This Faith in Finance podcast is underwritten in part by Movement Mortgage. Movement provides residential home loans in all 50 states. Founded in 2008, amidst one of the biggest financial meltdowns in American history, Movement set forth on a mission to create a movement of change in their industry and in communities. Learn more at movement.com/slash faith. Movement Mortgage LLC supports equal housing opportunity, NMLS number 39179.
For licensing information, please visit NMLSconsumerAccess.org. Many people are wondering whether the housing market is finally turning a corner or if uncertainty is here to stay. Hi, I'm Rob West. Higher mortgage rates and tight inventory have kept buyers hesitant and homeowners who want to refinance stuck on the sidelines. Today, Dale Vermillion joins us to explain what the housing market really looks like in 2026 and to help you make sense of what we're seeing.
Then it's on to your calls at 800-525-7000. That's 800-525-7000. This is Faith in Finance, biblical wisdom for your financial decisions.
Well, when it comes to mortgages and home financing, few voices are more trusted than Dale Vermillion. He's the author of Navigating the Mortgage Maze: The Simple Truth About Financing Your Home. He's our go-to guy on this topic. Dale, always great to have you with us. Rob, it's always an honor to be here.
Happy New Year. Happy New Year to you, my friend. Let's start with the big picture. With headlines about interest rates and affordability concerns, many people are wondering: what is 2026 and the housing market going to look like? What are your thoughts?
You know, it's a lot of good news, to be honest with you. I mean, it isn't the market of 2020 and 2021 when rates were in the twos and threes and fours, and certainly not 2008, thankfully, where we had a big crash. This is a very normal market. This is what we generally expect. And rates, even though people think of them as still being high, actually are below normals for the last 30 years.
We're seeing rates improve, which is great news. We're seeing inventory up. We're seeing sales increase. All of the indicators that we look at would tell us that this is getting to be a much better market. And the fact that we've got a government that is a lot of the people in government today come out of the real estate market.
So there's a lot of interest and focus on trying to improve these things. I think all of those things combine. I think we're sitting in a position where we're in a buyer's market, and it's an opportunity for people to, again, think about buying a home. And improve their financial situation. It's getting better every day, I'm glad to say.
Yeah.
Well, I'm delighted to hear what you just described because that's not the environment we've had the last several years. A lot of listeners, of course, are asking the same thing. With rates this high, why haven't home prices come down more?
So in your view, what's holding prices up? Yeah, you know, we have seen the increases come down. This year was the first year that we saw basically flat prices. We only had a 0.7 increase in property values this year. You compare that to three years ago when it was 23%, a couple years ago when it was 12%.
You know, we've seen that really drop. And we are seeing declines in some markets, to be honest with you. It's regional, not national, but it hasn't been what we expected. And a lot of the reason for that simply is that, you know, housing inventory always is dependent on and values are dependent on what's happening overall in the marketplace. And I think a lot of what has happened in the past is there was that lock-in effect that you've probably heard about where people were locked into low rates.
They didn't want to do anything to raise the rate. But we've seen that change. That has kind of moved away. There is more loans today above 6% than below 3% in the marketplace for the first time in a long time.
So these things are starting to change. with rates improving, we're starting to see some movement. Yeah, really helpful. The Fed, of course, has been cutting rates in quarter point steps. And people are wondering how come mortgage rates haven't moved much lower?
What are your thoughts on where we sit today and where we might be headed? Yeah, great question. This is the most common question that loan arrangers get every day. And the answer is that the Fed rate does not directly affect mortgage rates. Mortgage rates are really based on what the Treasury is doing, on the bond market and what that's doing.
And that's really driven by a couple of things. It's driven by inflation. It's driven by job reports. Those are the things that change that.
Now, one of the things that is changing rates right now, and we've seen a recent dip in rates, and the reason is that we are looking at going back to buying mortgage-backed securities. And that actually drives rates a whole lot more on the mortgage side than the Fed does. The Fed rate is more for consumer loans and saving and those kinds of things. When you see those rates drop, it can be a leading indicator, but generally mortgage interest rates reduce before Fed rates do because they're always anticipating that's going to happen.
So when you see those rates happening, a quarter percent drop, that doesn't mean your mortgage rate is going to go down. That means your consumer rates are going to go down. The mortgages are. Based on different criteria, you got to talk to a lender about that. Excellent.
Well, when we come back, we'll continue this conversation with Dale. What about buyer psychology? Where is that at right now? If you're looking to sell a home, what do you need to know? And when is the right time to go ahead and refinance?
Dale Vermillion's here today. He's our go-to guy on the housing market and mortgages. Much more to come just around the corner. Stick around. If budgeting feels like a second job, the new Faith5 Pro was built just for you.
