by Elsa Soto | May 10, 2018 | Buyers, Homes, Villas and Condos, Investment Property in Florida, Mortgages, News, Property for Sale in Orlando, Real Estate News, Uncategorized
WASHINGTON (AP) – May 10, 2018 – The key long-term U.S. mortgage rate held steady this week, providing a lure for potential homebuyers as the spring buying season goes forward.
Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages was 4.55 percent, unchanged from last week. The benchmark rate rose steadily for most of April, reaching its highest level in more than four years. By contrast, the rate averaged 4.05 percent a year ago.
The average rate on 15-year, fixed-rate loans declined slightly to 4.01 percent from 4.03 percent last week.
Despite higher borrowing costs and home prices, demand for home purchases has grown in the spring buying season as the economic outlook has continued to improve and bolstered consumer confidence.
Homes sold at a solid annual pace of 5.6 million in March, the National Association of Realtors reported last week, even though the number of houses for sale has plunged. As a result, average home prices are rising at more than twice the pace of wages.
The tight job market, solid economic growth and restrained inflation have kept mortgage rates steady, Freddie Mac chief economist Sam Khater suggested. “As we head into late spring, the demand for (mortgage) credit remains rock solid, which should set us up for another robust summer home-sales season,” he said.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.
The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. The fees on 30-year and 15-year fixed-rate mortgages were unchanged from last week at 0.5 point and 0.4 point, respectively.
The average rate for five-year adjustable-rate mortgages rose to 3.77 percent from 3.69 percent last week. The fee remained at 0.3 percent.
In your search for your Orlando Vacation Home, considering mortgage rates and fees play an important role. Be in the know with your Local Realtor at Bardell!! We are sure to keep you up to date with fitting properties for your situations and the best loan options to fit your budget. You are not alone in this journey! Contact us today to lock in your mortgage rate with a reputable lender and find your investment or second/vacation home today.
Source: Florida Realtors
by Elsa Soto | May 10, 2018 | Buyers, Homes, Villas and Condos, Investment Property in Florida, Mortgages, News, Property for Sale in Orlando, Real Estate News, Uncategorized
WASHINGTON (AP) – May 10, 2018 – The key long-term U.S. mortgage rate held steady this week, providing a lure for potential homebuyers as the spring buying season goes forward.
Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages was 4.55 percent, unchanged from last week. The benchmark rate rose steadily for most of April, reaching its highest level in more than four years. By contrast, the rate averaged 4.05 percent a year ago.
The average rate on 15-year, fixed-rate loans declined slightly to 4.01 percent from 4.03 percent last week.
Despite higher borrowing costs and home prices, demand for home purchases has grown in the spring buying season as the economic outlook has continued to improve and bolstered consumer confidence.
Homes sold at a solid annual pace of 5.6 million in March, the National Association of Realtors reported last week, even though the number of houses for sale has plunged. As a result, average home prices are rising at more than twice the pace of wages.
The tight job market, solid economic growth and restrained inflation have kept mortgage rates steady, Freddie Mac chief economist Sam Khater suggested. “As we head into late spring, the demand for (mortgage) credit remains rock solid, which should set us up for another robust summer home-sales season,” he said.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.
The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. The fees on 30-year and 15-year fixed-rate mortgages were unchanged from last week at 0.5 point and 0.4 point, respectively.
The average rate for five-year adjustable-rate mortgages rose to 3.77 percent from 3.69 percent last week. The fee remained at 0.3 percent.
In your search for your Orlando Vacation Home, considering mortgage rates and fees play an important role. Be in the know with your Local Realtor at Bardell!! We are sure to keep you up to date with fitting properties for your situations and the best loan options to fit your budget. You are not alone in this journey! Contact us today to lock in your mortgage rate with a reputable lender and find your investment or second/vacation home today.
Source: Florida Realtors
by Elsa Soto | May 4, 2018 | Buyers, Homes, Villas and Condos, Mortgages, News, Property for Sale in Orlando
Mortgage Rates Make a Temporary Move Downward
The 30-year fixed mortgage rates dipped after soaring to its highest level in five years last week, according to data released Thursday, a temporary reversal in a year that probably will bring steady increases.
According to the Freddie Mac report, mortgage rates were mixed: The 30-year fixed-rate average dropped to 4.55 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.58 percent a week ago and 4.02 percent a year ago. The 30-year fixed rate of 4.58 percent reported last week hadn’t been that high since August 2013.
The 15-year fixed-rate average rose to 4.03 percent with an average 0.4 point. It was 4.02 percent a week ago and 3.27 percent a year ago.
