“A Trendy Stop in Nashville, What It Says About the Economy, and a Reflection on the Future of Interest Rates”

I hope you’ve had a great week! As I’m writing this, the sun is shining, and it’s a bit warmer than the past couple of weeks—a welcome change for sure.

Our newsletter reaches over 20,000 clients, buyers, and friends each week, and we are so grateful for the interest and engagement we receive.

Last week, I had the opportunity to visit my family in Nashville, Tennessee. When we arrived, it was a pleasant 50+ degrees, but by the time we left, temperatures had dropped to a chilly 10 degrees! Needless to say, this week’s sunshine feels extra refreshing.

During the trip, I had my first experience at Buc-ee’s, the well-known travel center chain. If you’ve never been, I can confirm it’s an experience you don’t want to miss. With 150 gas pumps, an incredible selection of food, and some of the largest and cleanest restrooms you’ll find,     Buc-ee’s is a destination all on its own.

Another highlight of my trip was exploring the 12 South neighborhood, a trendy and vibrant area in Nashville. This half-mile stretch along 12th Avenue South is packed with vintage shops, gourmet restaurants, coffee houses, bakeries, bars, and unique local businesses. It is also home to high-end

luxury brands and local designers. If you’re planning a trip to Nashville, I highly recommend taking a stroll through this walkable and charming neighborhood.

The growth and energy in Nashville continue to amaze me. Each visit, I’m struck by the gentrification of neighborhoods, the bustling activity in restaurants and shops, and the rapid development happening across the city. It’s a clear reflection of the strong state of our economy.

This ties directly to the current state of the real estate market and interest rates, which remain a topic of interest for many. My friend Kevin Fortriede, a Mortgage Banker with Union Savings Bank, recently shared some insightful thoughts on the market:

 

Kevin Fortriede’s – “When will be see a return to 3%-4% Interest Rates”

Last October, we saw a notable drop in interest rates that spurred refinancing and purchasing activity. Those who took advantage of it are pretty happy now, while those who gambled that rates would drop further are kicking themselves—it was about a 50/50 split among the people I contacted.

Many are now realizing we might be in a “new normal,” where significantly lower rates could be further off than hoped. Even so, rates are still below the 50-year average of 7.73%, and refinancing later is far cheaper than missing opportunities today.

This should encourage people to move forward with new purchases now.

People often ask, “When will rates come down?” Let’s remember that in late 2023, the 30-year fixed rate was in the high 7% to low 8% range. Now, we’re back to high 6% to low 7%—already a significant improvement and back to where we were two years ago.

What most people really mean is, “When will the 3% and 4% rates return?” The reality is that those rates are extremely unlikely to come back. The sooner people realize this, the sooner rate anxiety will stop being a barrier to homeownership. Instead, let’s focus on acquiring what’s needed now and taking advantage of better rates whenever the market allows.

If you’d like to reach out to Kevin Fortriede for more advice or assistance, he can be reached at 260-705-9463 or [email protected].

Speaking of opportunities, don’t forget about the S’Wonderful Interiors Online Liquidation Auction happening this week! It’s a great chance to find unique treasures before the auction closes on February 4th.

Thank you for reading our newsletter and staying connected with us. Until next week, keep dreaming big, investing wisely, and remembering: whether it’s homes, businesses, treasures, or transitions, we’re here to help you move forward.

Cheers – Brandon Steffen