Some days it seems everyone in the country is waiting for the Federal Reserve meeting later this month before deciding to buy a Minneapolis or St Paul duplex.
Here’s why waiting could cost you.
Everyone expects the central bank to lower their overnight rate by .25 or even .5 percent. While this doesn’t directly impact mortgage rates, it does help form the basis of what a lender may charge.
As a result, many nice multifamily properties are lingering on the market.
Meanwhile, the banks still had to make money in August. So they discounted their mortgage rates in an amount of what they think the Federal Reserve will move later this month.
That means there’s less competition for properties right now, but mortgage rates are already lower. In fact, for many they are in the low 6’s. But all the duplex shoppers are waiting to hear that from the Fed.
In other words, whether you’ve been thinking of house hacking or simply buying an investment property, you’re not going to have as much competition right now as you might as we get deeper into September.
So you might be able to write an offer without ending up in multiples. Or maybe even make your offer contingent on having an inspection.
In other words, things might be a little…dare I say, normal?