Stock market drop brings positive news for mortgage rates
WEBB CITY, Mo. — Although Monday’s stock market drop might take a negative toll on others, it’s a positive thing for mortgage rates.
“What we saw this week was some volatility in the stock market, which then impacted mortgage rates,” said Kristen Sweet, Arvest Bank mortgage loan officer.
On Monday, the stock market dropped, leaving local mortgage rates to also drop with them.
Arvest mortgage loan officer Kristen Sweet, says this can be good for buyers.
“If you are in the market to buy a house and you find one that you love, I say go for it. You can always refinance later. If rates do drop down quite a bit lower,” said Sweet.
But with the drop for mortgage rates this can also be good for sellers.
“I do feel like as rates start to go down a little bit more, which we’re all hoping for, that the real estate market is going to be more competitive,” said Sweet.
“I think if rates decrease, we will see more of a buyer’s market come back, which is just more competition with buyers. It’s good for sellers and for buyers when rates are lower. Everybody wins,” said Sarah Vonder Haar, a local realtor.
Local realtor Sarah Vonder Haar says in times like this– more buyers can make their way to the market.
She says homes across the area usually are affordable but during times like this, it’s more for your buck.
“If you wanted to purchase a property that was a little bit more expensive with interest rates decreasing, whenever they do decrease, you can afford more house,” said Vonder Haar.
But you can also save in other ways.
For example– if you have a 200 thousand dollar mortgage and rates drop by 1 percent– you could save approximately 100 to 115 dollars a month by refinancing.
“Things are changing all the time. So keeping in close contact with your realtor, with your lending institution, your mortgage broker, whoever it is that you’re working with, it’s extremely important,” said Vonder Haar.
But don’t jump to purchasing a house or refinancing just yet. Both encourage staying in contact frequently with a professional can also be important.
“We always advise you to get with your mortgage lender and let them kind of help you manage that mortgage. During this time, when rates might be trending down due to the stock market,” said Sweet.
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