Uncategorized • September 28, 2025

Thinking About Renting Your House Instead of Selling? Read This First.

by Rich Iarossi

If your house is on the market but you haven’t gotten any offers you’re comfortable with, you may be wondering: what do I do if it doesn’t sell? And for a growing number of homeowners, that’s turning into a new dilemma: should I just rent it instead?

There’s a term for this in the industry, and it’s called an accidental landlord. Here’s how Yahoo Finance defines it:

“These ‘accidental landlords’ are homeowners who tried to sell but couldn’t fetch the price they wanted — and instead have decided to rent out their homes until conditions improve.”

Why This Is Happening More Often Right Now

And right now, the number of homeowners turning into accidental landlords is rising. Business Insider explains why:

“While there have always been accidental landlords . . . an era of middling home sales brought on by a steep rise in borrowing rates — is minting a new wave of reluctant rental owners.”

Basically, sales have slowed down as buyers struggle with today’s affordability challenges. And that’s leaving some homeowners with listings that sit and go stale. And if they don’t want to drop their price to try to appeal to buyers, they may rent instead.

But here’s the thing you need to remember if renting your house has crossed your mind. Becoming a landlord wasn’t your original plan, and there’s probably a reason for that. It comes with a lot more responsibility (and risk) than most people expect.

So, if you find yourself toying with that option, ask yourself these questions first:

1. Does Your House Have Potential as a Profitable Rental?

Just because you can rent it doesn’t mean you should. For example:

Are you moving out of state? Managing maintenance from far away isn’t easy.
Does the home need repairs before it’s rental-ready? And do you have the time or the funds for that?
Is your neighborhood one that typically attracts renters, and would your house be profitable as one?

If any of those give you pause, it’s a sign selling might be the better move.

2. Are You Ready To Be a Landlord?

On paper, renting sounds like easy passive income. In reality, it often looks more like this:

Midnight calls about clogged toilets or broken air conditioners
Chasing down missed rent payments
Damage you’ll have to fix between tenants

As Redfin notes:

“Landlords have to fix things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don’t have a few thousand dollars on hand to take care of these repairs, you could end up in a bind.”

3. Have You Thought Through the True Costs?

According to Bankrate, here are just a few of the hidden costs that come with renting out your home:

A higher insurance premium (landlord insurance typically costs about 25% more)
Management fees (if you use a property manager, they typically charge around 10% of the rent)
Maintenance and advertising to find tenants
Gaps between tenants, where you cover the mortgage without rental income coming in

All of that adds up, fast.

While renting can be a smart move for the right person with the right house, if you’re only considering it because your listing didn’t get traction, there may be a better solution: talking to your current agent and revisiting the pricing strategy on your house first.

With their advice you can rework your strategy, relaunch at the right price, and attract real buyers to make the sale happen.

Bottom Line

Before you decide to rent your house, make sure to carefully weigh the pros and cons of becoming a landlord. For some homeowners, the hassle (and the expense) may not be worth it.

I can help you buy or sell a home in MD. Call Rich at 443.995.9595 Cell or 410.721.0103 Office.

Richard Iarossi, REALTOR®
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

A portion of every commission goes to support St. Jude charity directly

#AnnapolisRealEstate, #CroftonMDHomes, #BowieMDRealEstate, #SevernaParkHomes, #PasadenaMDHomes, #GambrillsRealEstate, #ArnoldMDRealEstate, #EdgewaterMDHomes, #MillersvilleMDHomes, #OdentonRealEstate

Real Estate • July 24, 2025

Housing Market Forecasts for the Rest of 2025

by Rich Iarossi

Housing Market Forecasts for the Rest of 2025

If you’ve been watching the market, you’ve likely noticed a few changes already this year. But what’s next? From home prices to mortgage rates, here’s what the latest expert forecasts suggest for the rest of 2025 – and what these shifts could mean for you.

Will Home Prices Fall?

Many buyers are hoping home prices will come down soon. And recent headlines about prices dipping in some areas are making some people believe it’s just a matter of time before there’s a bigger drop. But here are the facts.

