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Found 11 blog entries tagged as Interest Rates.

Excited About Buying A Home This Year? Here's What to Watch | Simplifying The Market

As we kick off the new year, many families have made resolutions to enter the housing market in 2019. Whether you are thinking of finally ditching your landlord and buying your first home or selling your starter house to move into your forever home, there are two pieces of the real estate puzzle you need to watch carefully: interest rates & inventory.

Interest Rates

Mortgage interest rates had been on the rise for much of 2018, but they made a welcome reversal at the end of the year. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates climbed to 4.94% in November before falling to 4.62% for a 30-year fixed rate mortgage last week. Despite the recent drop, interest rates are projected to reach 5% in 2019.

The

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Keller, Southlake and Trophy Club homes for sale
Mortgage interest rates have risen over a quarter of a point in just the first two months of 2018,  and Freddie Mac's US Economic and Housing Market Outlook is projecting a steady increase of interest rates throughout the year,  Many suggest rates could reach 5% by the end of the year. Now those of us who have been around a while recognize 5% interest rates are still a "gift", having seen rates much higher in the past.  Several of us who were in the market in the mid to late 1980's even remember 12-14% rates.  Still each increase, especially when combined with increasing housing prices, bodes poorly for homebuyers sitting on the fence.

What impact will rising rates have on home values?

Just as in years past, I'm starting to hear some potential home

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Mortgage Interest Rates affecting home buyers in Keller, Southlake, Trophy Club

Is Waiting to Buy Your Road to Nowhere?

For several years now rising home prices in Keller, Southlake, Trophy Club and other North Texas areas have forced home buyers to expect less and less for their home buying dollars.  Now rising interest rates appear be an additional factor those considering a home purchase will have to navigate as well.  Just like rising home prices, rising mortgage interest rates have a direct impact on your monthly payment and which homes you can qualify to buy.  

And each step up in rates, especially when combined with increasing housing prices, bodes poorly for those sitting on the fence.

Where are mortgage interest rates going in 2018?  Below are the projections from Freddie Mac’s U.S. Economic & Housing

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Mortgage Interest Rates Rising

Mortgage Interest Rates Went Up Again… Now What?

In case you hadn't noticed, mortgage interest rates have increased over the last several weeks. Freddie Mac, along with Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, is calling for mortgage rates to continue to rise over the next four quarters.

So now I'm hearing would-be home buyers in Keller, Trophy Club and North Richland Hills wonder if they should wait to buy...  

If you think it's been hard so far to find a home that fits your budget and your needs, it's going to get worse. - Jonathan Smoke, Realtor.com's Chief Economist.

Possible home sellers in the area that have lower mortgage interest rates may be less inclined to move up or buy a new

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Keller Home Buyers Impacted By Rising Interest Rates


Mortgage Rates Impact on 2017 Home Values

There is no doubt that historically low mortgage interest rates were a major impetus to housing recovery over the last several years. However, many industry experts are showing concern about the possible effect that the rising rates will have moving forward.

The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are all projecting that mortgage interest rates will move upward in 2017. Increasing interest rates will definitely impact purchasers and may stifle demand.

In a recent study of industry experts, “rising mortgage interest rates, and their impact on mortgage affordability” was named by 56% as the force they think will have the most significant impact

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FHA Reducing Mortgage Insurance Premiums

FHA Reduces Mortgage Insurance Premiums (MIP)

Starting January 27, 2017, mortgage insurance premiums (MIP) on most FHA-backed loans will be lowered by 25 basis points.  This means that borrowers who close on an FHA mortgage on or after January 27th will pay 0.25% less for the MIP. 

With this reduction in MIP cost, more homebuyers should be able to take advantage of pursuing an FHA loan to achieve their dream of homeownership.  According to HUD, FHA’s lower premium rates are projected to save new FHA-insured homeowners an average of $500 this year.

Bottom Line

If you're not sure what type of loan may be best for you, give me a shout.  I'm happy to walk you through "Mortgage 101" so you'll have enough information to make the choice that's

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Move Up home

Is This the Year to Move Up to Your Dream Home? If So, Do it Early

It appears that Americans are regaining faith in the U.S. economy. The following indexes have each shown a dramatic jump in consumer confidence in their latest surveys:

  1. The University of Michigan Consumer Sentiment Index
  2. National Federation of Independent Businesses' Small Business Optimism Index
  3. CNBC All-America Economic Survey
  4. The Conference Board Consumer Confidence Survey

It usually means good news for the housing market when the country sees an optimistic future. People begin to dream again about the home their family has always wanted, and some make plans to finally make that dream come true.

If you are considering moving up to your dream home, it may

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The Fed Raised Rates: What Does that Mean for Housing? | Simplifying The Market

The Fed Raised Rates: What Does that Mean for Housing?

 

You may have heard that the Federal Reserve raised rates last week… But what does that mean if you are looking to buy a home in the near future?

Many in the housing industry have predicted that the Federal Open Market Committee (FOMC), the policy-making arm of the Federal Reserve, would vote to raise the federal fund's target rate at their December meeting. For only the second time in a decade, this is exactly what happened.

There were many factors that contributed to the 0.25 point increase (from 0.50 to 0.75), but many are pointing to the latest jobs report and low unemployment rate (4.6%) as the main reason.

Tim Manni, Mortgage Expert at Nerd Wallet, had this to say,

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Information For Home Buyers About PMI

 

First Home or Fifth, You Can't Have TMI about PMI

What is PMI? It's basically an insurance policy that covers the lender should you stop making house payments.  You pay for that insurance policy in the form of an additional monthly fee added to your mortgage payment.  It's required for all conforming conventional loans with a downpayment under 20%.  

What's The Cost of PMI and Do I Have To Pay It Until I Pay Off The Mortgage?

The cost of PMI is determined by the loan-to-value ratio at the time you take out the loan as well as your credit score.  The higher your down payment and credit score, the lower your PMI cost.  You can figure the monthly cost will be about  1/2 to 1 percent of your loan amount divided by 12.  So if you borrow

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Will Increasing Mortgage Rates Impact Home Prices? | Simplifying The Market

Will Increasing Mortgage Rates Impact Home Prices?

 

There are some who are calling for a decrease in home prices should mortgage interest rates begin to rise rapidly. Intuitively, this makes sense as the cost of a home is determined by the price of the home, plus the cost of financing that home. If mortgage interest rates increase, fewer people will be able to buy, and logic says prices will fall if demand decreases.

However, history shows us that this has not been the case the last four times mortgage interest rates dramatically increased.

Here is a graph showing what actually happened:

Will Increasing Mortgage Rates Impact Home Prices? | Simplifying The Market

Last week, in an article titled “Higher Rates Don’t Mean Lower House Prices After All,” the Wall Street Journal revealed that a recent

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