Texas Housing Trends Revealed: Current Rates and Market Analysis

The Texas Real Estate & Finance Podcast with Mike Mills

Stay informed with the most recent updates on Texas housing trends! Mike Mills breaks down the current mortgage rates and vital market data impacting your real estate business. Tune in for essential knowledge and expert advice that can give you a competitive edge!

this episode of The Texas Real Estate and Finance Podcast, Mike Mills delves into the latest Texas housing trends, providing an in-depth analysis of current mortgage rates. Realtors and real estate professionals will gain valuable insights on the factors driving the market, including low inventory levels and builder pullbacks. Mike discusses the implications of recent economic data and offers predictions on future rate movements. Learn about the strategic moves of major players like Redfin and how these changes could impact your business. Additionally, Mike introduces underutilized home loan products that can help your clients find and renovate their dream homes. Stay informed and ahead in the real estate market with this comprehensive update.

Key Takeaways

Texas Housing Trends and Market Impact

The latest Texas housing trends reveal a market influenced by low inventory and rising home prices. Mike explains how these trends affect both buyers and sellers, providing valuable insights for real estate professionals to navigate the current landscape. Understanding these dynamics is crucial for making informed decisions in the real estate market.

Mortgage Rate Movements and Predictions

Mike discusses the recent fluctuations in mortgage rates, highlighting the brief dip below 7% and the factors driving these changes. He provides predictions on future rate movements, emphasizing the importance of staying updated on economic indicators. This knowledge helps real estate agents advise clients more effectively.

Builder Activity and Housing Supply

Despite high demand, builders are pulling back on housing starts due to anticipated low demand and high-interest rates. Mike details the reasons behind this trend and its implications for the housing market. Real estate professionals need to be aware of these shifts to better understand market conditions and inventory levels.

Redfin's Strategic Moves

Redfin is expanding its brokerage services, offering benefits and competitive commission splits to attract agents. Mike explores how this strategy could reshape the real estate landscape and what it means for other brokerages and agents. Staying informed about such industry changes is essential for real estate professionals.

Underutilized Home Loan Products

Mike introduces underused loan products like the FHA 203k, Fannie Mae Homestyle, and Freddie Mac Choice Renovation loans. These loans can help clients purchase and renovate homes, expanding their options in a low-inventory market. Real estate agents can use this information to provide innovative solutions to their clients' needs.

Time Stamped Summary

00:08 - 00:30

Introduction by Mike Mills

• Mike welcomes listeners to the Texas Real Estate and Finance Podcast's market update for the week of May 21st.
• Emphasizes his role as a North Texas mortgage banker and his mission to keep listeners informed about the housing market.

00:31 - 01:44

North Texas Sports Update

• Mike briefly discusses the success of North Texas sports teams, including the Mavericks, Stars, and Rangers.
• Highlights the excitement around the Western Conference Finals and the significance of local sports achievements.

01:45 - 02:25

Introduction to Market Topics

• Transition to the main topics of the episode, focusing on current mortgage rates and housing data.
• Mentions upcoming discussion on builder activities and a special loan product that could benefit clients.

02:26 - 03:19

Current Mortgage Rates

• Overview of recent mortgage rate trends, including a brief dip below 7% and the current average rates for various loan types.
• Discusses economic factors influencing these rates, such as job market weakness and inflation.

03:20 - 04:10

Economic Indicators and Job Market Data

• Analysis of recent job market data, including April's job additions and significant revisions to previous quarters' numbers.
• Explains how these economic indicators impact mortgage rates and housing demand.

04:11 - 05:03

Consumer Sentiment and Market Reactions

• Discussion on consumer sentiment and its correlation with economic performance.
• Mentions how businesses like Walmart are performing well in a recession-proof environment, while others face challenges.

05:04 - 05:32

Impact of Unemployment on Rates

• Insights into how rising unemployment rates could lead the Fed to cut rates to prevent economic downturn.
• Emphasizes the unusual behavior of the stock market in response to economic indicators.

05:33 - 06:07

Overall Housing Demand and Prices

• Examination of current housing demand, which is at its lowest in 30 years.
• Despite low demand, median home prices are hitting record highs due to low supply.

