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Using the 4 stages of homebuyer demand to your Benefit

February 25, 2023 by Kevin Martini

We are living in an unprecedented time, where the real estate market is experiencing shifts in sentiment among homebuyers and homeowners caused by an information crisis about housing. As a matter of fact, there is an immense demand for housing compared to supply, and this trend is not exclusive to Raleigh, North Carolina. Across the United States, there is a 3.8 to 5 million home shortage, which is not going to be resolved anytime soon.

This shortage is not a new phenomenon and has been a long-term issue that will take years, if not decades, to resolve. However, the shortage has created a unique opportunity for homebuyers to achieve a win-win-win situation. With the right strategy, homebuyers can take advantage of the market’s current stage and secure a sweet deal.

If you’re planning to buy a home in Raleigh, North Carolina, it’s important to understand the stages of buyer demand. These four stages are represented by a four-light stoplight. The red light represents weak buyer demand, orange represents limited buyer demand, light green represents good buyer demand, and the bright green light represents strong buyer demand.

Even though the current stage of buyer demand in Raleigh is in the red and orange zones, meaning there is a low to limited buyer demand due to slightly higher mortgage rates then have been seen in recent years. As a result, this is the perfect time for homebuyers to reduce competition and take advantage of a seller’s willingness to participate, which could make the deal more attractive. This also protects the homebuyer from paying a higher premium for the same home later.

Facts About Mortgage Rates

Mortgage rates live in the bond market and are not controlled by the Federal Reserve or the stock market. The inflation rate is the nemesis to the bond market, as it erodes the return of the bond. When inflation is under control, mortgage rates will drift lower. Currently, mortgage rates are in the high tides, but they are not predicted to reach double digits. Experts and pundits project that mortgage rates may start with a 4 by 2024-2025.

As a Raleigh Mortgage Broker, I know that this is the perfect time to take advantage of a seller-funded buydown. This temporary buydown provides a low rate today that can be refinanced to an even lower rate when mortgage rates fall in the future.

Certified Mortgage Broker and Raleigh Mortgage Broker Kevin Martini

Furthermore, understanding the stages of buyer demand and the unique opportunities they present, along with the current state of mortgage rates, is crucial for homebuyers in Raleigh. By securing a low rate today and taking advantage of the seller’s willingness to participate, homebuyers can protect themselves from paying a higher premium for the same home later, and potentially refinance the home loan to a lower rate once the rate enters the bright green zone.

When considering buying a home, it’s important to remember that real estate is a long-term investment that goes up and makes higher highs over time. Although there may be moments of retracement, this period is just a time where real estate is recharging to make a higher high. North Carolina has experienced an average cumulative appreciation of 59.31% in the last five years and over 291% since 1991.

The pandemic was a once-in-a-generation event that provided unspeakable home loan rates and record-breaking home appreciation. However, this does not mean that homebuyers have missed out on an opportunity to secure a great deal. In fact, Kevin Martini said; “I can tell you that the best time to secure an epic mortgage rate was during the pandemic, but the next best time is right now.“

It’s important to understand that home values will go up over time due to the current shortage of supply and pure demand for housing. Although there may be moments of retracement, overtime real estate makes higher highs.

If you are thinking about buying a home in Raleigh, NC, or anywhere in the US, it is important to be aware of the current real estate market and understand the four stages of buyer demand. This knowledge will help you navigate the market and potentially maximize your advantage as a homebuyer.

Martini Mortgage Podcast, a Mortgage and Real Estate Podcast

In this episode of the Martini Mortgage Podcast, Certified Mortgage Advisor and Raleigh Mortgage Broker Kevin Martini discusses the current state of the real estate market and how homebuyers can use the four stages of buyer demand to their advantage. Martini explains that there is currently a shortage of homes available in the US, which is driving up home values. This shortage is not going to be resolved anytime soon, so it is important to be prepared and understand the market.

Martini explains that the four stages of buyer demand are represented by the colors red, orange, light green, and bright green. The red light represents weak buyer demand, which occurs when the mortgage rate is greater than 7 percent. The orange light represents limited buyer demand, which occurs when the home loan rate is lower than 7 but higher than mid 6’s. The light green color represents good buyer demand, which occurs when the home loan rate is lower than mid 6 percent. Finally, the bright green color represents strong buyer demand, which occurs when fixed mortgage rates start with a 5 or below.

