Tag Archives | interest rates

    What’s the Latest on Interest Rates?

    What’s the Latest on Interest Rates?

    What’s the Latest on Interest Rates? | Simplifying The Market

    Mortgage rates have fallen by over a full percentage point since Q4 of 2018, settling at near-historic lows. This is big news for buyers looking to get more for their money in the current housing market.
    What’s the Latest on Interest Rates? | Simplifying The Market
    According to Freddie Mac’s Primary Mortgage Market Survey,

    the 30-year fixed-rate mortgage (FRM) rate averaged 3.60 percent, the lowest it has been since November 2016.

    Sam Khater, Chief Economist at Freddie Mac, notes how this is great news for homebuyers. He states,

    “…consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall.”

    As a potential buyer, the best thing you can do is work with a trusted advisor who can help you keep a close eye on how the market is changing. Relying on current expert advice is more important than ever when it comes to making a confident and informed decision for you and your family.

    Bottom Line

    Even a small increase (or decrease) in interest rates can impact your monthly housing cost. If buying a home is on your short list of goals to achieve, let’s get together to determine your best move.

    Source: Michigan Real Estate Updates

    The Benefits of Growing Equity in Your Home

     

    The Benefits of Growing Equity in Your Home

    The Benefits of Growing Equity in Your Home | Simplifying The Market

    Over the last couple of years, we’ve heard quite a bit about rising home prices. Today, expert projections still forecast continued growth, just at a slower pace. One of the often-overlooked benefits of rising home prices is the positive impact they have on home equity. Let’s break down three ways this is a win for homeowners.

    1. Move-Up Opportunity

    With the rise in prices, homeowners naturally experience an increase in home equity. According to the Homeowner Equity Insights from CoreLogic,

    “In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year.”

    This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to move up into their next home.

    2. Gain in Seller’s Profit

    ATTOM Data Solutions recently released their Q2 2019 Home Sales Report, indicating the seller’s profit jumped at one of the fastest rates since 2015. They said:

    “A look at the national numbers showed that U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since the original purchase of $67,500…the average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of the original purchase price.”

    Looking at the amount paid when they bought their homes, and then the amount they received after selling, we can see that some homeowners were able to walk away with a significant gain.

    3. Out of a Negative Equity Situation

    Negative equity occurs when there is a decline in home value, an increase in mortgage debt, or both. Many families experienced these challenges over the last decade. According to the same report from CoreLogic,

    “U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $485.7 billion since the first quarter 2018, an increase of 5.6%, year over year.

    In the first quarter of 2019, the total number of mortgaged residential properties with negative equity decreased…to 2.2 million homes, or 4.1% of all mortgaged properties.”

    The good news is, many families have moved beyond a negative equity situation, and no longer owe more on their mortgage than the value of their home.

    Bottom Line

    If you’re a current homeowner, you may have more equity than you realize. Your equity can open the door to future opportunities, such as moving up to your dream home. Let’s get together to discuss your options and start to put your equity to work for you.


    Source: Michigan Real Estate Updates