The five-year adjustable rate average fell to 3.69 percent with an average 0.3 point. It was 3.74 percent a week ago and 3.13 percent a year ago.
Despite the dip, “what is important is [the rates are] substantially higher than one year ago. We’re in a permanently rising interest rate environment,” Lawrence Yun, chief economist at the National Association of Realtors, said in a phone interview.
“The slight decline in mortgage rates is a window of opportunity for buyers to consider locking in those [lower] rates. The longer they wait customers are likely to encounter higher interest rates,” Yun added. “The ability to buy will be hindered because of rising home prices and rising interest rates.”
But Sam Khater, Freddie Mac’s chief economist, said in a statement that demand remains strong even as the rates trend upward.
“While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring,” Khater said. “The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity.”
“It’s also good news that first-time buyers appear to be having more success so far this year — despite higher borrowing costs and home prices,” Khater added. “Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
Meanwhile, mortgage applications dropped from a week earlier, according to the Mortgage Bankers Association. The market composite index — a measure of total loan application volume — decreased 2.5 percent. The refinance index fell 4 percent, while the purchase index slid 1 percent.
The refinance share of mortgage activity accounted for 36.5 percent of all applications, its lowest level since September 2008.
“Market sentiments about strong domestic growth and higher inflation in the US pushed the 10 Year Treasury to the 3 percent mark last week, the first time since 2014 that yields have hit that level,” MBA economist Joel Kan said in a statement. “As a result, the 30 year fixed rate in our survey increased 7 basis points to 4.8 percent, its highest level since September 2013. The increase in rates drove refinance activity 3.5 percent lower and further reduced the refinance share of applications. Purchase applications slipped 1.6 percent over the week but were 5.1 percent higher than a year ago.”
Source: The Washington Post
Though this slight dip in mortgage rates look enticing, they are not here to stay. In past years this slight shift in rates have proved their rise along with sales prices. Your local agent can answer any and all of the questions that may arise while starting this process. We understand how difficult and exciting this can be and we do not want you to feel alone in this. We are here, every step of the way!! Do not miss your chance to purchase your very own Florida Vacation Home near Orlando. Contact us today to get your home property search tailored to find your dream home.
by Elsa Soto | Apr 12, 2016 | Mortgages, Real Estate News
Low Mortgage Rates Entices Buyers
As the year moves along, Central Florida’s climate offers a competitive advantage over other travel destinations, along with lower than normal mortgage rates.
Average long-term U.S. mortgage rates slid this week to their lowest level since February 2015, luring prospective purchasers during the spring vacation home-buying season.
Mortgage buyer Freddie Mac said Thursday the average rate on a 30-year, fixed-rate mortgage fell to 3.59 percent from 3.71 percent last week. The benchmark rate was far below the 3.66 percent level it marked a year ago.
The average rate on 15-year fixed-rate mortgages declined to 2.88 percent from 2.98 percent last week.
A recent speech by Federal Reserve Chair Janet Yellen reaffirmed the Fed’s plans to move slowly in raising the interest rates it controls. That prospect has tamped down mortgage rates.
The signals on Fed interest-rate policy touched off a steep increase in prices of U.S. government bonds. The bonds’ yields, moving in the opposite direction from their prices and influencing mortgage rates, fell sharply.
The yield on the 10-year Treasury bond stood at 1.76 percent Wednesday, down from 1.83 percent a week earlier. The yield slipped further to 1.72 percent Thursday morning.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.5 point. The fee for a 15-year loan also held steady, at 0.4 point.
Rates on adjustable five-year mortgages averaged 2.82 percent this week, down from 2.90 percent last week. The fee remained at 0.5 point.
With mortgage rates at an all time low, the decision to purchase your very own Florida Vacation home isn’t too far out. If now is the time for you and your family, do not hesitate to reach out to our office and one our experienced agents can answer any questions you may have.
Source: Florida Realtors®
by admin | Apr 7, 2016 | Homes, Villas and Condos, Investment Property in Florida, Mortgages, News, Real Estate News
2016 Housing Golden Year
2016 Housing Golden Year – Officials from mortgage giant Freddie Mac have made a bold prediction: This year’s housing starts and home prices will reach their highest levels in a decade.
The main reasons behind the bullish forecast: Low mortgage rates, an improving job market and a gradual increase in housing supply.
“Housing markets are poised for their best year in a decade,” says Sean Becketti, Freddie Mac’s chief economist. “In our latest forecast, total home sales, housing starts and home prices will reach their highest levels since 2006.”
The 30-year fixed-rate mortgage remains well-below 4 percent this year. This week it averaged 3.71 percent.
