Long-term mortgage rates moved lower this week, with the average rate on a 30-year fixed-rate mortgage just above an all-time low, according to the Washington Business Journal.
Freddie Mac’s weekly rate report says a 30-year fix averaged 3.37 percent in the week ending Oct. 18, down from 3.39 percent last week. A 15-year fix averaged 2.66 percent this week, down from 2.70 percent.
A one-year adjustable-rate mortgage rose to 2.60 percent, from 2.59 percent.
Housing data continues to show a strengthening housing market.
This week, the National Association of Home Builders said builder confidence this month rose for the sixth consecutive month and is now at its highest level in more than six years.
In Dayton, the number of new home building permits is up 5 percent so far this year, according to the Home Builders Association of Dayton.
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Monday, October 22, 2012
Thursday, October 18, 2012
Time right to buy a home
In the article the writer cites three major reasons to support the opinion;
home prices, supply and mortgage rates. Home sales the past several months in
northeast Wisconsin support the conclusion.
For most of us we have never seen home prices as low as this in our lifetimes. Low home prices have led some buyers to get the “deal of the decade,” and lend support to the theory that purchasing now reinforces the benefit of home ownership as a long term investment as values rise. Housing is cyclical and as the supply and demand effect begins to affect the market it’s reasonable to conclude values and prices will rise.
The National Association of Realtors continues to report their housing affordability index at the highest level on record. The index tracks average family incomes compared to the affordability of the average home. As rents rise the affordability gap between renting and owning shrinks and in some cases becomes inverted where home ownership costs less than renting.
There is still an abundance of homes on the market in most price ranges. As sales rise and homeowner’s who have wanted to sell list their homes it provides buyers with a continuous flow of inventory from which to choose their new home. The inventory has declined as sales increase but there are still many homes on the market.
The third element in the trifecta is mortgage rates. The 30-year fixed rate mortgage for home purchases continues to hover around 3.50 percent. The astute buyers who lock in the interest rate now will save thousands if not tens of thousands of dollars over the life of the loan. With home prices, the low rates contribute significantly to housing affordability.
Homes sales in Wisconsin were up 17.3 percent in July and 20.3 percent in August compared to the same months in 2011. These positive sales statistics support the notion that many astute consumers are taking advantage of the benefits of purchasing now.
Who are these buyers? Many are first time buyers leaving renting for the benefits of homeownership. Some are move-up buyers who have successfully sold their existing home and they’re purchasing the next home. Some are baby-boomers downsizing; leaving the two-story, four bedroom, family home for the single level ranch or condominium with less required maintenance.
Some buyers are purchasing second homes and leveraging the market to fulfill that dream of owning a second home. Some buyers are relocating from other parts of the country and have either sold their previous home, or in some cases, rented it until the market from which their relocating improves and the previous home sells.
It appears the greatest activity is in the lower price ranges but home sales have improved in all price ranges. With the expert assistance of Realtors, sellers listing their homes at prices commensurate with the marketplace have provided for quicker sales and less issues with appraisal values when buyers and sellers agree on terms.
Home purchase and financing tip: When planning on buying or selling, seek the best advice from the professionals in the market. Enlist the help of friends, relatives, neighbors in indentifying the professionals with the best reputation based on performance. This is the best guarantee for a positive experience.
Full story
For most of us we have never seen home prices as low as this in our lifetimes. Low home prices have led some buyers to get the “deal of the decade,” and lend support to the theory that purchasing now reinforces the benefit of home ownership as a long term investment as values rise. Housing is cyclical and as the supply and demand effect begins to affect the market it’s reasonable to conclude values and prices will rise.
The National Association of Realtors continues to report their housing affordability index at the highest level on record. The index tracks average family incomes compared to the affordability of the average home. As rents rise the affordability gap between renting and owning shrinks and in some cases becomes inverted where home ownership costs less than renting.
There is still an abundance of homes on the market in most price ranges. As sales rise and homeowner’s who have wanted to sell list their homes it provides buyers with a continuous flow of inventory from which to choose their new home. The inventory has declined as sales increase but there are still many homes on the market.
The third element in the trifecta is mortgage rates. The 30-year fixed rate mortgage for home purchases continues to hover around 3.50 percent. The astute buyers who lock in the interest rate now will save thousands if not tens of thousands of dollars over the life of the loan. With home prices, the low rates contribute significantly to housing affordability.
Homes sales in Wisconsin were up 17.3 percent in July and 20.3 percent in August compared to the same months in 2011. These positive sales statistics support the notion that many astute consumers are taking advantage of the benefits of purchasing now.
Who are these buyers? Many are first time buyers leaving renting for the benefits of homeownership. Some are move-up buyers who have successfully sold their existing home and they’re purchasing the next home. Some are baby-boomers downsizing; leaving the two-story, four bedroom, family home for the single level ranch or condominium with less required maintenance.
Some buyers are purchasing second homes and leveraging the market to fulfill that dream of owning a second home. Some buyers are relocating from other parts of the country and have either sold their previous home, or in some cases, rented it until the market from which their relocating improves and the previous home sells.
It appears the greatest activity is in the lower price ranges but home sales have improved in all price ranges. With the expert assistance of Realtors, sellers listing their homes at prices commensurate with the marketplace have provided for quicker sales and less issues with appraisal values when buyers and sellers agree on terms.
Home purchase and financing tip: When planning on buying or selling, seek the best advice from the professionals in the market. Enlist the help of friends, relatives, neighbors in indentifying the professionals with the best reputation based on performance. This is the best guarantee for a positive experience.
Full story
Low rates encourage shorter mortgages
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Sunday, May 6, 2012
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