Posts Tagged ‘mortgage rates’

  • Is Right Now Your Best Opportunity To Buy A Home?

    Almost one year ago one headline read “Home Sales Tumble As Mortgage Rates March Upward”. The main culprit last February was affordability which was based on rising interest rates. To begin 2018 30-year fixed mortgage rates climbed to 4.4% and continued to rise throughout the year, even breaking the 5% barrier for the first time since the previous decade. You may have noticed that rates unexpectedly softened a bit to end 2018 and according to Bankrate.com the 30-year fixed mortgage was down to 4.59% by the middle of January 2019. Now in to the fourth week of this new year we see them pretty much holding steady. Could we see rates continue to fall? Anything is possible but it’s unlikely. Tax reform kicks in this year and we’ve seen the stock market stabilize recently. Most economists I’m reading are saying long term rates will rise in 2019 and some even saying we’re due for an economic downturn. If you are on the fence about buying a home here in early 2019 keep this number in mind. If rates increase just half a point your purchase power drops by $40,000. I see three things converging at the moment. First, home prices have leveled off and even dropped in some markets, rates are down, and the buying season hasn’t started yet. Those factors compounded by a motivated seller could mean right now

  • Fed Rate Hike Could Be Good For Long Term Interest Rates

    Dec 14, 15 • Huggy • Mortgage Rates, Purchase Loan, RefinancingNo CommentsRead More »

    In two days the central banking system of the United States known simply by most people as the Fed will meet to discuss monetary policy.  Most are predicting an increase of .25 to the federal funds rate will be the result of this meeting.  So, what is the federal funds rate and what does this increase mean?  In short, the federal funds rate is the overnight lending rate banks charge each other to borrow money.  This short-term lending rate affects consumers’ like you and me on our short term debts like equity lines and credit cards. Most people think in terms of long term debt.  Examples of long term debt are the mortgage you have on your house or your students loans.  I’ve had many people contact me over the last few months who have an eye on the December 16 Fed meeting thinking that long term interest rates will be going up to end 2015.  A little perspective, the last time the Fed started to increase the federal funds rate was 2004 and it lasted until 2006.  During that time what happened to long term interest rates for 30-year fixed mortgages?  Not much.  In fact, they pretty much stayed the same.  This is why I think the Fed rate hike could be good for long term interest because our economy is slowly recovering which means a modest .25% increase

  • What Happened?

    At this point every year I find myself asking “What Happened”?  I was just making my predictions for 2014 and it’s already over. With every year end we take a look back before we say good bye to see what predictions came true, assess where we’re at, and make predictions for the new year ahead. At the start of this year we read and heard a lot about how the housing market would be slower this year.  And you know what they were right.  Across the board it has slowed down. Home values are stagnant and  mortgage volume is way down.  While they were right about the pace of business no one thought interest rates would be at their lowest level of the year in December but that’s what happened and we’re ending the year with 30-year fixed rates around 4%. 2015 will bring a new round of predictions from all the usual suspects.  And that includes me.  I predict Fannie & Freddie won’t be going anywhere.  They are making a lot of money and they are already looking to expand lending guidelines to reach more credit-worthy borrowers.  Home values will increase at a very modest pace and bring more buyers to the table.  Especially if interest rates stay low.  Home equity lines will return to be part of the purchase-loan structures to allow people to put down less than

  • All I Want For Christmas Are No Mortgage Payments

    All I Want For Christmas Are No Mortgage Payments should be the name of a Christmas carol.   And we need some new carols because I don’t think a new one has been written since Perry Farrel and the three wise men sang Away in a Manger at the Bethlehem Lollapalooza over two thousand years ago. With interest rates at their lowest point this year we are finishing up 2014 with many home owners taking the opportunity to lower their monthly housing expense by refinancing and home buyers taking advantage of the lower rates to get off the fence and maximize their purchase power for just the right home.  For home buyers who stay dilligent in their home search during what is considered a slower market time of the year this could translate to big savings, increased purchase power, or both. For those who might be considering a refinance check this out.  Not only are interest rates as low as they were at their bottom in the first half of 2013 I just had a past client wrap up her refinance this week and she doesn’t have a mortgage payment due until February 1.  She mentioned this couldn’t have come at a better time for her because the holidays always mean she spends more at this time of the year than any other.  How would you like to skip two months

  • Are All The Refinances Done?

