The New Normal

Talk to one of our preferred lenders to learn what lower mortgage rates options are available.

You Pay for What You Get

Higher mortgage rates shouldn’t be a suprise. Besides having SUPER LOW RATES for over 10 years, there were factors that led to our shocking interest adjustment this past fall. Last year when we were hit by the news of the great resignation due to the free money we got from the government, many people had a bad feeling about what would come as a result. That, plus all the shortages and subsequent price hikes made it absolutely necessary for the Federal Reserve to slam on the brakes.

Rates are higher…. Get used to it!

unprepared home buyer

but wait…. Rates AREN’T High?

As a matter of fact, rates are still below average.

  • average 30 year fixed mortgage rate is 7.75%.
  • Rates have averaged above 10% for 574 weeks
  • Rates have averaged above 7% for 1,316 weeks
  • Rates have averaged below 7% for 1,175 weeks

So it’s been a while since we’ve had high rates, but only because of the great recession and the pandemic.

OK… fine…. Where do we go from here?

Buyer’s have always had options for lower rates. The 30 year fixed rate is especially good for people who plan keeping the same mortgage for 30 years, but who does that? Average homeownership (same home) is around 8% on average, and people keep the same mortgage for around 4-5 years. That being the case, the majority of people would benefit from the adjustable rate mortgage. As of this post, rates for a 30 year fixed mortgage are around 6.375%, and rates for a 5/6 adjustable rate mortgage are closer to 5.375%. Even after the initial term, all reputable banks have limits on how much a rate can change in a year, and if rates have dropped, the adjustable rate drops too.

Don’t Forget!

Keep in mind, when it comes to numbers, sometimes interest rates can be decieving. While the monthly payment is based upon the interest rate, the actual cost of the loan is reflected by the APR (annual percentage rate) which adds the origination fees divided by the number of payments for the life of the loan. The APR and the rate are always pretty close together, so most buyers don’t sweat it, but if the origination fees are divided by the ACTUAL length of the loan (4-5 years on average), the APR is significantly higher when the origination fees are greater.

It pays to pay attention and compare ALL the numbers

when considering loans!


St Louis real estate is our specialty! 
If you want to net the best value when you buy, anywhere in the St Louis, MO area, call us for a no obligation assessment! We work throughout the metro area, especially in Sunset Hills
, Crestwood,  St Louis CitySt Louis CountyBallwinChesterfieldKirkwoodWebster Groves, St Charles,or one of the other areas we serve, simply click the “How-To Find my buyers agent” link at the top or bottom of this page to begin the selling process now. Buying and selling, check out our home seller blog or home selling page!

Edging Out the Other Buyers

Home Buying is a lot like competition for the Bachelorette

The home buying market is ever changing.

Last year, things got crazy. It was the 4th year of housing shortages, and buyer’s had to become resourceful. Imagine it being like the 29 guys on The Bachelorette. 29-1 odds: like Ladies Night in Fairbanks!

Not every buyer wants to, or can afford to out-spend everyone. So what do you do? The answer is complicated. Opinions vary, but here are my suggestions.

Step #1: Interview a Realtor®

People like to talk about homes being the largest investment in your life. If you owned a pro sports team, and you needed someone to manage it for you, would you hire the first person that picked up the phone? Would you hire someone because your older sister knows them? Would you hire someone because they agree to pay half their earnings to a celebrity? Most pro sports team owners would say emphatically, “no!” Interviewing a Realtor® is important, and knowing what to ask is important too. I’d ask “how long have you been assisting buyer’s? How many buyer’s per year do you normally represent? Do you also list homes? How many homes have you owned yourself? Can you tell me how you’d help me buy a home?

Atrium Ranch we helped a client purchase in September 2020.

Often times buyer’s are relegated to buyer’s agents that are just entering the business, while the more experienced Realtor® focus only on listings. The problem with that is the well of information is relatively dry for many exclusive buyer’s agents. For some its just a stair step until they learn the ropes. I’ve often times been shocked to talk with some of the younger agents in the business that haven’t ever purchased a home of their own to draw experience from. It reminds me of a waiter in a restaurant that has no idea about anything on the menu, versus a waiter with clear knowledge of their menu and all the possible options. Inexperienced buyer’s agents are like the proverbial order taker that just wants to the deal to come together and has no idea of what should be happening.

Photographs of a home on Shenandoah Avenue in the Tower Grove East neighborhood of St. Louis, Missouri for Lisa & Chris Grus, Premier Realty Exclusive,

Step #2: Depends on Step #1

When a buyer engages us, we explain our role in the process and ask them some questions. It’s important for us to know things like a home buyer’s time frame, desired features, preferred area, and even how long they plan on staying there. So many factors come out of our initial discussion, and once we understand, we confirm with the prospective buyer what strategy seems best for their specific situation. As long as the buyer(s) agree, we outline the strategy and make recommendations from there, so it all starts with hiring the right Realtor®!

For help finding the right buyer’s agent, visit us online and set up an interview!


St Louis real estate is our specialty! 
If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis CitySt Louis CountySt CharlesBallwinChesterfieldSunset HillsKirkwoodWebster Groves, or one of the other areas we serve, simply click the “How-To Find my buyer’s agent” link at the top or bottom of this page to begin your home search now.

Home Shopping 101

In 2020, buyers have to be savvy to get the best deals on homes!

We’ve all heard about 2020 being a tough year. Well don’t get prospective home shoppers started! It’s been an unexpected challenge, right up their with toilet paper, cleaning products and exercise equipment!

Low interest rates, plus the change in plans for a lot of people due to COVID-19, meant that home Last week a buyer that seemed to get beat out every time they made an offer was finally able to move into their first home! Just like most years, things go in cycles and this year the election was the impetus of a more buyer friendly market. Traditionally the market slows down in late summer, when people start taking more trips, going to concerts and avoiding the heat. This year it didn’t happen. One thing that happens alost every year, is the ability to pick up homes more affordably during the holidays through late January.

One slight change from the pandemic is that the whole world seemed to learn how to use Zoom, as well as the evolution of several other virtual meeting programs. The time it used to take to meet with buyer’s has dropped, as many people are happy to meet their Realtor virtually and get acquainted without stepping foot outside their homes.

Click Here to Request a Zoom Buyer Consultation

So if you’re still considering home buying, waiting until springtime like everyone else may end up costing you!

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis CitySt Louis CountySt CharlesBallwinChesterfieldSunset HillsKirkwoodWebster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search now.