While home price growth is slowing down, that doesn’t mean we’re headed for a crash. As NAHB explains:

“House price growth slowed . . . partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.”

But experts say, even with that slowdown, prices will still rise this year at the national level. The average of 8 leading forecasters shows prices are expected to go up 1.5-2% in 2025 (see graph below):

That means, if you’re waiting for a major drop, experts agree that’s just not in the cards.

Keep in mind, while some markets are already seeing prices come down slightly, the average dip is just -3.5%. That’s a far cry from the nearly 20% decline the market experienced during the 2008 crash.

Plus, those small changes are easily absorbed when you consider how much home prices have climbed over the past few years. Data from the Federal Housing Finance Agency (FHFA) shows prices are up 55% nationally compared to just 5 years ago.

The takeaway? Prices aren’t crashing. They’re expected to keep climbing – just not as quickly these days. And some may argue they’ll be closer to flat by the end of this year. But, again, this is going to vary by market, with some local ups and downs. So, lean on a pro to see the latest price trends for your area.

Will Mortgage Rates Come Down?

Another common thought among today’s buyers is: I’m just going to wait for rates to come down. But is that a smart strategy? According to Yahoo Finance:

“If you’re looking for a substantial interest rate drop in 2025, you’ll likely be left waiting. The latest news from the Federal Reserve and other key economic data point toward steady mortgage rates on par with what we see today.”

In other words, don’t try to time the market or wait for a drop that may not be coming. Most experts say rates will remain in the 6s, and current projections have them settling in the mid-6% range by the end of this year (see chart below):

And that’s not a big change from where they are right now. So, if you need to move, let’s talk about how to make it happen and what you should watch for. Because while rates may not be as low as you want them to be, you don’t want to put your needs on the back burner, hoping for something the data shows isn’t likely to happen.

Working with an expert who is keeping an eye on all the economic factors that can influence mortgage rates is going to be essential this year. That’s because changes in things like inflation and other key drivers could impact how rates move going forward.

The Takeaway for Buyers and Sellers

Whether you’re buying, selling, or thinking about doing both, this market requires strategy, not guesswork. Prices are still rising nationally (just more slowly), and rates are projected to stay pretty much where they are, so the bigger picture is one of moderation – not a meltdown.

Bottom Line

If you want to make a move, your best bet is to focus on your personal situation – not what the headlines say – and work with a real estate pro who knows how to navigate the shifting conditions in our local market.

Let’s talk about what’s happening in our area to build a plan that works for you.

Richard Iarossi, REALTOR®
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

A portion of every commission goes to support St. Jude charity directly

#AnnapolisRealEstate, #CroftonMDHomes, #BowieMDRealEstate, #SevernaParkHomes, #PasadenaMDHomes, #GambrillsRealEstate, #ArnoldMDRealEstate, #EdgewaterMDHomes, #MillersvilleMDHomes, #OdentonRealEstate

Real Estate • July 16, 2025

Mortgage Rates Are Stabilizing – How That Helps Today’s Buyers

by Rich Iarossi

Mortgage Rates Are Stabilizing – How That Helps Today’s Buyers

Over the past few years, affordability has been the biggest challenge for homebuyers. Between rapidly rising home prices and higher mortgage rates, the topic of mortage rates is one that many have felt stuck between a rock and a hard place.

But, something pretty encouraging is happening. While affordability is still tight, mortgage rates have shown signs of stabilizing in recent months. And that may finally make it a bit easier to plan your move.

Mortgage Rates Have Stabilized – For Now

Over the past year, mortgage rates have had their share of ups and downs, making it tough for buyers to know what to expect. But recently, rates have started to level out and have settled into a more narrow range (see graph below):

As the graph shows, rates have stayed within that half-percentage-point since late last year. Yes, there’s been movement within that range, but wild swings and sudden ups and downs just haven’t been the story lately. And that’s a bigger deal than you may realize. As HousingWire explains:

“Analysts, economists and mortgage professionals are coining this quarter’s activity as one of the most “calm” periods for mortgage rates in recent memory.”

