McDuffie Realty

STEPS TO SECURING A LOWER MORTGAGE RATE

Buyers seeking a lower mortgage rate don’t have to just wait for a market adjustment. Instead they can make changes in their personal finances that could help.

NEW YORK – Mortgage interest rates have been headlining financial news segments for several years running. Much of that news has been met with less than open arms, as rates have risen dramatically in recent years, an increase that is related to the ripple effect of the COVID-19 pandemic.

Mortgage interest rates did not immediately spike. In fact, data from the lender Freddie Mac indicates mortgage rates were still well below 4% on January 1, 2022. However, those rates hovered around 7% by the end of that year. and we’re still around that level at the start of 2024.

With such high interest rates, it's understandable if prospective home buyers feel helpless. However, there's much buyers can do to help themselves as they seek to secure the lowest mortgage interest rate possible.

Read your credit report and improve your score, if necessary. Many prospective home buyers save up for years in anticipation of the day when they will purchase their own home.

During this period, buyers can read their credit reports and address any discrepancies while taking steps to improve their credit scores. Lenders consider a host of variables to determine an applicant's credit worthiness, and credit history and credit scores bear significant influence.

The higher an applicant's credit score, the more favorable mortgage rate he or she is likely to get.

Take control of your debt-to-income ratio. Debt-to-income (DTI) ratio refers to what you owe in relation to how much you earn. The lower your DTI, the better you look to lenders.

According to Bankrate, lenders typically want to avoid issuing mortgages to individuals if the monthly payment will exceed 28 percent of their gross monthly income, and people who may be near that threshold for a given home may be denied a mortgage if their DTI is high.

Prospective home buyers currently carrying significant debt, including consumer debt like credit cards and/ or student loan debts, should make a concerted effort to pay down that debt prior to applying for a mortgage. Prioritize paying off consumer debt before applying for a mortgage.

Maintain a strong employment record. Steady employment and consistent earnings make mortgage applicants more attractive in the eyes of lenders. If you are currently shopping for a home or about to make an offer, now might not be the best time to switch jobs.

Self-employed individuals and freelancers working multiple jobs can still qualify for a good mortgage rate, but they may need to provide more extensive documentation that indicates their earnings going back several years.

Individuals who have been working full-time for the same company for years may only need to provide W-2 forms from the two most recent tax years.

Shop around for rates. Rates may not fluctuate much between lenders, but it's still worth shopping around for mortgage rates.

A study from Freddie Mac found that the benefits of shopping around for a mortgage rate were especially notable in 2022 compared to the decade prior, saving borrowers who took the time to shop for rates substantial sums of money.

Mortgage rates remain high compared to a half-decade ago, but prospective home buyers can take steps to increase their chances of qualifying for a favorable rate.

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If you have any questions regarding our current position in the Real Estate market, please reach out!

Fran @ 954.866.SOLD at The Platinum Group International

The Federal Reserve chair said the Fed misjudged the duration of the 2021-2022 inflation surge, and the central bank moved too slowly to raise its key rate. Rate cuts could begin in May.

WASHINGTON — Chair Jerome Powell said in an interview broadcast that the Federal Reserve remains on track to cut interest rates three times this year, a move that's expected to begin as early as May.

Powell, in an interview recorded for the CBS news program “60 Minutes,” also said the nation's job market and economy are strong, with no sign of a recession on the horizon.

“I do think the economy is in a good place," he said, “and there’s every reason to think it can get better.”

Powell's comments largely echoed remarks he gave at a news conference after the Fed decided to keep its key interest rate steady at about 5.4%, a 22-year high. To fight inflation, the Fed raised its benchmark rate 11 times beginning in March 2022, causing loans for consumers and businesses to become much more expensive.

With inflation steadily cooling, nearly all the 19 members of the Fed's policy-setting committee have agreed that cuts in the central bank's key rate will be appropriate this year, Powell said in the “60 Minutes” interview. A reduction in that rate would help lower the cost of mortgages, auto loans, credit cards and other consumer and business borrowing.

In December, Fed officials indicated that they envisioned three rate cuts in 2024, reducing their benchmark rate to about 4.6% by year's end. Powell told “60 Minutes” that that forecast likely still reflected policymakers' views.

