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Financial Don’ts When Getting Ready To Buy A Home

If you’re in the process of buying a home, you’ve probably already met with a lender who advised you on what to do and what not to do during the escrow process. But if you’re just getting ready to buy or plan on doing so in the near future, following a few financial tips can mean the difference between qualifying…and not, and also getting a decent rate. These are a few universal “don’ts” that will help you stay on track, even before you get a lender involved.

Don’t take out more credit

If you’re thinking you’re going to buy a house in a matter of a few months, forget that new laptop on the Best Buy card, forget that new car, and forget that Old Navy card. Sure, it’s only a $30 pair of pants. But, taking out more credit can harm your debt-to-income ratios, which can make you look like a credit risk. And that’s not worth it, no matter how cute the pants are.

Don’t pay off all your current credit cards

Your lender will tell you specifically what you should pay down and what you should leave alone, but banks tend to like responsible credit management. In some cases, that may mean carrying a small balance on one or more cards.

Don’t charge up all your cards to the limit

“Responsible credit management” does not mean running every available card up to the limit and/or only making minimum monthly payments. Banks will not look kindly on this when you go to get approved for a loan.

Be careful with old debts

You may think that in order to qualify for a mortgage or get the best possible rate you have to pull your credit and go back through every single entry to identify and take care of anything negative. You’re right about the first part. Pulling your credit so you know what you’re working with is critical, and financial experts recommend doing it annually, regardless of what you’re planning (or not planning) to buy. But be careful with old debts. It doesn’t hurt to ask a lender what should and should not be taken care of. But, in general, you’ll want to:

Pay in full instead of making settlement arrangements – It’s not uncommon for debt collection companies to send out settlement offers that allow you to settle debts for less than the total amount. While this can sound tempting, it likely won’t yield the results you’re looking for. Yes, it’ll stop the harassing phone calls and persistent letters. But if your goal is to get the debt to disappear from your credit report, you’ll be disappointed.


http://www.croninhomes.biz
“When you settle your debt, the activity usually shows up on your credit report as ‘debt settled’ or ‘partial payment’ or ‘paid in settlement.’ You can talk to the settlement company about the specific language they use, but the bottom line is: this is a red flag on your report,” said clearpoint. “FICO doesn’t reveal how much your score will drop, exactly, and your report doesn’t indicate how much of the original debt was forgiven; it simply shows you settled. Either way, it still points to the fact that you may be a credit risk.”

Stick to newer debts – Older debts that are getting close to falling off your report should be the last thing you pay. “You also want to consider the statute of limitations on your debt,” they said. “Most past debts remain on your credit report for seven years, so if you’re close to the time frame when the debt falls off, settling it may not make much of a difference. There’s an ethical argument to be made here, but practically, you might just be settling a debt that was about to disappear anyway.”

Be careful with debt consolidation

If you have a lot of outstanding debt, are in over your head with credit cards and store cards, and can only manage the minimum monthly payment on all your existing loans, you’re likely going to have a hard time qualifying for a mortgage. You may be tempted to lump your debt together into one payment through a credit consolidation company, but beware the consequences. There may be startup fees, interest rates on the consolidation loan could skyrocket after an initial teaser rate expires, and, in some cases, an improvement in credit is years away.

Don’t get lax with your payments

Your lender will reinforce this, but it bears repeating that even after you’ve been prequalified, you need to keep your payments current on your car, your Visa, etc. Your lender will do a recheck before closing just to make sure nothing has changed in your credit report, and if you have new issues, it could impact your loan.

Don’t move money around

“We know a story of one homebuyer who almost lost his home because he had stated on his application that the down payment was coming from a mutual fund account. Then, two days before closing, he decided to sell a baseball card collection instead,” said HSH.com. “The loan had to be underwritten all over, his ownership of the collection, its value and its sale had to be verified, the closing was delayed and the fees increased.”

