Tag: Mortgage rates

Mortgage Rates Are Rising

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The average mortgage rate dropped to an all time low of 3.3% in 2012, and is now rising rapidly.  In June, mortgage rates in the US averaged 4.35%, but for those interested in buying, even though mortgages are at the highest rate in two years, they are still a great deal.  Economists estimate that these rates will keep rising along with the improvement in the economy, so if you’re looking to purchase or refinance, now’s is a great time to do so, before the window on low mortgage rates closes for good.  Prices are rising in the housing market too, making this a great time for sellers for the first time in awhile.

Whether you’re buying or selling a home, we can help!  Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.

Financial Tips

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When you are in the market for a new home you are prepared to spend a huge chunk of money, but just because the bank offers you a $400,000 mortgage doesn’t mean that it is wise for you to take the full amount.  Generally speaking, you should take at least 20% less than the bank offers you in order to protect your financial security.  By purchasing a home at the very top of your budget, you risk being in a tight financial position for very many years in the future if anything should go wrong.  Additionally, unless you are willing to take a risk, you should always go with a fixed-rate mortgage for a set period of time.  A traditional 15 or 30 year mortgage will protect you against a jump in your monthly payment in the future.  Finally, don’t get caught off guard by unexpected costs.  In addition to the down payment and closing costs be prepared to pay appraisal fees, broker fees, loan application fees, inspection fees, plus ongoing costs like property taxes, homeowner’s insurance, homeowner’s association or condo fees, and hazard/flood insurance in addition to your monthly mortgage payment.  To be best prepared for all of these costs, be sure that you keep a significant portion of cash available rather than using it all toward your down-payment.  This will help insure better financial security for your family and your future.

Thinking of buying or selling a home in Sussex County?  Give us a call at Cooper Realty Associates and put us to work for you –302-629-6693.

5 More Housing Trends to Watch

Yesterday, I posted three housing trends for 2013, and to follow up I have five more to keep your eye on:

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Yesterday, I posted three housing trends for 2013, and to follow up I have five more to keep your eye on:

1.  Rise in First-Time Home Buyers.  The pocket of first-time home buyers that helps to drive the market has been steadily increasing over the past twelve months, and looks like it will continue to do so in 2013.

2.  Rising Mortgage Rates.  Mortgage rates have been historically low throughout 2012, but that dream world can’t last forever, so watch for interest rates to climb back up to average 4% or more in 2013.

3.  Easier Credit Standards.  Currently, only the best FICO scores qualify borrowers for a mortgage, but that should start changing in 2013 as lenders have to compete to provide loans to qualified buyers.

4.  Rising Construction Costs.  New home construction prices will be on the rise in 2013, as contractors can be expected to increase their prices to cover costs.

5.  Sales Will Rise.  Home sales were up in 2012 for the first time in awhile, and should continue to do so in 2013.  Some reports estimate that home sales will grow as much as 10% in the coming year.

Thinking of buying or selling a home in Sussex County?  Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

Low Mortgage Rates Make It the Ideal Time to Buy

Heading into the spring quarter, mortgage rates are hovering around record lows, meaning that there’s never been a more affordable time to buy a home!

 

We set our clocks ahead yesterday, signaling the imminent arrival of Spring.  Spring typically brings a heightened home buying season with it.  This is great news for sellers, but there’s good news for buyers too.  Heading into the spring quarter, mortgage rates are hovering around record lows, meaning that there’s never been a more affordable time to buy a home!

On March 1st, Freddie Mac released the results of its Primary Mortgage Market Survey.  This survey found that rates on a 30-year fixed-rate mortgage are averaging around 3.9 percent with an average 0.8 point, rates that are nearly 1 percent lower than the 4.87 percent average reported last year around this time.  Similarly, the survey found that rates on a 15-year fixed-rate mortgage average around 3.17 percent with an average 0.8 point, nearly 1 percent lower than the 4.15 percent rate averaged at this time last year.  Adjustable-rate mortgages, of course, bottom out at even lower rates, some which haven’t been this low in decades.  So, if you’ve been waiting for a good time to buy a home, it looks like your opportunity is here!

Give us a call at Cooper Realty and let us help you find the perfect home – 302-644-2266!

STILL RENTING? WOULDN’T YOU RATHER PAY LESS FOR A MORTGAGE THAN YOU’RE PAYING IN RENT?

“The median monthly mortgage payment of about $700 has fallen to about the level of a median monthly rent check,” an article at MSNBC.com notes about Diggle’s analysis. “If mortgage rates keep falling and rents keep rising, the equation will tip even further toward owning.”

More Buyers Ready to Get Off the Sidelines?

