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the power is now REAL ESTATE MAGAZINE

THE HOUSING MARKET INVENTORY IS JUST ABOUT TO GET BETTER. HERE’S WHY. page 6

REAL ESTATE FOR SALE! AUGUST 23 | 2021

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Mortgage Predictions: Just how low can mortgage rates go and for how long?

ll through 2020, mortgage rates remained low, setting new record lows in December and January of less than 3 percent. Since then, the mortgage rates have climbed setting a new trajectory for this year. However, the direction that trajectory will shift towards largely depends on inflation. One thing that is for sure, most experts agree that the rates will not remain at rock bottom, and might rise significantly to as high as 3.5% or even 4.25% before the year ends. The good news is that today, the mortgage rates are still low, which means that homebuyers can take advantage of this opportunity to buy now and lock in a great deal! IT’S NOT TOO LATE! As the economy begins to reopen, one thing is certain, that mortgage rates and refinance rates will begin to rise. That doesn’t however mean that one day we’ll wake up to find the rates sky-high. It is a gradual process. For instance, so far, the mortgage market has been marked by a gradual rise and fall of the mortgage rates to what we have now. That means that for those looking to buy their homes this year, there is still a pretty good chance to lock in exceptionally low rates. And while no one can predict with true certainty about the future of the mortgage rates, the general consensus is that there is a big likelihood that the mortgage rates might rise in 2021.

“Our long-term view for mortgage rates in 2021 is higher,” says Realtor.com chief economist Danielle Hale. “As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth and inflation, driving long-term bond rates higher.” One of the key goals and a positive sign of a strong economic recovery is getting people back on track to work faster. To achieve this fast, the government has to speed up the vaccination process “Mortgage rates should rise as we are in the early stages of getting our economy working again,” says Logan Mohtashami, housing data analyst at HousingWire. However, the mortgage rates could remain relatively low if there is any unexpected bad news especially concerning the Covid-19 or even the vaccine distribution. Therefore, if the process of vaccination goes smoothly and there is a speedy recovery, we should expect the mortgage rates to start climbing.

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MORTGAGE RATE PREDICTIONS FOR 2021 Data from Freddie Mac shows that since the beginning of the year, the average 30-year fixed mortgage rate increased roughly 0.4 percent, and every sign points to the rate actually rising higher as we progress with the year. THE POWER IS NOW MAGAZINE | AUGUST 2021

One thing we have to keep in mind is that longterm Treasury bond rates are a key indicator of the mortgage rates. Last year the 10 year Treasury yield bottomed in August. Since March 2021, the yield hovered between 1.5% and 1.7%. “Mortgage rates have been coming back down while bond yields have been rising since they were never properly priced during this crisis. However, we are getting close to a traditional relationship with bonds and mortgage rates,” added Logan. This can only mean one thing, the more the yield from long-term bond yields rises, the more the mortgage rates will rise higher. In addition, whatever happens to the stock market going forward has a big impact on the mortgage rates. “We haven’t had a 10% plus correction [in the stock market] since March of 2020,” Mohtashami says. “[A drop in the stock market] will provide a rally in bonds, but should only be short term.” We mentioned something about inflation which will largely influence the direction mortgage rates to take going into the future. According to Greg McBride, CFA, Bankrate chief financial analyst, the covid-19 vaccines have brought new optimism to the US economy.

“The tug of war over whether mortgage rates will move higher or lower from here largely revolves around inflation,” McBride says. “If inflation does indeed prove temporary, any increases in mortgage rates will be limited. So far the evidence suggests only a temporary spike in inflation. This should keep rates in the low 3’s in the coming months. But if the Fed is deemed behind the curve and the inflation genie gets out of the bottle, that’s a whole different story.” WHAT’S THE TREND? A RISE…? There have been small increases in the mortgage rate since the beginning of the year and all indicators point to the rate rising. Early in the year, the rate spiked to 3.18 percent and then fell back to under 3%. This means that if you are looking to refinance, there is a good chance that you will secure a good rate. But there are some experts who argue that the refinancing boom of 2020 will slow down dramatically by the second half of 2021. “We think refi volume is going to fall off pretty sharply, particularly in the second half of 2021 as