Don’t change jobs before you buy your home

This is a big no-no don’t if you’re in the process of buying a home or are about to. Among all the other financial information your lender will be collecting in consideration of your loan, they will also be asking about your employment history. You’re obviously less likely to be approved if you’re unemployed (unless you’re independently wealthy, and, in that case, Congratulations!). A recent job change may also be problematic if the bank is feeling jumpy about your job security

Written by Jaymi Naciri

Source: https://realtytimes.com/consumeradvice/mortgageadvice/item/1005579-20170928-financial-donts-when-getting-ready-to-buy-a-home?rtmpage=null

April 9, 2018   No Comments

Renovation Tips For A Classic, Not Trendy, Home

Here’s the dilemma. You’re getting ready to redo your kitchen and you want it to be stylish and modern but not trendy. After all, this is the only kitchen renovation you ever plan to do and you don’t want it to be outdated before you are even finished with the final touches.

If you’re paralyzed because you’re afraid of making the wrong decision, we get it. We’re facing a similar dilemma here, FYI, with floors that need to be done and so many options from which to choose and no winner (yet) because it’s not yet clear if what is currently hot is just a flash in the (floor) pan or will stick around for a while.

So how do you know how to choose? First, it depends on what your goals are. If you’re just looking to update and then sell your house, choosing materials that are trending now may be a good call. If you’re thinking, “I want to love this and have it still look good in 10 years,” that’s another story.

“You’ve probably taken on a renovation project because you want to update the style. While you’d like to give your home a modern look, choosing a short-lived style or personal design is a major fail,” said HomeAdvisor. “While a trendy design is sure to make your home stand out, it’s also going to quickly go out of style. This is a big problem if you want to resell your home in the future. Modernize the look of your kitchen or bathroom, but avoid bold styles that only appeal to those with specific tastes.”


nytimes.com
Go neutral

Yes, neutral can be boring. It’s true. (It can also be super chic when done right.) Making a bold choice with your kitchen countertops might feel like the right way to go right now, but you may turn around in a couple years and regret that choice, especially if you’re going to try to sell your home. You can always bring in pops of color with accessories or items that are easier to replace or redo.

For the last several years, grey has been the go-to color for homes. Prior to that, it was beige – a color that is currently seeing a resurgence even though grey is not gone – yet. Black and white is another currently hot option for color schemes, and, the bonus is, “black and white remains a classic combination,” said HGTV. Certain colors will never go out of style – House Beautiful has 10 of them. But remember that no matter what color you choose, it’s not permanent. Painting is one of the easiest ways to update your space and change the mood whenever you like.

Just keep in mind that high ceilings and other architectural features may make a DIY situation un-DIY-able and may make a redo more expensive because you have to hire someone. Key in on walls that don’t soar to a pitched ceiling or that can act as a focal wall for high-impact that’s easy to accomplish yourself.

Be smart about your kitchen

You may have a desired look cemented in your head for your kitchen, but are you making smart choices? Shaker cabinets, farmhouse sinks, and marble countertops are a few good options if you want something that looks modern but “will stand the test of time and still look as beautiful twenty years from now as it does today,” said Apartment Therapy.

Go eclectic with your furniture

An entire house full of mid-century modern furniture can begin to look like a showroom, and when the trend is over, it can be painful to replace it all. Creating a more eclectic look with an eye toward classic pieces creates staying power. Adding in a vintage piece or two can add another important layer. “A design rule that’s sure to remain true? Every room in your home needs a unique vintage piece,” said HGTV. “Even in newly-decorated spaces, distressed or worn pieces create a collected, designer look.”

Avoid hyper trends in larger items

Drapery, rugs, and bedding can be easily changed out to accommodate your fickle design taste. But when it comes to the larger pieces in the home – a couch or a set of chairs, perhaps, avoiding trends will give you longevity. “Timeless decor means fabrics that will stand up to years of changing trends! They transcend those changes,” said Stone Gable. “Don’t rush out and buy foundational furniture in the ‘color of the year’! It’s only the ‘color of the year’ for one year! Choose colors and patterns, especially when buying big ticket items, that will still look amazing when this year’s trends have come and gone. Add layers of accent decor like lamps, art, tableware, pillows, bedding, etc. in more updated colors and styles. They can be changed out easily when they get tired or are out of style.”

