Sponsored

This week’s Q&A column is sponsored and written by Brian Bonnet, Senior Loan Officer (NMLS ID# 224811) of Atlantic Coast Mortgage, LLC (NMLS ID# 643114). To learn more about current mortgage rates and the home loan process, contact Brian at 703-766-6702 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: Why aren’t mortgage rates dropping?

Answer: The Federal Reserve began lowering the Fed Funds Rate this past September with a ½ point decrease, followed by additional ¼ point reductions in November and December. Consumers had eagerly awaited these reductions in the hope that rates on consumer loans, such as mortgages, would follow. (This article was written prior to the January Fed meeting.)

Unfortunately, the opposite has been the case.

According to Freddie Mac’s weekly mortgage rate survey, the average rate on 30-year fixed-rate loans closed during the week of the September Fed rate cut was 6.08%. The survey shows the average rate increasing in the following months with that number currently sitting at 7.04%. So, with a total decrease in the Fed Funds rate of 1.0%, mortgage interest rates have actually increased 1.0%. Why?

Mortgage rates generally track the direction of the 10-year Treasury Yield. The 10-year yield and the yields of other long-term treasuries and bonds are driven largely by expectations of where short-term interest rates will be in the future, as opposed to where they are now.

The Federal Reserve lowered the extremely short-term interest rate, the Fed Funds Rate, but economic reports and even commentary from Federal Reserve governors continues to indicate concerns that instead of moving closer to the Fed’s 2% inflation target, we are actually moving away from it.

In addition to the actual economic numbers we are currently seeing, we have the prospect of tariffs being added to the mix, the result of which would very likely be inflationary. Fed commentary suggests they are less likely to continue lowering the Fed Funds Rate in the near term which has the impact of keeping long term yields, including mortgage rates at higher levels.

No one can tell consumers when mortgage rates will trend lower again, but waiting for lower rates before purchasing a home may not be the wisest financial move. The median price for a home in the D.C. Metro area rose approximately 6.2% in 2024 to $610,000. We continue to see low inventory and will likely see similar increases in home prices during 2025. As prices increase, so do loan amounts. Consumers should remember when rates decline, you can refinance a loan to a lower rate, but you can never “refinance” your purchase price to a lower price.

Let’s look at an example: a $610,000 purchase price now with 20% down at a rate of 7% results in a principal and interest payment of $3,247 on a loan of $488,000. Refinancing the balance a year later to a 6% rate reduces the P&I payment to $2,896.

But if a consumer waits that same year for rates to drop to 6%, the price of that same home will likely be $647,820, an increase of almost $40,000. With 20% down the loan would increase to $518,256 which results in a P&I payment of $3,107, or just $140 less than the previous year.

So, while the purchaser saved $140/month in their P&I payment in the second example by waiting to purchase until rates dropped the next year, they could have saved $351/month by refinancing the loan if they had purchased the year before. Waiting for rates to decrease while home prices increase almost never makes sense.

If you’re in the market to purchase a home, we’d love to create a home-buying strategy that gets you a rate you can live with for a home you can afford today. Please reach out to me or my colleagues at Atlantic Coast Mortgage to get started.

If you would like more information about financing a mortgage in today’s market, please contact Brian Bonnet at [email protected] or call 703-766-6702.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.

This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703-244-6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: What should I know when trying to buy a house?

Answer: That’s a great question! Many buyers think that the first step is to go to open houses and see what you like in a home. While that’s fun, it can be counterproductive, especially if you are looking in the wrong price range. It’s also kind of like putting the cart before the horse, since there are several steps that should be accomplished before trying to make an offer on a home.

Here are my top tips for positioning yourself well and competitively, when you’re ready to buy.

1. Talk to a Lender

Many buyers think, “Of course, I will qualify, so I’ll deal with choosing a lender once I’m ready to make an offer.” However, even the most qualified buyers can run into hiccups, if they have not submitted a loan application already. There may be something that pops up, such as a debt you didn’t know about, or even someone using your name for credit. These are things that you need to find out as soon as possible. Even more importantly, a lender will give you a true picture of what you can afford.