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the economy really finds its footing,” says Michael Fratantoni, chief economist at the Mortgage Bankers Association. Nonetheless, what the FED does going forward will have a significant impact on the mortgage rates and while it doesnt set the mortgage rates, the central bank sets the overall ate environment. When the pandemic began, the FED slashed the federal funds rate and signaled an intent to keep the rates down for a while; this means little to no upward pressure on the mortgage rates. “I think the Fed is going to keep their foot on the gas, keeping short-term rates at essentially zero through 2022, and only very slowly begin to raise rates in 2023,” Fratantoni says. WHAT DO HOUSING AUTHORITIES SAY ABOUT MORTGAGE RATES Many housing authorities agree that the mortgage rates will hold in the low to mid 3 percent throughout the rest of the year, not unless there are unexpected events disrupting the economy. According to major housing authorities - Fannie Mae, Freddie Mac, and the National Association of Realtors the average 30-year mortgage rate could fall between 3.0% and 3.30% by the end of summer. Here’s a summary of their predictions. Housing Authority Fannie Mae National Assoc. of Home Builders National Association of Realtors Mortgage Bankers Association Freddie Mac Wells Fargo Average Prediction

30-Yr Mortgage Rate Prediction (Q3 2021) 3.00% 3.13% 3.20% 3.20% 3.30% 3.30% 3.19%

Sources https://time.com/nextadvisor/mortgages/mortgage-predictions-2021/ http://www.freddiemac.com/pmms/archive.html https://time.com/nextadvisor/mortgages/monthly-mortgage-forecast-andpredictions/ https://themortgagereports.com/76960/mortgage-rate-predictions-late-2021 https://www.bankrate.com/mortgages/mortgage-rate-forecast/

The Housing Market Inventory is just about to get better.

Here’s why.

This is one of the most controversial topics I have to cover this year because in part it is true. If you have been following the real estate news all through the year, two things must have come out clearly to you already. First, inventory is tight, there is no activity in new construction and some regions are suffering more than others. Take an example of California, New York, or New Jersey which are some of the markets that have recorded a high ‘hemorrhage’ of people due to high real estate prices. Second, there is a cloud of optimism with so many experts arguing that the housing market is about to get better, especially in the markets that have high real estate prices.

oday, the prices for new and existing homes are at a record high and the demand is still skyrocketing. The rates are relatively low which partly explains why people are in a hurry to buy. Going by the data from Zillow, homes are staying on the market for an average of 6 days only nationally marking quite a remarkable turnaround. However, how stiff the competition is and the need to supply more homes, otherwise, this is only the beginning of prices soaring beyond anything we’ve ever seen.

only added to the thirst for new homes. Plus, there’s also the fear that if people do not buy now, they might be locked out for while before such opportunities present themselves again in the future. All these market conditions seem to favor one particular group of people, the majority of the millennial of whom are just reaching the prime buying years. As such, going forward, we should be expecting a sky-high demand for new homes which presents a set of new challenges for the federal government and the states alike.

There are a few factors that have led to this phenomenon. The first and perhaps the most obvious one is the Covid-19 pandemic which has accelerated the home buying process for most people. Earlier, we mentioned in a previous article that homes have never been this important. In addition to that, the historically low-interest rates

KEEPING UP WITH THE DEMAND This is a giant issue that we have to face altogether. For a long time now, we have focused on the millennials forgetting the Gen-Zers whose older members are now 24 years old and ready to become a homebuyer. The demand might quadruple in the next 5 years, which is why we

THE POWER IS NOW MAGAZINE | AUGUST 2021

construction more than doubled in the midwest states putting downward pressure on the home prices. In addition, the northeast and Southern states also recorded faster rates of new home construction while home building activity slowed in the western states. To add to that, new construction for both Single-family homes and multifamily properties increased by 15 percent and 30 percent respectively.

must not delay our efforts to build any longer. Homebuying in America is poised to become more expensive if not impossible. The total inventory hit a record low of just 2.7 months’ supply in September last year and sunk even lower to 2.5 months’ supply in October. According to a recent report by NAR homebuying hit a record high in August last year while a separate Bloomberg report found that going by the current supply rate, the US is likely to run out of homes sooner than later. It is however not all in vain as builders have been working round the clock to remedy the situation. In fact, going by the census data, construction in the country for new homes in September last year started at a seasonally adjusted annual rate of 1.42 million which is a 1.9 percent increase from the previous month and an 11 percent increase year over year.

