What’s Going On With The Minnesota Housing Market This Summer?
Buying a home, especially if it’s your first time, can seem like an incredibly daunting task. Hundreds of important questions rattle around your head, and you don’t know exactly where to find the answers. You might be wondering where to even start with your home-buying journey. The good thing is, buying or selling a home doesn’t have to be a terrible undertaking if you’ve got the right help and resources! Thankfully, there are lots of wonderful people in our community whose job it is to help you on your way to homeownership!
A brilliant example of someone who can help you on your path is Torben Berndt, a licensed Mortgage Loan Originator, or loan officer, in the State of Minnesota. Berndt says, “I help individuals, families, and friends secure the financing necessary for home purchases.” It’s always great to know that you’re not alone when it comes to something as big of a deal as buying a home. And you can find comfort in the simple fact that you aren’t expected to already know everything. Someone like Berndt, an expert in the financing field, can explain your options to you, and walk you through the process so you feel confident in your choices and home-buying ability. Berndt says, “Especially for those prospective first-time buyers out there, I highly recommend having a conversation with a licensed loan professional like myself rather than exclusively relying on resources like the internet to know whether or not you qualify for a home loan.” Having a conversation with a real person can be so much more straightforward and accessible than sifting through thousands of questions and answers on the internet, especially if you don’t know which sources you can trust… and which you can’t.
One thing that potential homebuyers tend to have questions about are lending rates. Berndt broke down some of the current market trends and explained the financial basics of the housing market. He says, “Mortgage interest rates are not directly tied to the decisions of the Federal Reserve, but they are heavily impacted. The Fed’s goal is reduced inflation, and the expectation is that as inflation continues to ease, the Fed will lower the prime rate, in turn lowering mortgage interest rates.” So now, of course, you’re thinking when will this happen? Will it be by much? The truth is… it’s hard to know. Berndt says, “I believe that we will see a slight drop sometime in the second half of the year, but it is hard to say when.”
When it comes down to it, the only person who can truly tell you when it’s the right time to buy a house for you… is you. Berndt says, when asked the question on everyone’s mind: ‘is it a good time to buy a house?’, he always says “Do not wait for a specific market condition to buy or sell. Buy or sell when YOU are ready.” He elaborates, “Even if and when rates do come down this year, there is a good chance that it will not be by more than .75 or 1%.” Because of this small decrease at best, playing the waiting game when you’re ready to buy or sell might just contribute to feeling frustrated, without a lot of payoff for your waiting. By talking to a licensed professional when you’re ready to buy or sell, you can feel a lot more secure and confident in your decisions. Berndt adds, “For first time homebuyers, it is always a good time to get your foot in the door of homeownership. Start planning early and get your loan officer and realtor team together to support you and educate you—this is what we do!”
Berndt also talked about several things that could affect the housing market, specifically for this summer. He says there are multiple possibilities: “When and if interest rates come down, I believe that more people will be ready to sell, which will increase inventory.” On the flip side of that, he adds, “If rates remain steady, eventually people’s housing needs will change enough that they will need to sell anyway. As we know, the current interest rates are really not that astronomically high compared with historical rates, so it’s possible that ‘higher’ rates will just become the new normal.” Basically, no one can be 100% certain what is going to happen, so buyers can only make the best decisions for themselves individually. Berndt sums it up perfectly; he says about the possibility of lower interest rates: “We shall see!”
Berndt understands, of course, that buying a home is not an easy undertaking, and the task itself, along with all the excitement that comes with it, can be extremely anxiety-inducing. That’s why he wants to make sure he’s providing homebuyers with all the information they need, so they can make the best decision for themselves! He says, “Let’s be honest, with trillions [of dollars] having been redistributed to the wealthiest 1% since the beginning of the pandemic and inflation having driven prices for our everyday items higher, it has not gotten any easier to buy a home. With that said, there are constantly new down payment assistance programs coming out that can help ease the financial burden.” No matter what stage in your home-buying or selling journey you’re at, you can rest assured that there’s someone like Berndt who can help you along on your way.
If this is the summer you decide to buy or sell your home, just know that there are plenty of options out there to help you make the best choices for you and your loved ones. After all, being part of such a great community is what makes a house a home anyway.
Torben Berndt
NMLS # 2154506
First Equity Mortgage
1935 County Rd B2 West, Suite 265, Roseville, MN
https://femort.com/torben-berndt/
5100 Eden Ave, Suite 107 • Edina, MN 55436
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