Find out about the latest news in Madisonville, Louisiana as well as St. Tammany Parish. We will keep you “tuned in” to all of the information about Southeast Louisiana as well as the real estate industry in general. Many new home buyers are concerned about the market, mortgage information, and builder trends. We plan on keeping you as up to date as possible on these and many more topics. There is a lot going on in the Greater New Orleans area, so you will have plenty to read!

What Buyers and Sellers Should Expect When It Comes to Housing Affordability

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With mortgage rates still hovering near multi-decade highs and inflation showing signs of creeping upward again, housing affordability is once more at the forefront of consumer concerns. If these conditions persist, buyer demand could weaken further and home prices might finally start to soften. On the other hand, if the economy steadies and borrowing costs ease, demand could rebound quickly—pushing prices higher again. The question on everyone’s mind this fall is which direction the market will take.

Experts agree that mortgage rates remain the single biggest factor shaping affordability in the near term. Mark Worthington, a branch manager with Churchill Mortgage, explained that a sharp decline in rates could temporarily improve affordability but might also reignite demand and send prices back up. Projections suggest only minor relief: the Mortgage Bankers Association expects the average 30-year fixed mortgage rate to land near 6.7% by the end of the year, while Fannie Mae anticipates a modest dip to 6.4%. Debra Shultz, vice president of lending at CrossCountry Mortgage, noted that the Federal Reserve is unlikely to cut rates until October 2025, meaning stability rather than volatility is the most likely scenario this fall.

That stability could be a welcome development. Real estate advisor Dana Bull of Compass emphasized that steady rates allow both buyers and sellers to make decisions without fear of sudden swings. For many, predictability matters just as much as affordability.

Inventory is another piece of the puzzle. Nationally, for-sale listings have risen nearly 25% year over year, reaching the highest level since before the pandemic. More homes on the market generally lead to greater competition among sellers and potentially better deals for buyers. Yet conditions remain highly localized. In Seattle, bidding wars have already returned, while markets like Dallas still offer buyers plenty of options in the lower price ranges. Mortgage rates will influence this dynamic as well—if they fall, more homeowners with ultra-low existing rates may finally list their properties, freeing up additional supply.

As for prices, most experts expect them to hold steady or decline slightly. The median home price now sits just under $411,000, with forecasts pointing to growth of only 2 to 3% for the year, and possible drops in select regions. Shultz described current prices as “slowing but still high,” while Denver agent Brandi Wolff suggested that a significant dip in rates—below 6%—would likely spark renewed competition and drive prices higher again. If rates remain steady, however, modest price declines could continue into the fall.

For move-up buyers who are both selling and purchasing, the challenges are twofold. Increased inventory and elevated mortgage rates make it harder to attract top dollar for an existing home, even as they provide more favorable buying conditions on the other side of the transaction. Realtor.com data shows that homes are now spending an average of 58 days on the market, a week longer than last year, reflecting slower demand. Sellers who overprice risk being forced into steep reductions later. Wolff stressed the importance of setting realistic expectations from the start to maximize profits and avoid costly corrections.

Buyers looking to navigate the market more affordably this fall have several options. Negotiating concessions from sellers or arranging mortgage rate buydowns with lenders can ease monthly costs. Exploring fixer-uppers or properties that have lingered on the market for over a month may also open the door to discounts. Bull observed that sellers often become more flexible after 30 days without an offer, making it a strategic time for buyers to step in with a compelling proposal.

While forecasts remain uncertain, the consistent advice is to watch mortgage rates closely and stay informed about local trends. For those willing to be flexible and creative, there are still opportunities to find value—even in a market where affordability continues to be stretched thin.

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Adjustable-Rate Mortgages Make a Comeback

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With fixed mortgage rates stuck around the 7 percent mark and home prices hitting new highs, many buyers are turning to adjustable-rate mortgages (ARMs) as a way to make ownership more affordable. These loans, which offer lower initial interest rates than traditional fixed-rate mortgages, are gaining traction among borrowers who want to ease the upfront cost of buying a home.

Why ARMs Are Back in Demand

ARMs start with a fixed interest rate for an introductory period — often three, five, seven, or ten years — before adjusting periodically based on market conditions. That initial lower rate translates into smaller monthly payments, giving buyers more purchasing power.

“Potential homebuyers are finding ways to reduce their monthly payments and view ARMs as more attractive given the widening spread between rates for ARM and fixed-rate loans,” explains Joel Kan, deputy chief economist at the Mortgage Bankers Association (MBA).

At the beginning of 2025, ARMs accounted for just 4.7 percent of all mortgage applications. By midyear, that share had jumped to nearly 8 percent.