How This Helps Today’s Buyers

Let’s be real. Unpredictability makes it tough to plan ahead. When rates are bouncing around and making big jumps week to week, it’s easy to be intimidated. But with rates staying in a pretty steady range over the past several months, you have a clearer picture of what your potential monthly payment could look like. That makes moving feel less uncertain – and more doable.

So, stop waiting. And start planning. Even though rates may not be where you want them to be right now, they have been much less volatile for quite some time.

Will This Stability Last?

According to the experts, it looks like that stability might hang around for a bit. Rates may come down ever so slightly in the months ahead, but it’ll likely be a slow and mild change. As Danielle Hale, Chief Economist at Realtor.com, says:

“I expect a generally downward trend for rates this year, but at a slow enough pace that it might not be noticeable in any given month.”

So, if you’ve been holding out for the perfect mortgage rate, the best advice is to avoid trying to time the market. It may not look terribly different than the opportunity you already have in front of you. As Jeff Ostrowski, Housing Market Analyst at Bankrate, explains:

“Trying to time mortgage rates is really difficult. There’s no guarantee that rates are going to be any more favorable in three months or six months.”

And if we look at the latest expert forecasts that go out a bit further, even those tell much of the same story. Two out of the three projections say rates will still likely be in the mid-6% range by the end of 2026 (see graph below):

This puts today’s buyers in a much better spot. As Sam Khater, Chief Economist at Freddie Mac, explains:

“Mortgage rates have moved within a narrow range for the past few months . . . Rate stability, improving inventory and slower house price growth are an encouraging combination . . .”

Just remember, mortgage rates are still going to react to changing economic conditions, inflation, and more – and that means they could shift again. But right now, you’ve got more predictability, and that means more opportunity, too.

Bottom Line

While affordability is still a challenge, the market may be offering a bit more stability – and that makes planning your next move a lot easier.

Let’s connect if you want to run the numbers and see what a monthly payment would look like in today’s market. That way you can stop waiting and start planning.

I can help you buy or sell a home in MD. Call Rich at 443.995.9595 Cell or 410.721.0103 Office.

Richard Iarossi, REALTOR®
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

A portion of every commission goes to support St. Jude charity directly

#AnnapolisRealEstate, #CroftonMDHomes, #BowieMDRealEstate, #SevernaParkHomes, #PasadenaMDHomes, #GambrillsRealEstate, #ArnoldMDRealEstate, #EdgewaterMDHomes, #MillersvilleMDHomes, #OdentonRealEstate

Real Estate • July 16, 2025

Crofton MD – July 2025 Market Snapshot

by Rich Iarossi

🏡 Thinking about buying in Crofton, MD? With homes moving fast at a median of just 13 days on the market and selling for about 100% of their asking price, it’s a hot market! The median sold price is $485,000, making it a great time to make a move. Let’s talk! — Richard Iarossi, Coldwell Banker Realty

📈 Crofton, MD is buzzing with activity! Homes here are selling for about 100% of their asking price, with a median sold price of $485,000. With only 1.24 months of inventory, it’s a strong seller’s market. Ready to find your perfect home? DM me! — Richard Iarossi, Coldwell Banker Realty

🏠 Buyers, take note! Crofton’s median home price is $485,000, and homes are selling in just 13 days. With a 1.24-month inventory, this seller’s market is competitive! Don’t wait—let’s find your dream home today! — Richard Iarossi, Coldwell Banker Realty

📊 Crofton, MD homes are moving fast with a median of 13 days on the market and selling for about 100% of their asking price. With a median sold price of $485,000, now’s the time to buy. Ready to start your journey? Contact me! — Richard Iarossi, Coldwell Banker Realty

🏘️ Crofton’s housing market is hot! With a median sold price of $485,000 and homes selling for about 100% of their asking price, properties are moving quickly—just 13 days on the market. Let’s make your homeownership dreams a reality! — Richard Iarossi, Coldwell Banker Realty

I can help you buy or sell a home in MD. Call Rich at 443.995.9595 Cell or 410.721.0103 Office.

