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Expect Higher Mortgage Rates This Year (But Don’t Be Scared!)

13 May , 2016  

Expect Higher Mortgage Rates This Year (But Don’t Be Scared!):

2015 was the best year for the Housing Market since 2007, and 2016 looks even better. Well- for the market on the whole, even if for the buyer they might be locked into a rate a little bit higher than last year.

This is a classic case of bad news-good news.

Bad news, the mortgage rates will go up this year. Good news, there are houses to buy, especially affordable newer options. AND the rate will go up the most in neighborhoods with the highest home prices, so what’s a little more change to them?

Bad news, the mortgage rate is up a bit, but good news it’s still cheaper to get a mortgage than to rent at market-rate prices.

Bad news, the mortgage rate is up some, but good news home prices are down.

Bad news, with higher debt-income ratios credit scores go down. Click here to Get information about the magnitude of your options, despite that credit. Excellent news, it’s still possible to get a mortgage with lower credit scores, partly because the feds guided interest rates up.

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The big dudes! The Federal Reserve, in case anyone needs a re-introduction, happened in 1903 after the panic of 1907 and imagined or impending financial crisis created a climate where centralized government assistance was desirable.

There are three main roles of the Feds

  • Maximize employment
  • stabilize prices
  • moderate long-term interest rates.

In this delicate balance, there’s a sort of dance that happens. This year the employment has the leg up, with relatively stable prices then the interest rate will leg up as well and there is the real ladder we climb, ladies and gentlemen.

So what? that the basis mortgage points will go up about 60 points. Someone is winning, certainly. And in an economy there’s a trickle down effect. Wait for it….

Click here to get some of your trickle!

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Condominiums,Credit Repair,HOAs,Home Mortgages,Home Renting,Home Selling,Land Contracts,Landlords,Real Estate Market,Rent-to-Own Homes,Taxes

“Normal” Is Apparently Coming Back in Today’s Real Estate Market

12 May , 2016  

What does a normal real estate market look like? What does normal even mean these days?

Normal is the average, typical state or condition, the usual the expected. Hate to point out the tension in the room but…. Just a guess but if something feels one way for 15 years, that becomes the ‘new’ normal, but in systems with years of being – their typical state or condition has a much greater scope than even our lives, like the earth, like the economy.

For 15 Years The Real Estate Market Has Experienced Truly Abnormal Trends

In an article in Market Watch by Daniel Goldstein, personal finance reporter, there is some ho-hum news.

  • Home prices are predicted to rise by 3% nationally in 2016, compared to the 6% nationally in 2015.
  • Rent prices are expected to rise in 2015. Which will encourage people to buy, although it’s hard to save for a down payment if your rent just went up.
  • 1% increase Mortgage interest rates – expected to be 4.88% compared to the 3.86% at the end of 2015.
  • 15% of mortgages are underwater, that’s 7.9 million people, which is better than the 31% in 2012.
  • As more people stay in their homes more money is expected to be spent on home improvements this year.
  • New types of mortgage products. Maybe some that do not require as much down payment, or a steady, track-able income. Self employment has been a barrier to getting a home mortgage. Another change to restrictions would be to count boarders or renters for multi-generational home, or houses with roommates.

Ho-hum is what a normal market or a real state market or a sock market does. Inflation slowly raises prices and other things, like home investment, becomes less appealing and the market will correct its course with proper stabilization from the Federal Reserve System, banks themselves, wages employers pay, etc….real estate market

The economy is like an organism. It lives and changes, grows and reinvents itself with the demands of growing, earning and living people. The earth itself is an organism that shifts dirt and water over its surface and burns from the inside, and the layers of atmosphere that coordinate to the organisms living needs, as well as affecting consequences of organisms actions against the well-being of the earth.

The economy is going to live and we are limping a little and tired from hustling after that last housing bust. And we are thinking about what our desires do to the market and what that can do the earth. Millennials are getting ready to buy because the Eco-friendly, minimalist yet materialistic homes are working up from the dream – to the manufacturing phase.

The switch to more normal conditions is simple. There has been a shift from containing the risk to growing the market. Perhaps a shift to optimism, versus pessimism? It couldn’t hurt.

Click here to find some optimism – towards your more normal 2016…

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