Good morning, everyone – I hope you are doing well. I waited an extra day for my weekly update to see what happened with the fed meeting yesterday. The Fed raised the Fed Funds Rate by .75% but interest rates actually went down. It is an interesting time in the market. Rates have calmed down; inventory has improved, and it is better for buyers then it has been in 2 years. However, due to the economy people are scared to buy right now. The main concern I hear is fear of home prices dropping. I have attached a great video from Dave Ramsey below that discusses this but want to share my thoughts as well. I find it interesting that people expect the stock market to go up and down but expect real estate to always go up. This is never going to be the case year over year but as long as you look at real estate as a long-term investment you will always win. If you read any books on creating wealth you will see that real estate is one of the best ways to create wealth. One reason for this is real estate is a leveraged investment. You can leverage a mortgage and buy into an appreciating asset. If you buy a $500k home with 10% down and average 3% appreciation over a 5-year period, you will get a 30% return on your money. I have owned 7 houses over the last 20 years and have made money on all of them because I have owned them 5+years. Long story short, not everyone can afford to buy right now. However, if you are currently renting or need a new home due to relocating, school district, safety or any other reason don’t let the news scare you. Talk to a good realtor and lender and understand your options and then decide if this is right for you based on your current financial situation. If you are planning on being in the home for 5+ years you are going to look back at this time period and be happy you bought now and did not wait on interest rates to fall again. Weekly Newsletter – Here is the video Dave Ramsey put out stating why he thinks now is the best time to buy and sell. https://m.youtube.com/watch?v=g1g0zJRncIk
Stewart Sadler Managing Partner Cornerstone Mortgage Group 404-441-4765 ssadler@cmghl.com http://www.cmghl.com Georgia Residential Mortgage Licensee: 21412 • Company NMLS: 147913 • Individual NMLS: 147938