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Mortgage Interest Rates: Where Are They Headed?
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Mortgage Interest Rates: Where Are They Headed? Posted: 01 Jul 2013 04:00 AM PDT
When recently asked, Zillow’s director of Mortgage Marketplace, Erin Lantz suggested:
In Bankrate.com’s Mortgage Rate Trend Index last week, 20% of the experts said rates would go up this week, 30% said rates would go down and 50% said they would remain unchanged. What about going forward?Doug Duncan, chief economist for Fannie Mae recently addressed where mortgage rates may eventually end up:
Why wouldn’t the Fed be troubled? They have artificially kept rates low in order to stimilate the economy. As economic indicators begin to show signs of a recovery, the stimulus will be pulled back and rates will rise. Frank Nothaft, Freddie Mac’s VP and chief economist confirms this:
Buckle in!! The rollercoaster ride will probably continue. |
Today’s $20,000 question is…Where are mortgage rates headed in the near future? Most believe the rapid rise in rates experienced over the last month will not be sustained and that they will level off into a range between 4% and 5%.Mortgage Interest Rates: Where Are They Headed?
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Mortgage Interest Rates: Where Are They Headed? Posted: 01 Jul 2013 04:00 AM PDT
When recently asked, Zillow’s director of Mortgage Marketplace, Erin Lantz suggested:
In Bankrate.com’s Mortgage Rate Trend Index last week, 20% of the experts said rates would go up this week, 30% said rates would go down and 50% said they would remain unchanged. What about going forward?Doug Duncan, chief economist for Fannie Mae recently addressed where mortgage rates may eventually end up:
Why wouldn’t the Fed be troubled? They have artificially kept rates low in order to stimilate the economy. As economic indicators begin to show signs of a recovery, the stimulus will be pulled back and rates will rise. Frank Nothaft, Freddie Mac’s VP and chief economist confirms this:
Buckle in!! The rollercoaster ride will probably continue. |
Sale Price? List it Right from the Beginning
House Sale Price: List It Right from the Beginning
Posted: 26 Jun 2013 04:00 AM PDT
Posted: 26 Jun 2013 04:00 AM PDT
With house prices increasing across the country, sellers may think they can list their homes at a higher price and adjust if necessary. That may not be a good strategy. This is a post we ran last year by Ken H. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research. To view other research from FIU, visit http://realestate.fiu.edu/. – The KCM Crew
The Research
The ResearchAre there any negative effects from changing the listing price of a property? This question haunts Brokers/Agents as well as sellers of property every day. At present, there does not seem to be a consensus answer to this question within the professional real estate community. Fortunately, this question was scientifically investigated by John R. Knight. Unfortunately, few know the results of Professor Knight’s research.
In Knight, the impact of changing a property’s listing price is investigated. Additionally, the types of property that are most likely to experience a price change are also estimated. The findings from this research indicate that, on average, properties which experience a listing price change take longer to sell and suffer a price discount greater than similar properties. Furthermore, bigger price changes are found to experience even longer marketing times and greater price discounts. Finally, as for which properties are most likely to experience a price change, Knight finds that the greater the initial markup; the higher the likelihood that any given property will experience a listing price change.
Implications for Practice
Sellers as well as Brokers/Agents should therefore be aware of the critical necessity of getting the price correct from the start. Sellers wanting to over list will ultimately take longer to sell and will sell their property for less, on average, according to Knight. Brokers/Agents’ desire to take a listing and get the price right later will ultimately lead to their working harder according to Knight, and they are not doing their sellers any favors. Thus, an initial and detailed analysis of the proper price is much more critical than many originally thought.
Interestingly, I have found in my own research that the direction (up or down) of the listing price change does not matter. A listing price increase and decrease both lead to similar results found in Knight’s work – longer marketing times and lower prices. Therefore, get the price right from the beginning. It is best for all.
Endnotes
[1] Knight, John, R. (2002). Listing Price, Time on Market, and Ultimate Selling Price: Causes and Effects of Listing Price Changes. Real Estate Economics. 30:2, 213-237.
Buying a Home? How the Serenity Prayer May Help…
Buying a Home? How the Serenity Prayer May Help
Posted: 25 Jun 2013 04:00 AM PDT
You may be frustrated while attempting to buy a home in today’s market. You may feel powerless to the process. How could YOU possibly know whether the current good news about housing will continue? There is no doubt that today’s real estate market is extremely difficult to navigate. However, we want you to know that thousands of homes sold yesterday, thousands will sell today and thousands will sell each and every day from now until the end of the year.
It is totally within your power to decide whether it is the right time for you and your family to move. Even in the current market.
“How?” Let’s look at the simplicity of the famous Serenity Prayer and apply it to buying a home in today’s real estate market.
“God, grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference.”
Accept the things you cannot change
The two main concerns many talk about when discussing the housing market are:
- the current economy
- the rapid rise in interest rates
As an individual, there is very little you can do to impact either of those two situations. The best think-tanks in the country are struggling to discover what impact each of these items have on real estate.