Richard Iarossi, REALTOR®
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

A portion of every commission goes to support St. Jude charity directly

#AnnapolisRealEstate, #CroftonMDHomes, #BowieMDRealEstate, #SevernaParkHomes, #PasadenaMDHomes, #GambrillsRealEstate, #ArnoldMDRealEstate, #EdgewaterMDHomes, #MillersvilleMDHomes, #OdentonRealEstate

Real Estate • July 16, 2025

The 5-Year Rule for Home Prices

by Rich Iarossi

The 5-Year Rule for Home Prices

Some Highlights

If recent home price headlines have you feeling worried, here’s some perspective on home prices.
Home values almost always go up in the long run. And the long-term gains offset any short-term dips. Basically, if you plan to live there for 5 or more years, you should be able to buffer yourself against any short-term declines.
Let’s have a conversation about what’s happening with prices in our market, and we’ll look at the bigger picture together.

Richard Iarossi, REALTOR®
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

A portion of every commission goes to support St. Jude charity directly

#AnnapolisRealEstate, #CroftonMDHomes, #BowieMDRealEstate, #SevernaParkHomes, #PasadenaMDHomes, #GambrillsRealEstate, #ArnoldMDRealEstate, #EdgewaterMDHomes, #MillersvilleMDHomes, #OdentonRealEstate

Real Estate • July 13, 2025

Homes Fall Out of Contract – Don’t Let Yours

by Rich Iarossi

Top Reasons Homes Fall Out of Contract

It’s not something you usually think much about when you list your home for sale, let alone when you get and accept an offer, but it happens a lot: The buyer backs out of the sale. Over the past year, we’ve seen quite a lot of buyer back-outs. Approximately one out of seven real estate contracts are terminated for any number of reasons. A report published by Redfin on July 23, 2024, revealed that nearly 56,000 home-purchase agreements were canceled in June 2024. That equates to 14.9% of homes that went under contract that month, and the highest percentage of any June on record.

The Appraisal Comes In Low

It’s my experience, and that of many REALTORS® that the most common reason for buyers to back out of a sale is because the appraisal comes in lower than the offer price. The buyers may very well want the house, but are unwilling or unable to pay over the appraised value.

“Buyers sometimes offer more than a home is worth, either from exhaustion of bidding wars or the fear of missing out,” Kalla said. “If the appraisal is lower than the agreed price, lenders won’t finance the full amount, and buyers may not have the cash to cover the gap.”

As long as the contract allows, it’s an easy walk away when the appraisal is low, especially for VA and FHA loans.

The Buyer’s Financing Falls Through

Preapproval on a mortgage loan does not equal approval. A buyer needs to go through a complex underwriting process in order to get a final approval from a lender. It’s not uncommon for financing to fall through, resulting in a buyer backout.

“Even in the tech-driven, affluent Bay Area, buyers often rely on mortgage financing,” Kalla said. “If a buyer’s loan is denied due to a change in employment, a sudden dip in credit score or unanticipated credit card debt, the deal can collapse.”

Financing can fall through over seemingly insignificant issues.

“I have had a buyer’s financing being jeopardized because of using a Target credit card that he didn’t pay off for $400 and was not aware of it,” Kalla said. “This is especially prevalent in a high-cost market where even small financial hiccups can derail loan approval.”

A Bad Inspection

Most homebuyers get a home inspection done before closing escrow. They are very expensive, but more importantly they are very comprehensive. A home inspector checks the condition of numerous parts of a home including the roof, walls, foundation, electrical systems and more. A poor inspection can easily lead to a buyer getting nervous and backing out. Not all buyers want to come into a new house and have to make a lot of repairs.

Some items are automatic red flags like foundations, roofs and leaking basements.

A Bad Neighbor

Is your new next door neighbor someone who likes to blast loud music at home? Do they hoard junk on their front porch or cars up on blocks on the lawn? Are they always in your business? A bad neighbor is a good reason for a buyer to back out.

It’s not unusual for buyers to drive by the property several times and if they see a concern, prepare to exit the contract. Political signs are a huge turnoff…at least for 50% of buyers.

