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The Owl Report - November 6th, 2023

By Milo

November 6, 2023 3 min read

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The Owl Report - November 6th, 2023

Are interest rates finally declining?

In light of the recent modest decline in mortgage rates, I want to provide my perspective on what this means for us going forward. This week’s decrease is linked to short-term debt focus by the Treasury, providing temporary relief in mortgage rates. It's crucial to view this as a temporary adjustment rather than a sign of a lasting trend. For those finalizing mortgage deals, now could be an opportune moment to secure your rate. Yet, for potential homebuyers, the market's direction is still uncertain, and rates could fluctuate.

For those exploring home purchases, new construction may offer significant value. Builders' incentives, such as closing cost assistance and rate buydowns, are making new homes financially more appealing compared to the competitive existing home market. While we take note of the current rate dip, true affordability will hinge on a steady, major decline in rates. My advice is to focus on such incentives from builders, which can offer substantial and immediate advantages in your real estate investments.

Quick news insights

  • From 8% to Under 7.5%, Mortgage Rates Had a Near-Record Week, Mortgage News Daily

  • How real estate brokerage ruling could impact home buyers and sellers, MoneyWatch CBS News

  • A record share of home sellers drop prices as high rates cut into buyers’ budgets, Redfin

  • The iShares U.S. Home Construction ETF just had its best week since May 2020, MarketWatch

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The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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