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We're grateful for support from Movement Mortgage, who provides residential home loans in all 50 states. Guided by a mission to love and value people and a goal to redefine the mortgage process, Movement seeks to help others achieve their financial goals. You can find out more at movement.com slash faith. Movement Mortgage LLC supports Equal Housing Opportunity, NMLS number 39179. For licensing information, please visit NMLSconsumerAccess.org.
Uh Yeah. Thanks for joining us today on Faith and Finance. We're talking the housing market and mortgages today, what might be ahead in 2026. Our go-to guy is here, Dale Vermillion, is our trusted source of insight in this area. He's also the author of Navigating the Mortgage Maze, The Simple Truth About Financing Your Home.
Dale, in the last segment, you gave us an overview of where we're at with the housing market and rates.
So, with many potential buyers in limbo, maybe sitting on the sideline waiting for that perfect moment that perhaps won't come, how would you describe buyer psychology right now and what counsel would you offer them? Yeah, you know, what we're seeing, what we have seen for the last couple of years is what we would call buyer fatigue. You know, when you went through the 2020 to 2021 low-rate market, you know, a lot of people took advantage of those rates, bought homes, but a lot of people also tried to buy homes and couldn't because of the competition that was happening. You know, they would offer on 10, 12, 15 homes, couldn't seem to win. Then all of a sudden, what happens?
The market rates change dramatically.
Now they feel like they can't afford those.
Well, we are now again on that decline in rates. We're now again in a position where inventory is coming back. You look at inventory early last year. It was around 450,000 units nationwide. We're well over a million units now.
So from a buyer standpoint, it is time to be encouraged again and understand that inventory is grown and it's much larger than it was. There is opportunities. If you haven't been in the market, it's worth looking again if you think this is a time that you want to buy because it's a seller-motivated market. People have been holding off selling just like they've been holding off buying, and all of that is starting to change consumers. Consumer confidence is up, those things are opening up an opportunity in the purchase market today.
Yeah.
You know, one of the byproducts of your home appreciating, especially with appreciation as rapid as it has been the last several years, is you don't feel that appreciation unless you check Zillow. But what you do feel is your property tax is going up.
Now, I just got my property tax bill and for the first time in several years, it's down slightly. But, you know, that's a real challenge that's creating problems in the budget, isn't it? It really is. When you look at today's mortgage situation when it comes to buying a home. And even owning a home, the biggest factor that's driving affordability is really not the rates.
I mean, that certainly is a factor. It's homeowners' insurance and it's property taxes. Those are the two that have the homeowners' insurance numbers have been absolutely out of control too. And we're seeing that increase all over. Those are the things you really need to look into when you're considering buying a new home.
It's not just what's the rate on the mortgage going to afford, but what are my taxes going to look like and what kind of insurance do I have to carry and what's the cost going to be for that? That's critically important. Yeah.
So let's take that a step further. What would you say to a first-time home buyer, Dale, who's listening today, who's discouraged by just the challenge that is home affordability? What should they do next?
Well, the first thing you want to do is you need to start by doing a budget. We talk about this every time we get together because it's so vitally important. You need to understand what you can afford. And the only way to do that is by doing a budget. Don't just go in and ask a lender, what do I qualify for?
That is the worst mistake that a prospective or new homeowner, particularly a first-time buyer, can ever do. Because here's the deal. They're going to approve you based on what's called a debt-to-income ratio. That can be as high as 50% of your gross income that they're going to approve you for. You can't afford 50% of your gross income.
So don't do it that way. Go in and say, look, I've done a budget. Here's the payment I can afford. Based on that payment, what would I qualify for at today's rates from a amount that I can purchase? Back into it that way.
So you're starting with what you can afford. You're moving into what values you can have. And then once you get there, now start to do your search and start to look at what is out there that I can buy today within that that makes sense for my family. Yeah, that's really helpful. What should...
They say to a mortgage company, do they want to go in with a pre-approval? Is it a pre-qualification? What are they looking for? Yeah, great question. You don't want a pre-qualification.
You want a pre-approval. The difference between those two is really very simple. A pre-approval is where you've not only applied for the loan, completed the application, had your credit pulled to verify your credit, but you have provided income verification so they can actually calculate out the income. Very important you do that. A lot of borrowers, when they talk to a loan officer, they don't have their documentation ready.
Have all your documentation, all your income documentation, all your credit card statements. If you have any credit cards, all of your debt statements, if you have a current mortgage, have your current mortgage statement. The more information you can provide to them up front, the more they can qualify you for that.
So a pre-approval is where you're going in and you're getting actually approved, not just qualified, but approved so that you've got a more sure knowing that you're going to be able to qualify for that loan. It also becomes a stronger offer to the realtor because if you're making your offer, they've verified your income, they verified your credit. They verified your down payment. You're in a much stronger position than those buyers who didn't do those things from a realtor standpoint and from a seller standpoint. Yeah.
