EO Carroll: 30-year mortgage temporarily declining as people ‘flee to safety’

Real estate buyers and sellers ‘sitting on the sidelines’ is a ‘smart play’

According to the opinion of one knowledgeable real estate professional, just though fixed mortgage rates for 20 and 30-year terms have dropped in recent days does not suggest that now is the best time to buy or sell a home.


On Thursday’s episode of “Mornings with Maria,” Carroll founder and CEO Patrick Carroll noted that the folks who are buying the bonds that truly back the 30-year mortgage are “doing a fled to safety. They are terrified of everything that is out there, especially the things that truly nobody can predict,”


The 20-year fixed rate reached 4.5 percent on Tuesday, while the 30-year fixed rate reached 5.43 percent. This marked the greatest weekly fall for the 30-year fixed rate since the year 2020.


Due to his expectation that the Federal Reserve would continue to raise interest rates, the real estate investor stated that he does not believe that falling mortgage rates will stimulate demand from home buyers and sellers.


Carroll gave this response when asked whether the current low interest rates indicate that it is a good time to buy or sell real estate: “I think waiting on the sidelines a little bit could be a solid play,”

Moving Markets

The seasoned real estate professional stated, “When I speak with investors, that is by far their greatest concern. You could be witnessing a temporary reaction from the bonds, but I believe that in the long run, they will go back up.”


Carroll stated that because he believes that long-term mortgage rates would go up, prices of single-family houses, which experts have cautioned are in scarcely low inventory, may go down. He made this prediction based on the fact that long-term mortgage rates will go up.


“My guess is that prices are going down in the single-family home market,” Carroll added, “and that is why we’re investing in the multifamily market as it gets more expensive to acquire. You’ll see that folks are renting for extended periods of time.”


According to the investor who has begun offering multi-family housing options to the typical first-time home buyer in the United States, the purchasing of single-family homes by private equity groups like BlackRock is the “number one driver” behind the pricing out of reach of first-time home buyers in the United States.


“There is really no market for starter homes anymore,” said Carroll. “There are only luxury homes. It’s clear that the activity of institutional buyers is having an effect on the housing market.”¬†

Facebook
Twitter
LinkedIn
Reddit
Telegram
Email

About Post Author