Feb 10th, 2025 Down Payment Assistance and What does Gold have to do with the Market...

Gold - What does Gold have to do with the Market?

Are DPA - Down Payment Assistance programs affected by the federal funding freeze? What's going on with rates and a key factor that may play a role in the near future of the Real Estate market.

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Transcript

Speaker 1: 0:37

All right, everyone. Welcome to the Monday Market Update with Nikki. Thank you for coming. If you're watching the recording, thanks for tuning in and we'll go ahead.

Speaker 2: 0:47

But overall we're seeing things remain pretty steady as the weeks kind of pass by here. So we are in that mid to high six range, sometimes into the low seven, depending on situation, for 30-year conventional mortgages Really interesting. So the US Treasury actually came up with a proposal where they might be revaluing the gold that they hold. Right now they have a value at about $42. But the actual market price for that gold is about $2,900. About $42, but the actual market price for that gold is about $2,900. So if they do end up revaluing this, this pushes about $800 to $900 billion into the treasury. This is important for mortgage interest rates because if the treasury doesn't have to issue as many treasuries, this could really help the bond market. The bond market goes down when that happens and therefore mortgage interest rates will come down. And so this is a very interesting proposal that we're going to keep an eye on as we kind of see things work out and work their way through the system and what they decide to do with that gold. But we could see some improvement in market interest rates as a result of that if it does end up going through and the re-evaluation happens. So that's just a kind of an interesting thing that not a lot of people think about or even know about when it comes to how the treasuries affect the bond market and how that ultimately affects mortgage interest rates. So definitely we're looking to, you know, looking to see things heading in the right directions from an interest rate standpoint.

Speaker 2: 2:13

Today I wanted to also talk about down payment assistance. Where do those down payment assistance funds come from? This is really important right now as we see everything happening with the federal government and the audit that's happening of all the spending and where things are going and programs that are being influenced by that. You know, either coming or going, whatever that looks like. It's important for people to know that, from a housing standpoint, about 99% of that down payment assistance does not come from the federal government. It comes from the state government, local agencies, banks, credit unions, different nonprofits, employers, things of that nature. That's where most of the down payment assistance comes from.

Speaker 2: 2:55

So when we talk about the largest part of down payment assistance comes from state housing financing agencies. So every state has a financing agency that is specific to putting people into homes and so, specifically in the state of Minnesota, for example, minnesota has a state agency that will give clients up to $18,000 to help them with the purchase of a home In Arizona. It gives them up to 6% of the purchase price of the home in order to help with closing costs and down payments. So there are definitely sources out there. They are going to continue to be out there because those down payment assistance funds come from the state level, not from the federal level. So if anyone's worried about oh my gosh, am I going to be able to buy a house, are these down payment assistance programs going away? How are they going to be funded? Things of that nature they are not funded from the federal government. So I think it's just important for people to know that right now, especially funded from the federal government.

Speaker 1: 4:00

So I think it's just important for people to know that, right now especially. Yeah, no, I appreciate you bringing that up, because there's a lot of things going on and, depending on where you're going to get your information, you're hearing completely different things. Like the pendulum swings from one side to the other. So I love that you bring that up Because, yeah, depending where you're you up, because, yeah, depending where you're hearing or listening, you're hearing different things. So that's good to know from you, because you're in this and it's yeah.

Speaker 2: 4:28

Yeah, absolutely, and also it's important, Like I did the TikTok on the Monday market update, so you guys can definitely share that and stitch it and do whatever you need to do. It should be. It's also on my Facebook and my Instagram a posting tomorrow. So if you do want to share that or kind of you know, push that out to people that you know that are considering purchasing a home or wanting to use those down payment assistance funds, you can definitely give them reassurance that those funds are still there and that those departments from a state level are operating as they, as they always have.

Speaker 1: 5:10

Yes, love it Very, very, very good. Thank you so much. Yeah, so, in it being mid-February, how are you seeing because I know with your like applications or anything coming on what personally just have you felt or been seen in the last couple of weeks as far as, yeah, people you know applying, or just your general pulse on the market?

Speaker 2: 5:33

That's a good question. So normally in a normal market, january right up until the Super Bowl actually is normally pretty slow. Right after the Super Bowl is really when people start to get serious about purchasing homes from a springtime situation. But what I've seen personally is actually in January. I started to get busy about halfway through January and now that's just started to even pick up even more. And so what I'm hoping for is, you know, with the trends of the normal market, now that the Super Bowl was over yesterday, that will continue to see even more of an increase and more people coming on to to want to buy houses. But there's definitely been an influx of applications. Definitely I've gotten, you know, a lot of people reaching out saying, hey, I got to do something this year at some point, and so that pipeline is definitely filling up pretty quickly.

Speaker 1: 6:19

Yeah, yeah, and that's kind of what we're seeing as well. Like I said, we you know houses that have been saying since November your schedule is showing and all of a sudden it's sold and you're like what, what?

Speaker 2: 6:30

happened?

Speaker 1: 6:31

Yeah, it's been sitting there for months and now so they are starting to go. And what I'm hearing from other agents, especially in Minnesota and the market I'm in, is more multiple showings, multiple offers, so it is definitely if the house is priced right, in good condition, the location, all of that. There are buyers out there and they're just kind of sitting waiting a little bit is what I'm feeling. And now to your point they're also coming out of hibernation or just waiting on the sidelines and they're jumping into the game and starting to make some movements.

Speaker 2: 7:06

Yeah, and it's really interesting because I've seen in the last couple of weeks you know probably three or four weeks about people having an appetite now for flipping houses again. So those there's houses that are out there now that are a little bit, you know, dated or some you know aren't exactly in pristine condition, that there's investors that are coming out of the woodwork and saying you know what, I have an appetite to start flipping houses again and start, you know, really making some money that way, which we have not seen in the market really at all last year. But now, because of the way that the market is and the way that things are coming out and, you know, pushing out for people selling houses, it's, there's opportunities there.

Speaker 1: 7:42

That's such a good point. Thank you for bringing that up. Yes, it's happening.

Speaker 2: 7:46

It's happening when you start to see those investors come out of the woodwork to buy you know that the market's starting to heat up, absolutely, yes, I love that so much.

Speaker 1: 7:56

Well, good. Well, you know, next week we'll be having a call. I know it's going to be President's Day, but just check in. Yep absolutely Wonderful. Well, you know, if you're watching this recording, you know where to find Nikki or myself. We're on social media, you can reach out to us and we're here and happy to answer any questions in the meantime. But other than that, we'll look forward to seeing you next Monday.

Speaker 2: 8:20

All right, Goodbye everyone.

Speaker 1: 8:22

Thanks, bye-bye.