Buyer’s Remorse

Buying a house is an incredibly intense process. It’s not only a complete headache in regard to paperwork, but it’s also exhausting to be put through the ringer when going through the underwriting process to get final approval. Buyers sometimes back out because they get cold feet or feel overwhelmed.

“Some buyers second-guess their decision or feel buyer’s remorse the day after they get into contract, especially if they rushed the process or waived contingencies.” Buyer’s Remorse is a very real thing.

Richard Iarossi, REALTOR®
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

A portion of every commission goes to support St. Jude charity directly

#AnnapolisRealEstate #CroftonMDHomes #BowieMDRealEstate #SevernaParkHomes #PasadenaMDHomes #GambrillsRealEstate #ArnoldMDRealEstate #EdgewaterMDHomes #MillersvilleMDHomes #OdentonRealEstate

Real Estate • July 10, 2025

The Truth About Where Home Prices Are Heading

by Rich Iarossi

The Truth About Where Home Prices Are Heading

There are plenty of headlines these days calling for a housing market crash. But the truth is, they’re not telling the full story. Here’s what’s actually happening, and what the experts project for home prices over the next 5 years. And spoiler alert – it’s not a crash.

Yes, in some local markets, prices are flattening or even dipping slightly this year as more homes hit the market. That’s normal with rising inventory. But the bigger picture is what really matters, and it’s far less dramatic than what the doom-and-gloom headlines suggest. Here’s why.

Over 100 leading housing market experts were surveyed in the latest Home Price Expectations Survey (HPES) from Fannie Mae. Their collective forecast shows prices are projected to keep rising over the next 5 years, just at a slower, healthier pace than what we’ve seen more recently. And that kind of steady, sustainable growth should be one factor to help ease your fears about the years ahead (see graph below):

And if you take a look at how the various experts responded within the survey, they fall into three main categories: those that were most optimistic about the forecast, most pessimistic, and the overall average outlook.

Here’s what the breakdown shows:

The average projection is about 3.3% price growth per year, through 2029.
The optimists see growth closer to 5.0% per year.
The pessimists still forecast about 1.3% growth per year.

Do they all agree on the same number? Of course not. But here’s the key takeaway: not one expert group is calling for a major national decline or a crash. Instead, they expect home prices to rise at a steady, more sustainable pace.

That’s much healthier for the market – and for you. Yes, some areas may see prices hold relatively flat or dip a bit in the short term, especially where inventory is on the rise. Others may appreciate faster than the national average because there are still fewer homes for sale than there are buyers trying to purchase them. But overall, more moderate price growth is cooling the rapid spikes we saw during the frenzy of the past few years.

And remember, even the most conservative experts still project prices will rise over the course of the next 5 years. That’s also because foreclosures are low, lending standards are in check, and homeowners have near record equity to boost the stability of the market. Together, those factors help prevent a wave of forced sales, like the kind that could drag prices down. So, if you’re waiting for a significant crash before you buy, you might be waiting quite a long time.

Bottom Line

If you’ve been on the fence about your plans, now’s the time to get clarity. The market isn’t heading for a crash. It’s on track for steady, slow, long-term growth overall, with some regional ups and downs along the way.

Want to know what that means for our neighborhood? Because national trends set the tone, but what really matters is what’s happening in your zip code. Let’s have a quick conversation so you can see exactly what our local data means for you.

Richard Iarossi, REALTOR®
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

A portion of every commission goes to support St. Jude charity directly

#AnnapolisRealEstate #CroftonMDHomes #BowieMDRealEstate #SevernaParkHomes #PasadenaMDHomes #GambrillsRealEstate #ArnoldMDRealEstate #EdgewaterMDHomes #MillersvilleMDHomes #OdentonRealEstate

Real Estate • June 10, 2025

The Five-Year Rule for Home Price Perspective

by Rich Iarossi

The Five-Year Rule for Home Price Perspective

Headlines are saying home prices are starting to dip in some markets. And if you’re beginning to second guess your plans based on what you’re hearing in the media, here’s what you need to know.

