Downbeach Real Estate Finance Vacation Shore Homes DEC 19 2025

Описание: Ventnor, Margate, Longport, Brigantine, Atlantic City Real Estate News.
EXP Realty. Rate.com https://DownbeachBUZZ.com .

Real estate experts and mortgage professionals, discusses the current state and future outlook of the real estate market, specifically focusing on the Jersey Shore and vacation homes.

Key Discussion Points
Mortgage Rates and Fed Cuts: There is a common misconception that Fed overnight rate cuts immediately lower mortgage rates. In reality, rates can sometimes creep up following a cut due to persistent concerns regarding inflation and jobs [01:07]. However, 2025 saw a general downward trend from the low 7% range to the upper 5% to lower 6% range [01:46].

2026 Market Outlook: The speakers project a very strong market for 2026, with purchase applications expected to rise between 13% and 18% [02:05]. A major factor in current market stagnation is that many homeowners are "sitting on the sidelines," unwilling to trade their low COVID-era interest rates (2.5%–4%) for higher current rates [02:22].

Challenges in the Second Home Market: Financing a second home remains difficult due to Loan Level Price Adjustments (LLPAs) by Fannie Mae and Freddie Mac [03:54]. These adjustments can make second home rates about 0.75% higher than primary residence rates. To combat this, buyers are encouraged to put 25%–30% down or use cash-out refinances from their primary homes to make cash offers [04:39].

Appraisals and Property Values: Appraisals are currently less of an issue because property values were set at high levels by buyers overpaying during the COVID-19 pandemic [06:18]. Lenders base loans on the lesser of the appraised value or the purchase price, and currently, most values are being supported by recent market highs [06:27].

The Importance of Home Inspections: Home inspections often serve as a "second round of negotiations" [07:32]. While many buyers waived inspections during the peak competitive market to win bids, the experts emphasize their importance for uncovering hidden issues like stucco problems or water damage from coastal winds [09:41].

Coastal Erosion: While erosion is an ongoing concern for towns like Brigantine and Wildwood, it generally does not deter buyers because it is a known, widespread issue along the entire coast [10:57].