And The Mortgage Rates Just Keep On Falling....

As reported by Daily Real Estate New - Friday, March 27, 2015

For the second consecutive week, mortgage rates continued to fall, with the 30-year fixed-rate mortgage still well below 4 percent and 15-year rates dipping below 3 percent, Freddie Mac reports in its weekly mortgage market survey.
"Low mortgage rates are a welcome sign for those in the market to buy a home this spring season and will help to support homebuyer affordability," says Len Kiefer, deputy chief economist at Freddie Mac.
Freddie Mac reports the following national averages with mortgage rates for the week ending March 26:

• 30-year fixed-rate mortgages: averaged 3.69 percent, with an average 0.6 point, dropping from last week’s 3.78 percent average. Last year at this time, 30-year fixed-rates averaged 4.40 percent.
• 15-year fixed-rate mortgages: averaged 2.97 percent, with an average 0.6 point, dropping from last week’s 3.06 percent average. A year ago, 15-rates averaged 3.42 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.92 percent, with an average 0.4 point, dropping from last week’s 2.97 percent average. Last year at this time, 5-year ARMs averaged 3.10 percent.
• 1-year ARMs: averaged 2.46 percent, with an average 0.4 point, holding the same as last week. A year ago, 1-year ARMs averaged 2.44 percent.

Source: Freddie Mac

Avoid Your "Luck" From Running Out

 

  As Reported to the KCM Crew in Interest Rates on March 17, 2015

 The 30-year fixed mortgage interest rate is currently still below 4%. Many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year, believing they still have time to lock in a low rate.
If you look at what the experts are predicting over the course of the next 12 months, it may make the decision for you.

Predictions for 2016 2Q:

• 4.2% - Fannie Mae
• 4.7% - Freddie Mac
• 4.9% - Mortgage Bankers Association
• 5.3% - National Association of Realtors

Even an increase of half a percentage point can put a dent in your family’s net worth.

Let’s look at it this way…

The monthly payment (principal & interest only) on a $250,000 home today, with the current 3.86% interest rate would be $1,173.
If we take that same home a year later, the Home Price Expectation Survey projects that prices will rise about 4.4% making that home cost $11,000 more at $261,000.
If we take Freddie Mac’s rate projection of 4.7%, the monthly mortgage payment climbs to $1,354.
Some buyers might not think that an extra $181 a month is that bad. But over the course of 30-year mortgage you have spent an additional $65,160 by waiting a year.

Housing Market Heating Up

 As Reported to the Daily Real Estate News in Realtor Mag, Monday February 9, 2015

Just in time for spring selling season to start, sellers are finally starting to put their homes on the market, upping the selections for buyers, according to the latest analysis from realtor.com®. Higher inventories and buyer demand are expected to boost closings this month, according to realtor.com®.

"The biggest macro trend is that we're finally seeing inventory grow," says Jonathan Smoke, realtor.com®’s chief economist. "This is a very important trend for many reasons – in particular, because it will help keep prices at a more moderate level down the road."

Affordability had become a chief concern recently in the housing market. So what's changed and why are more sellers putting their homes on the market?

Smoke says home owners are being encouraged by the current higher prices. But Smoke says those will level out as supply rises to meet demand.

According to realtor.com®'s February data, 20 markets are already showing a big upswing based on the ratio of listing views at realtor.com® to the number of listings for-sale. Those 20 markets are:

1. Waco, Texas
2. Dallas-Fort Worth-Arlington, Texas
3. Santa Rosa, Calif.
4. Denver-Aurora-Lakewood, Colo.
5. Vallejo-Fairfield, Calif.
6. Ann Arbor, Mich.
7. Fort Wayne, Ind.
8. Santa Maria-Santa Barbara, Calif.
9. Charleston, W.Va.
10. San Luis Obispo et al, Calif.
11. Columbus, Ohio
12. Boulder, Colo.
13. Detroit-Warren-Dearborn, Mich.
14. Hartford-West Hartford et al, Conn.
15. Manchester-Nashua, N.H.
16.  San Francisco-Oakland et al, Calif.
17. San Diego-Carlsbad, Calif.
18. Charleston-North Charleston, S.C.
19. Toledo, Ohio
20. Boston-Cambridge-Newton, Mass.-N.H.

Source:"Spring Is Coming, and These 20 Markets Are Heating Up," realtor.com® (March 6, 2015)