06:08 - 07:30

Builder Activity and Housing Starts

• Analysis of builder trends, including the decline in single-family home starts and permit applications.
• Discusses the reasons behind builders' lack of confidence in future buyer demand and their shift towards building smaller homes.

07:31 - 08:45

Increase in Pre-Owned Home Listings

• Reports on the rise in listings for pre-owned homes and overall housing inventory growth.
• Explains how these trends affect market dynamics and home prices.

08:46 - 10:01

Redfin's Expansion and Brokerage Strategy

• Overview of Redfin's strategic moves to expand its brokerage services and offer comprehensive benefits to agents.
• Lists the markets where Redfin is rolling out its new payment plan and the potential implications for real estate professionals.

10:02 - 11:14

Analysis of Redfin's Model

• Mike shares his thoughts on Redfin's model of making realtors W-2 employees and its potential appeal to different types of agents.
• Encourages listeners to consider how this shift might impact their own business strategies.

11:15 - 12:20

Introduction to Underused Home Loan Products

• Introduction to the FHA 203k, Fannie Mae Homestyle, and Freddie Mac Choice Renovation loans.
• Explains how these loans work and their benefits for clients looking to purchase and renovate homes.

12:21 - 15:00

Details on Renovation Loans

• In-depth explanation of how renovation loans combine purchase price and renovation costs into a single loan.
• Highlights the eligibility requirements and the process of obtaining these loans.

15:01 - 16:00

Advice for Real Estate Professionals

• Mike advises real estate professionals on how to leverage renovation loans to help clients find and improve homes.
• Suggests including renovation loan options in property listings to attract more buyers.

16:01 - 17:07

Conclusion and Upcoming Episode Teaser

• Mike wraps up the episode, thanking listeners for their time.
• Teases the upcoming episode featuring a value proposition masterclass with his wife, Susan Mills.
• Encourages listeners to tune in and stay informed about the latest real estate trends.

Mike Mills is a seasoned mortgage banker with Geneva Financial and the engaging host of The Texas Real Estate and Finance Podcast. With a deep understanding of the real estate and mortgage industries, Mike offers valuable insights and practical advice to realtors and real estate professionals. Known for his ability to break down complex topics with clarity and a touch of humor, Mike empowers his listeners to make informed decisions in the dynamic world of real estate. Whether discussing the latest Texas housing trends, mortgage rates, or innovative loan products, Mike's expertise and passion for the industry shine through in every episode.

• Mike Mills Mortgage
• The Texas Real Estate & FInance Podcast - Check out all past episodes, and extra content here!
• YouTube: The Texas Real Estate & Finance Podcast - Buying or Refinancing a home? Looking to invest in Real Estate? Looking to gain more basic financial knowledge? Tune in weekly as we discuss all things Real Estate and Finance. And the occasional surpise guest not related to any of that, about other topics I find facinating. I hope you will too! Hope you enjoy!

Resources

Here are the resources mentioned in this episode for the audience to access:

1. Geneva Financial

• Website: https://www.millsteammortgage.com

2. FHA 203k Loan

• Overview: An FHA loan that allows borrowers to finance both the purchase and renovation of a home in a single loan.
• More Info: https://www.hud.gov/program_offices/housing/sfh/203k

3. Fannie Mae Homestyle Renovation Loan

• Overview: A loan that allows borrowers to finance the purchase or refinance of a home and include renovation costs in a single mortgage.
• More Info: https://www.fanniemae.com/singlefamily/homestyle-renovation

4. Freddie Mac Choice Renovation Loan

• Overview: A loan program that allows borrowers to finance the purchase or refinance of a home and the costs of renovations through a single loan.
• More Info: https://sf.freddiemac.com/working-with-us/affordable-lending/renovation-mortgage

5. Mortgage News Daily

• Website: https://www.mortgagenewsdaily.com
• Purpose: Source for current mortgage rates and market analysis.

6. Redfin's Brokerage Services

• Overview: Information on Redfin's expanded brokerage services, benefits for agents, and new commission structures.
• More Info: https://www.redfin.com

7. Contact Mike Mills

• Email: [e-mail]
• Phone: [phone]