It is important to understand these stages because they can impact the price you pay for a home. For example, in the red and orange stages, there is less competition among homebuyers, which means sellers may be more willing to negotiate and make the deal more attractive for you. In the light green stage, there is good buyer demand, so you may have more competition, but home prices are still reasonable. In the bright green stage, there is strong buyer demand, which means prices may be higher and sellers may have more demands, such as waiving inspections or paying over list.

Martini explains that understanding the four stages of buyer demand can help you time your home purchase to your advantage. For example, if you buy during the red or orange stage, you may be able to get a good deal on a home and lock in a baseline for your home purchase, protecting you from paying a higher premium for that home later. You can then refinance the home loan to a lower rate once the rate enters the bright green zone. By taking advantage of the red and orange stages, you can reduce your competition and potentially save money.

Martini also discusses mortgage rates and inflation, explaining that mortgage rates live in the bond market and are not controlled by the Federal Reserve or the stock market. The nemesis to a bond is inflation, which can erode the return of a bond and increase its yield to attract more buyers. Higher yield means higher mortgage rates. When inflation is tamed, mortgage rates will drift lower.

Martini’s insights can be particularly valuable to those interested in buying a home in Raleigh, NC. According to a recent report by Zillow, Raleigh’s housing market is currently considered “very hot,” with home values increasing by 10.8% over the past year. The median home value in Raleigh is currently $323,312, and Zillow predicts that home values will continue to increase by 11.5% over the next year.

If you are considering buying a home in Raleigh, NC or anywhere else in the country, it’s important to work with a knowledgeable and experienced mortgage broker who can help guide you through the process. The Martini Mortgage Group at Gold Star Mortgage Financial Group is a team of mortgage strategists who are dedicated to helping families achieve their dreams of homeownership.

One of the biggest advantages of working with a mortgage strategist with the Martini Mortgage Group is that they can help you navigate the complex mortgage process, including helping you understand your options and choose the right mortgage for your needs. They can also help you determine how much you can afford to spend on a home, which is critical in a tight housing market where prices are high and competition is fierce.

In addition to helping you with the mortgage process, the Martini Mortgage Group also provides the families they serve with valuable advice on the local real estate market, including insights on housing trends and the best areas to buy a home. This can be especially important in Raleigh, which is known for its strong real estate market and high demand for housing.

One of the best ways to get started with buying a home in Raleigh is to work with a mortgage strategist with the Martini Mortgage Group since they specializes in the area. They can help you understand the unique opportunities and challenges of the local market, as well as help you find the right home and mortgage for your needs.

At the end of the day, buying a home is a major investment that requires careful planning and consideration. By understanding the 4 stages of buyer demand and working with a knowledgeable mortgage broker, you can maximize your chances of getting a great deal on a home that you will love for years to come.

In conclusion, the current real estate market is characterized by high demand and limited supply, which has led to rising home prices and increased competition among buyers. However, by understanding the 4 stages of buyer demand and working with a knowledgeable mortgage strategist with the Martini Mortgage Group, you can take advantage of the unique opportunities of the market and find the right home at the right price with the right mortgage strategy.

Filed Under: 4 Stages of Buyer Demand, Buy a Home, buydown, Buydowns, Fannie Mae, Federal Reserve, Home Loan Rates, Home Loans, Home Values, Housing Market, Inflation, Kevin Martini, Martini Mortgage Podcast, Mortgage, Mortgage Podcast, Mortgage Rates, Raleigh, Real Estate, Real Estate Podcast, Recession, Wake County Tagged With: 4 stagers of buyer demand, Buydown, Buying a Home in North Carolina, Buying a Home in Raleigh, Kevin Martini, Mortgage Tips, North Carolina, Raleigh, Raleigh Mortgage Broker, Raleigh Mortgage Lender, Real Estate

What is going on in Real Estate and Home Loan Rates (October 2022 Edition)

October 9, 2022 by Kevin Martini

What is going on in real estate and home loan rates is the name of a new monthly series being produced by the Martini Mortgage Group for the Martini Mortgage Podcast. Episode 161 is the inaugural issue.

I truly believe episode 161 is one of the most important, if not the most important, that Logan and I have produced to date.

