Category Archives: For Buyers

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Renting or Buying… Either Way You’re Paying a Mortgage

March 28, 2017First Time Home Buyers, For Buyers, Interest Rates, Move-Up Buyers, Real EstateBrenda Jones

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained this month in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person with that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.23% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

How Low Supply & High Demand Impacts the Real Estate Market [INFOGRAPHIC]

March 25, 2017For Buyers, For Sellers, Housing Market Updates, Infographics, Real EstateBrenda Jones

Some Highlights:

The concept of Supply & Demand is a simple one. The best time to sell something is when the supply of that item is low & the demand for that item is high!
Anything under a 6-month supply is a Seller’s Market!
There has not been a 6-months inventory supply since August 2012!
Buyer Demand continues to outpace Seller Supply!

The Foreclosure Crisis: 10 Years Later

March 24, 2017Distressed Properties, For Buyers, For Sellers, Foreclosures, Housing Market Updates, Real EstateBrenda Jones

CoreLogic recently released a report entitled, United States Residential Foreclosure Crisis: 10 Years Later, in which they examined the years leading up to the crisis all the way through to present day.

Continue reading The Foreclosure Crisis: 10 Years Later →

What Are the Experts Saying about Mortgage Rates?

March 23, 2017First Time Home Buyers, For Buyers, Housing Market Updates, Interest Rates, Move-Up Buyers, Real EstateBrenda Jones

Mortgage interest rates have risen over the last few months and projections are that they will continue their upswing throughout 2017. What impact will this have on the housing market? Here is what the experts are saying:

Laurie Goodman, Co-director of the Urban Institute’s Housing Finance Policy Center:

“In 1984, 1994, 2000, and 2013, every time we have rate increases, we have increases in nominal home prices. We expect this to be more pronounced, as there is a big demand-and-supply gap at the present time.”

Scott Anderson, Chief Economist for Bank of the West:

“The tightening labor market, rising wage growth, high levels of consumer confidence and a millennial generation with a pent-up demand for housing should allow the housing market to weather the storm of gradually rising interest rates.”

Ivy Zelman in her latest “Z” Report:

“Although we strongly believe that the housing supply-demand imbalance for single-family homes will continue to drive above-average home price appreciation, just as falling mortgage rates aided pricing power on the margin in recent months, we expect the opposite effect to become evident in the coming months. As such, we project year-end home price inflation of 4.8% for 2017 and 4.1% for 2018.”

Bob Walters, President & COO of retail mortgage lender Quicken Loans:

“A modest increase in mortgage rates won’t have much of an effect on home purchases. A buyer may need to slightly re-evaluate which homes they can afford, but it’s not likely to make an impact on qualifying, in most cases.”

First American Chief Economist Mark Fleming:

“Our survey data shows that mortgage rates would have to be significantly higher to have any meaningful impact. The house buying power that borrowers have, even with rates below five percent, still remains historically strong.”

4 Great Reasons to Buy This Spring!

March 21, 2017First Time Home Buyers, For Buyers, Move-Up Buyers, Real EstateBrenda Jones

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.9% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.8% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense. Continue reading 4 Great Reasons to Buy This Spring! →

Don’t Let Your Luck Run Out [INFOGRAPHIC]

March 18, 2017First Time Home Buyers, For Buyers, Infographics, Interest Rates, Move-Up Buyers, Pricing, Real EstateBrenda Jones

Some Highlights:

The “Cost of Waiting to Buy” is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.
Freddie Mac predicts that interest rates will increase to 4.8% by this time next year, while home prices are predicted to appreciate by 4.8% according to CoreLogic.
Waiting until next year to buy could cost you thousands of dollars a year for the life of your mortgage!

Which Homes Have Appreciated the Most?

March 17, 2017First Time Home Buyers, For Buyers, Housing Market Updates, Move-Up Buyers, Real EstateBrenda Jones

Home values have risen dramatically over the last twelve months. The latest Existing Home Sales Report from the National Association of Realtors puts the annual increase in the median existing-home price at 7.1%. CoreLogic, in their most recent Home Price Insights Report, reveals that national home prices have increased by 6.9% year-over-year. Continue reading Which Homes Have Appreciated the Most? →

A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture

March 16, 2017First Time Home Buyers, For Buyers, Housing Market Updates, Move-Up Buyers, Real EstateBrenda Jones

The inventory of existing homes for sale in today’s market was recently reported to be at a 3.6-month supply according to the National Association of Realtors latest Existing Home Sales Report. Inventory is now 7.1% lower than this time last year, marking the 20^th consecutive month of year-over-year drops. Continue reading A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture →

Mortgage Interest Rates Went Up Again… Should I Wait to Buy?

March 15, 2017First Time Home Buyers, For Buyers, Interest Rates, Move-Up Buyers, Real EstateBrenda Jones

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Freddie Mac, along with Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, is calling for mortgage rates to continue to rise over the next four quarters.

This has caused some purchasers to lament the fact they may no longer be able to get a rate below 4%. However, we must realize that current rates are still at historic lows.

Here is a chart showing the average mortgage interest rate over the last several decades.

Bottom Line

Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

Spring Forward: The Difference An Hour Makes [INFOGRAPHIC]

March 11, 2017First Time Home Buyers, For Buyers, Housing Market Updates, Move-Up Buyers, Real EstateBrenda Jones

Some Highlights:

Don’t forget to set your clocks forward this Sunday, March 12^th at 2:00 AM EST in observance of Daylight Savings Time.
Unless of course, you are a resident of Arizona or Hawaii!
Every hour in the United States: 649 homes are sold, 177 homes regain equity (meaning they are no longer underwater on their mortgage), and the median home price rises $1.86!