s local knowledge matters more now than ever before.

Your plan has to be based on your neighborhood – and only an agent has the expertise to get that right.

Bottom Line

This market isn’t one-size-fits-all.

If you’re wondering who has the upper hand where you live, talk to a local agent. They’ll help you understand what’s happening in your market, who’s got the leverage, and what strategy gives you the best shot at getting what you want.

Here’s Why Mortgage Rates Are What They Are Right Now

Affordability, Economy, For Buyers, For Sellers, Mortgage Rates, Real Estate, , , , ,

Here’s Why Mortgage Rates Are What They Are Right Now Simplifying The Market

If you’re waiting for mortgage rates to fall a lot before you buy, you may be waiting a while. But before you get discouraged, there’s a number working behind the scenes that’s actually good for you right now. It’s called the spread, and once you understand it, you may see today’s rates in a whole new light.

The Pattern That’s Held for 50+ Years

For starters, mortgage rates don’t move on their own. They tend to follow the 10-year treasury yield, a number tied to how investors feel about the economy.

It’s not an exact science, since plenty of other factors can move it day to day, but broadly speaking, when the economy looks strong, that yield tends to climb over time. When the outlook gets shaky, it tends to ease. For over 50 years, the 10-year treasury yield and mortgage rates have moved almost in lockstep (see graph below):

a graph of a graph showing the number of mortgage rates

The gap between them is called the “spread.” On average, that gap runs about 1.76 percentage points. And that spread impacts your mortgage rate. A wider spread tends to push mortgage rates higher than the treasury yield alone would suggest, while a narrower spread keeps rates closer to the treasury yield.

One of the Big Reasons Rates Likely Won’t Drop Dramatically Anytime Soon

If you’re hoping mortgage rates will drop a lot, here’s the reality – they probably won’t, at least not anytime soon. One of the big reasons why comes down to that spread between the 10-year treasury yield and mortgage rates.

A few years ago, that gap got a lot wider as uncertainty in the economy pushed it as high as 3.19 points in 2023.

Now here’s the part worth noting – that gap has been narrowing lately. It’s down to about 2.01, just above the long-term average of 1.76 (see graph below):

a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of a graph of

When the gap is wide, there’s more room for rates to fall. But when it’s relatively normal, like it is now, there’s less wiggle room for rates to fall.

Why Mortgage Rates Aren’t Higher Right Now

Today’s mortgage rate is basically the treasury yield plus the spread. So, when either one moves, your rate moves with it. Here are 3 different rates, all built off today’s 10-year treasury yield of 4.68% to show you just how much the spread matters for your bottom line (see graph below):

a graph of a graph showing a rate of interest

If the spread were still stretched out like it was in 2023, rates would be pushing close to 8% right now. That’s because the spread was over a full point wider than it is today.

But now, thanks to the spread narrowing recently, today’s rate sits around 6.69%. That’s the middle scenario in that visual. That’s a big difference in your monthly payment compared what we could see if the spread was as big as it was 2023. As Logan Mohtashami, Lead Analyst at HousingWire, put it:

“Of course, mortgage spreads being better in 2026 is the housing hero story of the year . . .”

Now compare that middle bar to the 3rd one. If the spread were sitting at its exact long-term average, rates would be around 6.5%. That’s only about a quarter of a point away from where rates actually are today. That means most of the improvement in mortgage rates we should realistically expect from a shrinking spread has already happened.

In other words, the same narrowing spread that’s the reason rates aren’t close to 8% today is also a big reason why they’re not likely to fall a lot further.

Bottom Line

That’s the trade-off with a narrowing spread. Rates may not be where you want them, but they’re better than they could’ve been. If you want help figuring out what that means for your monthly payment, reach out to a local lender

The Case for Putting 20% Down on Your Next Home

Affordability, Buying Tips, Downsize, For Buyers, Move-Up, Real Estate, , , , ,

The Case for Putting 20% Down on Your Next Home Simplifying The Market

If you’re planning to buy your next home soon, you’ve probably heard the old rule about saving 20% for your down payment.

The truth is, you usually don’t have to. Plenty of loan options let qualified buyers put down much less. But a lot of repeat buyers are choosing to put down 20% anyway.

So, why are they if they don’t have to?

Two reasons. They know a bigger down payment pays off, and after years in their current house, they’ve built up enough equity that it’s finally possible.

Repeat Buyers Put More Money Down

According to the National Association of Realtors (NAR), the typical repeat buyer puts down 23%when they buy a home (see graph below):

a graph of a number of colored squares

That’s more than double the 10% they may have put down as a first-time buyer. So, how do they manage it? Their equity.

When you’ve owned a house for a while, two things tend to happen. One, you pay down your mortgage, and two, your home’s value climbs. The difference between what you still owe on your mortgage and what your house is worth is your equity. And the longer you’ve lived in your house, the bigger that number grows.

When you sell, your equity turns into cash. And NAR data shows most repeat buyers put it straight toward their next down payment (see chart below):

a graph of a financial graph

First-time buyers don’t have that springboard yet, and that’s normal. But if you already own, you may be holding more buying power than you think because of it.

And if putting 20% down is finally possible, it may be worth at least considering. Here’s why. Let’s go over what you get in return.

4 Perks of Putting 20% (or More) Down

As Redfin explains, putting more down pays off in a few ways:

  • A smaller monthly payment. The more you put down, the less you borrow at today’s rates. And if taking on a higher mortgage rate is one of the reasons you’re debating whether to move, that’s a win.

  • Paying less interest. A smaller loan can also carry less interest across the life of your mortgage. If you put 20% down, you’ll only pay interest on the remaining 80%. Put 5% down and you’ll pay interest on the remaining 95%, which will cost you more over the lifetime of the loan.

  • No private mortgage insurance (PMI). When you put down less than 20% on a conventional loan, lenders usually add a monthly fee called private mortgage insurance. With 20% down, PMI isn’t required and that saves your money every month. 

  • A stronger offer. A larger down payment can make your offer more attractive, since sellers tend to read it as a sign your financing is solid and the deal is more likely to close.

Bottom Line

So, no. You don’t need to put 20% down to buy your next home. But you may want to. If your equity puts it within reach, going bigger can lower your costs and make moving more doable than you think – even with today’s rates.

A trusted lender can run the numbers on your financing, and a local agent can help you figure out what your current house could add to your next down payment.