Kevin Martini, Certified Mortgage Broker

Video Edition of Martini Mortgage Podcast episode 161 called: What is going on in Real Estate and Home Loan Rates (October 2022 Edition)

Audio Edition of Martini Mortgage Podcast episode 161 called: What is going on in Real Estate and Home Loan Rates (October 2022 Edition)

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Transcript of Martini Mortgage Podcast episode 161 called: What is going on in Real Estate and Home Loan Rates (October 2022 Edition)

1
00:00:00,620 –> 00:00:04,726
[kevin_martini]: there’s a lot of scary headlines out
there right now which are highlight in the

2
00:00:04,807 –> 00:00:09,895
[kevin_martini]: sudden rise of mortgage rates the increase
in house inventory people are now talking about

3
00:00:10,035 –> 00:00:15,012
[kevin_martini]: the future of real estate and then
you have inflation two this is a new

4
00:00:15,152 –> 00:00:19,645
[kevin_martini]: special video and audio edition of the
new monthly series from the markin mortgage group

5
00:00:19,725 –> 00:00:26,039
[kevin_martini]: that we are calling what is going
on now before i start mixing it up

6
00:00:26,921 –> 00:00:33,153
[kevin_martini]: i need to make those legal folks
happy so the primary purpose of this podcast

7
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[kevin_martini]: series is to inform entertain and educate
the information opinions and recommendations presented in this

8
00:00:40,285 –> 00:00:46,455
[kevin_martini]: podcast series do not constitute legal or
their professional advice opinions or endorsements of any

9
00:00:46,615 –> 00:00:53,226
[kevin_martini]: kind welcome to the martini mortgage podcast
episode one hundred and sixty one i’m calling

10
00:00:53,287 –> 00:00:58,973
[kevin_martini]: it what is going on in october
twenty twenty two inaugural issue my name is

11
00:00:59,073 –> 00:01:04,983
[kevin_martini]: kevin martini and i am a certified
mortgage advisor and producing branch manager and i’m

12
00:01:05,103 –> 00:01:08,629
[kevin_martini]: less one four three nine six two
with the martini mortgage group back gold star

13
00:01:08,870 –> 00:01:16,377
[kevin_martini]: gage financial group corporation and les three
four four six equal house seen lender with

14
00:01:16,477 –> 00:01:21,811
[kevin_martini]: all that said let’s dive into the
news on friday october seventh the bureau of

15
00:01:21,931 –> 00:01:29,558
[kevin_martini]: labor statistics reported that two hundred and
sixty three thousand jobs were created in september

16
00:01:29,658 –> 00:01:36,473
[kevin_martini]: twenty twenty two and this was above
the expectations the unemployment rate decrease from three

17
00:01:36,574 –> 00:01:42,724
[kevin_martini]: point seven to three point five per
cent to the data from these reports spook

18
00:01:42,864 –> 00:01:48,934
[kevin_martini]: the markets because it provides an unofficial
signal that the fad will continue on its

19
00:01:49,115 –> 00:01:55,306
[kevin_martini]: tightening journey and it is likely to
be very aggressive to get inflation under control

20
00:01:55,427 –> 00:02:02,926
[kevin_martini]: moving forward let me be clear the
fan needs tightening because they need to reduce

21
00:02:02,966 –> 00:02:10,218
[kevin_martini]: demand in the market place and this
reduced demand should be the thing that teams

22
00:02:10,278 –> 00:02:15,824
[kevin_martini]: the beast and that beast is inflation
it is my opinion the fed will raise

23
00:02:15,984 –> 00:02:22,195
[kevin_martini]: rates in the november and december meetings
i also believe the fed fung rate could

24
00:02:22,255 –> 00:02:30,295
[kevin_martini]: be increased by one and a half
point it is an undisputable fact we have

25
00:02:30,396 –> 00:02:35,865
[kevin_martini]: not seen inflation at this level for
decades and the fens actions to be transparent

26
00:02:35,945 –> 00:02:43,097
[kevin_martini]: have helped but they’ve helped incrementally but
inflation is still persistent and high this is

27
00:02:43,257 –> 00:02:49,668
[kevin_martini]: critical because inflation is the nemesis or
the arch enemy to mortgage rates you see

28
00:02:50,820 –> 00:02:55,934
[kevin_martini]: mortgage rates are not controlled by the
federal reserve nor do mortgage rates come from

29
00:02:56,015 –> 00:03:02,653
[kevin_martini]: the stock market mortgage rates live in
the bond market inflating a road the return

30
00:03:03,075 –> 00:03:08,185
[kevin_martini]: of a bond just because there is
inflation it does not mean the markets will

31
00:03:08,285 –> 00:03:14,515
[kevin_martini]: stop in the simplest of examples market
makers will offer a higher yield to a

32
00:03:14,616 –> 00:03:22,748
[kevin_martini]: mortgage bond investor when more gage bond
yield is increased that means mortgage rates will

