Real Estate Blog

Hi ,

Here's what's going on in the real estate market this week!  Plus, take a look at my open houses and either drop by to take a look, or tell a friend who might be interested.

Market Update
It feels like it's all about interest rates right now.  The news says that the Fed is poised to cut in September and it just seems like buyers are pausing a bit to see what that means for them.  If you want to know, just ask and I'll tell you!
Rates right now for 30 year loans are around 6.4%.  If the Fed decides to cut their lending rate by 1/4 point, then your mortgage rate might end up reflecting almost all of that.  That could bring your rate to 6.20% - 6.25%.
If the FED is more aggressive, with a 1/2 point rate cut, then your mortgage rate may end up between 6.0 and 6.15%. 

Here's what an improvement of 0.2% and 0.4% would mean to you:
Home price:  $500,000
Down payment: $50,000
30 year Loan amount:  $450,000
Payment at 6.4%:  $2,815
Payment at 6.2%:  $2,756
Payment at 6.0%:  $2,698
(Principle and Interest Only)

So, a drop from the most aggressive Fed cut expectation, resulting in mortgage rates dropping from 6.4% to 6.0% would save you $117/month in your house payment.  I know that every dollar counts, but when I talk to people it seems like they're thinking that the next rate cut will be a HUGE relief in their monthly payment.  It will be some relief, but it won't be huge.
Point being, if you're holding off for better rates, OK, but don't let a good deal pass you by if it still works in your budget!

This Weekend's Open Houses
I have two great ones this weekend.  I'm repeating an open house at 1651 Eleanor Ave in Saint Paul.  I hosted an open house there last weekend, had great traffic and had the honor of representing a home that was way better in person that even the nice photos on line.

Right afterward, I'll be in Golden Valley to host an open house in the Charles Cudd built Hidden Lakes neighborhood at 1425 Skyline Drive.  Super nice townhomes that rarely hit the market.  Details below!

Saturday, August 31, 12 noon - 2pm
1651 Eleanor Ave, Saint Paul, MN
$559,900   3 bedrooms, 2 bathrooms, 2 car detached garage, 1622 square feet
More info here:  https://rem.ax/4dVRKdW
Talk about an idyllic neighborhood!  This lovely home is on one of those meticulous tree lined streets that you only read about in magazines.  Lovely woodwork, original craftsmanship, updated kitchen and bath areas and a home that has clearly been cared for by its owners.  Worth a trip if you're thinking of buying either in Mac/Groveland, Highland or even Summit Hill!

Saturday, August 31, 3pm - 5pm
1425 Skyline Drive, Golden Valley, MN
$950,000   3 bedrooms, 3 bathrooms, 2 car attached garage, 3860 square feet, $489 HOA
More info here:  https://rem.ax/3Xa42bT
If you've never seen the townhomes in the Hidden Lakes neighborhood, you should stop by just so you have a minimum of one great thing happen to you today!  Spacious, free-standing townhome living.  Charles Cudd quality design.  Newer kitchen upgrade and a brand new roof are just a couple of reasons to stop and take a look.  Just a block from Theodore Wirth trail and a 5-mile jog or bike ride to Bde Maka Ska. 

See you there!

About Mitch
Yes, I'm a Realtor in the Twin Cities servicing the larger metro area and western Wisconsin.  I represent buyers and sellers (both very different skillsets, by the way) who want great service and positive outcomes!  If you're thinking of buying or selling in the next 12 months, give me a call and let's talk about how it works, the market and what your dream home looks like to you.