Written by Jaymi Naciri

Source: https://realtytimes.com/consumeradvice/homeownersadvice/item/1015236-20180219-renovation-tips-for-a-classic-not-trendy-home?rtmpage=null

February 27, 2018   No Comments

Homebuying Sentiment Rises

by Steve Randall
08 Jan 2016

Sentiment among homebuyers rose in December following a strong 2015. Fannie Mae’s analysis shows that buyers had increased confidence in the US economy and their own personal finances and its sentiment index rose 2.4 percentage points to 83.2. The net share of respondents who believed that now was a good time to buy stayed at 35 per cent while 8 per cent felt it was a good time to sell, doubling the previous month’s percentage. Job security and personal finances showed increased optimism along with expectation of higher real estate prices, although fewer respondents felt that mortgage rates will go down.

30-year FRM rates down
Mortgage rates have started 2016 lower according to analysis from Freddie Mac. It’s Primary Mortgage Market Survey showed that average rates for a 30-year FRM were down to 3.97 per cent for the week ending Jan. 7 compared to 4.01 per cent a week earlier. For 15-year FRM’s the average was slightly higher than last week, rising to 3.26 per cent from 3.24. 5-year ARM’s averaged 3.09 per cent (up from 3.08).

Mortgage credit availability slipped in December
Figures from the Mortgage Bankers’ Association show that mortgage credit availability decreased in December. Its Mortgage Credit Availability Index declined 2.4 per cent to 124.3 with conventional and jumbo loans seeing the largest declines.
Although tightening of lending are usually the reason behind a decline in the MCAI there were additional issues in December: a large part of the decline was driven by a technical issue related to implementation of affordable, low down payment, loan programs,” said Lynn Fisher, MBA’s Vice President of Research and Economics. “Many investors discontinued existing low down payment loan programs only to replace them with new iterations of similar programs that were discontinued.”

Apartment vacancies higher in Q4
The level of apartment vacancies across the US in the fourth quarter rose to 4.4 per cent according to data from New York-based researcher Reis. The slim rise (from 4.3 in the previous quarter) was the first time since 2009 that the rate has risen in two straight quarters. Older properties are in demand whereas some pricier new urban developments are struggling. “It’s taking a lot longer for new projects to lease up,” Ryan Severino, a senior economist at Reis, told Bloomberg. “Vacancies are rising predominantly because a lot of shiny, sexy new Class A projects are having a harder time leasing up relative to a few years ago.”

Source:  http://www.mpamag.com/news/morning-briefing-homebuying-sentiment-rises-27520.aspx

January 8, 2016   No Comments

What a Fed Rate Hike Could Mean to Mortgage Borrowers

December 14 at 7:00 AM

(Gene J. Puskar/AP)

This week’s expected rate increase by the Federal Reserve should not cause home buyers to panic, if history is any indication.

Back in the early 2000s, after the tech bubble burst, the Fed dropped its benchmark rate to 1 percent. Then in the summer of 2004, it began raising it by a quarter percent. At the time of the central bank’s first increase, the interest rate on a 30-year fixed-rate mortgage was around 6.3 percent. During the next four months, it dropped to 5.7 percent.

As the Fed continued to raise the benchmark rate, the rate on a 30-year fixed-rate mortgage declined, falling to 5.58 percent in June 2005. By the time of its last increase in the summer 2006, the rate on a 30-year fixed-rate mortgage was at 6.68 percent. It had gone up less than a half percent even though the benchmark rate had climbed from 1.25 percent to 5.25 percent.

Could mortgage rates follow the same course this time around? Possibly. But keep in mind the Fed hasn’t raised its benchmark rate in nearly a decade. It’s hard to predict how the market will react to such a momentous change.

“You’ve got 33-year-old bond traders who’ve never in their career seen” the Fed raise its benchmark rate, said Bob Walters, chief economist at Quicken Loans, the largest non-bank mortgage originator.

“You’ll clearly have some reaction in the market, even though [the rate increase is] expected. Just the reality of it plopping in their laps is going to create some volatility, not only in the bond markets but also the equity markets as people try to sort this out. People should expect prices of bonds and equities to start to gyrate.”