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THERE IS HOPE AFTER ALL… Perhaps this is a trend only starting to gain traction. Numerous reports now show promising activity in new homes construction in the country surging after the winter weather than slowed down the activity in February this year. In March alone, the United States started at a seasonally adjusted annual rate of 1.74 million which is an incredible 19 percent increase from what was recorded in February and a 37 percent increase year over year. That is not all, there was an increased pace for construction permits in march even though by smaller increments. To put it into perspective, new home construction permits happened at a seasonally adjusted annual rate of 1.77 million just a 2.7 percent increase from February and a 30 percent increase year over year. Perhaps to explain the south migration, WWW.THEPOWERISNOW.COM

TAKING THE PROBLEM HEADS ON! America’s problem is not the high prices of homes rather the lack of homes. In fact, a recent analysis by Freddie Mac estimates that the U.S. is 4 million units shy of meeting the demand of new homebuyers. Since 2018, this deficit has only grown wider to as much as 50 percent. This problem cuts across the board wherein sellers are facing the same problem as the buyers. If you cannot find a new home to buy, how are you going to sell your current home? In fact, data shows that in March this year, there were 117,000 fewer sellers on the market for existing homes. “There is a strong understanding of the role and increase in new homes plays in today’s housing market and we hope this momentum will continue throughout the year to ensure there are homes to meet the extreme demand from buyers,” said Bill Banfield, Rocket Mortgage’s executive vice president of capital markets. In order to solve this problem once and for all, we need to build more, at least build at a steady pace. However, America’s affordability has been compromised due in part to the rising lumber cost and high mortgage rates. “With the cost of lumber reaching new highs, however, the higher costs are being passed on to consumers. While new construction is a critical component in rebalancing the current dynamics, lack of affordability will continue to weigh on the housing market for the remainder of 2021,” said George Ratiu, senior economist at Realtor.com.

Sources https://www.marketwatch.com/story/new-home-construction-rebounds-sharplyas-america-faces-dire-housing-shortage-11618577442 https://www.housingwire.com/articles/housing-inventory-is-about-to-get-betterheres-why/ https://africa.businessinsider.com/design/how-2020-broke-the-housing-marketso-many-homes-are-selling-that-we-could-run-out-of/d550b45 https://www.cnbc.com/2021/06/17/why-experts-say-you-might-want-to-waitto-buy-a-new-house.html l

SELECT A VIP AGEN Adrian Bates Los Angeles

Adriana Montes Florida

Ameer Elahee Fontana

Cornelius Jackson Irvine

Danon Burnside San Bernardino

Denise Matthis San Diego

Joe L. Fisher Richmond

Johnnie Morine Texas

Julius Cartwright Ohio

Monica Hill Menifee

Norman Green San Francisco

Jenny Gonzalez Corona

Kamesha Keesee Corona

Kenneth Session Bay Area

Briana Frazier Los Angeles

Emerick A. Peace Maryland

NT IN YOUR AREA Peggie Simmons Arizona

Robert Langston Fairfield

Ruby Frazier Riverside

Steve Peterson Oakland

Success Money LA Area

Yvonne McFadden Arizona

Sharon Bartlett Texas

YOUR POWER TO BUY A HOME IS NOW! 3547 HIGH MESA DR DALLAS, TX 75234

Offered at $345.000

PROPERTY INFORMATION

MULTIPLE OFFERS RECEIVED. DEADLINE IS TUESDAY NOON. Desirable location, just a few minute drive from 635, 35, and Dallas North Tollway. Walkable distance to library, grocery stores and community garden. Minutes to Love Field and DFW Airports. One story, updated 3 bedroom 2 bath ranch style home. New flooring throughout the common area living space. All bedrooms have large walk-in closet.

CALL ME FOR DETAILS: Johnnie Morine Direct: (817) 266-6629 Website: www.themorinegroup.com

930 1 8 th St, ORLANDO, FL 3 2 8 0 5

SINGLE FAMILY HOME FOR SALE LIST PRICE

$500,000

PROPERTY INFORMATION: Great opportunity to own this 4 unit multi family located conveniently in the city of Orlando! Don’t miss this opportunity! Hurry before it’s gone!

PROPERTY INFORMATION:

5 BEDROOMS

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m: (321) 689-6258 o: (407) 654-9992

4 BATHROOMS

adriana@floridadreamsrealty.com www.floridadreamsrealty.com

YOUR POWER TO BUY A HOME IS NOW! 9901 W Buckeye Road Tolleson, AZ 85353

Offered at $83,635,200

PROPERTY INFORMATION

Property also includes Parcel APN # 101-15-002A NOTE! APN # 101-15-001B Annexed to City Of Phoenix 07/11/1976 under Annexation # 96 NOTE! APN # 10115-002A Annexed to City Of Phoenix On 07/11/1996 Annexation # 96 Also Annexation # 162 On 03/20/1991 Also to City of Phoenix 160 Acres Gross Less exceptions of record.

