Rates are still a headwind, but sales and inventory are both up in Chester County. Here's what's protecting buyers who are jumping in now.
Every so often it helps to step back and take an honest look at where the market actually stands, so we sat down with Matt Stancado of Guild Mortgage for an end-of-summer update on all things rates and inventory here in Chester County. The short of it is that there's more to be encouraged about than you might expect, even with rates where they are.
Rates are still a headwind, but buyers keep moving. Let's not waste time dancing around it. Rates aren't what any of us would love them to be, and we still have some real rate headwinds to work with. But here's what's interesting. In spite of those rate headwinds, we've seen increasing sales for the last three months and increasing inventory for the last three months. Together, those two things tell us something important: people are continuing to buy and sell even with rates sitting higher than they'd like. That's not a market frozen in place. That's a market that's found its footing.
More inventory means more opportunity for buyers. We're also sitting with just a couple of months of inventory, which makes this a genuinely good moment for buyers. More homes to choose from means more room to find the right one without the frenzy of years past. So we asked Matt the question a lot of buyers are asking us: if someone jumps in and buys at today's rate, what protects them if rates come down later? A lot of what buyers are doing right now is built on the expectation that rates will improve somewhere between 12 months and 18 to 30 months out, depending on where the economy goes. The honest reality for many people is that they're tired of waiting. Matt has folks he pre-approved two, two and a half, even three years ago who finally decided they didn't want to sit on the shelf any longer. And once they decide to move, there are a few smart ways to protect a purchase against today's rate.
A Guild-to-Guild refinance protects future savings. The first is what Matt called the Guild-to-Guild refinance. He explained that when Guild is your servicer, the refinance comes with no points and no lender fees from Guild. He said your escrow account gets transferred from your old account rather than reestablished, so the only charge is title fees, and even those get rolled in. That means if rates do improve in the future, you're positioned to take advantage of them without the usual cost of a refinance. It's a way to buy now and keep your options open later.
“Sales and inventory are both up three months running, even with rates still a headwind.”
A recast lowers your payment if rates stay put. The second option covers the flip side, in case rates don't get better. Matt explained that once a year, Guild allows a principal prepayment of up to $10,000, then recalculates your payment on the new, lower balance. That's a recast, and he described it as a way to bring your payment down without needing rates to move at all. Between those two tools, you've got a plan whether rates fall or hold steady.
ARMs let buyers lock in below-market rates. Beyond that, people are getting strategic with the loan product itself. Three-year and five-year ARMs are popular right now because they lock your rate below the market rate for three, five, or seven years depending on the product, with the expectation that you'll refinance sometime before that window runs out. A lot of buyers are using this approach, and it's a big part of how they're finding a way into a home despite the market.
If you're weighing whether now is your moment, it's worth understanding your pre-approval and which of these paths fits your situation before you start looking.
The bigger picture is genuinely encouraging. We've had a record number of closings this month, and we're looking forward to helping even more people buy and sell homes this season. If you've been wondering whether the timing works for you, or you just want a clear read on the Chester County market right now, we'd love to talk it through and help you put together a plan that fits your goals.
And believe it or not, it's football time already. Our fall giveaway is coming up soon, with an Ooni pizza maker up for grabs, so stay tuned for that. We hope you have a great end of summer, and we look forward to hearing from you.
To connect with us, call or text at (610) 549-4435, email us at beth@steinrealtygroup.com, or visit steinrealtygroup.com. We appreciate all of you, and we can't wait to help you make your move.