Just to set expectations, Dale, you know, when I was a kid and my parents were buying and selling houses, you know, you'd set the asking price, knowing that you'd never get it.
Somebody would lowball you and then you'd kind of meet in the middle. And then as I started buying and selling houses, it seems like we priced them lower to get everybody to the table we possibly can and show up in more searches on the internet. And people were regularly paying $20,000, $30,000, and $50,000 above asking. Is that still true today? It really isn't.
We're not seeing that. We saw that in 2020 and 2021 in mass where people were overbidding on houses and bidding up houses and bidding wars were happening. We're really not seeing those bidding wars today. What we're seeing today, property values are what people are asking for prices, listing prices. Homes are selling at about 94 to 97% of the listing price in most marketplaces from the last statistic that I saw.
You know, it's not uncommon to pay the amount that is asked for, but we're not seeing these 110, 120, 130% of values anymore like we used to. And that's a good thing, by the way. Yeah, I think that's right. What about somebody who's looking to move up? You know, families who own a home but are wondering if now is really the time to make a move.
Maybe the family's been growing, they need a little more space, or they're looking to get into the right school district. What would you share with them?
Well, I would say again, it's really no different than the advice we gave on the first-time buyer when it comes to do a budget first before you do anything so you can determine what you can afford. But here's the key. You know, don't be afraid to look right now. I think it's a market where sellers are doing okay. It's not a market where because it's the buyer's market, sellers aren't getting their price anymore.
Make sure your home is in great shape before you list it. Do whatever you need to do to get it looking as modern and as up-to-date as you can to get the maximum value you can on that because you want to be able to use that equity to apply to the next home that you buy. And make sure you're sitting down with somebody to understand, okay, when I sell, what are my costs going to be on the sale? When I buy, what are my costs going to be on the loan in order to get that?
So you can start to get a true understanding of how much money you're able to put down to determine how much you can buy. And then look for homes in that price range again. Don't go beyond what you can afford. That's always the most important advice. Yeah, very good.
Dale, just 30 seconds left. Tie a bow on this for us. Given everything you're seeing, it sounds like this might be the year to go ahead and start making some moves here, huh? I think this is the year to do it. I don't think the conditions are going to get much better.
Rates are going to go down a little bit this year, not probably a ton, maybe a little bit next year, but there's not going to be a ton of movement in rates that we see.
So this is a good time to buy. This is a good time to look at it. Folks, buyers and sellers who plan well, manage expectations, and seek wise counsel can really succeed in this environment. And as Christ followers, our confidence doesn't come from rates or headlines, but from trusting the Lord to establish our steps. Dale, great to have you here as always.
Thanks for your time. Thank you, Rob. Blessing to be here. Thanks so much. That's mortgage expert Dale Vermillion.
You can learn more in his book, Navigating the Mortgage Maze: The Simple Truth About Financing Your Home, available wherever you buy books. All right, your calls are next: 800-525-7000. That's 800-525-7000. We'll be right back. As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry.
And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit kingdomadvisors.com. That's kingdomadvisors.com. Faith in Finance is thankful for support from The Good Investor, a book by Robin John. In his book, Robin shares his journey from an immigrant child struggling in school to co-founder and CEO of Eventide Asset Management, a faith-based investment firm.
This Faith and Work memoir seeks to inspire readers to view their work and investments as opportunities to honor God and bring blessing to the world. More information is available at goodinvestor.com. That's goodinvestor.com. Great to have you with us today on Faith and Finance. I'm Rob West.
We're taking your calls and questions, helping you think about managing God's money in the light of biblical wisdom. We've got room for you: 800-525-7,000. That's 800-525-7,000. Let's go to Arkansas, Lynn. How can I help?
Yeah, I heard, and I don't remember where, that there were some tax organizations that you should avoid, that they were. bought by somebody, maybe like a Globalis kind of thing, um And I wondered if you know about that. And also, I wanted to know if there's anything known to be Christian based. Because I know that there's one that does people's taxes free, but it's I can't remember the name of it. It's the well known senior Organization.
Okay. Yeah.
You hear us talk on this program a lot, Lynn, about what's called a Certified Kingdom Advisor. And these are professionals in really all areas of financial services.
So that includes tax preparation and accounting, as well as investment management, insurance services, also estate planning, and just pure financial planning as well. But CKA is the only designation in the financial services industry for professionals who've met the high standards to earn the Certified Kingdom Advisor, including they've got to have at least 10 years' experience. They've got to go through a university-based course around a biblical worldview of money. They have to have a pastor reference, a client reference, a code of ethics, a statement of faith, annual continuing education. I mean, it's a high bar.
So I would probably start with looking for a CKA in the tax area. There in your area in Arkansas.