Many of our buyers have been looking at the wrong price point, not realizing they could afford more, or shopping for homes that would not fit their budget. It’s important to have a very clear picture of your price range. A lender can also look at your credit and help you to improve your score quickly. It doesn’t cost you anything or hurt your credit to talk with a lender, submit an application (even if it’s early in the process), and figure out your true buying power. It’s best to do it sooner rather than later.

2. Set Your Priorities

While pricing is important, you should also assess what else matters to you. How many bedrooms do you want or need? How many square feet? Number of baths? Parking? Distance to work, family, or other frequently visited spots? Ability to sell easily in future? Make a list of all your priorities and then rank them.

3. Choose a Realtor

A Realtor can help you target communities that fit your most important priorities. You DO NOT want to be picking a Realtor the day you find the home you love. And you most likely do not want to pick the listing agent to represent you, since they were hired to represent the seller. It is in your best interest to already be working with a Realtor, even if you know it will be several months or even a year before you buy.

Choose a Realtor who is knowledgeable, has experience, and that you feel comfortable with. Meet with them in advance and ask all your questions. I would suggest asking: How many homes have you sold? What are the lowest priced homes you’ve sold and the highest priced homes you’ve sold? What are your suggestions for winning in a competitive market? Do you think I should have a home inspection? BTW, I think you should always have a home inspection. I also believe that the location of the home should not impact your choice of Realtor (unless they are not licensed in that jurisdiction), as it’s their skills that matter most. Again, it’s best to choose your Realtor sooner than later.

4. Drive Around Neighborhoods

If you are interested in an area, look carefully at the neighborhoods. Drive your commute, especially in rush hour, so that you can see if this is a commute that you’re really comfortable with. Maybe even take a walk in the neighborhood and ask some of the neighbors how they like living there. Look on social media sites for a neighborhood group. It’s really important to know the vibe and what, if anything, the neighbors love or don’t love about the community.

If you are looking for a local, experienced agent to guide you through the process, negotiate on your behalf and ensure that you make informed decisions, don’t hesitate to reach out!

Hope Peele is a licensed real estate agent with Corcoran McEnearney in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703-244-6115.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.

This week’s Q&A column is sponsored and written by Rebecca McCullough of Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact Rebecca at 571-384-0941 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: Should I list during the holidays?

Answer: At this time of year, we get many people asking if they should list their home now, or hold on until after the new year? As always, if you need to sell, list it. However, sellers are often inclined to wait until the new year. But should they? Serious buyers are still out there looking. They are still waiting for the right home to come on the market.

It is true we often see an influx of listings and buyers in January. The holidays have a way of making people evaluate their home. We need more room! We need to downsize so we don’t have to host any more. They got engaged, or many other reasons. So with more buyers, come more competition. Smart buyers who are looking now will gobble up good listings coming on the market before the new year.

So what does demand look like now? Even though interest rates are still higher than a few years ago, we still have significant demand for good houses priced well. The need to sell isn’t always something that can be timed. Jobs change, people can no longer take care of their homes, families grow and lifestyles change.

So if the timing is such that you do need or want to sell now, know they are still many frustrated buyers out there still looking for a home. There may not be as many buyers at time of year, but the ones out there are motivated!

Great, you’ve decided to list (thank you!), what do you do about holiday decor. Do you go Christmas Vacation style to bring in lots of interest, or keep the holiday decor packed away? The answer lies somewhere in between. Nobody expects sellers to hide the season just because you’re selling, but this might not be the year to go for the neighborhood decorating award.

Keeping decorations simple, and understated, while still honoring your family customs, is perfectly acceptable. Subtle and understated is the way to go, always keeping the guidelines staging in mind. Accent the best features in your home. Don’t put the Christmas tree in front of the window with the best view, or cover up beautiful mantles and railings with too much greenery. Use the décor to accent areas of the home you want the buyer to see.