DAILY REAL ESTATE NEWS | TUESDAY, JANUARY 24, 2012

When you compare the cost of owning a home to renting, you’ll find that buying may soon make more sense, Paul Diggle, a housing economist at Capital Economics, told MSNBC.com.

Diggle’s analysis of the housing market showed a 33 percent drop in home prices, record-low mortgage rates (with 30-year fixed-rate mortgages available under 4 percent now), and a 15 percent rise in rents since the housing market turned sour are making more consumers take a closer look at buying.

“The median monthly mortgage payment of about $700 has fallen to about the level of a median monthly rent check,” an article at MSNBC.com notes about Diggle’s analysis. “If mortgage rates keep falling and rents keep rising, the equation will tip even further toward owning.”

Case in point: Diggle says that a buyer who purchases a median-priced home and stays there for at least seven years would likely come out ahead  by about $9,000 than if they chose to rent for those seven years. Diggle’s calculations factor in rents continuing to rise 3 percent a year, and housing prices staying flat for the next two years before rising in 2014.

But while more Americans may be motivated to buy, many still can’t, Diggle notes. Home owners who lost their home to foreclosure may be forced to wait on the sidelines before owning again, other Americans may not have a 20 percent down payment that more lenders are wanting, lack a high credit score to qualify for the best financing, or have steady employment.

Source: “Home Buying Could Soon Beat Renting,” MSNBC.com (Jan. 23, 2012)

LET THE PROFESSIONALS AT COOPER REALTY ASSOCIATES HELP YOU FIND YOUR NEW HOME!  CALL US!!

LEWES – 302 644-2266|  SEAFORD – 302 629-6693|  GEORGETOWN – 302 856-6434

 

4 SIGNALS IT MIGHT BE TIME TO BUY (VS. RENT) YOUR HOME (PART 2)

Rising rents at a time when the prices of homes for sale are low and, in some places, falling?

Rents are going up. Rental rates in many areas are also on the rise – in fact, the foreclosure crisis has created additional demand on many markets’ rental housing inventory in several different ways. First, former homeowners who lost homes to foreclosure now need to rent; as well, buyers in foreclosure hot spots have been hesitant to buy, many electing to stay renters far beyond when they would have otherwise. On top of all that, super-tight lending guidelines have stopped even some who would like to buy homes from doing so. As a result, rental homes are in high demand – and rents are rising.

Rising rents at a time when the prices of homes for sale are low and, in some places, falling? One more signal that now might just be the time to buy. (Of course, where foreclosures are high, the chances of continued depreciation are, too – to offset this risk, have a long-term plan, to minimize the possibility that you’ll owe more than your home is worth when you need to sell)

Tomorrow, you’ll see how to plan for the long term and minimize your homebuying risk.

CHECK IN TOMORROW FOR SIGNAL #3

Author~Connie Cooper

4 SIGNALS THAT IT MIGHT BE TIME TO BUY VS. RENT YOUR HOME (PART 1 OF 4)

To rent or to buy?: what used to be a given – that you would buy a home as soon as you could afford to – has become an agonizing conundrum for many a would-be homebuyer, in the face of the housing market’s big bust and super-slow recovery.

To rent or to buy?:  what used to be a given – that you would buy a home as soon as you could afford to – has become an agonizing conundrum for many a would-be homebuyer, in the face of the housing market’s big bust and super-slow recovery. Low prices seem to create a wide-open window of opportunity, but they also create the concern that prices will keep falling after closing. And that Catch-22 has hundreds of thousands of buyers-to-be stuck on the fence.

Fortunately, there are handfuls of life, mortgage and local market signals which indicate that the time *might* be right to hop – scratch that – leap off the fence and into homeownership:

Signal #1 – Mortgage rates are going up. Home prices have been low for the last several years, and in fact are currently looking like they’re heading back down to the same levels they were at the depths of the real estate recession. During this same time frame, interest rates have also been low – this one-two punch has created record-high affordability for the last four years running, causing buyers to believe that this window of opportunity won’t be closing anytime soon.

While prices don’t look like they’ll be skyrocketing anytime soon, interest rates are another story. Rates have been on a rollercoaster over the past few months, and with inflation and Fed rates set to spike later this year, today’s low interest rates might be as good as they’re going to get for a long time to come. And I mean a very long time – in the next few years, governmental intervention in the mortgage markets is likely to wind down, and that means higher mortgage interest rates are not only inevitable, they’ll probably be here for a long, long time.

Mortgage rates on the rise are one signal that now might be the peak of home affordability, and the peak of the opportunity to buy.

CHECK IN TOMORROW FOR SIGNAL #2!

Author~ Connie Cooper