Ep.158 – Tom McCarthy – Navigating the Housing and Interest Rate Markets with Trust and a Slice of Humor
Can you find trust and comedy within the highly personal and emotional arena of financial planning?
Tom McCarthy has built a successful 24-year career in the mortgage industry based on trust, doing what is in the best interests of his clients, and with a little comedy. Tom shares his unique perspective on the current housing market, including the impact of fluctuating interest rates, while providing valuable insights for potential homebuyers navigating mortgage decisions in this environment.
Buying a home or going through a refinance of an existing loan is often an extremely emotional process. After a 15-year hiatus from the comedy industry, Tom shares how his passion for two completely different industries interweaves together to help build lasting client relationships.
By the end, you'll have a fresh take on the housing market and a newfound appreciation for taking chances in life and career. Tom's wit and optimistic outlook shine through, especially when discussing the joys of his work, his supportive spouse, and parenting his two children.
Please enjoy my conversation with Tom McCarthy.
Connect with Paul
Contact Paul here or schedule a time to meet with Paul here.
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And feel free to email Paul at pfenner@tammacapital.com with any feedback, questions, or ideas for future guests and topics.
ADDITIONAL RESOURCES YOU MAY LIKE
1 Big Idea to Think About
The Housing Market's Complex Dynamics: The housing market is not just influenced by current interest rates but also by a range of factors including builder incentives, historical market trends, and psychological impacts on buyers. Understanding that the interplay between these elements can lead to unpredictable outcomes is crucial for navigating the market effectively.
1 Way You Can Apply This
Consider Both Short-Term and Long-Term Impacts: When deciding whether to buy a home now or wait for lower interest rates, evaluate both the immediate financial implications and the long-term potential for home appreciation. Analyze how current rates affect your budget and compare this with potential future changes in home values and interest rates.
1 Question to Ask
How will changes in interest rates impact my decision to buy or wait, and what are the long-term implications for home value appreciation in my target area?
Key Moments From the Show
[00:17:38] Tom McCarthy discusses the potential psychological impact of a quarter percentage point drop in interest rates, and how it might influence market sentiment.
[00:18:59] Paul Fenner highlights the issue of home affordability and the significant shortage of available homes, and questions why more housing isn’t being built despite high demand.
[00:20:01] Tom McCarthy explains the financial incentives for builders, noting that margins on middle-income housing are lower compared to high-end properties, affecting their construction decisions.
[00:21:07] Paul Fenner reflects on the psychological impact of past market downturns on builders and how it affects current housing supply.
[00:23:15] Tom McCarthy expresses optimism about future improvements in the housing market, despite current challenges, and discusses the potential for increased housing inventory with a drop in interest rates.
[00:24:41] Paul Fenner and Tom McCarthy discuss how builders can offer incentives such as buying down interest rates and the implications of these offers for buyers.
[00:27:14] Tom McCarthy explores the potential effects of lower interest rates on the housing market, including the possibility of increased inventory and its impact on home prices.
[00:29:10] Tom McCarthy provides practical advice for buyers facing higher current mortgage rates and emphasizes the importance of perspective and long-term thinking in mortgage decisions.
[00:31:29] Tom McCarthy outlines statistical trends in mortgage refinancing and the typical duration of a mortgage, advising buyers to consider the likely short-term nature of their mortgage commitment.
[00:34:38] The discussion wraps up with insights on making purchasing decisions based on current rates versus waiting for potential future changes and the importance of analyzing both financial and market factors.
Resources Featured in This Episode:
Tom McCarthy Resource Mortgage
When Does a Cost Stop Being an Expense and Start Being an Investment