Tag Archives: interest rates

What If I Wait A Year To Buy A Home?

What If I Wait A Year to Buy a Home?

National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Report, home prices will appreciate by 4.8% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

The cost Of Waiting

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

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Upcoming US Housing Prediction Webinar for 2017 and Beyond

Weekly Mortgage Snapshot and Economic Forecast

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Mortgage rates mostly leveled off last week, with limited data for markets to digest. The biggest news

of the week came from Europe, where the European Central Bank announced a quantitative easing

program to purchase sovereign debt of member countries. There is debate as to whether this program will make much of an impact; with some arguing that it will keep pushing money to the US.

Markets will have plenty to chew on this week, with some major economic reports and a meeting of

the Federal Reserve. Many analysts are hoping that the Fed will bring some additional clarity as to

whether it intends to begin increasing rates this summer. It is not likely that we will receive much

more guidance from this meeting. However, if the Fed does seem likely to begin increasing rates this

summer, then rates may start slowly moving upward now. On Friday, the first estimate of 4th quarter

GDP is due. Expectations are for a drop from the 5.0% of the 3rd quarter. If we are surprised again,

and GDP was much stronger than expected, rates are likely to begin pressing upward.

Worth Remembering Gen Y in the Burbs or the City?

Nothing’s better than the

wind to your back, the

sun in front of you, and

your friends beside you.

Aaron Douglas Trimble

A new survey from the National Association of Home Builders has thrown more doubt on what many economists and city planners have assumed, that is, that those born in the 1980’s and 1990’s prefer to live in the city. The recent survey found that 66% of survey Gen Y’ers want to live in the suburbs, 24% want to live in rural areas and 10% want to live in a city center. The most predominate reason was a desire to have a larger home with three or more bedrooms.

Mortgage Rate Watcher

Volatility High 2.00%

4.50% – Average expected 30 year rate for A = credit for first quarter of 2015

Based on: 12 Mn Libor 0.623% 6 Mo Libor 0.357% 11th D. COFI 0.686% Prime 3.250% Fed Fund 0.250%

E C O N O M I C S N A P S H O T

Dow Jones 17,672.60 NASDAQ 4,757.88

23-Dec %pt Chg 30-Dec pt Chg 21-Jan % Chg NYSE 10,788.33 S&P 500 2,051.82

Manufacturing: Expanding

Unemployment: Stable

Gross Domestic Product: Economy Expanding

Sales Slowly Growing In The First Quarter, Mortgage Rates To Remain Relatively Stable

REAL ESTATE TIPS FOR THE REAL WORLD

Insider Real Estate Tips from Kristen Haynes of Realty Pros / New Home Buyers Brokers. Realtor / Broker NC / SC