33
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[kevin_martini]: go higher now i feel that the
feds actions will get inflation under control in

34
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[kevin_martini]: the first quarter of twenty twenty three
it’s critical that i share this based on

35
00:03:34,628 –> 00:03:40,517
[kevin_martini]: history the fact has always been late
to the party and they stayed too long

36
00:03:40,597 –> 00:03:45,305
[kevin_martini]: to the party they were clearly too
late to this party because they thought inflation

37
00:03:45,405 –> 00:03:54,367
[kevin_martini]: was transiatory not sticky the developing story
is what will they do when inflationary pressures

38
00:03:54,728 –> 00:04:02,437
[kevin_martini]: are east stay tuned i think they
will stay after the party is over and

39
00:04:02,517 –> 00:04:10,841
[kevin_martini]: then they will promoting growth rapid massive
growth and this growth will provide a sharp

40
00:04:11,242 –> 00:04:17,019
[kevin_martini]: drop in mortgage rates by the way
that’s just not me fan may has said

41
00:04:17,080 –> 00:04:24,192
[kevin_martini]: that too let’s talk about mortgage rates
for a hot second for some the current

42
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[kevin_martini]: rate environment was not possible however for
a long term fans of the martini mortgage

43
00:04:29,742 –> 00:04:35,176
[kevin_martini]: podcast they were advised that this was
likely to happen and for those new fans

44
00:04:35,297 –> 00:04:41,786
[kevin_martini]: let me be clear it is probable
that mortgage rates will get worse before they

45
00:04:41,846 –> 00:04:48,752
[kevin_martini]: get better it is not unthinkable that
mortgage rates could start with an eight sooner

46
00:04:49,154 –> 00:04:56,289
[kevin_martini]: than later there are advanced strategies offered
by myself and fellow morgan strategist logan martine

47
00:04:56,349 –> 00:05:02,279
[kevin_martini]: to help today and in the future
too if home ownership is right for you

48
00:05:02,459 –> 00:05:07,227
[kevin_martini]: as first time home buyer or as
a repeat home buyer one of the many

49
00:05:07,488 –> 00:05:14,900
[kevin_martini]: options is the martini mortgage group no
contract lock program with a free flow down

50
00:05:15,561 –> 00:05:22,993
[kevin_martini]: up to ninety days this is a
very simple program but it is very powerful

51
00:05:23,775 –> 00:05:29,003
[kevin_martini]: here’s how it works a future home
buyer ken lock their mortgage rate at to

52
00:05:29,084 –> 00:05:35,334
[kevin_martini]: day’s price and that price can be
protected for up to ninety days in the

53
00:05:35,414 –> 00:05:39,782
[kevin_martini]: event there’s an improvement in the rate
when the future home buyer goes under contract

54
00:05:40,183 –> 00:05:44,815
[kevin_martini]: for their new home they will have
the option to float the right down to

55
00:05:44,856 –> 00:05:53,546
[kevin_martini]: the improved right how cool is that
this unique no contract lock program can be

56
00:05:53,586 –> 00:05:59,275
[kevin_martini]: combined with a seller paid by down
program offered by the martini mortgage group for

57
00:05:59,335 –> 00:06:04,504
[kevin_martini]: more information about the seller paid by
down check out episode one five nine of

58
00:06:04,544 –> 00:06:12,057
[kevin_martini]: the martini mortgage podcast since it explains
it in great detail the benefits of a

59
00:06:12,157 –> 00:06:18,903
[kevin_martini]: seller paid by down just give you
a glimpse if that’s okay real belief fly

60
00:06:18,983 –> 00:06:23,990
[kevin_martini]: there are three types of by downs
there’s a one one by down there’s a

61
00:06:24,371 –> 00:06:30,040
[kevin_martini]: two one by down and there’s a
three to one by down for illustration only

62
00:06:30,161 –> 00:06:35,670
[kevin_martini]: let’s assume your rate you lock with
our no contract lock program at six per

63
00:06:35,730 –> 00:06:42,560
[kevin_martini]: cent and let us assume you negotiate
or two one seller paid buy down this

64
00:06:42,700 –> 00:06:47,027
[kevin_martini]: would mean in the first year your
rate would be four per cent and in

65
00:06:47,068 –> 00:06:50,914
[kevin_martini]: the second year your rate would be
five per cent and then it would go

