January 2024 Newsletter

What Lower Mortgage Rates Mean for Your Purchasing Power

If you want to buy a home, it's important to know how mortgage rates impact what you can afford and how much you’ll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently under 7%, according to Freddie Mac (see graph below):

This recent trend is great news for buyers. As a recent article from Bankrate says:

“The rate cool-off somewhat eases the housing affordability squeeze.”

And according to Edward Seiler, AVP of Housing Economics and Executive Director of the Research Institute for Housing America at the Mortgage Bankers Association (MBA):

“MBA expects that affordability conditions will continue to improve as mortgage rates decline . . .”

Here’s a bit more context on how this could help with your plans to buy a home.

How Mortgage Rates Affect Your Search for a Home

Understanding the connection between mortgage rates and your monthly home payment is crucial for your plans to become a homeowner. The chart below illustrates how your ability to afford a home changes when mortgage rates shift. Imagine your budget allows for a monthly payment between $2,400 and $2,500. The green part in the chart shows payments in that range or lower (see chart below):

As you can see, even small changes in rates can affect your budget and the loan amount you can afford.

Get Help from Reliable Experts To Understand Your Budget and Plan Ahead

When you're looking to buy a home, it's important to get guidance from a local real estate agent and a trusted lender. They can help you explore different mortgage options, understand what makes mortgage rates go up or down, and how those changes impact you.

By looking at the numbers and the latest data together, then adjusting your strategy based on today's rates, you'll be better prepared and ready to buy a home.

Bottom Line

If you’re looking to buy a home, you should know the recent downward trend in mortgage rates is good news for your move. Let’s connect and plan your next steps.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Local Data. National Insights.

In our area this month…
Our market sits established in a strong sellers’ market, especially in the Schaumburg area.
Across the NW Suburbs of Chicago, inventory remains low and competition remains high. But new listings are coming on the market here at the turn of the New Year.
If you are considering selling your home, now might be your chance to snag all the benefits this market has to offer. Connect with me to learn more about your unique situation.

Green Chile Chicken Pozole

Ingredients

```
1 tablespoon olive oil
```
```
1/2 large yellow or white onion, diced
```
```
1 green bell pepper, finely diced
```
```
4 garlic cloves, minced
```
```
1 teaspoon cumin
```
```
1 teaspoon ground coriander
```
```
1/2 teaspoon garlic powder
```
```
1/2 teaspoon oregano
```
```
6 cups low sodium chicken broth
```

2 (5 ounce) cans mild or medium green chiles

1 (28 ounce) can hominy, drained and rinsed

1 pound boneless skinless chicken thighs

```
1 teaspoon salt (or sub adobo)
```
```
black pepper
```

1 cup sweet corn, optional (drained and rinsed if using canned)

```
½ cup chopped cilantro
```
```
1 lime, juiced
```
```
To garnish:
```
```
Shredded green cabbage
```

Greek yogurt (this is SO good on the soup)

```
Extra cilantro
```
```
Avocado slices
```
```
Lime wedges
```

Directions

In a large dutch oven or pot, add olive oil and place over medium high heat. Next add in diced onion, bell pepper and garlic. Saute for a few minutes until onions are tender. Next add in spices: cumin, coriander, garlic powder and oregano. Mix to coat the veggies with the spices, then slowly add in chicken broth, green chiles, hominy, chicken thighs and salt and pepper. Stir well to combine.

Bring soup to a boil then reduce heat and simmer uncovered for 25 minutes or until chicken is fully cooked. You’ll want the chicken to be covered by the broth so make sure to stir every so often.

Once chicken is cooked, remove with a slotted spoon and transfer to a cutting board to shred with two forks. Add chicken back to the pot then stir in corn, cilantro and juice from 1 lime. Simmer for 5-10 more minutes, then taste and adjust seasonings, if necessary.

Serve pozole in bowls immediately, top with shredded green cabbage, dollop of Greek yogurt, pinch of fresh chopped cilantro, avocado slices and a lime wedge.