Tag Archives: mortgages

Money Monday: Homebuyers save as interest rates decline

Last week, 53.5% of borrowers received rates under 4.25%

“Mortgage borrowers who shopped around last week could’ve saved $42,137 over the life of a $300,000 loan, according to LendingTree’s Mortgage Rate Competition Index.” (Housing Wire. https://www.housingwire.com/articles/49318-americas-homebuyers-are-saving-big-as-interest-rates-continue-to-decline)Read more.

Money Monday: Home construction loans

How does a home construction loan work?

home construction loans

“Whether it’s to renovate a kitchen, tear out a wall or two to expand a room, or add on to the property, when deciding on a home upgrade…The most common way to secure funds for upgrading a home is to tap into its equity, or accumulated market value.” (BHHS California blog. “How Does a Home Construction Loan Work?” 15 August 2018.)

Read about home construction loans on BHHS’s blog here.

Money Monday: February mortgage rates

Fixed mortgage rates sank to a 10-month low this month.

Photo by 401kcalculator.org

“According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average dropped to 4.41 percent with an average 0.4 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.46 percent a week ago and 4.32 percent a year ago. The 30-year fixed rate hasn’t been this low since early April.”

“The 15-year fixed-rate average fell to 3.84 percent with an average 0.4 point. It was 3.89 percent a week ago and 3.77 percent a year ago. The five-year adjustable-rate average drifted down to 3.91 percent with an average 0.3 point. It was 3.96 percent a week ago and 3.57 percent a year ago.” (Washingtonpost.com. “Mortgage rates tumble to 10-month low.” 7 February 2019.)

Read the rest of Washington Post’s article here.

Money Monday: What borrowers want

Borrowers want specific things that they believe would help the mortgage process when buying a home.

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS. 

Money Monday: Mortgage hurdles

Many first-time buyers don’t realize that there’s many steps to getting a mortgage.

  1. Get pre-approved
  2. Have the home appraisal
  3. Keep your credit consistent
  4. Review the closing disclosure
  5. Go through underwriting

This infographic is from CAR.org.

Money Monday: Interest rate impact

As interest rates increase, it affects home buyers’ monthly payments, as well as the amount of income needed to qualify to buy a home.

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS. 

Money Monday: The predicted 2018 housing market

Home buyers aren’t going to catch much of a break this year. According to CNN, that is. Here’s a brief blurb from their recent article ‘Is 2018 the year to buy a house?‘”

real estate market update for July 2017Sellers will remain in the driver’s seat as buyers continue to face affordability issues thanks to low housing supply.

“The challenges for buyers in the market haven’t changed that much from last year” said Keith Gumbinger, vice president of mortgage website HSH.com.

What’s more, home loans are expected to get more expensive as the year progresses.

Here’s what home buyers and sellers can expect from the housing market this year”:

Homes will remain in tight supply

Home prices will slow

Loans will get more expensive

Read CNN’s article in its entirety here: “Is 2018 the year to buy a house?

July 2017 Real Estate Market Report

Existing-Home Sales Slide 1.3 Percent in July

real estate market update for July 2017Listings in July typically went under contract in under 30 days for the fourth consecutive month because of high buyer demand, but existing-home sales ultimately pulled back as large declines in the Northeast and Midwest outweighed sales increases in the South and West, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, slipped 1.3 percent to a seasonally adjusted annual rate of 5.44 million in July from a downwardly revised 5.51 million in June. July’s sales pace is still 2.1 percent above a year ago, but is the lowest of 2017.

Lawrence Yun, NAR chief economist, says the second half of the year got off on a somewhat sour note as existing sales in July inched backward. “Buyer interest in most of the country has held up strongly this summer and homes are selling fast, but the negative effect of not enough inventory to choose from and its pressure on overall affordability put the brakes on what should’ve been a higher sales pace,” he said. “Contract activity has mostly trended downward since February and ultimately put a large dent on closings last month.”

“Home prices are still rising above incomes and way too fast in many markets,” said Yun. “Realtors® continue to say prospective buyers are frustrated by how quickly prices are rising for the minimal selection of homes that fit buyers’ budget and wish list.”

According to Freddie Mac, the average commitment rate (link is external) for a 30-year, conventional, fixed-rate mortgage rose to 3.97 percent in July from 3.90 percent in June. The average commitment rate for all of 2016 was 3.65 percent.

To read the rest of this article, visit here