The Gamble with ARMs

Taking on an ARM is essentially making a bet about the future of mortgage rates. If rates are lower when your fixed period ends, your payments could fall. If they’re higher, your monthly bill could increase significantly.

That uncertainty makes ARMs riskier than fixed-rate mortgages. “Mortgage rates are the magic bullet, and we’re waiting and waiting until those come down,” said Lawrence Yun, chief economist at the National Association of Realtors. Predicting when — or if — that happens is nearly impossible.

Who Benefits Most from ARMs?

An adjustable-rate mortgage can be a smart choice in certain situations:

Short-term homeowners: If you expect to sell within five to ten years, an ARM lets you enjoy lower payments during your time in the house.

Risk-tolerant borrowers: Some buyers are comfortable trading stability for the chance to save money upfront.

Jumbo loan borrowers: ARMs can make high-priced homes more manageable by reducing early payments.

Extra principal payers: If you can make additional payments during the introductory period, you’ll reduce your balance faster and minimize exposure to future rate hikes.

The Risks to Watch

Despite their appeal, ARMs aren’t for everyone. They typically require at least a 5 percent down payment, compared to 3 percent for some fixed-rate loans. More importantly, lenders now underwrite ARMs based on the highest possible payment you could face, to make sure you can handle future increases.

That’s because life doesn’t always go according to plan. A job loss, a stalled home sale, or an economic downturn could leave you stuck with higher payments than you expected. For borrowers who value certainty, fixed-rate mortgages remain the safer bet.

Types of ARMs

If you’re considering an adjustable-rate loan, here are the most common options:

  • 3/1 or 3/6 ARM – Fixed rate for three years, then adjusts annually or semi-annually. Usually comes with the lowest initial rate.
  • 5/1 or 5/6 ARM – Fixed rate for five years, then resets annually or semi-annually. The most common ARM structure.
  • 7/1 or 7/6 ARM – Seven years of stability before regular adjustments. Balances lower risk with a still-competitive initial rate.
  • 10/1 or 10/6 ARM – A full decade of predictable payments before adjustments begin. Introductory rate is slightly higher but still lower than most fixed-rate mortgages.

All ARMs come with rate caps, which limit how much your interest rate (and payment) can increase annually and over the life of the loan.

Adjustable-rate mortgages can be a useful tool in today’s housing market, especially for buyers who don’t plan to stay in their homes long-term or who want lower payments in the near future. But they come with real risks, and success depends on financial flexibility — and a tolerance for uncertainty.

If you can’t stomach the possibility of higher payments down the line, a fixed-rate loan may still be the better path. But for the right borrower, an ARM can open the door to a home that might otherwise be out of reach.

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Mortgage Rates Sink After Weak Jobs Report, Offering Buyers a Window of Opportunity

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Mortgage rates have dropped sharply, hitting their lowest level in 10 months, after a disappointing July jobs report rattled financial markets. The average 30-year fixed mortgage rate fell to 6.57% on Monday, down from 6.74% just days earlier, according to Mortgage News Daily. The decline marks nearly a 20-basis-point drop since Friday and gives both homebuyers and homeowners a rare opening in an otherwise challenging housing market.

The sudden shift has sparked questions for many: Is now the right time to buy or refinance, or should they wait to see if rates drop even further? The answer is not simple, especially at a time when the U.S. economy shows signs of slowing and job seekers are struggling more to find work. A recent Bright MLS survey found that many prospective buyers have postponed entering the market due to uncertainty about the broader economy.

Still, lower rates are creating meaningful opportunities. Alex Elezaj, chief strategy officer at United Wholesale Mortgage, noted that falling rates give buyers more purchasing power and allow homeowners to potentially refinance into shorter-term loans. For example, moving from a 30-year to a 15-year mortgage not only accelerates payoff but also cuts down the total interest owed. Homeowners currently paying higher rates may benefit the most. A borrower with a $300,000 loan at 7.5% pays roughly $2,100 per month; refinancing to 6.57% would drop that payment by nearly $200, not including fees and closing costs.

The sharp decline in rates was fueled by investors shifting into U.S. Treasury bonds, which are considered safe during economic uncertainty. This demand pushed yields on the 10-year Treasury note lower, dragging mortgage rates down with them since the two tend to move in tandem. Daryl Fairweather, chief economist at Redfin, said the drop could encourage hesitant buyers to make a move before the end of summer, adding that a household with a $3,000 monthly budget has gained about $20,000 in purchasing power since mortgage rates peaked in May at just over 7%.

Even with this newfound flexibility, affordability challenges remain steep. The median U.S. home price reached an all-time high of $435,300 in June, according to the National Association of Realtors. While the recent dip in mortgage rates softens monthly payments, home prices remain elevated, limiting how far that extra buying power can stretch.