66
00:06:51,114 –> 00:06:57,733
[kevin_martini]: to six for your three through thirty
seller paid buy downs are a win win

67
00:06:58,396 –> 00:07:06,462
[kevin_martini]: since this program benefits both the seller
and the buyer too it’s not just me

68
00:07:06,783 –> 00:07:16,610
[kevin_martini]: but it is many experts believe that
the mortgage rates will significantly improve towards the

69
00:07:16,731 –> 00:07:22,039
[kevin_martini]: end of twenty twenty three to the
beginning of twenty twenty four the experts that

70
00:07:22,140 –> 00:07:26,447
[kevin_martini]: our bullets she that could be as
soon as the second quarter of twenty twenty

71
00:07:26,487 –> 00:07:31,242
[kevin_martini]: three to be transparen i think the
bulls are being a little bit too aggressive

72
00:07:31,302 –> 00:07:36,603
[kevin_martini]: and running too fast here is the
punch line the home loan rate you get

73
00:07:36,683 –> 00:07:40,190
[kevin_martini]: today is not likely going to be
the home loan rate you will have in

74
00:07:40,230 –> 00:07:45,891
[kevin_martini]: a couple of years because when the
thed gets inflation under control again when not

75
00:07:46,071 –> 00:07:51,736
[kevin_martini]: if and while they are staying at
the party too long which they will there

76
00:07:51,876 –> 00:07:57,876
[kevin_martini]: are going to be re finance opportunities
according to fanny may as i said earlier

77
00:07:58,156 –> 00:08:04,515
[kevin_martini]: they expect rates to start with the
four sometime in twenty twenty three this is

78
00:08:04,635 –> 00:08:11,869
[kevin_martini]: why the phrase marry the house and
date the rate is being said so frequently

79
00:08:11,949 –> 00:08:20,737
[kevin_martini]: by myself my fellow mortgage strategist logan
martini and others let me break it down

80
00:08:21,770 –> 00:08:28,080
[kevin_martini]: it is very probable that mortgage rates
will increase over the next three to six

81
00:08:28,280 –> 00:08:34,497
[kevin_martini]: months to levels that millennials have never
seen and even some folks that are generation

82
00:08:34,800 –> 00:08:42,117
[kevin_martini]: exerts mortgage rates are not the only
thing going up rents are going up to

83
00:08:43,090 –> 00:08:48,900
[kevin_martini]: don’t believe me well let me share
the facts in rale north carolina from july

84
00:08:49,100 –> 00:08:54,589
[kevin_martini]: twenty twenty one to july twenty twenty
two rents for one bedroom apartment went up

85
00:08:55,250 –> 00:08:59,657
[kevin_martini]: two point one per cent and a
two bedroom apartment went up forty four point

86
00:08:59,838 –> 00:09:05,848
[kevin_martini]: eight per cent in durham the bull
city of north carolina for the same period

87
00:09:05,928 –> 00:09:11,250
[kevin_martini]: of time to every apartment went up
fifty four point two per cent you know

88
00:09:11,310 –> 00:09:17,861
[kevin_martini]: what else is going up home values
did you know that three point eight four

89
00:09:18,122 –> 00:09:24,574
[kevin_martini]: per cent is the average annual growth
in home prices from ten eighty nine to

90
00:09:24,735 –> 00:09:32,198
[kevin_martini]: two thousand nineteen check it out i
took out the eighteen point five per cent

91
00:09:32,338 –> 00:09:38,068
[kevin_martini]: of annual appreciation per year for the
last two years of this calculation because the

92
00:09:38,730 –> 00:09:46,075
[kevin_martini]: home christ growth during the presence of
the eagle pandemic was a typical so three

93
00:09:46,155 –> 00:09:52,880
[kevin_martini]: point eight four per cent is the
past what about the future it is my

94
00:09:53,001 –> 00:09:58,890
[kevin_martini]: opinion what one person says about the
future of home values is irrelevant for me

95
00:09:59,491 –> 00:10:04,239
[kevin_martini]: and for the families the martini mortgage
group serves the gold standard of future home

96
00:10:04,520 –> 00:10:10,791
[kevin_martini]: uses the home price expectation survey done
every quarter by pullsnomics and that is because

97
00:10:10,871 –> 00:10:17,091
[kevin_martini]: it’s not one person’s opinion it is
the opinion of over one hundred experts oh

98
00:10:17,191 –> 00:10:23,201
[kevin_martini]: by the way the home price expectation
survey is expecting a five year cumulative appreciation

