Published on: October 28, 2024

Market Expert: Cadence Bank's Robin Hargrove

We spoke to Mortgage Loan Officer, Robin Hargrove from Cadence Bank about what decreases in mortgage rates mean for homebuyers, homebuyers, and realtors. 

Robin has been local to the Texas market for over 20 years and is a member of the Greater Houston Builders Association. For more information or to contact Robin, visit her at Cadence Bank.

The Mortgage Rate Picture: Buy Now or Buy Later?

That is the question these days. Many buyers try to “time the market.”  A majority of prospective buyers (85%) have stated that when rates drop to 5.5 percent, they will enter the real estate market. That’s great news if you are a seller, but NOT great news if you are a buyer.

Below is a chart showing mortgage rate predictions courtesy of Fannie Mae, the Mortgage Bankers Association, and Wells Fargo.

Robin’s Insights:

This chart indicates mortgage rates will likely drop over the next 12 months.  The lower the rates actually drop, the more people who will enter the real estate buying market. 

Remember that real estate market when each listing had 10 offers – and most sold over list price?  If all these buyers indeed jump back into the market when rates hit 5.5, then the time to buy is BEFORE they jump.

Some things to do that help buying now – and potentially refinance later.

  • Use a program that allows you to buy now then float down your mortgage rate within the first 12 mos. Cadence Bank is offers a program that allows this feature.
  • Use an ARM now and have your loan adjust downward with the market. 
  • Refinance when rates hit the lowest rate expected.  (Note-there is only ONE day when the market will hit rock bottom, you must decide you like the rate and refinance.  Rates drop slow and rise fast.)
  • Use a fixed rate product that has reduced closing costs (even if rate is higher) to avoid paying closing costs twice – once when purchasing, once when refinancing.
  • Buy now using cash with the intention of using a “delayed financing” mortgage within the first 180 days – allows you to receive the better rate without all the “cash out” rules applying.

A good lender will discuss these options and help you with a strategy that provides you with the most options now, allowing you to buy now and take advantage of lower rates later. 

Remember – you can’t time the market – but you can work the market! 

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