Looking ahead, investors are increasingly betting that the Federal Reserve will cut its benchmark rate at its September meeting. While mortgage rates are not directly tied to the Fed’s decisions, they often reflect broader expectations for inflation and economic growth, moving in step with Treasury yields. Whether rates continue to fall will depend largely on incoming economic data. Chen Zhao, an economist at Redfin, noted that markets had already expected signs of weakness in the jobs report, suggesting further declines may be capped unless additional data confirms deeper economic softness.

For now, the drop in mortgage rates provides a moment of relief in a housing market that has been defined by high costs and limited affordability. Buyers and homeowners willing to act quickly could see meaningful savings, though the future path of rates remains uncertain as the Fed and financial markets await more economic signals in the weeks ahead.

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Why Wood Floors Are the New Showpiece of Home Design

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For decades, designers called the ceiling the “fifth wall” and used it to add drama and style. Today, more attention is shifting downward, as homeowners and designers embrace the floor as the “sixth wall”—a place where craftsmanship, color, and character can shine. And at the top of that design conversation is wood flooring.

Wood floors are once again in high demand. Their natural warmth, timeless beauty, and growing variety of styles have made them a go-to choice in both new construction and remodeling. Homeowners can select from a wide range of wood species, plank sizes, finishes, and construction types to suit just about any space or style. Solid and engineered wood options provide different benefits depending on a home’s needs, but both include real wood and high-end appeal.

This surge in popularity is not just about looks—it is also about value. According to the 2022 Remodeling Impact Report by the National Association of REALTORS and the National Association of the Remodeling Industry, homeowners can expect a return of 147 percent on their investment in wood flooring. That ROI makes it one of the best remodeling decisions for resale value.

However, the luxury comes with a cost. Wood sits at the higher end of the pricing spectrum, partly because it is perceived as a high-end material that retains value rather than fluctuating like a commodity. Solid wood is typically more expensive than engineered options because it offers more thickness and can be refinished multiple times. Still, some engineered wood products—depending on wear layer, length, width, and species—can be just as expensive as solid wood.

Board dimensions also play a role in today’s trends. Wider, longer planks—often seven inches or more in width and up to sixteen feet in length—are in vogue for their seamless and modern aesthetic. They create a cleaner, less choppy look that feels luxurious. In historic homes, however, designers often match existing board sizes to maintain authenticity.

Color preferences in wood flooring are shifting along with overall interior design trends. Lighter tones, such as natural or white oak with tan or straw stains, are in demand. Red oak is gaining popularity, while medium browns remain a timeless favorite. Darker woods still find their place as a striking contrast to white walls, though they require more upkeep due to visible dust and debris. Painted or stained floors are also emerging as a cost-effective way to personalize spaces, especially when blending old and new flooring.

The species of wood selected often depends on location and lifestyle. Southern homeowners tend to lean toward harder, less grainy woods like maple and walnut. In the Northeast, white oak and red oak remain top choices due to their availability and versatility.

Finish choices are evolving too. The high-gloss look of years past has given way to a matte or satin sheen, which better hides dust, scratches, and daily wear. Reclaimed wood with natural patina is also making a comeback in vintage-style homes, though it can come at a premium due to its rarity and imperfections. More adventurous homeowners are embracing intricate patterns like chevron or herringbone, though these styles increase installation time and cost.

Maintenance is surprisingly straightforward. Most wood floors just need a light mop with mild soap and water. Applying a new coat of finish every few years helps maintain durability, and full sanding is typically only needed every ten to fifteen years. Like any flooring, wood can be damaged by standing water or pet stains, so some caution is necessary.

Despite the price tag and the care involved, wood flooring continues to be one of the most desired upgrades in today’s homes. As designer Patricia Gaylor puts it, nothing beats the feel and richness of real wood. For those on a tighter budget, engineered options provide a stylish and cost-effective alternative that still elevates a space. In the end, wood flooring remains a classic choice that blends beauty, durability, and long-term value—setting the tone for the rest of the home.

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Summer Mortgage Rates Stir the Housing Market into Motion

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Even small movements in mortgage rates are creating ripples across the housing market this summer. During the week ending July 4, homebuyers jumped at the chance to lock in lower rates, driving a 9 percent surge in mortgage applications for home purchases compared to the previous week. According to the Mortgage Bankers Association (MBA), this spike also marked a 25 percent increase from the same week in 2023—a clear signal that buyers are paying close attention to rate trends.

Mortgage applications are often a preview of upcoming homebuying activity, and these numbers show just how sensitive today’s market is to even slight changes in borrowing costs. Joel Kan, MBA’s deputy chief economist, credits this renewed buyer demand to a mix of growing housing inventory and a slowing pace of home price growth. Meanwhile, current homeowners took advantage of the brief dip in rates to refinance, with refinance applications jumping 56 percent year-over-year.