Now, if you didn't find one, you could connect with any certified kingdom advisor in your area, and there undoubtedly will be one, and just ask for a referral to a godly CPA or accountant. Who could help you, and they'll all have one that they work with. But I think that might be your best next step. You could go to findaca.com. Again, that's findaca.com, to find somebody in your area.
Does that sound like what you're looking for? Um, yeah, that could be. And then it's for really some pretty simple tax work.
So, I mean, it seems like I don't want to get someone who charges too much. Yeah, yeah. No, I appreciate that. And that's a good question. I mean, there are some great kind of low-cost options out there.
There's just not going to be one in that category that is expressly Christian. You know, you're going to end up with some, you know, one of these, either an online software package or, you know, one of the nationwide offerings, but these aren't going to be expressly Christian offerings. They're just going to be somebody who does a low-cost tax service.
Okay. So have you heard anything about any that people should avoid? like ANR Block, or I'm not saying it's them, but Yeah, I started to write this stuff down. I think it was on the news and didn't get back to it, so I don't know the date that it occurred. I'm not familiar with exactly what you may have heard.
I don't have anything to offer specifically around AARP or HR Block with regard to their values and kind of how they conduct each of those organizations. I will also say you could check out Dave Ramsey. He's got what he calls the Ramsey Smart Tax, which is software to do taxes as well. And Dave is a fellow believer and could be a great solution here also.
Okay. All right.
Well, thank you. All right, Lord bless you, Lynn. Thanks for calling. I'm sorry I didn't have the specific reference you were thinking about, but hopefully that gets you pointed in the right direction. Thanks for being with us today.
To West Palm Beach, Florida. Vincent, go right ahead. Hello, sir. Thank you for everything that you do. Real quick, Doc, because I know we're running out of time.
I'm going to be sixty five in a couple of months, and I own a condo that's paid off completely. Zero credit cards. Both cars are paid off. Basically, debt-free, okay?
So, going from there, all I want to know is the question is. I would like to leave the house to my children as both my wife and I the ultimate, we know where we're headed. Should I get a will or put them on the deed or get a trust and go through that expense? Can I just put them on a on a deed? And when we pass It goes to them.
Yeah, you'd need to check with an attorney on this. There is not, you know, the simplest way without a trust, which would allow you to transfer it and bypass probate, but it costs, you know, two, three, four thousand dollars, and then you'd have to retitle the home in the name of the trust, which is not a big deal. It's just, you know, mainly the expense. The other more simple way is what's called a transfer on death deed, but that is not available in Florida. Florida has something called a ladybird deed, which is a kind of enhanced life estate deed that allows you, a property owner, which is called the grantor or the life tenant, to retain control of the property.
Including the right to live in it, sell it, mortgage it, revoke the deed, but designate one or more beneficiaries, what's called a remainderman, who automatically inherits the property upon the owner's death.
So it's very similar and it's unique to only five states, including Florida. And so, and it's called an enhanced ladybird deed because you, as the life tenant, retain the broader powers from a standard life estate, which makes it pretty flexible.
So you can accomplish that probate avoidance that you're looking for, but also retain control. And it gives you still the ability to get homestead exemption. There's no gift tax benefit or anything like that, but you probably shouldn't have that anyway, at least based on the way the law is right now.
So you would just need to visit with an attorney who could set that up for you if your goal ultimately is to avoid probate. Otherwise, just a simple will will suffice, but it will go through probate and that can take some time, six months or more. And there's expenses related to that. It could be 3% to 5% of the total estate value.
Okay, that's another final word is that that that expense I don't want them to have any more headaches. Very good. That answers my question, sir. I appreciate your time. Absolutely, Vincent.
Thank you so very much. I appreciate it. Call anytime.
Well, folks, we're about out of time today. We covered a lot of ground. You know what? I love being invited into your stories each day. It's an incredible privilege.
It's the thing I most look forward to when I wake up every morning is just talking to our listeners because you want to be found faithful. You realize God is incredible. And boy, what a gracious gift He's given us. Starting with salvation before even the first dollar, we are rich. We have an abundance.
But then beyond that, he gives graciously differing amounts, but our charge is just to be found faithful, to enjoy what he's given us and to manage it wisely and to give it generously and to help others in need along the way. I mean, what a privilege it is.
Well, the whole goal of this program each day is just to help you do that, come alongside you and say, you got this. You can do it. Maybe we've made some mistakes in the past, but going forward, let's make those wise decisions that align with the heart of God and the counsel of scripture. I hope that's been true about this program for you today, and I hope you'll. Come back and join us tomorrow.
We'll do it all over again on behalf of my team today: Adam Sutteth, Pat Montague, Devin Patrick, Jim Henry, and the rest of the team here at FaithFi. I'm Rob West. Hope you have a great day, and we'll look for you back here again tomorrow. Faith in Finance is provided by Faith By and listeners like you.
