Raleigh Mortgage Rates

Understanding Mortgage Rates in Raleigh: Expert Analysis and Insights from Martini Mortgage Group

March 2, 2023 by Kevin Martini

Raleigh mortgage rates have been a topic of concern for homebuyers and real estate professionals as they have drifted higher in February 2023. As February 2023 ended and March 2023 has started, the bond market has seen several days of consolidation. This has led to uncertainty about the future direction of mortgage rates, and many are wondering whether they will continue to rise or fall.

Raleigh Mortgage Market Update with Kevin Martini (video edition of Martini Factor produced 03.02.2023)

Consolidation occurs when the market trades within a range or trades sideways.
No one can predict whether the market will move up or down until there is a catalyst.
The Stochastic indicator is used to analyze the technical aspects of the bond market.
Higher bond prices lead to lower mortgage rates.
The Federal Reserve has a significant impact on mortgage rates.
Inflation and unemployment are fundamental factors that affect mortgage rates.
The Employment Report and CPI data are potential catalysts for mortgage rates.
Understanding the four stages of buyer demand can help homebuyers make the most of the current environment.

Expert Analysis and Insights by Kevin Martini

Over the last 7 trading days, the market has seen consolidation, which is when the market trades within a range or trades sideways. Until there is a catalyst, no one can predict whether the market will move up or down. However, once consolidation is broken, it may lead to a bigger move up or down. This is why the Martini Mortgage Group deploys technical analysis to help the families they serve.

From a technical perspective, we have to look at the stochastic. For Certified Mortgage Advisor and Raleigh mortgage broker Kevin Martini, the catalyst is when the stochastic goes over 20%, because that means momentum is shifting. Right now, momentum is towards the downside. To support this thesis, let’s look at October 2022 and January 2023. There was a move above 20% on the stochastic, which was the catalyst for higher bond prices. When there are higher bond prices, there is a lower yield, which means lower mortgage rates.

expert analysis and insights by raleigh mortgage broker kevin martini

Currently, there is consolidation in the market, and it is trying to form a base. From a fundamental point of view, there is not a lot of news that is going to move the market, in Kevin Martini’s opinion. There is potential for more downside based on technicals.

Where are Raleigh mortgage rates headed?

So where are Raleigh mortgage rates going? Is the bond price going to rise and cause lower Raleigh mortgage rates or are bond prices going to go lower and cause even higher Raleigh mortgage rates? The Martini Mortgage Group has two days on the radar as a catalyst. The first is March 10th when the Employment Report is released, and the second is March 14th with the release of the CPI data.

It is Kevin Martini’s opinion that these reports will improve mortgage rates, but there are no guarantees. If March 10th and 14th work out the way he predicts, it is optimistic to think we will get to the 200-day moving average, but it is possible to get to the 50-day moving average. If that happens, there will be an improvement in Raleigh mortgage rates.

Despite the current uncertainty, there is still an opportunity for homebuyers. In fact, it is an epic opportunity for a homebuyer. To maximize this opportunity, homebuyers must understand the four stages of buyer demand. These four stages are Awareness, Interest, Desire, and Action. Understanding these stages can help homebuyers make the most of the current market conditions.

martini mortgage podcast with raleigh mortgage lender kevin martini

If you are a homebuyer or if you work in the real estate community, it is essential to understand these stages. There was a great episode of the Martini Mortgage podcast, episode 173, called “4 Stages of Buyer Demand”. Perhaps a better name for this episode would be: “How homebuyers can use the 4 stages of homebuyer demand to maximize advantage”.

In closing, Raleigh mortgage rates have drifted higher in February 2023, and the bond market has seen several days of consolidation. The technicals indicate that momentum is towards the downside, but there is potential for improvement based on the upcoming Employment Report and CPI data. Homebuyers must understand the four stages of buyer demand to maximize the opportunity in the current market conditions. If you have any questions about the current state of the market or about mortgage rates in Raleigh, give Kevin Martini or his business partner and fellow mortgage strategist Logan Martini a call by dialing (919) 238-4934.

3 FAQ for Homebuyers to Know About Raleigh Mortgage Rates

Q: What is the bond market, and how does it affect mortgage rates in Raleigh?

A: The bond market is a financial marketplace where investors buy and sell bonds. Raleigh mortgage rates live in the bond market because the prices of bonds influence mortgage rates. When bond prices are high, mortgage rates are low, and vice versa.

Q: What is the Stochastic indicator, and why is it essential for analyzing the bond market?

A: The Stochastic indicator is a technical analysis tool that measures the momentum of a financial asset. It is used to analyze the bond market because it can help predict when the market is about to shift.

Q: What are the potential catalysts for Raleigh mortgage rates in March 2023?

