Published July 1, 2025
To open house or not??!!
Rates are all over the place.
Every time I think they are headed in the right direction…
they pop up again,
And then back down again…
To make matters more complicated, today’s rates are based on your personal income, down payment, purchase price, and credit score…
Did you know that someone putting 20% down could likely create a higher interest rate than a first time home buyer putting 5% down??
Sounds crazy, right?
Better credit score,
Larger down payment,
More income
= Higher rate
But here is the reason…
The mortgage company/bank is in a safer position if they put mortgage insurance on the home and this is required with anything less than 20% down.
So, 20% down (without the mortgage insurance) becomes a bit more risky to the lender…
It’s also meant to encourage first time home buyers to purchase their first home…which is a great thing!
Did you know that the average age of the first time buyer in the United States is now 38 years old? 👀
Wow! I was shocked to hear that number!
In the state of Iowa, the average age of a first time buyer is 29…Go Iowa!
Well, if you have read this far, you might be thinking that I am full of bad news today. I get that, but here is how I break it down…
It is always the right time to buy and sell a home, when it’s the right time for YOU - no matter what rates are doing…
Follow me for another minute…
Sitting on the sideline waiting for rates to fall is a losing game.
When rates do finally fall, everyone else sitting on the sidelines decides to buy a home creating more competition for the available homes on the market - thereby increasing your purchase price.
Waiting for rates to drop to sell your home? Well, there are a lot of other factors to selling - most of which would be personal but there are also local economic factors, but bottom line - home buyers can be active regardless of rates.
If you are buying and selling in the same market, all would be a wash. For example…
You might sell for a higher price point but would also buy in that same market so most likely buying at a higher number, as well.
The truth of the matter is that the Cedar Valley has been a very stable market…
Our area has not experienced the extreme highs and/or the extreme lows that larger markets have seen. The headlines highlight these extremes and don’t showcase our market’s stability.
Bottom line…Make the move!
If you have a need or a desire to move, just do it!
Real estate is a smart investment!
We are at the end of January and it’s already feeling like Spring.
Historically (the past 8 election cycles), the housing market has been extremely strong the year following an election year, no matter what party was in office…
If you are curious about your specific home or situation, it would be an honor to meet with you to answer any questions. Our favorite part of the process is the strategy session.
We offer strategy sessions for free and without any obligation. Reach out to us to schedule yours!
Here’s to a strong Cedar Valley Real Estate market and to an amazing 2025!
Obsessively Working for You,
Amy
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