CALL ME FOR DETAILS: Yvonne McFadden Direct: (480) 628-2619 www.yvonnemcfaddenrealtor.com

YOUR POWER TO BUY A HOME IS NOW! 1311 N Banning, Mesa, AZ 85205

Offered at $455,000

PROPERTY INFORMATION

A BEAUTIFUL HOME WAITING FOR NEW OWNERS. RELOCATION FORCES THE SALE. ENTER INTO THIS HOME WITH UPGRADED 42 IN UPPER CABINETS. GRANITE KITCHEN COUNTERS. STAINLESS STEEL FRIDGE & CONVECTION MICROWAVE. PANTRY FOR THE BIG BOX STORE PURCHASES. ISLAND PERFECT FOR BREAKFAST EATING. OPEN GREAT ROOM & KITCHEN. CEILING FANS.

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SEARCHING FOR YOUR HOME? 29499 Hursh St, Lake Elsinore, CA 92530

Offered at 460,000

PROPERTY INFORMATION

THIS UNIQUE 3 BED 2 BATH HOME IS PERFECT FOR ANYONE LOOKING FOR A REMODLED HOME IN GREAT CONDITION!!!! THERE ARE 2 BEDROOMS PLUS A BATH UPSTAIRS WITH A FULL KITCHEN AND LAUNDRY AREA. THE UPGRADES ARE ENDLESS WITH ALMOST EVERYTHING NEW!!! THE DOWNSTAIRS IS A FULL BED/ BONUS ROOM WITH A BATHROOM AND FULL KITCHEN AS WELL. USE AS AN OFFICE/GAME ROOM/GYM OR YOU CAN RENT IT OUT.

CALL ME FOR DETAILS: Kamseha Keesee Broker | DRE#01292916 Direct: (951) 454-5959 E-mail: keeseekamesha@aol.com

231 1 3 Samantha Place Mo reno Valley, CA 9 2 5 5 7

SINGLE FAMILY HOME FOR SALE LIST PRICE

$569,900

PROPERTY INFORMATION:

The most sought after area in North Moreno Valley. Three spacious bedrooms with two bathrooms on a flat lot with stunning upgrades. White cabinetry throughout, white whirlpool appliances in kitchen, 6 panel doors. Wood/tile/carpet flooring thru out. Picturesque hillside setting bordered by Sunnymead Ranch.

PROPERTY INFORMATION:

3 BEDROOMS

CALL FOR DETAILS

AMEER ELAHEE

DRE#01313504 m: 626-625-0099

2 BATHROOMS 2 CARS GARAGE

ameer@ameerelaheehomes.com www.ameerelaheehomes.com

170 2 Audrey Dr, G arland, TX 7 5 0 4 0

SINGLE FAMILY HOME FOR SALE LIST PRICE

$345,000

PROPERTY INFORMATION:

Looking for a great home on a great lot? Look no further! This beautiful one-story home is ready for entertaining! Ceramic tile spans the homes open concept living & dining areas. Enjoy the beautifully equipped kitchen featuring stainless steel appliances & tons of storage.

PROPERTY INFORMATION:

3 BEDROOMS

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SHARON BARTLETT

DRE#0684103 o: (214) 914-9272

2 BATHROOMS 2 CARS GARAGE

sharon@sharonbartlet.com www.sharonbartletthomes.com

LISTED FOR $680,000

6488 Cambridge Ave, Rancho Cucamonga, CA 91737 Property Information

This single level home is located in Rancho Cucamonga and has 5 bedrooms, 3 bathrooms with over 2000 square feet. Vaulted ceilings in living room and a spacious family room. The property is conveniently located and just minutes north of the 210 freeway off Archibald, close to schools, shopping, and easy access to the 15 freeway.

Call Ruby Frazier Realtor DRE#01751773

mobile: (951) 686-5261 e-mail: rubyfrazier@fraziergrouprealty.com

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144 9 0 Oak Knoll Court Fo ntana, CA 9 2 3 3 7

SINGLE FAMILY HOME FOR SALE LIST PRICE

$429.900

PROPERTY INFORMATION:

Opportunity knocks! Priced under market for quick sale! Lovely 2-story 3 BR 2.5 BA home, conveniently located in a nice area of Southridge Village in Fontana, short distance to park, schools, shopping and restaurants. Living room with cozy fireplace and high ceiling. Open kitchen and dining room. Large patio for family get together and BBQ on weekends.

PROPERTY INFORMATION:

3 BEDROOMS

CALL FOR DETAILS

CORNELIUS JACKSON

DRE#01824362 o: (855) 255-0877

3 BATHROOMS

info@cljrealty.com www.CLJRealty.com

LISTED FOR $300,000

Hilltop St, Perris, CA 92560 Property Information

Views! Views! Views! Here is the Video Enjoy! has been looking for a Property on Hilltop? I have it here for you! Here is 20.5 acres of prime land on the Gavilan Hills side of the Mountain. View of Lake Mathews on one side and the 15fwy on the other! Build your Dream Estate or your Family Estate! Build an area for Weddings! There are endless possibilities! Minimum 5 acre lots if divided. Seller is eager to sell. Please see notes for directions to the property. There is a sign on the hill to the left of the property line. Utilities: Well 80 foot water table, Propane and Solar. No need to run utilities!

