Come To Find Out

Don't Wait for Perfect: Why Now Might Be Your Best Time to Buy

• Sarah Thress • Season 3 • Episode 3

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Tired of hearing that the sky is falling on the housing market? Mortgage expert Brendon Bland cuts through the noise to deliver clarity about what's really happening with mortgage rates amid tariffs and economic changes. Contrary to alarming headlines, we're actually experiencing a four-month low in mortgage rates, with gradual improvements expected throughout 2024.

Brendon explains that inflation remains the primary driver of mortgage rates, not just policy announcements. Financial markets have already factored in anticipated changes like tariffs, which is why today's news doesn't necessarily impact tomorrow's rates. This perspective provides much-needed reassurance for those feeling anxious about recent economic developments.

The conversation shifts to practical advice for today's home buyers and sellers. Despite rates being higher than historical lows, home prices have continued to rise steadily over the past two years – proving that waiting rarely saves money. Rather than attempting to time the market perfectly (which is impossible), Brendon recommends focusing on your personal financial readiness. The perfect time to buy isn't determined by external economic conditions but by when you can comfortably afford the home you desire.

As we approach the spring market, competition will increase, but opportunities remain. For first-time buyers, Brendon suggests exploring down payment assistance programs and considering creative financing options like buying down interest rates. For those with existing homes, he explains how the equity built through ownership remains one of the most efficient paths to eventually affording your dream home.

Listen now for clear, straightforward mortgage guidance that will help you navigate today's real estate landscape with confidence rather than fear. Follow Brendon on social media for more valuable insights, and don't forget to leave a review and share this episode with others who might benefit from this practical financial wisdom.

To connect with Brendon:
Brendon Bland
614-747-3530
bbland@neighborhoodloans.com
https://www.instagram.com/mortgagemademodern/
https://www.facebook.com/brendon.bland

Sarah Thress
614-893-5885

First Time Home Buyer course: https://sarahthress.graphy.com/
Instagram https://www.instagram.com/sarah_thress_realtor/
Facebook https://www.facebook.com/SarahThressRealtor/
https://www.youtube.com/@LIFEINCOLUMBUS

Sarah:

Hi and welcome to this week's episode of Come to Find Out. This week we have Brendon Bland with Neighborhood Loans and if you've been a long-time listener or maybe even just caught a few episodes, you will recognize his voice, because I love having him on just all of the knowledge that he has. I mean, he has such great nuggets and he just has a way of explaining what's going on in the world in a way that it makes sense to you. Know, us commoners that aren't in this world all the time.

Brendon:

I don't know about the whole world, but we can talk about mortgages for sure.

Sarah:

Well, that's true. We'll just stick to that for today.

Brendon:

Okay.

Sarah:

Sounds good, we'll solve all the world's problems another day.

Brendon:

Yeah, I can talk about mortgages and we can talk a little bit about Star Wars if you want to. I got that going for you.

Sarah:

Oh, okay, perfect, yeah, yeah.

Sarah:

So we can make this a mortgage and Star Wars podcast. I mean I love it. Okay, perfect, let's do it. Um, so you know, anytime that you make time for me, it means the world to me. So, thank you, appreciate you having me? Yeah, of course. So I'm certain that, unless you live, uh, underneath a rock, uh, you have heard all the craziness that's going on in the world. Um, you know all the you know chicken littles out there telling you the sky is falling and you know all the tariffs are hitting and you know how the housing market is. It's all going to crash and all of that stuff. So, like we always say, we do not have crystal balls. We cannot predict exactly what will happen in the future. But I would love to hear, kind of your take on what's going on with all of these tariffs, with everything that we're hearing in the news. How is that impacting, or is it impacting, the housing market?

Brendon:

Yeah, it's a great question. I think, like most of these things, you can think around it and over, explain it and try to come up with the most sophisticated answer in the world, but sometimes the simplest explanation is the best and the easiest. One of the biggest drivers for what's been pushing mortgage rates up or down the last few years at this point really comes down to inflation. So inflation the phrase I always use that I stole from someone else who probably stole from someone else is that high inflation is the enemy of lower mortgage interest rates. So high inflation bad for mortgage rates.

Brendon:

That's, as an average everyday person walking around, that's really what we need to know if we're trying to figure out what's going on and why mortgage rates are doing what they're doing. And I guess if you're listening to this podcast, you're probably more engaged in that conversation than those thoughts in the average person. So I hope most people aren't just sitting around wondering while they're drinking coffee in the morning I wonder what's going on with inflation and mortgage rates today. That's not a good mental place to be. It's only you and me, right.