99
00:10:23,762 –> 00:10:30,739
[kevin_martini]: of over twenty four percent closer to
twenty five actually let me get granular for

100
00:10:30,800 –> 00:10:37,347
[kevin_martini]: a hot second let me not use
the current forecast from the home price expectation

101
00:10:37,487 –> 00:10:43,959
[kevin_martini]: survey data nor the data from the
past twenty years prior to the evil pandemic

102
00:10:45,400 –> 00:10:51,792
[kevin_martini]: let me be super conservative and let
me just say three percent appreciation a year

103
00:10:52,293 –> 00:10:59,012
[kevin_martini]: for the next five years what would
this mean simply put a fifteen thousand dollar

104
00:10:59,072 –> 00:11:05,478
[kevin_martini]: down payment on a three hundred thousand
house could grow to sixty two thousand dollars

105
00:11:05,558 –> 00:11:12,033
[kevin_martini]: over five years twenty five thousand dollar
thou payment on a five hundred thousand dollar

106
00:11:12,114 –> 00:11:19,370
[kevin_martini]: house could grow to a hundred and
four thousand dollars in over five years a

107
00:11:19,590 –> 00:11:25,600
[kevin_martini]: forty five thousand dollar down payment on
a nine hundred thousand dollar home could grow

108
00:11:25,801 –> 00:11:33,723
[kevin_martini]: to a hundred and eighty eight thousand
dollars over five years not owning a home

109
00:11:34,364 –> 00:11:42,005
[kevin_martini]: could not just cost you thousands but
tens of thousands it’s in we all have

110
00:11:42,065 –> 00:11:46,902
[kevin_martini]: to have a roof over our head
some will rent it and when you rent

111
00:11:47,222 –> 00:11:52,716
[kevin_martini]: you pay a mortgage you’re not paying
your mortgage you’re just paying for your landlords

112
00:11:52,816 –> 00:11:59,365
[kevin_martini]: mortgage for them others will own that
roof and logan martini and myself help them

113
00:11:59,525 –> 00:12:05,734
[kevin_martini]: secure the proper mortgage strategy for that
roof let me say this another way for

114
00:12:05,814 –> 00:12:13,037
[kevin_martini]: the people the back the growth in
home appreciation has decelerated in twenty twenty two

115
00:12:13,398 –> 00:12:19,288
[kevin_martini]: but just because home prices have decelerated
it does not mean homes are going to

116
00:12:19,368 –> 00:12:27,025
[kevin_martini]: depreciate in the aggregate poets are going
to continue to appreciate and grant it in

117
00:12:27,245 –> 00:12:34,970
[kevin_martini]: some markets that were extra frothy we
may see a decline from their peak key

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00:12:35,151 –> 00:12:43,426
[kevin_martini]: word is some markets right now home
buyers can still find opportunities and i believe

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00:12:43,506 –> 00:12:52,690
[kevin_martini]: that today a home buyer has the
proper conditions to secure more buying power if

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00:12:52,730 –> 00:12:56,817
[kevin_martini]: you’re thinking of buying a home for
the first time or as a repeat home

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00:12:56,837 –> 00:13:02,486
[kevin_martini]: buyer simply give a mortgage strategist with
a martini mortgage group a jingle by dialing

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00:13:02,546 –> 00:13:08,784
[kevin_martini]: nine one nine two three eight forty
nine thirty four because it should always be

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00:13:08,885 –> 00:13:15,885
[kevin_martini]: home long first and then go find
your home okay okay okay let me talk

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00:13:16,025 –> 00:13:21,185
[kevin_martini]: about this elephant that’s in the room
many good people were hurt during the housing

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00:13:21,265 –> 00:13:26,734
[kevin_martini]: crisis in two thousand eight if you
are not directly impacted is likely that someone

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00:13:26,794 –> 00:13:33,524
[kevin_martini]: you cared about was negatively impacted is
sad what happened during the housing crisis but

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00:13:33,604 –> 00:13:39,553
[kevin_martini]: the events that caused it are not
present today sure the housing crisis caused the

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00:13:39,633 –> 00:13:45,523
[kevin_martini]: great recession however the great recession did
not cause the housing crisis let me be

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00:13:46,004 –> 00:13:56,492
[kevin_martini]: crystal clear recession does not housing crisis
today i am reminded by a quote from

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[kevin_martini]: warren buffet be fearful when others are
greedy and greedy when others are fearful i

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00:14:04,890 –> 00:14:10,199
[kevin_martini]: would like to add get educated and
make an educated decision and was right for

