Episode 24: Mortgage Rate Update with William Adams

In this episode, Reside Broker/Owner Brady Bridges sits down with William Adams, Loan Officer at Legacy Mutual Mortgage, to discuss interest rate fluctuations, the cost of waiting to buy, and his best advice for agents and buyers.

Watch the video below or listen at anchor.fm/residedfw, and don’t forget to subscribe to be notified of new updates. 

William said that interest rates on mortgages have stabilized somewhat so the market isn't seeing "wild swings" like earlier in the year, when rates increased from 6% to 7% in about 30 days between February and March. He said there's less of a "groundbreaking difference" with rates rising by half a point versus when rates initially rose from 3.5% to 6% - and that "there's been more activity lately because people have become accustomed to, or they've recalibrated, their housing search."

Brady mentioned that when rates first started to rise, a lot of buyers waited because they expected prices to drop, but the opposite has actually happened. Here in DFW, there's still an inventory shortage and multiple offer situations are on the rise again. Given that no one can actually see the future, William's prediction is that rates have peaked and will continue to slowly decline as inflation eases. Brady and William agreed that the days of interest rates in the 3-4% range are likely gone.

As real estate continues to appreciate in value, the cost of waiting to buy could start to affect more people. William said that a $500,000 house purchased today could be worth $15,000-20,000 more in a year. If you were able to put $100,000 down on that purchase and have a $400,000 loan, the cost difference between a 7% mortgage rate and a 6% rate is about $3,500 a year. "So the way we look at cost of waiting is, you save $3,500 by waiting. But the net loss is $15,000 to $20,000 because you're buying a house for much more," he explains.

William said his best advice for any real estate agent in the DFW market is simple: pick up the phone and connect with people. "Call five people a day and have five really good conversations. Make sure they know what you do, invest in them, you know, understand what's going on with them, and don't even make it necessarily about business...I think that if you had 25 good conversations a week and 100 good conversations a month, business will start to come," he says.

William can be reached at [email protected] or 903-571-1596.

There's much more in the full episode - listen at anchor.fm/residedfw or search Real Talk with Reside Real Estate on Spotify, Google Podcasts, iHeartRadio, Stitcher, Pandora, and more. 

Reside Real Estate represents the region's finest properties with exceptional skill using the most innovative technologies currently available. Reside Real Estate offers ultimate privacy and security, speed, and efficiency. Their years of full-time experience have given them a clear understanding of the mindset of home buyers and sellers and a thorough understanding of the regional marketplace.