John Wake, a self-described “geek-in-chief” at Real Estate Decoded and a real estate agent in Arizona, believes that in 2004 when the Fed increased the benchmark rate it caused an already frenzied housing market to become more manic. Home buyers, worried that rising rates would prevent them for affording a house, became desperate to buy right away.

“The real estate economy is more sensitive to interest rates than most of the economy,” Wake said. “An interest rate low enough to move the needle on the national economy may cause the real estate economy to overheat. We may have seen a bit of that the last couple of years. And because real estate is more sensitive to interest rates, expectations of higher rates have a bigger impact on real estate than most of the economy.”

Wake points out that often what people expect determines what they do. If home buyers expect mortgage rates to increase, they will act as if rates are increasing even if they don’t.

“That could get people to buy sooner rather than later, which could drive prices up even more next year, which is what I am worried about,” he said.

Walters doubts a slight mortgage rate increase will have much impact on the housing market.

“I don’t think most people are going to run out and make a life decision for a quarter of a point interest rate,” he said.

As the chart from the Federal Reserve Bank of St. Louis shows, a very loose connection exists between the benchmark rate and a 30-year fixed-rate mortgage. Mortgage rates are more closely linked to 10-year U.S. Treasury yields, and bonds tend to move ahead of, rather than after, central bank decisions. As a general rule, when 10-year Treasury yields go up, mortgage rates go up. According to Freddie Mac’s national survey of lenders, the 30-year fixed-rate average was 3.95 percent last week. It has remained below 4 percent since late July.

“Long-term rates are determined by the marketplace every day, by traders buying and selling bonds,” Walters said. Traders are “thinking about the returns they are going to get over time. Primarily what they are thinking about, especially on longer term bonds, which a 30-year mortgage goes into, they’re thinking about inflation.”

Inflation has been hovering below the Fed’s 2 percent target. The U.S. economy has been doing fairly well lately, despite turmoil in the global economy, its effect on the dollar and low oil prices.

“You’re seeing a complete decimation of commodity prices right now,” Walters said. “That will influence inflation a great deal. It makes pricing power for wages almost impossible. And if you can’t get wage increases, it’s tough to have inflation. If you don’t have inflation, it’s tough to see rates go higher. That’s the world we’ve been in for [nearly] a decade. That’s not going away anytime soon. We’ve essentially been at zero percent short-term interest rates for seven or eight years. There’s not even a whisper of inflation. That’ll tell you really how challenging it is for price increases to take hold. And as long as that’s the case, long-term interest rates will stay down.”

No matter what the Fed does this week, it is likely that uncertainty in the global economy will continue to put downward pressure on long-term rates. The Mortgage Bankers Association is predicting the interest rate for 30-year fixed-rate mortgage will be around 4.8 percent at the end of 2016, that’s an increase of less than one percent.

“We have a fairly weak global economy right now,” said Michael Fratantoni, MBA’s chief economist. “You have many global investors parking their money in U.S. Treasury securities or other safe assets and that is keeping our longer term rates lower than they otherwise would be.”

What Fratantoni wonders about is what will happen after the Fed raises the benchmark rate, what its plan will be going forward.

“It really is not just when the Fed is going to make their first move,” he said. “It’s how that first move translates into market expectations about the future path of rates. It gets very complicated because it’s not just what they do, but how they talk about it and how investors anticipate how the Fed might act going forward.”

Fratantoni is especially curious about what the Fed will do with its balance sheet. The central bank pumped trillions of dollars in stimulus into the market in the wake of the financial crisis, buying mortgage-backed securities. Pre-crisis, the central bank’s balance sheet was about $800 billion, primarily in short-term Treasury bills. Now it’s $4.2 trillion, and the Fed is the largest single investor in mortgage-backed securities in the world, holding $1.7 trillion in MBS.

“The Fed has said at some point after they increase short-term rates they are going to begin to allow that portfolio to shrink, and they may more actively sell some of those securities,” Fratantoni said. There is “a lot of uncertainty about how the Fed is going to allow their balance sheet to wind down and when or if they might sell some of those MBS. There is not at this point a lot of clarity about who’s going to step in and try to dampen some of that volatility. There’s no investor of comparable size waiting on the sidelines ready to jump in.”

