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 | Mar 7, 2018 | Buyers, Homes, Villas and Condos, Investment Property in Florida, News, Property for Sale in Orlando, Real Estate News, Sellers
Orlando Home prices up more than 6% again in January
US, including Orlando home prices increased in January, rising more than 6% year-over-year for the sixth straight month.
Prices were also up 0.5% from December as competition increased in ever-tightening markets and the data from CoreLogic suggests there is little chance of much moderation over the next year.
The firm’s forecast through January 2019 is for a 4.8% rise year-over-year with the hottest markets continuing to outpace the average. California, Florida, Nevada and Oregon are forecast to see a 7% rise.
First-time buyers facing larger barriers
Further exacerbating the rising prices is the shortage in supply among entry-level homes, barring many first-time buyers and stalling the market.
“Homes with a purchase price less than 75% of the local area median had price growth of 9.0% during the year ending January 2018,” said Dr Frank Nothaft, CoreLogic chief economist. “Homes that sold for more than 125% of median appreciated 5.3% over the same 12-month period. Thus, first-time buyers are facing acute affordability challenges in some high-cost areas.”
Almost half of top 50 metros overvalued
CoreLogic’s Market Conditions Indicators show 48% of the 50 largest metros were overvalued as of January 2018, 14% were undervalued, and 38% were at value.
“Millennials who are looking to become first-time homeowners find it particularly challenging to find an affordable home in these areas,” said Frank Martell, president and CEO of CoreLogic. “Our projections continue to show tightness in the entry-level market for the foreseeable future, which could further prevent millennials from purchasing homes in 2018 and 2019, even as much of that generation reaches its prime home-buying years.”
With home prices rising along with the mortgage rates, now is the time to start looking at your Orlando Home Purchase and making your dream a reality! If you are a potential seller looking to put your home on the market, the time could not be better to place your home on the market and let the fish begin to bite! Contact your local Bardell Realtor® today to get your questions answered!
