Elvis once sang, “Home is where the heart is.” Well, according to a recent study that parsed U.S. Census data, home is also where a good chunk of the money is.

ResiClubAnalytics found that nearly 40 percent of owner-occupied homes don’t have a mortgage. And as you can see in the chart, that’s an all-time high.

So when you hear stories about the Federal Reserve, lower interest rates, and the housing market, keep the 40 percent figure in mind. Those homeowners may not care whether mortgage rates are 2 percent or 20 percent. They own their homes. They face a different set of decisions about the future.

However, another cohort of homeowners were ready to pounce after the Fed’s bold decision to cut short-term rates by 0.50 percent following its September meeting. Applications to refinance home loans rose 20 percent the week ended September 20. Put another way, that was a 175 percent increase from a year ago.

Most people’s primary residence plays a key role in their overall personal finances. A home is both an asset and a liability. It should not be overlooked when it comes to creating a financial strategy.

My email today is for informational purposes and is not a replacement for real-life advice. I encourage you to consult a real estate professional if you have questions about your home or mortgage.

But the next time we speak, let me know what’s going on with your home. I’d welcome the chance to hear about your ideas.

These are hypothetical mortgage rates used for illustrative purposes only. They are not representative of any specific mortgage rate available.

Contact Mollot & Hardy to learn about our financial strategies.

ResiClubAnalytics.com, 2024
CNBC.com, September 25, 2024. “Mortgage refinance boom takes hold, as weekly demand surges 20%.”
FinancialSamurai.com, September 7, 2024. “Primary Residence Value As A Percentage Of Net Worth Guide”

This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.