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Why is the national mortgage market still sluggish?

That’s due mainly to potential buyers anticipating further rate drops down the line, according to Lock It Lending loan officer Melissa Tubau (pictured top).

Homebuyers waiting to time the market

Tubau told Mortgage Professional America that would-be homebuyers appeared to be waiting out the market to see if rates would fall even lower – and highlighted the upcoming presidential election, which pits vice president Kamala Harris against former president Donald Trump, as another possible factor.

Holding off may not necessarily be the right approach. “People always want to try to time the market perfectly,” she said. “And for me, the only thing is if you wait until rates drop, statistically more people are going to enter the market. Then there’s the idea of competition regarding inventory, regarding home prices.

“No-one’s ever going to be able to time the market 100% perfect. There’s always going to be an adjustment one way or the other and I would say the affordability and price of the home is probably more important than the rate.”

The average loan amount a buyer can qualify for will only fluctuate marginally in the current market when a rate dips slightly, Tubau explained, whereas a busier environment can result in bidding wars and a home price potentially rising by tens of thousands of dollars in value.  

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