    Like all broadcasting economic reporting is done at the macro level.  This is because those doing the reporting want to capture as many listeners and readers as possible.  Most of the time most of us just nod along to what we’re hearing because what’s being reported doesn’t apply to us so there is no reason to question the story.  But when you are “in the market” for a product or service your individual needs are no doubt quite different than the general market place. Mortgage interest rates rose last summer about 1.25% but it took several months for that to have in impact on the lending world. This lagging effect makes sense because rates rose so quickly and at the time of the increase many people already had their lower rates locked in.  Now that the mid-year data for 2014 is rolling out I’m seeing so many news sources make the claim that refinances are over.  It’s almost unanimous…and a little late.  While lending volume is certainly way down this year, which indeed is partly due to decreased refinance applications, the year-to-date purchase-market data  is showing us that housing is not preforming nearly as well as predicted at the beginning of 2014. This got me thinking that the refinance “hit” has not been as bad as it’s being reported.  Especially since mortgage interest rates are lower now than they have been

  • Interest Rates Hit Their Lowest Levels

    Interest rates hit their lowest levels The average interest charged to borrowers for a 30-year, fixed rate loan fell to 4.21% from 4.29% last week, according to Freddie Mac’s weekly mortgage rate report. Rates have not been this low since the week of November 7, when they were at 4.16%. The 15-year, fixed rate mortgage, a popular loan for homeowners refinancing existing mortgages, hit 3.32%, down from 3.38% last week. But continuing strict lending standards has limited the positive impact of low rates on the housing market recovery, according to Lawrence Yun, chief economist for the National Association of Realtors.   “The low rates are very good for people with high credit scores,” he said. “But credit is still very tight for borrowers with lower scores. Many people would like to buy, but can’t obtain financing.” New York (CNN Money) David Hughson 858-863-

  • How one homeowner is paying off his mortgage in just eight years

    Apr 8, 14 • Boney • Loan Programs, Mortgage RatesNo CommentsRead More »

    While many homeowners prefer the safety and comfort of the lower monthly payments that come with long mortgage terms, like a 30-year loan, others opt for shorter-term loans that allow them to get rid of their mortgage faster. Mark Hayes, a 43-year-old  Atlanta, Georgia resident, fell into the latter category. “I know many people prefer to invest their money and continue making monthly payments for 30 years, but that’s just the opposite of what I wanted,” says Hayes. “If I managed to pay my mortgage off in 10 years or less, I figured I would save tens of thousands of dollars on interest payments.” The savings alone was enough to convince him to evaluate his finances and work on being mortgage-free as quickly as possible. Click HERE for the full article on how Hayes plans to be mortgage free in just 8 years…..   Any questions or comments? Email me- Sam Logan

  • Mortgage Brokers Offer Closing Cost Credits That Banks Don’t

    By Kenneth R. Harney – NAMB Government Affairs WASHINGTON — The government shutdown and the debt limit have dominated the headlines, but a behind-the-scenes fight over federal mortgage policy has been brewing and it could affect your choices the next time you apply for a home loan. The issue concerns differing rules for different types of mortgage sources. Some mortgage brokerage firms have begun advertising that they offer substantial credits to their customers — often in the $2,000 to $5,000 range per loan but sometimes more than $10,000 — that can be used to defray borrowers’ closing costs. A survey of 164 member firms of the National Association of Mortgage Brokers found that these companies provided more than $69 million in closing-cost credits to clients last year, and are on track to pay out the same or more this year. The group estimates that brokers nationwide rebated upward of $2 billion in 2012. To illustrate: Charles W. Berryman, a departmental chairman at Louisiana State University, closed on a $295,900 mortgage to purchase a home earlier this year. It carried a 3 percent fixed rate for 15 years. Essential Mortgage Co., a large brokerage firm in his area, credited him $3,500 to defray his closing costs. In an interview, Berryman said he had shopped at two competing banks before making his choice. They offered the same attractive 3 percent fixed rate,

  • What do Rising Interest Rates have to do with the Price of Your Home?

    Sep 10, 13 • greenhousegrp • How To Buy A Home, Mortgage RatesNo CommentsRead More »
    What do Rising Interest Rates have to do with the Price of Your Home?

    This seems to be the biggest question that both home buyers and home sellers are asking me about today. Well, here’s an interesting take from the folks over at CNN Money on the correlation: Mortgage rates have climbed by more than a percentage point since late April. NEW YORK (CNNMoney) If history is any indication, the recent spike in mortgage rates is going to have little to no impact on home prices, according to a new report from Fannie Mae. After looking at mortgage rates going back to 1990, Fannie Mae’s researchers came to the surprising conclusion that while rising rates were likely to hurt the number of home sales, they had virtually no impact on home prices. “History suggests that interest rate increases at the level recently witnessed will not stop the current housing recovery,” the report said. The study, which compared historic mortgage rates with home price and sales data, focused on two time periods when rates soared. The first, from October 1993 through December 1994, when rates rose to 9.2% from 6.8% and the second from October 1998 to May 2000 when they climbed to 8.5% from 6.7%. During the rate spike in the early 1990s, home prices leveled off, then fell only slightly. During the second rate climb, there was no impact on homes prices at all. “What we see through the ups and downs of rate

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