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Have Rates Dropped Below 5%?

Mark’s Market Update – 1/12/2023

​Have rates hit 5%?

No – and home prices aren’t going to crash either. The economics are sound that the combination of lack of inventory…


….consumers getting used to rates being above 6% (for the last five months)…


…that home prices are very closely linked to interest rates (lower rates = higher home prices and higher rates = lower home prices…


…good CPI numbers coming out which is going to be good news for the Fed NOT pushing rates up .75% again and again like they did earlier last year (more like .25% or .50% at the top end)…

….means home prices aren’t going to crash – and, arguably, they’ve stabilized and as rates start to *creep* downward…you’ll start to see home prices *creep* upward.

Rates haven’t hit 5%. Home prices aren’t crashing.

When rates DO hit 5% or lower – you’ll say one of two things:

1. “Mark – thank you for helping me get my home – let’s refinance (remember – I’m going to do it for free when the time comes – no lender-related closing costs), and I love the equity I have and the wealth you helped me create.”
2. “Gosh darn it, Mark – I should have listened to you. You truly are the smartest person on the planet when it comes to this whole mortgage and wealth-building thing – let’s do this because as you’ve said, there’s no better time than the present and it’s not a matter of “timing” the market, but “time in” the market.”