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00:14:10,339 –> 00:14:16,289
[kevin_martini]: you and your family based on the
facts not based on the headline or what

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00:14:16,369 –> 00:14:22,623
[kevin_martini]: you heard the backyard barbecue there is
never a substitute for education and armed with

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00:14:22,704 –> 00:14:29,862
[kevin_martini]: a proper knowledge you can find right
now it is time to be greedy because

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00:14:29,963 –> 00:14:39,130
[kevin_martini]: i have confirmation more millionaires are made
when people are fearful inclosing home ownership is

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00:14:39,311 –> 00:14:43,874
[kevin_martini]: not right for everyone and the only
way you can truly know if home ownership

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00:14:43,954 –> 00:14:49,042
[kevin_martini]: is right for you and your family
is by searching for is not by searching

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00:14:49,102 –> 00:14:55,070
[kevin_martini]: for homes on line or by driving
all over town to visit but houses the

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00:14:55,230 –> 00:15:00,952
[kevin_martini]: first step is always a home loan
and then once you have clarity of the

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00:15:01,032 –> 00:15:06,758
[kevin_martini]: cost and the certainty that you can
secure the proper financing for yourself and your

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00:15:06,819 –> 00:15:12,174
[kevin_martini]: family then you can make an educated
decision if home ownership is right for you

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00:15:12,756 –> 00:15:20,539
[kevin_martini]: and your family if not it’s totally
fine but you’re making a decision based on

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00:15:20,719 –> 00:15:25,914
[kevin_martini]: education not got but if it’s right
for you then you can go find your

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00:15:25,954 –> 00:15:32,423
[kevin_martini]: home being lager focused and with certainty
my name is kevin martini and my fellow

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00:15:32,503 –> 00:15:37,171
[kevin_martini]: morgan strategist is logan martini and we
are here to help you if you have

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00:15:37,251 –> 00:15:41,739
[kevin_martini]: questions about what was in this episode
episode one sixty one of the martini morte

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00:15:41,799 –> 00:15:48,049
[kevin_martini]: podcast no we are here our number
is nine one nine two three eight forty

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00:15:48,130 –> 00:15:55,314
[kevin_martini]: nine thirty four we both look forward
to help oh by the way our website

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00:15:55,374 –> 00:16:02,366
[kevin_martini]: has fresh and real information about securing
the proper mortgage strategy along with relevant information

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00:16:02,687 –> 00:16:09,994
[kevin_martini]: on what one needs to know if
they thinking of buying or need additional resources

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00:16:10,676 –> 00:16:19,500
[kevin_martini]: check it out by going to w
w w martini mortgage group dot com thank

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00:16:19,520 –> 00:16:24,213
[kevin_martini]: you for tuning into this new monthly
series called what the heck is going on

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00:16:24,273 –> 00:16:29,904
[kevin_martini]: in october twenty twenty two and thank
you for sharing this episode with someone you

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00:16:29,965 –> 00:16:33,941
[kevin_martini]: care about peace and blessings

Filed Under: 1-1 Seller-Paid Buydown, 2-1 Seller-Paid Buydown, 3-2-1 Seller Paid Buydown, Appreciation, Buy a Home, Buydowns, Deprecation, Fannie Mae, Fed Funds Rate, Federal Reserve, Home Loan Rates, Home Loans, Home Price Expectation Survey, Home Values, Housing, Housing Market, Inflation, Kevin Martini, Logan Martini, Martini Mortgage Podcast, Mortgage, Mortgage Podcast, Mortgage Rates, Raleigh, Real Estate, Real Estate Podcast, Recession, Wake County Tagged With: Buying a Home in North Carolina, Buying a Home in Raleigh, Kevin Martini, Logan Martini, Martini Mortgage Group, Martini Mortgage Podcast, Mortgage Podcast, Mortgage Tips, Raleigh, Raleigh Mortgage Broker, Raleigh Mortgage Lender, Real Estate, Real Estate Markets, Real Estate Podcast

How the Fed Rates Hikes May Impact Raleigh Homebuyers and Homeowners

September 24, 2022 by Kevin Martini

The Federal Reserve increased short-term interest rates (known as the Federal Funds Rate) by 0.75% on September 21, 2022.  This means the Fed Funds rate is currently at 3.25%. The Fed Funds Rate is the interest rate that banks charge each other to lender/lend overnight.