This time of year is fabulous to play up the warmth in a home. The smell of fresh baked cookies, glowing flameless candles and seasonal floral arrangements create the ambience to make them want to stay.

Also keep in mind if you are launching your listing during the holidays when your home is decorated, photographs will include the seasonal items. If your home does not sell before the holidays are over, you may want to consider having new pictures done to promote the property in the new year. Even if the decorations brought out the best of your home during the holidays, seeing them in mid January will remind buyers the home has been on the market for awhile and may create red flags.

When it comes to photographs, consider a twilight photoshoot. The images taken at this time of day create a charming glow from the inside of the house. They can really show off some of the best features of your home. Large bay windows, fabulous front doors, spacious patios. Now that the trees are bare and the grass is brown, daytime photos may appear bland, but some carefully hung white outdoor lights accenting a patio or pathway lighting highlighted in a twilight photoshoot can really make the drab appear fab!

In summary:

• Outside lights? Think accent lighting and bows, and less endless light strings row-on-rows.
• Inside decor? Tasteful displays in selected places, not every last bobble in all of your spaces.
• Gramma’s traditional home-made wahovit? Maybe keep a space in the closet to move-it!

So, is selling now, during the holidays a good idea? This year, absolutely. Buyers are looking, and there’s not much to look at. Be careful, and sensible with the decorations, and you can still blend your holiday highlights, with the needs of a staged home. Make sure there are booties and hand sanitizer, and know like any other time of year flexibility will be important.

Wishing you a successful selling holiday season!

Rebecca McCullough has built a successful real estate business in Alexandria and Northern Virginia by providing excellent service to her clients. If you would like more information on selling or buying in today’s complex market, contact Rebecca today at 571-384-0941 or visit her website RebeccaMcCullough.com.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.

This week’s Q&A column is sponsored and written by Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact us at 703-549-9292. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: How do financing contingencies in a contract impact the home selling process?

Answer: On the winding road from purchase offer to contract ratification to settlement, there are a few speedbumps that both buyers and sellers must navigate together. Contingencies are one type of speedbump, additional agreements that the contract will continue to move forward as long as certain conditions are met.

Sonia Downard, Title Attorney with Vesta Settlements, recently spoke to our agents about guiding clients through the Financing Contingency for sales in Virginia and avoiding missteps along the way. She explained that while the financing contingency can benefit both the buyer and seller in a sale, it is decidedly buyer-friendly with several protections.

In a real estate transaction, the Financing Contingency is the clause that gives buyers time to secure the financing for the purchase of a property — usually through a mortgage with a lending institution — within a specific time period. If a buyer is unable to secure financing, they can void the contract using this contingency and avoid legal penalties or losing their EMD (earnest money deposit.)

The most common types of financing are Conventional (the most popular), VA (for veteran and military buyers), FHA (great for first-time homebuyers and those with limited cash for down payments and fees), and USDA (for properties in rural areas).

Financing contingencies can have an automatic extension or an automatic termination, and a buyer can satisfy or remove the contingency by delivering to the seller a written commitment from the lender for the required financing. If a buyer misses the financing contingency deadline and has an automatic extension, the seller can deliver a written notice to the buyer that they have three days to remove the contingency or void the contract. However, it’s more likely that the seller will allow a contingency to remain in place up until settlement as lenders complete their final underwriting tasks.

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We’re thrilled to share some exciting news with you — McEnearney Associates | Middleburg Real Estate | Atoka Properties has joined forces with Corcoran, one of the most esteemed names in real estate. We are now Corcoran McEnearney!

What does this mean for you? It’s simple: the same trusted service and local expertise you’ve always relied on, now paired with the global reach, cutting-edge resources, and industry-leading innovation that Corcoran brings us.

This partnership enhances our ability to serve you better, whether you’re buying, selling, or investing. With Corcoran’s renowned network and our unwavering commitment to your success, we’re confident this marks a new chapter of possibilities for your real estate journey.

If you have any questions about this exciting change or how it benefits you, please don’t hesitate to reach out. We look forward to continuing to provide you with exceptional service as Corcoran McEnearney.