A: The Employment Report, which is released on March 10th, and the CPI data, which is released on March 14th, are potential catalysts for Raleigh mortgage rates.

Martini Factor

Raleigh mortgage rates have drifted higher in February 2023, but the current market environment presents an epic opportunity for homebuyers. Understanding the technical and fundamental factors that affect mortgage rates can help individuals make informed decisions about their financial future. Moreover, knowing the four stages of buyer demand is critcal.

How Buyers and Sellers benefit from buydowns in Raleigh

October 2, 2022 by Kevin Martini

A unique way that more sellers can meet more homebuyers and more homebuyers can become homeowners is with Seller-Paid Buydowns.
Kevin Martini, Certified Mortgage Advisor with Martini Mortgage Group

WHAT IS A ‘SELLER-PAID BUYDOWN’?

A ‘Seller-Paid Buydown’ is where where the seller pays a fee at the closing to reduce the interest rate on the buyer’s mortgage temporarily. This results in temporarily lowering the buyer’s monthly payment and making the home more affordable for a homebuyer today.

WHAT TYPE OF ‘SELLER-PAID BUYDOWN’ ARE AVAILABLE TODAY WITH THE MARTINI MORTGAGE GROUP?

There are three ‘Seller-Paid Buydown’ strategies offered by the Martini Mortgage Group:

1-0 Buydown…seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) to reduce the interest rate on the homebuyer’s mortgage by 1% in year 1.

2-1 Buydown…seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) reduce the interest rate on the buyer’s mortgage by 2% in year 1 and 1% in year 2.

3-2-1 Buydown…seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) reduce the interest rate on the buyer’s mortgage by 3% in year 1, 2% in year 2 and 1% in year 3.

BENEFIT OF BUYDOWN FOR A HOMEBUYER?

A buydown reduces the buyer’s interest rate and monthly payment during the first few year(s) of homeownership, making the home more affordable for homebuyers. It has a much greater impact on the homebuyer’s monthly payment than reducing the list price of the home.

BENEFIT OF BUYDOWN FOR A HOME SELLER?

A buydown could be a great negotiating tool because a greater percentage of homes listed for sale in today’s market are seeing price reductions. Not only does a buydown makes a home more affordable to a wider range of buyers who may have otherwise been priced out of the market, it also tends to cost less than a price reduction.

A seller offering to pay for a buydown could give provide a competitive advantage vs. other homes listed for sale in today’s changing market. This is because interest rates have gone up significantly this year, creating an affordability crisis for many potential buyers. As an added benefit, a buydown could also save a seller the aggravation and financial loss of having to significantly reduce your list price in order to compete with other homes that may be listed for a lower price.

In today’s market both seller and buyers need to evaluate the best approach. The best approach for a homebuyer may be with a buydown versus a price reduction and for a seller, the best approach may be to offer a buydown instead of a price reduction.
Logan Martini, Senior Mortgage Strategist with Martini Mortgage Group

The following examples of Seller-Paid 1-1 Buydown, Seller-Paid 2-1 Buydown, 3-2-1 Seller-Paid Buydown are for illustration ONLY…assuming a sales price of $400,000 with a Borrower putting 20% down and securing a 30-year fixed mortgage with a rate of 7%. Comparing the sales price to a $25,000 price reduction to a Seller-Paid Buydown.

1-0 Buydown a.k.a. ‘Seller-Paid 1-0 Buydown’

1 1 buydown by raleigh mortgage lender kevin martini with martini mortgage group 507 n blount st raeligh nc 27604 1

seller paid 2 1 buydown a.k.a. 2 1 buydown

2-1 Buydown a.k.a. ‘Seller-Paid 2-1 Buydown’

2 1 buydown by raleigh mortgage lender kevin martini with martini mortgage group 507 n blount st raeligh nc 27604

seller paid 3 2 1 buydown a.k.a. 3 2 1 buydown

3-2-1 Buydown a.k.a. ‘Seller-Paid 3-2-1 Buydown’

3 2 1 buydown by raleigh mortgage lender kevin martini with martini mortgage group 507 n blount st raeligh nc 27604

real estate podcast on seller paid buydowns by raleigh mortgage lender kevin martini

Is a Seller-Paid Buydown the proper strategy for you?

I don’t know however I do know that there is never a substitute for researching your options with a Martini at the Martini Mortgage Group. For a FREE and confidential conversation, simply dial (919) 238-4934.

Logan Martini

NMLS 1591485 | Senior Mortgage Strategist

Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | 507 N Blount St, Raleigh, NC 27604

Logan@MartiniMortgageGroup.com

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

Kevin@MartiniMortgageGroup.com

kevin martini best raleigh mortgage broker

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 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

Kevin Martini