It is critical to know, the Prime Rate (i.e. the interest rate the banks charge their top tier clients), is based on the Fed Funds Rate. The Prime Rate is set by large banks and is often used to determine the interest rates on lines of credit and credit cards. The formula for Prime is very simple…Fed Funds Rate plus 3. This means the Prime rate is currently 6.25%.

Raleigh Mortgage Rates 

Raleigh Mortgage rates and all mortgage rates on fixed-rate mortgages are NOT impacted by changes to the Federal Funds Rate. Raleigh mortgage rates fluctuate based on the supply and demand for mortgage bonds in the bond market. 

The Fed has been the biggest buyer of mortgage bonds in recent years with an unprecedented pandemic-era bond-buying program. Simply put, this is why there has been record low Raleigh mortgage rates recorded. The Fed is currently in the process of exiting their bond-buying programs. This unwinding is why the average interest rates on fixed-rate Raleigh mortgages have gone up by more than 3% so far this year according to data from Freddie Mac’s weekly survey of mortgage rates. 

The Martini Mortgage Group expects Raleigh mortgage rates to continue drifting higher as the Fed continues to exit its pandemic-era bond-buying programs.

HOME EQUITY LINES OF CREDIT (HELOC)

Interest rates on HELOCs change whenever the Fed changes rates. This is because HELOCs are based on the Prime Rate, which went up to 6.25%. 

HELOCs are typically quoted at Prime plus a certain percentage. For example, if your HELOC is Prime plus 1, your HELOC interest rate would be 7.25%. HELOC interest rates are likely to continue moving higher as the Fed continues to hike interest rates.

The average annual gain in home equity was $60,200 per homeowner from July 2021 to July 2022.

Raleigh Mortgage Broker Kevin Martini

Home prices have climbed 15.8% year-over-year from July 2021 to July 2022, according to the latest Home Price Insights and Homeowner Equity reports from CoreLogic, a leading global real estate data provider. If you currently have a HELOC it is important to know that it is highly probable that the Fed will continue raising the Federal Funds Rate which could significantly impact your housing costs. It may be smart to consider a ‘Cash-Out Refinance‘ right now to lock in your housing costs.

CREDIT CARDS

Interest rates on credit cards change whenever the Fed changes rates. This is because credit cards are based on the Prime Rate, which went up to 6.25%. Credit Cards are typically quoted at Prime plus a certain percentage, just like a HELOC.  For illustration, if your credit card is Prime plus 10, your credit card interest rate would be 16.25%. 

Credit card interest rates are likely to continue moving higher as the Fed continues to hike interest rates. If you have credit card debt today, perhaps you should consider ‘Cash-Out-Refinance‘ to unleash your equity and use it to payoff credit cards and other high interest debt.

logan martini raleigh mortgage lender with martini mortgage group 2

Logan Martini

NMLS 1591485 | Senior Mortgage Strategist | Martini Mortgage Group at | 507 N Blount St, Raleigh, NC 27604 | (919) 238-4934 | www.MartiniMortgageGroup.com | [email protected] | Equal Housing Lender

Kevin Martini

NMLS 143962 | Certified Mortgage Advisor | Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | 507 N Blount St, Raleigh, NC 27604 | (919) 238-4934 | www.MartiniMortgageGroup.com | [email protected] | Equal Housing Lender

kevin martini best raleigh mortgage broker

Filed Under: Cash-Out Refinance, Fed Funds Rate, Fed Interest Rate Decision, Federal Reserve, Kevin Martini, Logan Martini, Mortgage, Mortgage Rates Tagged With: Buying a Home in North Carolina, Buying a Home in Raleigh, Cash-our Refinance, Federal Funds Rate, Federal Reserve, Kevin Martini, Logan Martini, North Carolina, Prime Rate, Raleigh, Raleigh Mortgage Broker, Raleigh Mortgage Lender, Raleigh Mortgage Rates, Real Estate

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    Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | For licensing information go to: www.nmlsConsumerAccess.org and/or www.GoldStarFinancial.com Please review our Disclosures & Licensing information | Gold Star Mortgage Financial Group Corporation has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency. Equal Housing Lender. For further information about Gold Star Mortgage Financial Group, Corporation, please visit our website at www.GoldStarFinancial.com. Receipt of application does not represent an approval for financing or interest rate guarantee. Applicant subject to credit, acceptable appraisal, title, and underwriting approval. Not all applicants will be approved. Other terms and conditions apply. Contact Gold Star Mortgage Financial Group, Corporation for more information and up-to-date rates.

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