As gauged by the Fed’s preferred measure, inflation fell to just 2.6% in December compared with 12 months earlier. And in the second half of 2023, inflation was measured at an annual pace of just 2%, matching the Fed’s target level, down drastically from a peak of 7.1% in the summer of 2022.

Powell attributed the inflation surge of 2021-2022 to the disruptions of the pandemic, including a shift in spending away from services, like restaurant meals, to goods, like home office furniture and exercise bikes. At the same time, COVID closed down or slowed factories across the globe, severely disrupting supply chains and causing widespread shortages of goods and components. Both trends, Powell said, accelerated inflation.

At the same time, Powell acknowledged in the interview, that the Fed misjudged the duration of the resulting inflation, which it repeatedly suggested would prove short-lived. As he has before, Powell said the central bank moved too slowly to raise its key rate, which can help slow borrowing and spending. Inflation began spiking in mid-2021 yet the Fed didn't start raising rates until March 2022.

“So in hindsight, it would’ve been better to have tightened policy earlier,” Powell said, referring to rate hikes. “I’m happy to say that. ... We thought that the economy was so dynamic that it would fix itself fairly quickly. And we thought that inflation would go away fairly quickly without an intervention by us.”

At his news conference Wednesday, Powell signaled that the Fed was likely to cut rates this year but underscored that central bank officials wanted to see further evidence that inflation is in check.

“It’s not that we’re looking for better data — it’s just that we’re looking for a continuation of the good data that we’ve been getting,” he said. “We just need to see more.”

Also Wednesday, Powell repeatedly acknowledged the strength of the U.S. economy and noted that inflation had slowed without the sharp rise in unemployment and weak growth that many economists had said would be necessary to cool consumer demand and slow price increases.

“We’ve got six months of good inflation data and an expectation that there’s more to come,” Powell said Wednesday. “So, this is a good situation. Let’s be honest. This is a good economy.”

Other Fed officials have expressed caution about the prospect of rate cuts, particularly after a government report Friday showed that job growth soared unexpectedly in December, a sign that businesses remain confident enough in the economy to add many workers.

Michelle Bowman, a member of the Fed’s Board of Governors, said that once it was clear that inflation was in check, it would eventually become appropriate to cut rates.

Copyright 2024 The Associated Press. All rights reserved.

Breaking News About Broward County Sheriff Gregory Tony's Lies - Florida State Ethics Commission Breaking News!! As the Sheriff's race in Broward County starts moving the Sheriff is still in deep trouble as he has been caught by the State Ethics Commissi...

After some time off to REFRESH & RENEW.....It is with great pleasure I introduce to you my newest listing.

2328 Aqua Vista Blvd. Ft. Lauderdale, FL $9,999,999.

Step into an unparalleled world of grandeur at this gated, awe-inspiring 3-story Mediterranean estate located in the prestigious Seven Isles neighborhood. This home boasts 9 lavish bedrooms, 11 full baths, and 2 half baths. Embrace a RARE 150' of prime WF with direct ocean access and a private concrete dock. Seamless indoor-outdoor living spaces invite you to indulge in refined elegance. Captivating amenities include a theater, wet bar, conference room, elevator, and much more. Outside, an alluring pool with a water view beckons relaxation and blissful enjoyment all year long. This estate is a gateway to a world of unparalleled refinement and pleasure. The stunning home is in the process of fresh paint, new pavers, and an updated kitchen, and baths. More photos to come.

Please contact Fran McDuffie for any questions or a private showing.
965.866.SOLD

Congratulations Mike & Beth!!
We are so excited for y’all!!
We know you are going to LOVE your new home at The Falls in Parkland.

Thank you for allowing The McDuffie Team to be apart of another Bogart family Real Estate adventure!

Check it out below! ⬇️

The Falls at Parkland welcomes you with a beautiful guard gated entry and a carefree lifestyle without sacrificing on space.
The Falls is the only 55+ community in the city where every homesite is large enough to accommodate a private pool.

This Single Family Homes Collection offers floorplans built to fit every lifestyle and include options that allow you to customize to your individual tastes and preferences.

The amenity center, opening Spring 2022, is bar none the most impressive in the city. Built to provide a sense of community and a wonderful retreat alike, there's something for everyone here.