Despite those concerns, Fratantoni is optimistic about next year’s real estate market.

“At some point, you could get to a level of rates, 6 to 6½ percent, that would really begin to crimp affordability and then that would be a real negative,” he said. “But at this point, it’s going to be just a very modest headwind. Most of the other fundamentals are suggesting a very strong housing market in the year ahead.”

Waters agrees. Although he demurred when asked what he thought the interest rate on a 30-year fixed-rate mortgage would be at the end of the year, he didn’t think it would be significantly higher.

“I tend to think from a 30-year fixed mortgage standpoint there’s not going to be an extraordinary change,” he said. “I don’t think they’ll go up or down more than a quarter percent, at least not initially. It’s not going to five [percent] and it’s not going to three [percent]. We’re going to stay in a tight band.”

Source:  https://www.washingtonpost.com/news/where-we-live/wp/2015/12/14/what-a-fed-rate-hike-could-mean-to-mortgage-borrowers/

 

December 14, 2015   No Comments

Where Are Mortgage Rates Headed? This Winter? Next Year?

Where Are Mortgage Rates Headed? This Winter? Next Year? | Keeping Current Matters

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

Below is a chart created using Freddie Mac’s October 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

Mortgage Rate Projections | Keeping Current Matters

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.4% from this time last year and are predicted to be 4.7% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Meet with a local real estate professional to evaluate your ability to purchase your dream home.

Source:  http://www.keepingcurrentmatters.com/2015/11/09/where-are-mortgage-rates-headed-this-winter-next-year/

November 24, 2015   No Comments

Fed Minutes Lay Out Plans for Rate Hikes

18 Nov 2015

by Craig Torres

Federal Reserve policy makers inserted language into their October statement to stress that “it may well become appropriate” to raise the benchmark lending rate in December and largely agreed that the pace of increases would be gradual, minutes of the meeting showed.

“Members emphasized that this change was intended to convey the sense that, while no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting,” said minutes of the FOMC’s Oct. 27-28 meeting, released Wednesday in Washington.

A majority of Fed officials have signaled they expect to raise interest rates this year for the first time since 2006. That message was underscored when policy makers inserted a reference to the “next meeting” on Dec. 15-16 in their October statement, in connection with their assessment on when to act.

A “couple” of voting policy makers had qualms that the wording change “could be misinterpreted as signaling too strongly the expectation” for December liftoff, according to the report.

Participants in the meeting “generally agreed,” the minutes said, “that it would probably be appropriate to remove policy accommodation gradually.”

“It was noted that the beginning of the normalization process relatively soon would make it more likely that the policy trajectory after liftoff could be shallow,” the minutes said.

Three Camps

The minutes broke policy makers into three camps, with some saying economic conditions necessary for tightening policy “had already been met,” while “most participants” estimated that their criteria “could well be met” in December.

“Some others, however, judged it unlikely that the information available by the December meeting would warrant” a rate increase, the minutes said.

U.S. economic data since the meeting have been encouraging. Employers added 271,000 people to payrolls in October, the biggest gain this year, and unemployment fell to 5 percent. Job openings in September climbed to the second highest on record, while the consumer price index, minus food and energy, rose 1.9 percent last month from a year earlier.

Earlier Wednesday, several Fed officials talked up recent data on the U.S. economy and said it reinforced the case for raising interest rates, though they stopped short of committing to liftoff at their next meeting.

“I’m comfortable with moving off zero soon, conditioned on no marked deterioration in economic conditions,” Atlanta Fed President Dennis Lockhart told a conference in New York.

‘Live Possibility’

Chair Janet Yellen told Congress on Nov. 4 that a December rate hike was a “live possibility,” and New York Fed President William C. Dudley said Wednesday that raising rates would be a sign of confidence in the economy.

Officials in October also dropped a reference in their statement to “recent global economic and financial developments” potentially constraining economic growth.

“Most participants saw the downside risks arising from economic and financial developments abroad as having diminished,” the minutes said.

Despite missing their target for 2 percent annual inflation for more than three years, Fed officials continued to anticipate prices would rise back to their goal “over the medium term,” the minutes said.