Sarah:

That's just you and me.

Brendon:

But if you are someone who's a little bit more tuned into the market, because you're either someone who's interested in buying a home maybe you're interested in selling your home and looking to buy the next one or you're just someone who this is your hobby then that's really the biggest thing that most people are focusing on is what's going on with inflation, because that really drives what's happening with mortgage rates. There's a couple things that can impact inflation. Heading into the first part of this year, with the election having taken place, there was a lot of concern about inflationary comments and policies being put into place, ie the tariffs. So I'm not going to make this political, but that just is what it is. A lot of times, perception is reality, especially when it comes to financial markets. A tweet can send stock spiraling. So perception about inflation going up because of certain policies certainly had an impact on mortgage rates, especially at the beginning part of the year where we saw rates kind of ticking up a little bit.

Brendon:

As we've kind of, you know, tracked along through the first part of this year, we try, at least in our industry, to rely on actual data, not just on comments or proposed activities, because a lot of times I think, for instance, today, as of this podcast being recorded, the current administration went ahead and moved forward with tariffs on both Mexico, canada, china. So a lot of folks are asking me hey, is that impacting mortgage rates today? Well, a lot of times those activities are already kind of factored into the sauce. We've known that's going to happen. We've known that's going to happen for the better part of the last month, so that officially happening today doesn't necessarily change rates. What we're really looking at at this point is actual data. What's happening with inflation? What's happening with the cost of goods? What's happening? Is it more expensive for producers of goods to make those goods and sell those goods? Is it more expensive for us as consumers to buy those goods? That's really the data that folks who invest in the bond market which impacts mortgage rates. That's what they look at. So there's multiple reports, that kind of drive that the most recent reports that came out for January early on didn't look great, and so we saw mortgage rates respond to that. In the past week or so we've seen some revisions to that. We've seen other reports that come out that actually shows inflation maybe isn't as kind of out of hand as initially thought, and so we've actually seen mortgage rates really improving here the last handful of weeks. Actually, right now we're at about a four-month low for mortgage rates. We've gained a lot of ground. Actually, right now we're at about a four-month low for mortgage rates. We've gained a lot of ground, so I think that's a really positive thing as we kind of continue to move forward through the year.

Brendon:

I do think at this point, if I had to have a crystal ball, if you said, hey, brandon, what is your crystal ball prediction? I do think rates will gradually continue to head down throughout the rest of this year. Do I think there'll be a huge drop all of a sudden? You know, no, but you know, and I think that's a good thing.

Brendon:

Right, we don't necessarily want, you know, to see rates drop by 1% or 2% because while that might be good for a few individuals who happen to kind of, you know, make it happen with their home purchase at that time, we know what that can do to demand. It can make demand untenable. It can cause prices to rise very quickly. It can put a lot of stress on especially first-time homebuyers who are trying to navigate how they're going to cover closing costs down payment now, appraisal gap Now maybe they're not going to do an inspection because you know the other guy's not doing an inspection and oh, now there's a $10,000 repair you've got to do. So we don't want to see mortgage rates go down too quickly. So if that's something you're kind of hoping for, rooting for, you know, I would just reconsider. There's always a joke. There can be too much of a good thing right.

Brendon:

Yeah, there can be too much of a good thing, right? So gradual improvements in rates, I think, is a good thing. It's healthy for the market, it's healthy for homebuyers and sellers, and that's what I am looking at for this year is continuous, gradual improvement, as inflation hopefully continues to do that as well.

Sarah:

Yeah, well, and I agree, and I think it's something that, again, if somebody has listened to us before, we've said previously that, yes, everybody is hoping for them to drop down, ok, cool, they drop down, and then everyone that was over here waiting on the sidelines for them to drop down, they all jump back in the market, which then drives the price up of the house. So, waiting for that huge number to go down into the fours and the fives and all of that so they get the better interest rate, it then is just going to ultimately drive the price up of their house and likely they'll end up spending more even though they've got the better interest rate.

Brendon:

Yeah, you know it's from the perspective of, like, looking at the price of a home and deciding, you know, should I wait, you know, for either rates or for just kind of some arbitrary, I guess, milestone that you're trying to reach Home prices, regardless of what's going on with rates, are going to continue to go up. Regardless of what's going on in the economy, they're going to continue to go up. We've seen rates at or above 6% for last two, two and a half years now and that didn't cause prices to go down.

Sarah:

Right, right.

Brendon:

You know, last year here in Central Ohio, you know, I think we actually saw, we saw demand go down you know from you, know from previous years, but that didn't cause prices to go down.

