Iowa mortgage experts see busy fall season with declining interest rates

DES MOINES, Iowa — In a market that drives so many others, these are good sights and sounds.

“I would say we’re busy,” says mortgage consultant James Bakkie, “and I mean really busy.”

Falling interest rates had mortgage brokers hustling this month, but then came last week’s announcement from the Fed.

“We knew that they were gonna talk and we knew that they were gonna drop,” says Susan Tinker, another lender with Community Choice Credit Union, “we just didn’t know how much they were gonna drop.”

For those who bought late last year, the Fed’s half-point slash should mean significant savings with a refinance.

“We’re at high fives now,” says Bakkie, “if they fall a (another) percent, it could be $250 (a month) on a $300,000 house.”

Those looking to buy now have more power to do so, and realtors say they’re feeling the rush.

“We would anticipate a busier fall season than normal,” says Andrew DePhillips, of the DePhillips Real Estate Group. “More of a spring market here in the fall.”

DePhillips is cautioning buyers who are ready now not to wait too long.

“History shows interest rates come down, house prices go up.”

The metro’s still-limited inventory of homes for sale could exacerbate that effect.

“If rates really drop,” says Bakkie, “buyers are gonna come back out in full force and that $250,000 home could be $275,000 — could be $300,000.”

Buy now, refinance later. You’ve heard that line before — but this time, maybe the later is sooner than you think.

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