Have the courage to change the things you can
If you are a buyer and you believe now is the right time for your family to purchase a home – DO IT! Prices will only be higher later this year and though interest rates are rising they are still at historic lows. That means that your monthly housing expense will still be lower than almost any time in the last 50 years – and probably lower than your current rent payment.
The wisdom to know the difference
We all realize that the economic situation will take some time to correct. The question is whether or not it makes sense to delay moving on with your life until everything gets ‘better’. Should you not buy a house and enable your kids to attend the school you have already decided is best for them? Should you spend another winter up north even though your doctor recommends you move to a climate better suited to your current medical situation?
This is where your wisdom must kick in. You already know the answers to the questions we just asked. You have the power to take back control of the situation by moving forward. The time has come for you and your family to move on and start living the life you desire. That is what truly matters.
Buying a House? 3 Reasons to Do it Now!!
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Buying a House? 3 Reasons to Do it Now! Posted: 24 Jun 2013 04:00 AM PDT
1.) Prices Will Continue to RiseStandard & Poors recently upgraded their 2013 forecast for the S&P/Case-Shiller Home Price Index to an 11% year-over-year increase from their original 8% projection. The Home Price Expectation Survey, which polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts, projects a 22.3% appreciation in home values over the next five years. The bottom in home prices has passed. Waiting no longer makes sense. 2.) Mortgage Interest Rates Are IncreasingAs reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about 1/2 percentage point over the past several weeks. The National Association of Realtors, the Mortgage Bankers Association andFannie Mae are calling for interest rates to rise by approximately an additional ½ percentage point by this time next year. Some are trying to minimize the impact of higher rates. For example, Freddie Mac in their June U.S. Economic and Housing Market Outlook stated:
However, an increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home. 3.) It’s Time to Move On with Your LifeThe ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. |
Here are three great reasons to consider buying a home today instead of waiting.Mortgage Interest Rates are Climbing!
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Home Mortgage Rates Climbing [INFOGRAPHIC] Posted: 21 Jun 2013 04:00 AM PDT
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InfoGraphicSelling a house? 5 Reasons You Should Do It Now!!
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Selling a House? 5 Reasons You Should Do It Now Posted: 17 Jun 2013 04:00 AM PDT
1.) Demand Is HighHomes are selling at the fastest pace since November 2009 when the market spiked in response to the home buyer tax credit. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that monthly sales increased 9.7% over the same month last year. Total sales have been above year-ago levels for 22 consecutive months. There are buyers out there right now (buyer traffic is 31 percent stronger than a year ago) and they are serious about purchasing. 2.) Supply Is Beginning to IncreaseTotal housing inventory last month rose 11.9% to 2.16 million homes for sale. This represents a 5.2-month supply at the current sales pace, compared with 4.3 months in January. Many expect inventory to continue to rise as more sellers escape the shackles of negative equity. Selling now while demand is high and before supply increases may garner you your best price. 3.) New Construction Is Coming BackOver the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers. 4.) Interest Rates Are RisingAccording to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year mortgage have shot up to 3.98% which represents a jump of more than ½ point since the beginning of the year. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:
Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home. 5.) It’s Time to Move On with Your LifeLook at the reason you are thinking about selling and decide whether it is worth waiting. Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should? You already know the answers to the questions we just asked. You have the power to take back control of your situation by putting the house on the market today. The time may have come for you and your family to move on and start living the life you desire. That is what is truly important. |
Happy Father’s Day! & beautiful Sunday!
Happy Happy Father’s Day to all the fathers, step-fathers, soon to be father’s and father figures out there!
What a beautiful day too! We have been camping on the weekends since the 1st of May… needless to say the first weekend we had a foot of snow on the ground and its rained at least part of every day of every weekend since… until today. I loved every minute of it!
So today, while my husband & his dad went fishing, I took full advantage of the beautiful weather & took Marley (my Schnoodle) on a 3 mile walk, cleaned the camper, then I sat outside and wrote 27 personal notes, took 1.5 hours of continuing education, got caught up on 2 hours of coaching, contacted 4 of my buyer clients, contacted 3 of my seller clients, set up 6 appointments for the coming week, made out my to do list for tomorrow and one for all of next week. Then I headed home and showed 3 homes to 2 different buyers and wrote up one offer.
Not bad for a Sunday! Hope you had a great day too!
Silence is deadly.
Below is the email that stopped me in my tracks on Thursday morning. It’s so true…how could I have forgotten something so simple & so obvious. I sat down & started thinking.
| You’re doing everything you can to help get their home sold, but if you’re not communicating the specifics to your sellers: |
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The High Price of Ignoring Home Repairs
Home Repairs-The Price of Ignoring Them [INFOGRAPHIC]
Posted: 07 Jun 2013 04:00 AM PDT