Brendon:

Prices still went up. Appreciation is still a very real thing, which is great. If you're a homeowner, it's good news. That means that the value of your home is going to weather multiple different kinds of economic scenarios multiple different kinds of economic scenarios. But once again, as a prospective home buyer who's trying to time things out, time is not on your side as it relates to saving money on the purchase price of your home. So I think we've talked about it before. Really, I think it comes down to your own personal economy, your own personal set of circumstances. What's going on at work? Do we feel comfortable with where we are from a savings perspective? What's going on with our credit? Are we ready, regardless of what's going on in the economy? If yes, then moving sooner rather than later is certainly going to be to your benefit. Waiting usually isn't going to be the answer if we're just looking at arbitrary numbers.

Sarah:

Yeah, Well, and I'd like to hear, because I'm sure many other people also woke up this morning and heard about it. It's March 4th, by the way, and you know we're thinking, holy goodness, like these tariffs, what's going to happen? You know, I had a little bit of a panic.

Brendon:

Sure.

Sarah:

And then I was like, okay, I can't control this. This is not something I can control. I meditated and you know made me come back down to reality, but it made me feel much better than contacting you because you're, you know by my main resource. Sure, because I know. Yeah, because I also know this about you. You are very good at finding multiple places to look at to get your knowledge. You're not just a I'm going to look at one website and that's what I'm going to use. You know, you do your due diligence.

Brendon:

Yeah.

Sarah:

But I really liked the fact that you said that it was all kind of built in. You know that that banks and you know the bond market and all of that stuff kind of saw this coming Um, and they they helped protect that. So I don't know if there is there anything that you can kind of say about that. Like you know, what did you at neighborhood loans?

Sarah:

like you know, or you know what did you at Neighborhood Loans, like you know, or you know the mortgage industry as a whole, like was there anything that they did to kind of help this? Because you know, like you said, that interest rates have been going down a little bit, which is awesome. Yeah, you know, but and again, I just really, I just really wanted to point out, I mean, even if you don't have anything additional, to add to that I just really liked the fact that you made me feel much better and hopefully it makes other people feel much better.

Sarah:

That this was. We saw this coming. This wasn't a big surprise, even though we woke up to the news. You guys behind the scenes have been kind of prepping for it.

Brendon:

Yeah, I think you know, and with the with, as it relates to mortgage rates, um, the costs of getting a mortgage, you know, once, once again, once again, there's a whole kind of behind-the-curtain marketplace where mortgages are bought and sold and that's really what drives what happens with mortgage rates over time. Mortgage rates over time. And so, as it relates to, you know, predicting or, I guess you know, feeling comfortable with, like you know, hey, news came out today about something, whether it's tariffs or something else, and how is that going to impact mortgage rates? I think you know, once again, it really comes down to just understanding. Like you know, has something been on the horizon?

Brendon:

And you know the market, you know the people who are investing in this marketplace, like, have they been able to see this coming? You know, it's like, you know, or has this been a conversation for the last month, right? And if it has, then it's like, okay, well, this thing that people have been talking about, that's been kind of in the atmosphere. It just officially happened today, but really it's been under consideration for a while now. So that's what I was hoping. Just because something is officially happening today doesn't necessarily mean that it's having an impact on what you're going to see in the mortgage market today Like right, the effects of this were felt weeks ago.

Brendon:

Yeah, now if something out of left field happens that no one you know. Maybe that's worth having a conversation about, but you know, and sometimes too you know not to be cynical here, but sometimes you know weird things that happen in the world can actually have a positive impact on mortgage rates. There's an expression in the mortgage industry that says don't let any disaster go to waste. Good disaster go to waste. So go to waste. Good disaster go to waste. So I always think back to Brexit. That's a long time ago. That happened right when I was getting into the mortgage industry and that had an impact on mortgage rates. It was a weird thing that was happening that had an impact. Anyway, we're here in 2025, not in 2016.

Brendon:

So all that to say is you know, I guess, what is the mortgage industry doing to help prepare for those things? It's really just you know. It's just more about you know, people who are investing in the marketplace and using the data they have and just understanding. You know, hey, what's predictable, what's not predictable. I think you know, once again, as a consumer, yeah, you know being stressed about or being concerned with some of these big things that are happening, not to say that you know those aren't things you should be educated about. But as it relates to you getting your mortgage, you know, once again, I would really really just focus on your own personal set of circumstances, lean on your team of you know real estate professionals who can keep you in the loop and if there is a really big shift that's going to happen all of a sudden, which those don't happen all that often, right, like we're usually seeing gradual increases or gradual decreases, right.

