Mary the House, Date the Rate- Navigating the Market and Human Behavior

Mary the house, date the rate comes from the idea that interest rates fluctuate. We're experiencing that in our current market and we're seeing the side effects. Purchasing power has been reduced. Buyers have given up. However, I have been coaching my buyers into making offers that are reflective not necessarily of price, but the current interest rates. For example, if purchasing power has been reduced by 10%, offer 10% less than what this property would have sold for prior to the change in interest rates. Comparatively so, it's a great deal because chances are, they are negotiating and not competing against multiple offers. 

Even better, hopefully the fed gets a handle on inflation and will enable us to get to a point where we can reduce interest rates again. Even now, we're down from our June 14th high for 30 year fixed rate mortgages. Drop in Interest Rates What a nice combination to be able to negotiate for a better price and refinance into a lower payment a year later!!

The following is a picture of the Consumer Price Index which demonstrates the cost of goods. 

This chart demonstrates how drastically pricing can change and housing is no different. If buyers can take advantage of the market, be the bird in the hand, they might be able to get a lesser price and pick up an interest rate that adjusts to this market in the future assuming this is a possibility. 

Personal note, I'm a fan of going against the grain. I think that choosing to do not what everyone else is doing can eliminate the competition and get the consumer a better deal. Also, I don't know that I heard anyone discussing a "recession" until the stock market made a turn for the positive. If you're looking in the rear view mirror and making decisions based on old data, you might miss out on the opportunities of tomorrow.