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RECENTLY FROM OUR BLOG
Home Price Forecast 2022
Home Price Forecast 2022
To analyze the real estate market. One way involves looking at how much (or how little) home prices have changed compared to the basics. In other words, when you compare housing prices to recent changes in economic growth, income, and interest rates it tells a very different story,. so whether you’re looking to sell your home in the next few months or just get a better understanding of the housing market, understanding supply and demand will be a key factor in your decision. In short, the fundamentals of this market clearly suggest that prices have been rising for years.This provides some welcome relief to buyers, but these changes should be viewed in perspective: Price increases will still occur, just at a slightly slower pace.There are five entities that closely follow the real estate market. Based on what they said, home prices will keep increasing to 2022. The longer you wait to enter the market, the more you risk losing your home to someone else. Even if price increases are projected to occur at a slower rate in 2022, prices are still projected to rise. That means your perfect home is likely to cost even more next year. Hidden fees can add thousands of dollars to your purchase - speak with a local realtor who will guide you through the process. The fact is, high demand combined with low supply is what’s driving up home prices. Experts are predicting that prices are expected to increase at a slower pace in the next few months. It’s simple. Buy now or pay more later. Experts agree, if you wait longer to buy a home, you’re likely to pay more. Talk to an expert today about what that could mean for you if you wait even longer to buy.
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For Almost 50 Years, The 30-year Mortgage Rate Moves in Unison, The 10-Year Treasury Rate
For Almost 50 Years, The 30-year Mortgage Rate Moves in Unison, The 10-Year Treasury Rate
Mortgage rates dropped due to the Federal Reserve lowering rates in response to COVID-19. Record low mortgage rates are expected to stay near all-time lows through 2020, at least according to Freddie Mac's latest forecast published November 1, 2019. Mortgage rates have fluctuated significantly in the past several decades. Throughout the 1970s until 2019, mortgage rates included two major jumps to 14 percent. Another spike occurred in 1980 to 1981, when rates jumped from 9 percent to 15 percent within a year. The 1980s saw six years of mortgage rate increases, including a jump from 9 percent to 13 percent in 1981. The mortgage rate hikes during this decade ended at the end of 1989, when rates reached 10 percent, according to government data. Before then, significant jumps were seen during other time periods. When you decide to refinance, you'll learn that there are a number of options available. These can affect how much you pay each month and over the term of the loan.A 30-year fixed-rate mortgage is a loan with an interest rate that stays the same for the life of the loan—30 years. They are popular because their low-interest rates can reduce payments. This type of mortgage has closing costs that are higher than those on an adjustable-rate mortgage (ARM), but lower than those on other types of home loans. So, What Impacts the Yield Rate? The 10 Year Treasury Rate is the yield received for investing in a US government-issued treasury security that has a maturity of 10 years. The 10-year Treasury yield is included on the longer end of the yield curve. Many analysts will use the 10-year yield as the "risk-free" rate when valuing the markets or individual security. Historically, the 10 Year treasury rate reached 15.84% in 1981 as the Fed raised benchmark rates in an effort to contain inflation.The 10-year Treasury yield is one of the most important economic indicators to track. It impacts nearly all other interest rates and helps determine mortgage rates, car loan rates, savings accounts interest rates, and so much more. According to Investopedia: “There are a number of economic factors that impact Treasury yields, such as interest rates, inflation, and economic growth.” When the market is up there are concerns about inflation. The treasury yield increases in value since it serves as interest for the government. That increase affected mortgage rates. What Does This Mean for You? Khater, in the Freddie Mac release mentioned above, says: “We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.” Nadia Evangelou, Senior Economist and Director of Forecasting for the National Association of Realtors (NAR), also addresses the issue: “Consumers shouldn’t panic. Keep in mind that even though rates will increase in the following months, these rates will still be historically low. The National Association of REALTORS forecasts the 30-year fixed mortgage rate to reach 3.5% by mid-2022.” Bottom Line Forecasting mortgage rates is very difficult. As Mark Fleming, Chief Economist at First American once quipped: “You know, the fallacy of economic forecasting is don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates because you will always invariably be wrong.”TAKE NOTE:If you're a first-time homebuyer or a current homeowner thinking of moving into a new house, be sure to follow mortgage rates. It may affect your decision.
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Renting vs. Buying A Home: What You Need To Know
Renting vs. Buying A Home: What You Need To Know
Have you been considering buying a house instead of renting? It’s a tough decision—especially given the state of the economy. And, as a renter, you may be wondering if now is the right time to buy a home. In order to make an informed decision, you need to discuss several things with yourself and your family. Will it be easier to rent or buy? What are the advantages of each? Are there any disadvantages? Here are several things to consider so you can make the best decision possible on whether you should rent or buy. Pros and Cons of Renting Renting has become the norm for many Americans. And with good reason. Renting is often less expensive than buying, especially if you don’t plan to own a home any time soon. It’s also easier to move around, which can be useful for people who change jobs or locations frequently. Pros of renting You don’t have to worry about maintenance costs, whether the property will be worth more in 10 years, or whether you’ll ever recover your investment. If it doesn’t fit your needs or lifestyle, you can easily move on. You don’t have to deal with the hassle of moving day and dealing with landlords who aren’t happy with the changes you made. Cons of renting While renting is easier than buying, you’re still tying up money that could be invested elsewhere. That’s money that could buy a house or other investments that will provide income down the road. For some people, this doesn’t matter as much as the flexibility of being able to live anywhere at any time they want. But if you’re concerned about keeping up with rising real estate prices and paying for large mortgages, renting may not be right for you. Pros and Cons of Homebuying Homebuying is not an easy decision for most people. It is a big commitment and it can be stressful at times. But with the right knowledge, you can make the process much easier. Here are some of the cons and pros of buying a home, both in terms of finances and practicalities. Pros of Homebuying Homeownership is typically tax-free, which means more money in your pocket. Having your own home can help you achieve financial security, which makes it easier to get out of debt. foreclosure rates are typically lower among owners than renters. Owning a home gives an individual greater flexibility in how they can use their money. They can move money around between their checking account and investments without penalty, or they can take yearly vacations or buy fancy clothes without having to worry about having enough cash on hand to cover living expenses while they’re away. Cons of Homebuying Mortgage payments are typically higher than rent payments (although many people receive tax benefits that offset some of that difference). If you don’t have enough money saved up to pay the mortgage on time every month, you’ll end up paying more interest overall by not making regular payments as you should. This is why it’s important to save some money each month before deciding to buy a home (or wait until you’ve saved up enough for a down payment). You might also want to consider renting for some period of time before buying so that you can afford the loan payments without putting yourself into too much debt early on. The best time to buy a house is when you can afford it. If you’re financially stable, the best time to buy is when you have the resources to pay for your down payment and closing costs. That means you should have enough savings to cover at least 20% of the purchase price of the house, including mortgage and property taxes, insurance, and maintenance.
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Angela C.