Brendon:

But if there is some kind of out of left field situation that's going to occur, lean on your team. They'll, to the best of their ability, help you navigate that situation. But yeah, I would just focus on yourself kind of build yourself up, build up your own kind of build your ship and ride that.

Sarah:

Yeah, well, because there is no perfect time to buy a house, like you can't time the market and you can't time when is the perfect time? So I always say the perfect time is when you can afford the house that you're looking at comfortably. That's whenever it's the right time to buy, or that's the right time to sell when you know there's something that happened that you know is something in your life happened, you know, or and you're like, okay, I'm tired of paying rent.

Sarah:

Or you know hey, I'm getting ready to have a baby, I'd really like to have a house, like, okay, great, those are things that are going to, you know, kind of push you more towards purchasing it. And then that's whenever your team comes in and they're like, okay, hey, like what, would you be comfortable with a monthly payment? And okay, great, so then you can qualify for this house. Great, so then that makes the most sense. So, instead of waiting to time the market to find the best interest, rate when can you afford it?

Sarah:

Okay, great, If you can afford it now, do it now. And maybe it's not your dream house, especially for first-time homebuyers. It's not going to be your dream house 100%. I mean, if you're going to save up for your dream house, I promise you your first home purchase isn't going to be until your 60s or 70s and that's going to suck.

Brendon:

Yeah, I mean, I think the best way to save up for your dream house is to buy your first house, absolutely, because the compound interest, equity, these are all like basic principles that you can use to your advantage. Right, and you know, letting appreciation do its thing on that first or even second house, especially in a really strong market like Columbus, is going to be one of the most efficient ways to allow you to get to that dream home. Quote, unquote. Whatever that dream home is for you, but you know, as you were saying that, I was just thinking about like you and my wife and I. You know we bought dream home is for you, but, as you were saying that, I was just thinking about you, my wife and I we bought our first house in 2021.

Brendon:

And it was not our dream home. During that time, rates were super low, which, once again, everyone thinks that's great, but it was a really competitive time, really challenging time, but we built up a lot of equity in that time and that's the reality of that particular market. Things are different now, but every market's going to have different opportunities, different challenges, but you kind of just have to roll with the punches in whatever the market is and just kind of know that time in the market is going to be a much better way versus trying to time the market.

Sarah:

Correct.

Brendon:

So yeah.

Sarah:

Yeah, so outside of tariffs or anything else, what are you seeing right now in the mortgage industry? And then again without having a crystal ball what are kind of your predictions that we're going to see over, like the next few months.

Brendon:

It's a really good question. Mortgage specific you know, I think as we enter spring market it's going to get a little more competitive and so you know we're going to be having conversations. Depending on who the folks are. We're going to be having different conversations with different people. You know, first time home buyers. I think we're going to be having different conversations with different people. First-time homebuyers I think we're going to be really focusing hard on pulling all the resources together that we can to help you look as competitive as possible.

Brendon:

If we don't have a lot of money down, okay, how can we stretch the dollars that you do have in order to just make your offer stand out? Can we leverage a down payment assistance program to maybe help you qualify for something? Can we, you know, can we find an opportunity where maybe you qualify for a grant program or a lower interest rate program to help you kind of get into that price point you need to be in to be more competitive? For other folks it might look like, hey, can we get an appraisal waiver which is going to help your offer stand out with a seller? It's going to be just a little bit more on the mortgage side, I think, working with clients to help them understand their specific set of circumstances, what their competitive edge is, where their areas of concern might be, and helping try to mitigate that as best we can on the mortgage side. And then also setting plans for the future, because even if rates come down, let's say you get a mortgage somewhere in the 6% range what does that plan look like for you down the line? Should we be talking about buying down the rate right now? Should we maybe hold off on that because we think rates are going to continue to come down Once again? Everyone's situation is going to be a little bit different.

Brendon:

So I think overall in the mortgage space, as we kind of get into selling season the more competitive season of the year it's just going to be really about dialing in our plan and helping our clients be competitive, helping our clients win the homes that they want and leveraging their financing the best way possible to do it.

Sarah:

Yeah, I totally agree, and I mean we've been seeing in the market, you know, like for all intents and purposes we're still a seller's market because we still don't have enough inventory out there for all the people that want to purchase. So that's how you know supply and demand, as we've talked about previously. That's how you know we kind of figure out whether we're in a buyer's market or a seller's market.

Sarah:

But I think that right now, because of the way interest rates are, even though it's a seller's market, buyers still have kind of an upper hand in a lot of situations, not every situation. There are some houses that, if they are completely upgraded, complete turnkey in a very desirable area. We are seeing multiple offers and we've been seeing that all winter, which is so unheard of and you know, historically you don't see that.

Sarah:

So you know. So there are still bidding wars, there are still people having to, you know, go over asking, offer, appraisal gap, you know all of those things. But buyers also are able to go in and say, hey, your house isn't fully updated, so I'm going to negotiate, I'm going to ask you for a credit at closing that's going to help buy down my rate, so that then I'm going to get a better interest rate and I get the house at the price I wanted. Or, hey, I want you to bring down the price, which, again, I would definitely highly recommend. Talk to your lender, especially. You know, like I know, if you talk to Brendan, he's going to walk you through this.

Sarah:

I can't speak for every lender out there, but I can speak for Brendan. He's going to look at it and he's going to show you okay, if you ask for $10,000 off, that's going to lower your rate by like $75 a month, Like, okay, cool, Like or not your rate, I'm sorry, your monthly payment by like $75, whatever, but if you ask for $10,000 in a credit to buy down your rate, that could save you hundreds of dollars a month. So, again, it's just having those conversations with your you know your real estate team, with your mortgage lender, finding out what's going to be the best. But right now we're still seeing plenty of those concessions happen. And that's what we call when you ask that if right now you're looking and you can afford the rate on the house, let's look at finding a competitive way to get you in there that's going to give you the best options. But we're able to like negotiate that and you know, come spring market it's going to be much more difficult.

Sarah:

You know, even with the rates that they are, even though they're not as low as we thought spring market is historically the time when people are like, hey, I want to get my house on the market so I can get moved at the end of the school year so that I can, you know, get situated wherever I'm going and my kids can start at their new school or whatever. I think people just have cabin fever.

Brendon:

Too right They've been cooped up inside since November, december, especially here in the Midwest or in the Northeast or the Northwest. Even the people are just like, hey, like all right, I've been in this apartment or I've been in this house and I've been looking at this, looking at the same crack in the ceiling for the last three months and it's driving me nuts and I gotta go. So, yeah, you're, you're definitely going to have the you know the natural, like, yeah, like cycle of hey, new school district, you know, moving up, moving down, whatever. But there's just got people who are just like, hey, I just I've been, I've been thinking about moving, I've been stuck inside of three months. Now I'm really ready, let's just get out of here. So, yeah, it's definitely a busier time. So I think, yeah, just being prepared and just once again understanding your specific set of circumstances. Like, if maybe you're not as competitive, yeah, maybe it is looking at homes that have been sitting a little bit longer for whatever reason, and seeing if that's a good opportunity because you'll have a little bit more bargaining power in those situations. Opportunity because you'll have a little bit more bargaining power in those situations.

Brendon:

And one thing I was even thinking about as rates do come down, especially for first-time homebuyers maybe are a little bit more cash limited. One thing we'll even look at potentially is because everyone's heard at least a lot of people have heard about buying down your rate to get a lower rate, to lower your monthly payment. For a lot of first-time homebuyers I'm talking to, they're actually okay with the monthly payment. For some homebuyers I'm talking to, they're actually OK with the monthly payment, it's just like, hey, where am I coming up with the closing costs and the down payment and XYZ moving costs and everything.

Brendon:

So one thing we'll actually look at for some people as rates continue to come down is hey, what if I took a slightly higher rate than above what the market is offering? Because then you can get credit to help offset some of those closing costs. So there's a lot of opportunities depending on what's going on in the market. But, yeah, I think those are really good points that you brought up and those are that's. That's kind of what we're looking for here the next few months. Yeah, yeah, yeah, I love it.

Sarah:

I love it well. Thank you so much for taking time out and you know just kind of eas our minds. I hope you all feel uh that this eased your mind, cause it definitely um eased mine talking to you. I was much less anxious after our conversation, so that's really good.

Brendon:

Awesome, uh, anything I can do, I love it.

Sarah:

Well, um, as always, I will have all of Brendan's information in the show notes, so definitely make sure that you look there. Uh, if you, uh, I'll have links to his, uh, social media as well. If you're not following him, you should. He, uh, you know, post some really funny, clever videos, but they always have really good nuggets of information. So, um, you know, definitely follow that. So, thank you so much for joining us today and, uh, make sure that you leave a review. That is feedback, which is the greatest gift. Yes, five star review, um, but you know, any of that is feedback. It's the greatest gift that you can give us.

Sarah:

Make sure you're sharing this with others, because that is the greatest compliment that you can give us, um is by saying you know, hey, listen to this, I learned something, um. And also make sure that you're following along so you never miss another episode. So, thanks so much, and we'll see you next time.