Fed officials received a staff briefing on the equilibrium real interest rate, or the policy rate that would keep the economy running at full employment with stable prices, according to the minutes.

Fed officials discussed the possibility that the short-run equilibrium rate “would likely remain below levels that were normal during previous business cycle expansions,” the minutes said.

(Bloomberg)

November 18, 2015   No Comments

Are Today’s Home Prices in a Bubble?

17 Nov 2015

 

by Jeanna Smialek

An ongoing rebound in U.S. home prices is different from the credit-fueled run up that fanned the financial crisis and tipped the nation into recession when the real estate bubble burst, economists at the Federal Reserve Bank of San Francisco find in new research.

The distinction matters: San Francisco Fed President John Williams has recently warned that it’s important to monitor for asset price bubbles, saying that preventing imbalances from building is one argument in favor of raising interest rates off near-zero, where they have been held for seven years. Williams said in October that he was “starting to see signs of imbalances emerge in the form of high asset prices, especially in real estate,” and that once such issues grow large, they are difficult to tackle.

Williams noted then that the market isn’t yet at a “tipping point,” and the researchers uphold that conclusion. They find that today’s market lacks many of the riskiest characteristics that were evident in the run up to the late-2000’s housing collapse.

“The increase in U.S. house prices since 2011 differs in significant ways from the mid-2000s housing boom,” economists Reuven Glick, Kevin Lansing and Daniel Molitor find, noting a “less-pronounced increase in housing valuation together with an outright decline in household leverage — a pattern that is not suggestive of a credit-fueled bubble.”

Since bottoming out, the median house price has recovered to just 8 percent below the prior peak, according to the paper.

This time, however, the ratio of home prices to rent stands at about 25 percent below its mid-2000s high, the researchers find. The number is analogous to the price-to-dividend ratio for stocks and provides insight into whether price matches up with the fundamental value of the underlying asset.

“As house prices have recovered since 2011, so too has rent growth, providing some fundamental justification for the upward price movement,” the researchers write. What’s more, the mortgage debt-to-income ratio, which reached an all-time high in 2007, has continued to decline.

“The red flags are not evident in the current housing recovery,” they write. Even though this cycle is different, they say that “given that housing booms and busts can have significant and long-lasting effects on employment and other parts of the economy, policy makers and regulators must remain vigilant to prevent a replay of the mid-2000s experience.”

(Bloomberg)

November 18, 2015   No Comments

Mortgage Rates Pushed Upward Following Strong Employment Data

November 12 at 10:29 AM

Mortgage rates continued to move higher in anticipation of a Federal Reserve rate hike next month, according to the latest data released Thursday by Freddie Mac.

Home loan rates began creeping up after the Federal Reserve signaled earlier this month that a December interest rate hike was a possibility. What the Fed does with interest rates doesn’t have a direct relationship to mortgage rates, since they are more closely tied to long-term U.S. Treasury yields. Bonds are more likely to move ahead of a Fed action than in response to it.

With the release of last week’s stronger-than-expected jobs report, the possibility that the Fed will raise rates became greater and home loan rates experienced an upturn.

The 30-year fixed-rate average jumped to 3.98 percent with an average 0.6 point, creeping ever closer to the 4 percent mark. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.87 percent a week ago and 4.01 percent a year ago. Since falling to a six-month low of 3.76 percent in late October, the 30-year fixed rate has gained 22 basis points in two weeks. (A basis point is 0.01 percentage point.)

The 15-year fixed-rate average climbed to 3.2 percent with an average 0.6 point. It was 3.09 percent a week ago and 3.2 percent a year ago.

Hybrid adjustable rate mortgages also rose. The five-year ARM average grew to 3.03 percent with an average 0.4 point. It was 2.96 percent a week ago and 3.02 percent a year ago.

The one-year ARM average increased to 2.65 percent with an average 0.2 point. It was 2.62 percent a week ago.

“A surprisingly strong October jobs report showed 271,000 jobs added and wage growth of 0.4 percent from last month, exceeding many experts’ expectations,” Sean Becketti, Freddie Mac chief economist, said in a statement.

