Should You Pay a Mortgage Interest Rate over 4%?

 Should You Pay a Mortgage Interest Rate over 4%?

 

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Along with Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors are all calling for mortgage rates to continue to rise over the next four quarters.

This has caused some purchasers to lament the fact they may no longer be able to get a rate less than 4%. However, we must realize that current rates are still at historic lows.
Here is a chart showing the average mortgage interest rate over the last several decades.

Bottom Line

Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago; a lower rate than your parents did twenty years ago and a better rate than your grandparents did forty years ago.

 Here Come the Millennials!!  

The Real Estate Market has been eagerly anticipating the entry of Millennials as first time home buyers. It's finally looking like the job market is aligning to support Millennial's ability to take the first steps to home ownership and financial security. This is great news for the continuing strong Seller's Market. 

 

Many have been wondering when the much anticipated move by Millennials’ into homeownership would actually take place. We know the belief in owning a home is there.

According to a recent Merrill Lynch study, eighty one percent of Millennials believe “homeownership is an important part of the American Dream”. This compares favorably to previous generations.

The obstacle seemed to be employment. It appears that is about to change.
The most recent jobs report disappointed many economists. However, the silver lining in that cloud of doubt was Millennials. Jonathan Smoke, realtor.com Chief Economist, reported:

“About 33% of civilian jobs created over the last 12 months have been for the young adults who are most likely to buy their first home. This should help support continued growth in the share of homes purchased by first time buyers, as economic success has been influencing older Millennials to jump into the housing market this year.”

Selma Hepp, chief economist at Trulia, concurred:

“The faster rate of job growth among Millennials will continue to bolster both the rental and for-sale housing markets for an extended period of time.”

It appears that Millennials will be entering the housing market in great numbers in the very near future.

by The KCM Crew on October 22, 2015 in First Time Homebuyers, For Buyers, Millennials

Where Will Home Prices Be In A Year?

Where Will Home Prices Be In A Year?

Some interesting facts:

• 25 states are forecasted to achieve higher levels of appreciation in the next 12 months than already achieved in the last year.
• 25 state and the District of Columbia are forecasted to experience a slow in appreciation.
• All 50 states & D.C. are forecasted to achieve some level of positive price appreciation.

Even though each state is appreciating at different levels, you need to know the Cost of Waiting until next year to buy your dream home!

 Ready to buy? Call me today, I would love to help you realize your Dream!!

New Home Sales Surge By 5.7%!

Some Highlights:

• The median price of a newly constructed home is currently $292,700.
• Sales are up 5.7% month-over-month and 21.6% year-over-year.
• Many buyers are looking to new homes as an option due to the lack of inventory of existing homes for sale.

 

It's great news that New Home sales are up, but when you see that it is because of the lack of inventory in existing homes, you'll realize that the opportunity for Seller's is still high. Because the demand it there which will continue to drive prices and values up. If you're thinking about selling it's still a great time to call me!

Credit Score Requirements LOWER As Interest Rates CREEP UP!

Credit Score Requirements LOWER 

As Interest Rates CREEP UP!

Some Highlights:

• The average 30-year rate for all loans closed in August eclipsed 4.3% for the first time since October 2014.
• The average FICO score for all closed loans in August reached a new yearly low at 724 (the lowest since February 2014!)
• The average down payment of FHA loans closed was just 4%!

How Do Home Sales Impact A Local Economy?

How Do Home Sales Impact A Local Economy? 

• Every time a home is sold, the surrounding economy feels a boost.
• Different industries and businesses benefit at each stage of the process of moving into a home!
• Hawaii leads the way with a $177,000 boost to the local economy.

It stands to reason that the sale of a home would have an impact on it's surrounding economy, but what exactly is that impact? Well, In California, each home sold puts more than $111,000 into the local economy. 

Where does this money come from, or go to? Of course there is the potential income to the Home Seller in the form of profit over what they owe vs. the selling price, and that profit either goes into a Seller's reserves, or is used to purchase a replacement property, generating more income for the area. Additionally the commissions paid to Real Estate Agents creates incomes for these agents, their support staff and brokerages as well as their vendors. 

Another avenue of economic impact are all those services and products related to moving or taking possession of a new property, such as handymen, contractors, painters and building supply stores. 

It's easy to look at a rising Real Estate Market, like we have now, and see only the individual homeowner as benefiting from an increased home value, but in reality the benefit starts there and flows all the way down to the clerks manning local businesses. Even in an economy as large as California's this translates to an estimated $46.1Billion impact to our economy. (Based on $111,000 multiplied by the an actual number of escrows closed in 2014: 415,000). This number will predictably be higher as we close out 2015, because not only have home prices risen, but the number of escrows closed is up about 15% in 2015 when compared to the same time last year. This translates into an estimated $53Billion boost to California's economy.

A+ Reasons to Hire A Real Estate Professional

The Best Reasons To Hire A Real Estate Professional:

• Hiring a Real Estate Professional to buy your dream home, or sell your current house is one of the most 'educated' decisions you can make!
• A Real Estate Professional has the experience needed to help you through the entire process.
• Make sure that you hire someone who knows current market conditions & can simply & effectively explain them to you & your family!

 

These are all important reasons why it's important to hire a Real Estate Professional when Selling or even Buying a Home. Especially given that regulations have changed so dramatically since the Mortgage Crisis in 2007/2008. Prior to these increased regulations a Seller may have been able to, with some determination and perseverance, wade through the paperwork required to sell their home. However the ever restrictive regulations enacted after the Mortgage Crisis have made For sale By Owner more and more difficult. 

As a Professional Real Estate Agent I work within these requirements on a daily basis, that coupled with on-going education and training gives me the experience needed to navigate all of these requirements. My goal is always to make every Real Estate Transaction appear to be smooth and seamless so that the entire process can feel simple and straight froward to my clients. Like a Duck swimming in a pond; on the surface the water is smooth, but underneath the water the ducks legs are moving and working, keeping him resting on the water. In that same way my Team and I work behind the scenes to successfully close each transaction. 

When you're ready to list your home I will provide you with a Complete Market Analysis of your Property and walk you through the process every step of the way. Thank you for allowing me to be "Your Trusted Advisor!"