The one-of-a-kind clubhouse is also home to countless lifestyle options. The Grand Ballroom houses a stage for live theatre productions in its own wing close to the community Café. In the Activity Wing you'll find spaces dedicated to fitness, yoga, crafts, poker and more!

For more information on this beautiful community, contact Fran @ 954.866.SOLD!

You’re in great hands with The McDuffie Team! 🐬

Looking to buy or sell?!?!?
Contact The McDuffie Team for all of your Real Estate Needs!

954.866.SOLD

Auberge Beach Residences & Spa brings the ultimate in luxury living to Fort Lauderdale’s most extraordinary beachfront property. Exquisitely designed residences, a rich array of indoor and outdoor amenities, a tempting selection of restaurants, and a world-class Auberge branded dining and spa are perfectly located directly on the pristine Atlantic Ocean.
Contact Fran McDuffie for additional information.
954.866.SOLD

You are in great hands with The McDuffie Team.

Sunrise, FL 33322
$365K
3 bed/ 2bath
Beautifully maintained pool home nestled in Sunrise, FL. 3 bed, 2 baths with converted garage and volume ceilings in the open living area. Updated kitchen with appliances.
Listed by Fran McDuffie
If interested please contact The McDuffie Team. 954.866.SOLD

If you are looking for lower taxes and year-round sunshine LET US KNOW!

Nevada, Florida, South Carolina, and Texas top the list of low-tax states attracting new residents. Florida specifically has gained more residents than all.
For every 7 people who moved into Florida, just one person left!!
Over the past 6 months, The McDuffie Team has helped at least a dozen buyers move from up North down here to sunny south Florida.
If you are looking to relocate, give us a call!
954.866.SOLD

You are in great hands with The McDuffie Team!

Contact Fran or OJ with The McDuffie Team for all of your Real Estate needs!
954.866.SOLD (7653)

Check out our catch of the day!

464 Grand Concourse
Miami Shores, FL
4 Bed
4 Bath
$1,398,000
Melissa Jane Rubin & Pavel Gonzalez

Live on the most majestic tree-lined street in Miami Shores in a magnificent home filled with character from a long-ago era. Originally conceived by Alfred Barton, The Surf Club's famed manager for more than 40 years, it is now your turn to create social events, gatherings, and new memories!

YOU ARE IN GREAT HANDS WITH THE MCDUFFIE TEAM! 🏈

UNDER CONTRACT!
5bed/4 bath, corner lot in the highly desired guard gated community of NAUTICA.
Under Contract in 1 day. 💥
Great job McDuffie Team!!!!

If you are thinking of buying or selling your home, contact Fran @ 954.866.SOLD

YOU ARE IN GREAT HANDS WITH THE MCDUFFIE TEAM!

Midtown condo....sign, sealed & delivered!
I loved this listing because of the unique location in the building and its proximity to the amenities. A corner unit with an enormous amount of outdoor space and privacy. It was truly a gem! Congratulations Jim & J!

Contact Fran or OJ for all of your Real Estate needs! 954.866.SOLD

You are in great hands with The McDuffie Team.

Do you need to buy a home before you sell your current home??
Ask The McDuffie Team about our Bridge Loan Program.

You are in great hands with The McDuffie Team! 954.866.SOLD

April is Celebrate Diversity Month, started in 2004 to recognize and honor the diversity surrounding us all. 🖤 💛 ❤️ 🧡 💜 🤎 💙 💚

Compass has been increasing its presence in Florida, with an expansion into Orlando last month and an announcement of our new office in Tampa this week!

Compass continues to expand and our team continues to amaze me.

If you or someone you know is looking to buy or sell ANYWHERE in the United States, please let me know.
Our team is expansive and we are all ready to help!

You are in great hands with The McDuffie Team!
954.866.SOLD

DID YOU KNOW??
Mortgage rates fell this week, suggesting that the market isn’t too concerned about inflation.
The 30-year fixed-rate mortgage averaged 3.04% for the week ending April 15, down nine basis points from the previous week and the second consecutive week in which benchmark mortgage rates declined. Last week was the first time since February that the interest rates on the 30-year home loan moved lower.
This is just another reason why our market is on fire right now. 🔥🔥🔥

If you are interested in selling your home, please let us know. Inventory is low and we have ready, willing, and able buyers. 954.866.SOLD