It’s true that a few metros are seeing slight price drops. But don’t let that overshadow this simple truth. Home values almost always go up over time (see graph below):

While everyone remembers what happened around the housing crash of 2008, that was the exception – not the rule. It hadn’t happened before, and hasn’t since. There were many market dynamics that were drastically different back then, too. From relaxed lending standards to a lack of homeowner equity, and even a large oversupply of homes, it was very different from where the national housing market is today. So, every headline about prices slowing down, normalizing, or even dipping doesn’t need to trigger fear that another big crash is coming.

Here’s something that explains why short-term dips usually aren’t a long-term deal-breaker.

What’s the Five-Year Rule?

In real estate, you might hear talk about the five-year rule. The idea is that if you plan to own your home for at least five years, short-term dips in prices usually don’t hurt you much. That’s because home values almost always go up in the long run. Even if prices drop a bit for a year or two, they tend to bounce back (and then some) over time.

Take it from Lance Lambert, Co-Founder of ResiClub:

“. . . there’s the ‘five-year rule of thumb’ in real estate—which suggests that most buyers can buffer themselves from mild short-term declines if they plan to own a property for at least that amount of time.”

What’s Happening in Today’s Market?

Here’s something else to put your mind at ease. Right now, most housing markets are still seeing home prices rise – just not as fast as they were a few years ago.

But in the major metros where prices are starting to cool off a little (the red bars in the graph below), the average drop is only about -2.9% since April 2024. That’s not a major decline like we saw back in 2008.

And when you look at the graph below, it’s clear that prices in most of those markets are up significantly compared to where they were five years ago (the blue bars). So, those homeowners are still ahead if they’ve been in their house for a few years or more (see graph below):

The Big Picture

Over the past 5 years, home prices have risen a staggering 55%, according to the Federal Housing Finance Agency (FHFA). So, a small short-term dip isn’t a significant loss. Even if your city is one where they’re down 2% or so, you’re still up far more than that.

And if you break those 5-year gains down even further, using data from the FHFA, you’ll see home values are up in every single state over the last five years (see map below):

That’s why it’s important not to stress too much about what’s happening this month, or even this year. If you’re in it for the long haul (and most homeowners are) your home is likely to grow in value over time.

Bottom Line

Yes, prices can shift in the short term. But history shows that home values almost always go up – especially if you live there for at least five years. So, whether you’re thinking of buying or selling, remember the five-year rule, and take comfort in the long view.

When you think about where you want to be in five years, how does owning a home fit into that picture?

Let’s connect to get you there.

Richard Iarossi, REALTOR®
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

A portion of every commission goes to support St. Jude charity directly

#AnnapolisRealEstate
#CroftonMDHomes
#BowieMDRealEstate
#SevernaParkHomes
#PasadenaMDHomes
#GambrillsRealEstate
#ArnoldMDRealEstate
#EdgewaterMDHomes
#MillersvilleMDHomes
#OdentonRealEstate

Real Estate • June 9, 2025

Buying Your First Home? FHA Loans Can Help

by Rich Iarossi

If you’re a first-time homebuyer, you might feel like the odds are stacked against you in today’s market. But there are resources and programs out there that can help – if you know where to look. And one thing that can make homeownership easier to achieve? An FHA home loan.

They’re designed to help you overcome some of the biggest financial hurdles in the homebuying process – and that’s why so many first-timers are using them to make their purchase.

Whether you’re dreaming of ditching rent, planting roots, or just wanting a place that’s truly yours, an FHA home loan could be the path that gets you there sooner than you think.

Buying Your First Home Probably Doesn’t Feel Easy Right Now

While the motivation to buy a home is still there for many people, affordability is a real challenge today. According to a survey from 1000WATT, potential first-time buyers say their top two concerns are saving enough for their down payment and making the monthly mortgage payments work at today’s home prices and mortgage rates (see graph below):

That’s Where FHA Loans Come In

FHA loans help many first-time buyers overcome these challenges.

In fact, according to Intercontinental Exchange (ICE), the average first-time buyer using an FHA loan puts down just $16,000. That’s a big difference from the $77,000 they’re putting down with the typical conventional mortgage (see graph below):

Essentially, buyers who use an FHA loan may not have to come up with as much cash up front. But the perks don’t stop there. You may also be able to pay less monthly, too.

