As we transition into the new year, I want to express my gratitude for all my amazing clients and realtor partners. With higher interest rates and low inventory, 2023 had it’s share of challenges. But your trust and collaboration made the past year truly extraordinary. We are so excited and optimistic about 2024 and can’t wait to create more amazing home stories together!

• 2023 – Rates Rollercoaster - It's easy to forget that average 30-year mortgage rates ended 2023 at roughly the same level that they started the year: 6.4-6.7%. [Source: Mortgage News Daily] But remember in early 2023, the Fed was still lifting short-term interest rates aggressively. In contrast, we start 2024 with the Fed likely to begin cutting rates in the first half. Inflation is clearly under control, and the Fed wants to ensure that high rates don't choke the economy.

• With interest rates coming down and indicators that home price growth is expected to moderate, we are already seeing increased activity in the housing market.

• According to Lawrence Yun chief economist at NAR, inventory will likely increase with some improvement in the number of homes for sale in 2024.

🏡 NOW is the time to BUY 🏡
    

If you find a property you would like to call home, don’t delay. You can start building equity immediately. You cannot time the market and a home is a long-term investment. Don’t wait until mortgage rates drop and more buyers come back into the market, limiting your options and creating stiff competition, and you’re making offers well over asking price.

“Marry the House, and Date the Rate.”

🚨Cash-Out Refinance Mortgage Change 🚨
   

Attention all Non-Occupying Borrowers Considering A Cash-Out Refinance – Effective March 6, 2024, Federal Guidelines will now require that all Borrowers occupy the Mortgage Premises when the premises are secured by a Primary Residence. If you are a non-occupying borrower thinking about a cash-out refinance to consolidate debt, fund home improvement projects, or to invest in additional property, please contact us today to discuss your options.

 🕛 Tax Season is Here 🕛
    

It’s January and Tax Filing Season begins on January 29^th, which means that taxpayers will have between 1/29/24 and 4/15/24 to file their returns. Whether you rely on any number of reputable tax software programs, have a trusted accountant, or are filing by hand, it’s important to know your eligible tax deductions.

DO YOU ITEMIZE YOUR TAX DEDUCTIONS?

You cannot take the mortgage interest deduction if you are taking the standard deduction. For 2024 tax returns, the standard deduction is $14,600 for single taxpayers, $21,900 for heads of household, and $29,200 for married taxpayers filing a joint return. This is up from the 2023 levels of $13,850 for single taxpayers, $20,800 for heads of household, and $27,700 for married taxpayers filing a joint return. Please see a CPA for details.

IS YOUR HOME A "QUALIFIED RESIDENCE"?

Mortgage interest is only deductible if the mortgage is attached to a "qualified residence". Taxpayers can generally deduct the mortgage interest on two qualified homes: one primary home and one vacation home.

IS YOUR MORTGAGE CLASSIFIED AS "ACQUISITION INDEBTEDNESS"?

Your mortgage or home equity line of credit is considered "acquisition indebtedness" if it was used to buy, build, or improve a qualified residence. Generally, you can deduct the interest on mortgage balances up to $750,000 of Acquisition Indebtedness.

$1MM ACQUISITION DEBT LIMIT ON PRE-2017 LOANS.

Your acquisition debt limit is $1 million if you closed on your home loan prior to December 16, 2017, and the loan qualified as acquisition indebtedness at that time. You can keep that $1 million limit if you refinance that home loan as long as you do not increase the current balance on the loan. For example, if your current balance is $950,000, the new loan you’re refinancing into can’t be more than $950,000. This is also true when consolidating or refinancing a home equity loan or line of credit taken out prior to December 16, 2017, as long as you used that home equity loan to buy, build, or improve a qualified residence. In that case, your combined aggregate total limit would be $1 million, whether you keep both loans separate, or whether you consolidate them into a single loan.

DISTINCTION BETWEEN A QUALIFIED RESIDENCE AND AN INVESTMENT PROPERTY. Everything mentioned above pertains to a mortgage transaction involving a primary home or vacation home that is elected as a “qualified residence” for tax purposes.

Be sure to follow us on social media for exciting details regarding the launch of our episodes!

🔧 Considering Remodeling 🔨
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Have you been considering remodeling or renovating your home for your personal enjoyment? Are you planning upgrades to maximize your home’s selling price to put it on the market? Not all home renovations are created equal. While there’s no doubt that making certain upgrades and improvements can boost the value of your home, but which ones offer the best return on investment (ROI)? According to Zonda’s principal of building products research, these are the Top 10 home improvement projects that offer the greatest returns in resale value:

Month in Review
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Here are some key points from the January Market Report Video

• MORTGAGE RATES- Mortgage rates are trending down
  and that’ll help with affordability.

• HOME PRICES- A survey of over 100 experts finds home prices are forecast to climb at a more moderate pace over the next 5 years.

Want Weekly Market Updates?
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After receiving many requests, I have been sending Weekly Market Updates on Fridays to my realtor and referral partners. I have been fielding numerous calls asking for clarity on what is going on in the market from past clients, clients who are currently looking, and future clients who plan on purchasing in the not-too-distant future. If you or anyone you know would like to be added to my Weekly Market Update email, reply to this email, or use/send them the button below to start receiving this timely information! 

I have over 20 years of lending experience and a 100% closing record. The Holly Walther Lending Team is among the top mortgage loan producers in all of Georgia.