Call Jenny Gonzalez Realtor DRE#01249788

mobile: (951) 316-0374 e-mail: jengonzalezre@gmail.com

LISTED FOR $372,000

195 White Oak Dr Santa Rosa, CA, 95409 Sonoma County Property Information

Bed/Bath: 2/2.00 Total Rooms: 5 Square Feet: 1314 Housing Type: Single Family Home Number of Stories: 1 Lot Size: 1742.00 sq ft

Call Danon Burnside Realtor DRE#01835853

mobile: (951) 205-5796 e-mail: dburnside73@gmail.com

YOUR POWER TO BUY A HOME IS NOW! 1574 Honeysuckle Ln, San Diego, CA 92114

Offered at $655,000

PROPERTY INFORMATION

Quiet serene neighborhood with low maintenance front and back that has plenty of character. Back yard is an oasis with a separate second level deck with a view and two patios and many fruit trees. Laminated flooring thru out and updated modern bathrooms. Main bedroom has direct access to back yard.

CALL ME FOR DETAILS: Denise Matthis Direct: (858) 484-4029 E-mail: dmatthis@demfinancial.com

YOUR POWER TO BUY A HOME IS NOW! 0 Trestle Glen Rd, Oakland, CA 94610

Offered at $2,690,000

PROPERTY DESCRIPTION

In the heart of one of the top neighborhoods in the Bay Area with a very private feel and easy access to shopping, dining, entertainment. Great neighbors and excellent school district. Vacant Lot is @ the Brockwood Rd/ Trestle Glen sign.

CALL ME FOR DETAILS: Kenneth Session Direct: (510) 290-7990 E-mail: ksession@sessionrealestate.com

5613 Zoram Ct Sacramento, CA, 95841

$345,000

Property Information

Property DESCRIPTION

Address:

Bed/Bath: 2/2.00 Total Rooms: 4 Square Feet: 1173 Lot Size: 3865.00 sq ft

5613 Zoram Ct Sacramento, CA, 95841 Sacramento County

BOBBY E. LANGSTON

DRE#01933277 d: (707) 639-1061 DRE#02077274 5709 Mariconi Ave Ste L. Carmichael 95608 www.bobbyreinc.com

LISTED FOR $680,000

6488 Cambridge Ave, Rancho Cucamonga, CA 91737 Property Information

Call Ruby Frazier Realtor DRE#01751773

mobile: (951) 686-5261 e-mail: rubyfrazier@fraziergrouprealty.com

LISTED FOR $1,550,000 306 Delano Ave, San Francisco, CA 94112

Property Information:

Gorgeous Contemporary Mission Terrace Home in Balboa Park Neighborhood is waiting for you. This 2 bedroom 1 bath with office or small den home is ready to move in with a cozy wood burning fireplace in the living room. There’s a formal dining room and kitchen has a separate breakfast nook. Lots of potential for expansion up and back. In addition, there are 2 separate garages for 4-5 cars with a separate entrance door in-between. The separate entrance also takes you to a bedroom and bath down (not warranted). Large backyard for BBQ entertaining. Norman Green

Direct: (650) 296-5210 Fax: (415) 564-6313 BRE License: 01337466 norman.green@remax.net

SEARCHING FOR YOUR HOME? 15 Rosemont Cir Napa, CA, 94558

Offered at $1,072,000

PROPERTY INFORMATION 15 Rosemont Cir Napa, CA, 94558 Napa County Bed/Bath: 3/2.00 Total Rooms: 6 Square Feet: 1445 Housing Type: Single Family Home Lot Size: 17677.00 sq ft

CALL ME FOR DETAILS: Success Money Broker | DRE#01800466 Direct: (833) 243-6863 E-mail: info@callsuccessmoney.com

THIS PROPERTY WILL NOT LAST! 2778 N Selland Ave Fresno, CA, 93722

Offered at $244,000

PROPERTY INFORMATION

CALL ME FOR DETAILS:

Address: 2778 N Selland Ave Fresno, CA, 93722 Bed/Bath: 3/2.00 Total Rooms: 6 Square Feet: 1148 Lot Size: 3840.00 sq ft

Joe L. Fisher DRE#01070856 Direct: (510) 236-8204 E-mail: jlfisher180@yahoo.com www.jfisherrealtors.com