That’s because, a lot of the time, the mortgage rate on FHA loans can be lower. Bankrate says:

“FHA loan rates are competitive with, and often slightly lower than, rates for conventional loans.”

So, if you’re thinking about buying your first place, an FHA loan may be worth exploring.

Because of the potential for lower down payment requirements and maybe even a lower mortgage rate, it could help with the two most common hurdles first-time buyers face today – saving enough money upfront and affording the monthly payment.

A trusted lender can walk you through the details, compare your options, and help you figure out what loan type makes the most sense for your situation.

Bottom Line

With the right loan and the right guidance, homeownership may be more achievable than you think.

Do you want to talk more about your options? A trusted lender is there to he.

Richard Iarossi, REALTOR
Coldwell Banker Realty
1300 Main Chapel Way, Gambrills, MD 21054
443.995.9595 Cell
410.721.0103 Office
eMail: rich@richsellshomes.com
Web: https://richsellshomes.com

#AnnapolisRealEstate #CroftonMDHomes #BowieMDRealEstate #SevernaParkHomes #PasadenaMDHomes #GambrillsRealEstate #ArnoldMDRealEstate #EdgewaterMDHomes #MillersvilleMDHomes #OdentonRealEstate

Real Estate • June 8, 2025

Understanding Today’s Mortgage Rates: Is 3% Coming Back?

by Rich Iarossi

Understanding Today’s Mortgage Rates: Is 3% Coming Back?

A lot of buyers are pressing pause on their plans these days, holding out hope that mortgage rates will come down – maybe even back to the historic-low 3% from a few years ago. But here’s the thing: those rates were never meant to last. They were a short-term response to a very specific moment in time. And as the market finds its footing again, it’s time to reset expectations.

Back in 2020 and 2021, 3% mortgage rates gave buyers a serious boost: more affordability, more buying power, and more opportunity. But those rates were a result of emergency economic policies during the height of a global pandemic. Now that the economy is in a different place, we’re seeing mortgage rates in the high 6% to low 7% range.

And while experts currently project a slight easing in the months ahead, most industry leaders agree: rates are not going back to 3%.

Instead, many forecasts suggest mortgage rates will settle in the mid-6% range by the end of the year, pending any major economic shifts. As Kara Ng, Senior Economist at Zillow, says:

“While Zillow expects mortgage rates to end the year near mid-6%, barring any unforeseen shocks, that path might be bumpy.”

What Buyers Should Know

Basically, waiting for 3% rates might mean waiting longer than you’d expect – and missing out along the way. Instead of putting off homebuying indefinitely, make a plan to get there and focus on what you can control: your budget, your credit, and working with a trusted professional who can explain exactly what’s happening in the current market – and how to navigate it.

Your local real estate agent and a trusted lender make all the difference in this process. The experts have insights into down payment assistance programs, alternative financing options, negotiation strategies, and overall – the experience you need on your side to understand creative ways that will make your plans work.

And here’s the biggest thing to keep in mind. Since rates are projected to ease slightly later this year, if that happens, it could bring some more buyers back into the market. Acting now gives you a head start, especially with more homes on the market than we’ve seen in years.

Think about it: if mortgage rates do come down, what do you think everyone else is going to do? That’s right – they’ll jump back in too.

Getting ahead of that rush could put you in a stronger position to find the right home with less competition. Realtor.com sums it up well:

“Staying out of the market in hopes of a rate drop that never comes can lead to missed opportunities . . . Rising home prices, rent increases, and inflation might outpace any future savings on interest. And if rates do fall sharply again, buyers could face an entirely different challenge: surging competition.”

Bottom Line

Those 3% rates everyone remembers from a few years ago were the exception, not the rule.

Now that they’re settling into new territory, it’s a good time to adjust your expectations and learn more about where things are heading as this market shifts.

A local real estate agent and a trusted lender will be your best resources, always keeping you up-to-date and informed, so you can make sense of your options and build a game plan that works for you.

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