“Expect the 30-year mortgage rate to remain very attractive throughout the spring home-buying season, staying below 4 percent until the second half of the year,” according to Freddie Mac’s monthly Outlook for March.
Home sellers will enjoy more home price increases. “In 2015, house prices increased about 6 percent on a year-over-year basis,” Freddie notes in its outlook. “Expect house prices to continue to rise, but at a moderating pace, with annual price appreciation slowing to 4.8 percent in 2016.”
Also, gains in employment across the country will help to fuel hotter housing markets, according to Freddie Mac. The unemployment rate dropped below 5 percent recently.
That said, challenges remain for the housing market, particularly with wage growth. Wages remain “anemic, barely keeping pace with inflation,” Freddie Mac officials caution. “If wages and incomes do not start rising, then rising interest rates, home prices, and rents will squeeze households and ultimately slow housing markets.”
Despite some headwinds, officials remain mostly upbeat. The “nation’s housing markets should sustain their momentum from 2015 into 2016 and 2017,” the outlook forecasts.
Source: FloridaRealtors.Org
2016 Housing Golden Year According to Freddie Mac
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by admin | Apr 4, 2016 | Homes, Villas and Condos, Investment Property in Florida, Mortgages, Real Estate News
How to Budget for a House
Budget for a House – When you decide to buy a home, one of the first tasks you need to complete is to determine the amount you can afford to pay each month. Knowing how to budget for a house is crucial in calculating the price range for the home itself.
Some house listings may indicate some of its current expenses, such as property tax and electricity. You can use these figures in establishing a baseline monthly amount, but it is not complete. To budget accurately for a home, you need to include as many recurring expenses as possible to ensure that your home affordability budget is comprehensive, and therefore realistic.
There are several reasons for calculating affordability. First, you don’t want to spend time looking and dreaming of homes that you cannot afford to buy. You would be better off looking at properties in the lower end of your price range and working up. That way, you can understand what you get with a home priced at $200,000 versus what you get at $155,000.
Next, it isn’t just about how much you are allowed to borrow. Knowing how to budget for a house indicates in black and white what you can afford comfortably in your overall financial landscape. Not only do you need to factor in the monthly mortgage payment itself, but you may have mortgage insurance, home insurance, property taxes, water bill, car payments, medical fees, grocery bills, student loans – and all of these expenses will affect how much money you will have left.
So what should you include in a home budget? Some of the basic costs that will help you how to budget for a house are below.
Home Warranty
A home warranty is a type of insurance that will help you recoup the replacement or repair costs of items covered under the plan. This is a set cost, which makes it easy to include in a home budget. Make sure you read your warranty carefully so you know exactly what is covered, what is not, how much your deductible is, and how much money you may expect to recoup in case you need to make a claim.
Out with the Old
Whether you are buying an older home or a brand new one, at some point you will need to replace older, broken, or inefficient components, such as the driveway, roof, windows, carpets, paint, just to name a few.
Budgeting for these repairs from the get-go is a great way to know that you have the money available when you need it without having to put the expense on credit. Get estimates so that you know how much to allot each month, and remember to allot more money for those items that need to be replaced sooner.
Appliances
Cooking, heating, baking, cleaning – we all use appliances every day for different, yet necessary tasks. But nothing lasts forever, and some appliances seem to break faster than expected, especially if you have older or inefficient appliances. For example, gas and electric dryers have an average life expectancy of 13 years. Washing machines tend to last 10 years and freezers 11 years. Determine the age of your appliances and calculate a monthly cost into your home budget so that you are not caught off guard when something needs to be fixed.
Recurring Expenses
Everyone has certain expenses that they know they have to pay – groceries, clothing allowance, homeowner’s association dues, car insurance, utilities, among others – and you need to include these in your budget too. Take a look at your accounts and bills to get a decent estimate about how much these items cost you each month. Don’t forget to include “fun” expenses as well, such as vacations, eating out, and gifts, as well as debt repayment and retirement savings.
Expect the Unexpected
As odd as it sounds, your home budget also has to account for unexpected expenses too. This can include traffic tickets, workplace donations, or repairing a lawnmower. Therefore, it helps to save a small amount in a rainy day fund to cover costs that you have not accounted for in your other budget categories.
Know Your Numbers
Crunching numbers is not the most exciting way to spend an evening or weekend, but financially, how to budget for a house is a smart activity to complete. Knowing what you can afford – truly afford – can save you headaches once the reality of living in a new home has set in. Do it right and live happily ever after.
Source: Shamrockfinancial.com
How to Budget for a House
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