March 26, 2014 11:36 am
"One thing seems certain: we aren't likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012." -
Freddie Mac, March 24, 2014
There are those that hope that 30-year mortgage interest rates will head back under 4%.
Obviously, for any prospective home purchaser that would be great news. However, there is probably a greater chance that interest rates will return to the greater than 6% rate
of the last decade before they would return to the less than 3.5% rate
Freddie Mac, in one of four original posts on their new blog
, explained that current rates are still extremely low compared to historic averages:
March 25, 2014 11:27 am
The National Association of Realtors
(NAR) released their latest Existing Homes Sales Report
last Friday. The year-over-year comparison of overall sales did not paint a pretty picture. NAR itself called the sales numbers “subdued”. Other media sources used stronger terminology.
There is no doubt that home sales were lower this February (4.60 million) than last February (4.95 million). However, a closer look at the report gives us some evidence as to why that is. Last year, of the 4.95M homes sold, 25% were distressed properties (foreclosures and
short sales). This February, only 16% of
sales were made up of distressed properties.
WHY IS THIS IMPORTANT?
March 24, 2014 11:24 am
We have often suggested that potential home buyers consider rising interest rates when thinking about the true cost of a home. The longer they wait the higher the mortgage payment if rates continue to increase as is projected by Fannie Mae
, Freddie Mac
, the National Association of Realtors
and the Mortgage Bankers Association
In its latest issue, Money Magazine
warned their readership of the same ramification if they put off the purchase of a home. Here is what they said:
"BE MINDFUL OF RATES. The average interest rate on a 30-year fixed loan is predicted to climb from the current 4.4% to 5.3% by the 2015 spring buying season, according to Freddie Mac. For a $250,000 loan, that means that a borrower who waits would pay $136 more per month and an additional $49,090 in interest over the life of the loan. Will you need a big loan? Better to act soon before rates tick up."
March 20, 2014 10:54 am
“Real estate sales have changed more in the last year than the prior 100 years. I needed a real estate agent in 1997. I didn’t have the password to the MLS.”
- Daniel Pink, bestselling author of the book Drive
at a real estate conference February 2014
There was a time when both buyers and sellers were forced to connect with a real estate agent in order to get even the basic information required to make a good decision regarding their housing needs. That time has passed.
Buyers can now go on-line to find the homes that are for sale. Sellers can go on-line to find out which homes in their neighborhood sold over the last six months and at what price.
Consumers are no longer looking for just information from a real estate agent. They require professional advice based on the information that is available. Guy Kawasaki, Silicon Valley author, speaker, investor and business advisor explained it best: