Transcript
Hey guys, welcome back to another week of Mortgage Matters in Minutes. Again, I'm your host and owner of Mortgage Specialists Brent Rasmussen. So again, another video starting out in 2026 talking about where will mortgage rates go and what will occur throughout this year. But before I get into that, you know, we've appreciated all the feedback that we've gotten recently from real estate agents and borrowers and friends and clients of all watching our videos and getting educated and being up to speed in the real estate market and mortgage financing rules. So, love to hear your feedback. thanks for checking us out. Comment, reach out below. We'd love to assist with anything that you may have with real estate or mortgage lending needs. Again, we don't do real estate, but we do mortgages, but we see real estate. So, anyways, a little slip of the tongue and someone asked me just this last week, how many times do I do a take in order for the final video outcome to come out? And I will share with you, we've never re-recorded a video. Every video is from start to finish, live right from scratch. And we don't have any retakes or restarts or cutting and editing. It's all from start to finish. So, anyways, we do the best we can. I like to be real and want to give you facts and how we speak and not just a perfect clear clean cut product, but a product that's going to give you information like we would conversate with you and/or clients or real estate professionals. So, today again, let's get back to mortgage rates in 2026. Who has the crystal ball? Nobody. Sorry to break the rules, but we'll talk here in depth about what we feel that's going to happen. Yes. Will rates come down? I do believe very strongly they will. To what number? We and no one knows exactly. It depends on a lot of variables, which we're going to talk about those variables here a little bit below. But as we're approaching here a time, a great place to go check out daily interest rates is if you Google Freddy Mack PMMS. They do a weekly average of calling a 100 lenders across the country and post what that going rate is with no points. The reason why I like that neutral website is because if you search out interest rates, you're going to see all kinds of different interest rates that don't tell you what the true points that you are paying. and you may get a quote, but you don't realize you're paying absorbent closing costs. So, currently where we sit here in January of 2026 is low sixes. If you have perfect credit on a 30-year mortgage, APR, low sixes, low sixes can be anywhere between six to six and a half depending on the day and the variable and what's all going on. And lately, we've seen a lot of volatility with inflation lowering, with unemployment going up, going down, seeing different sets of numbers coming out. And just here a little bit time back, we heard from president that they're going to be doing some quantitative easing and putting some money into the system to lower interest rates of up to $200 billion. We're not sure if that's really going into place or not because there's a lot of things that have been stated in the real estate market like taking out a 40-year loan, like Fanny and Freddy becoming privatized. So, we have to sometimes sit in our hands, wait and see of what really is going to happen. But the main thing we always want to share with individuals is trying to chase the interest rate market can be very very challenging. Thankfully rates are coming out great yet again. I mean low sixes is much better than mid high sevens that we were seeing the last couple years. and that will start stirring up market activity here. But as the Feds continue to meet, just because the Fed funds rate is being cut doesn't directly impact mortgage rates. It can indirectly over time, but it also can swing things differently. Depends on many other variables. The biggest thing to watch here is inflation. As we see inflation and rents start to cool, that's going to help stabilize interest rates to a lower number. I think in dealing with clients every day, people are still waiting for a 3% interest rate, which I don't see ever to be likely unless we have a massive problem internationally, financially, you know, geopolitically, you name it. but can we see interest rates in the fives, lower fives? Possibly. I think lower fives still is a stretch by the end of this year. But I think if we can see possibly mid to upper fives is probably a very good number that will be obtainable, which will allow a lot of those individuals to refinance that did close on properties the last two to four years at a seven something% interest rate. So what you want to watch is basic financial information such as PCE PCI which is inflation. Also looking at jobs whether that's unemployment or new job starts following the 10-year Treasury. That is a very good indicative to where rates are changing throughout the day and throughout the week and throughout the month. But really, we follow mortgage back securities, which can affect all kinds of things. And we're seeing major market shocks happening. Whether that's a geopolitical, whether that's a statement from the president, whether it's a statement from FHFA, there's a lot of things right now being thrown out that are very monumental. And we haven't seen that happen this drastic in the past. Yes, there's little things that happen, but as we've all talked, each and every day, we're seeing things that we've never seen before. And that throws a wrench into economies, decisions, interest rates, stock markets, all the above. So the more we try to stay in front of something, we can be prepared. But if something different happens, such as you know, any kind of war threat or conversation or some kind of a war type of appearance, it can throw things into a little bit of a spiral for a few days, a few weeks to see what's going to occur. So again, we are I feel we're going to see a still a very volatile year. I know everybody talks that during an election year, things should get better for interest rates for whoever is the Democrats or whoever is the Republicans that are running for office. They want to show the best type of economy they can to show what they've done. So usually we do see that happen. We'll see how that transpires this year. But we do see with inflation cooling that interest rates are slowly coming down. I think the consumer hasn't seen that because of the cost of housing is still so high. I still think we have a little bit of an affordability issue, but with lower interest rates makes things easier. So to end this off, are interest rates everything? No. We've talked about that many, many times. Interest rates one piece of the puzzle. People still need housing and housing still works as a great investment for people building wealth. Whether you're a first-time buyer, you're a move up buyer, or you're one of those buyers that are right sizing, owning homes has been shown to increase your net worth over time by paying down your loans, giving yourself ownership. So, if 2026 is the right year for you and interest rates you feel are inside of your budget, do it now. We do see home prices continue to rise because it's a supply and demand game. We don't see enough properties still to this day. Will that change in 5, 10, 20 years? Sure, anything's possible. Markets never always continue to go up. We'll see some dips along the way, but over time, yes, long periods of time, real estate works. So, if there's anything we can help answer with interest rate questions, with types of loans that are out there, information that you're hearing, let us know. We can give you education. You might not like the answers, but that's what we're here for is to give you the knowledge to make the best decisions for you and your family. I'm Brent Rasmussen, owner of Mortgage Specialists, reaching out here each and every week to educate you in minutes on the information that matters. So check us out at mtg-specialist.com or we're just a phone call away at 4029915153.
We'll see you next time. Thanks. Bye-bye.
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