However, the window for lower rates did not stay open for long. As of the week ending July 10, rates began climbing again following a stronger-than-expected jobs report. Freddie Mac’s latest data shows the average rate for a 30-year fixed mortgage has ticked up to 6.72 percent from 6.67 percent the previous week. That is still lower than the 6.89 percent average from a year ago, but the upward movement signals volatility ahead.

Freddie Mac’s chief economist Sam Khater noted that despite affordability challenges, homebuyers and those looking to refinance are reacting quickly when rates decline. This week’s mortgage rate increases came after five straight weeks of drops, showing just how quickly market dynamics can shift.

One notable trend is the decreasing size of the average mortgage loan. The MBA reports that the average loan amount for a home purchase has dropped to $432,600, the lowest level since January. This suggests buyers are either opting for more modest homes or that pricing pressures may be softening in some markets.

Here’s how national mortgage rates stack up this week, according to Freddie Mac:

30-year fixed-rate mortgages averaged 6.72 percent, up from last week’s 6.67 percent. One year ago, the rate was 6.89 percent.

15-year fixed-rate mortgages averaged 5.86 percent, up from 5.80 percent last week. At the same time last year, the average was 6.17 percent.

While rates remain high by historical standards, even slight improvements are enough to draw buyers and homeowners off the sidelines. As we move deeper into the summer market, the key question is whether rates will stabilize, rise again, or dip just enough to keep this momentum going. For now, one thing is clear—buyers are watching the market closely and are ready to act when the numbers make sense.

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What Are Lender Credits and Should You Use Them When Buying a Home?

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Lender credits are a tool homebuyers can use to lower the upfront cost of purchasing a home, especially when closing costs start to stretch an already tight budget. When you accept a lender credit, your lender agrees to pay part or all of your closing costs. In exchange, you accept a slightly higher interest rate on your mortgage. This trade-off can be helpful in the short term, but it comes with long-term financial implications.

Lender credits can significantly reduce what you owe on closing day, sometimes by thousands of dollars. For example, on a $300,000 mortgage, closing costs typically range from 2 to 5 percent of the loan amount, which means you could be paying $6,000 to $15,000 upfront. With lender credits, that entire chunk can be partially or completely covered. However, these credits can only be applied to closing costs—not to your down payment or other debts.

The number of credits you qualify for depends on the lender and your financial profile. To be eligible for a favorable lender credit and a competitive interest rate, you’ll likely need a strong credit score, a down payment of at least 20 percent, and a debt-to-income ratio no higher than 45 percent. Since each lender structures these credits differently, it’s important to shop around and compare at least three offers to see who provides the best value.

Lender credits are often misunderstood, especially in comparison to mortgage points. While lender credits reduce your upfront costs by increasing your interest rate, mortgage points do the opposite. With points, you pay extra at closing to lower your interest rate over time. For instance, one point usually costs 1 percent of your loan amount and reduces your rate by about 0.25 percent. Lender credits are sometimes called “negative points” because they work in reverse.

To understand the impact, consider a $330,000 mortgage. Taking a lender credit might save you $500 at closing, but you’ll pay around \$10,000 more in interest over the life of the loan. On the other hand, paying two points could cost $6,600 more upfront but save you roughly \$39,000 in interest over 30 years. These numbers highlight the importance of balancing short-term needs with long-term costs.

Negotiating a better lender credit is possible, especially if you have a solid financial profile or competing offers from other lenders. Improve your credit score, lower your debt, and don’t be afraid to ask your lender if they can offer more favorable terms.

Lender credits are most beneficial for buyers who plan to sell or refinance within a few years, since they won’t be paying the higher interest rate for the full loan term. They can also help buyers meet a lender’s reserve requirements by preserving more cash on hand. For those who are strapped for cash at closing or refinancing, these credits offer a practical solution.

However, there are drawbacks. A higher interest rate means a higher monthly payment and significantly more interest paid over time. If you plan to stay in your home for the long haul, the increased cost could outweigh the short-term benefit.

If you’re unsure about accepting a lender credit, consider other options. You can ask the seller to cover some of your closing costs, which is more common in a buyer’s market. Down payment assistance programs from local and state governments may also provide low-interest or forgivable loans. In some cases, friends or family might be willing to help with closing costs, provided you disclose the arrangement to your lender. Another option is a no-closing-cost mortgage, which rolls the fees into your loan amount. Like lender credits, these loans typically come with a higher interest rate or larger loan balance.

Ultimately, lender credits can be a smart financial strategy in the right circumstances. But before you commit, carefully weigh how long you plan to stay in the home, your monthly budget, and how much total interest you’re comfortable paying. The best choice is the one that aligns with both your short-term needs and long-term financial goals.

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