More Than 40 Years of Exceptional Service

The first McEnearney Associates office opened in 1980 with John McEnearney at the helm, whose personal commitment to offer best-in-class service with the industry’s best agents set the foundation for the company. More than 40 years later, the McEnearney name has continued to uphold this foundation while steadily growing to include more than 420 agents and 40 support staff across 13 offices, located throughout Washington, D.C., Virginia, Maryland, and West Virginia.

Today, Maureen McEnearney Dunn, daughter of John McEnearney, is the President of Corcoran McEnearney, having been a part of the company since its inception and holding her current position since 2007. Throughout her tenure, Dunn has brought visionary leadership to grow the firm sevenfold, transforming its operations and expanding its market presence significantly.

Under her leadership, the firm has recruited top talent and fostered success amongst the agents, while focusing on marketing, education, training, relocation, and technology to keep the company ahead of the curve. Deeply committed to industry and community involvement, she has served on the Northern Virginia Association of REALTORS® Ethics and Professional Standards Committees and has led hundreds of key fundraising initiatives including the Capital Area Food Bank, Arlington Food Assistance Center, At Home in Alexandria, SCAN, Act for Alexandria, Share of McLean, and more.

“The authentic culture and dedication to excellence with the Corcoran^® brand has always aligned seamlessly with the core values of McEnearney,” said Dunn. “Corcoran’s robust marketing strategies and expansive network can help equip our agents to deliver even greater care and support to both new and loyal clients. We are energized by the immense growth potential this partnership brings, reinforcing our commitment to delivering the exceptional service that has defined our company for 45 years.”

Depth of Industry Leadership

As a strategic growth merger, McEnearney Associates joined forces with Middleburg Real Estate/Atoka Properties in June 2023. Having led successful careers as agents, Peter Pejacsevich and Scott Buzzelli founded Atoka Properties and acquired Middleburg Real Estate in 2008. Initially drawn to Middleburg, Virginia, for its strong heritage and deep history, the team channeled their personal interest and successful business into establishing a premier brokerage serving Virginia and West Virginia’s countryside and beyond.

Now operating as Principal & Chief Operating Officer of Corcoran McEnearney, Pejacsevich brings his strong business acumen and global perspective to continue driving the company’s presence and growth throughout the greater Washington, D.C. metro region. His extensive industry experience in luxury sales and track record of success provide him with a profound understanding of every level within the business. This deep-rooted expertise allows him to drive innovation and enhance overall operational efficiency, ultimately contributing to the firm’s continued long-term success.

“This partnership has been a natural fit from the beginning,” said Pejacsevich. “The Corcoran^® brand’s genuine spirit resonated with us – values of service, integrity, market expertise, and neighborhood fluency, affirming that together we could achieve something even more impactful in our market. While maintaining independence, we now gain access to cutting-edge technology, refined marketing strategies, an expanded network, and enhanced resources.”

Joining Dunn and Pejacsevich on Corcoran McEnearney’s executive leadership team is David Howell, Executive Vice President & Chief Information Officer. Howell is a recognized industry leader who, among other distinctions, is a member of the Hall of Fame for both Virginia REALTORS^® and the Northern Virginia Association of REALTORS^®, where he also formerly served as President.

The Corcoran McEnearney executive team also includes Scott Buzzelli, Chief Strategy Officer; Jeanne Choi, Chief Marketing Officer; Kristen Doczkat, Chief Financial Officer, and a strategic growth team. Complementing this executive team, Corcoran McEnearney is further supported by five exceptional Managing Brokers, skilled corporate department leads, and dedicated office managers.

“We are thrilled to welcome Corcoran McEnearney, an impressive and well-respected company with a well-earned reputation for excellence and integrity,” said Stephanie Anton, President of Corcoran Affiliates. “By joining forces, our network is gaining invaluable expertise and presence in a major world market, while providing the tools and resources to further strengthen Corcoran McEnearney’s high standards in client service and agent support.”

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.