“The positive employment reports pushed Treasury yields to about 2.3 percent as investors responded by placing a higher likelihood on a December rate hike. Mortgage rates followed with the 30-year jumping 11 basis points to 3.98 percent, the highest since July. There is only one more employment report before the December FOMC meeting, which will have major implications on whether we see a rate hike in 2015.”

Meanwhile, mortgage applications were flat again this week, according to the latest data from the Mortgage Bankers Association.

The market composite index — a measure of total loan application volume – slipped 1.3 percent from the previous week. The refinance index dropped 2 percent, while the purchase index increased 0.1 percent.

The refinance share of mortgage activity accounted for 59.8 percent of all applications.

Source:  https://www.washingtonpost.com/news/where-we-live/wp/2015/11/12/mortgage-rates-pushed-upward-following-strong-employment-data/

November 12, 2015   No Comments

Waiting Until After the Holidays Isn’t a Smart Decision

Waiting until after the Holidays, Isn’t a Smart Decision | Keeping Current Matters

Every year at this time, many homeowners decide to wait until after the holidays to put their home on the market for the first time. Others who already have their home on the market decide to take it off the market until after the holidays. Here are six great reasons not to wait:

1. Relocation buyers are out there. Companies are not concerned with holiday time and if the buyers have kids, they want them to get into school after the holidays.

2. Purchasers that are looking for a home during the holidays are serious buyers and are ready to buy.

3. You can restrict the showings on your home to the times you want it shown. You will remain in control.

4. Homes show better when decorated for the holidays.

5. There is less competition for you as a seller right now. Let’s take a look at listing inventory as compared to the same time last year:

Supply of Homes | Keeping Current Matters

6. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will make a comeback in 2016. This will lessen the demand for your house.

Bottom Line

Waiting until after the holidays to sell your home probably doesn’t make sense.

Source:  http://www.keepingcurrentmatters.com/2015/11/05/waiting-until-after-the-holidays-isnt-a-smart-decision/

November 9, 2015   No Comments

Mortgage Rates Largely Unchanged as Fed Stands Pat

Mortgage rates were largely unmoved heading into this week’s Federal Reserve meeting, according to data released Thursday by Freddie Mac.

Because expectations were that the Fed would not bump up the federal funds rate at this time, nothing caused home loan rates to be pushed or pulled significantly in either direction.

The 30-year fixed-rate average slipped to 3.76 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.79 percent a week ago and 3.98 percent a year ago. The 30-year fixed rate has stayed below 4 percent for more than three months.

The 15-year fixed-rate average remained at 2.98 percent with an average 0.6 point, the same as it was a week ago. It was 3.13 percent a year ago. The 15-year fixed rate has hovered below 3 percent for three of the past four weeks.

Hybrid adjustable rate mortgages were mixed. The five-year ARM average was unchanged at 2.89 percent with an average 0.4 point. It was 2.94 percent a year ago.

The one-year ARM average dropped to 2.54 percent with an average 0.2 point. It was 2.43 percent a year ago.

“Treasury yields oscillated without a clear direction heading into the October FOMC meeting, as investors were confident there would be no rate increase,” Sean Becketti, Freddie Mac chief economist, said in a statement.

“While the FOMC left rates unchanged at this meeting, they kept a December rate hike as an option causing Treasuries to sell off in the latter part of the day, after our survey closed.”

Freddie Mac aggregates current rates weekly from 125 lenders from across the country to come up with a national average mortgage rate.

“Recent housing reports have done little to add or detract from the possibility of a December rate increase,” Becketti said. “Existing home sales were strong, contrasting with disappointing new home sales.”

Meanwhile, mortgage applications slipped this week, according to the latest data from the Mortgage Bankers Association.

The market composite index — a measure of total loan application volume – fell 3.5 percent from the previous week. The refinance index dropped 4 percent, while the purchase index decreased 3 percent.

The refinance share of mortgage activity accounted for 59.5 percent of all applications.

Source:  https://www.washingtonpost.com/news/where-we-live/wp/2015/10/29/mortgage-rates-largely-unchanged-as-fed-stands-pat/

November 3, 2015   No Comments