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What’s Ahead For Mortgage Rates This Week – March 27, 2023

March 27, 2023 by Rhonda Costa

What's Ahead For Mortgage Rates This Week - March 27, 2023Last week’s financial and economic reporting included readings on sales of new and previously-owned homes, along with weekly data on mortgage rates and jobless claims.

Single-Family Home Sales Rise in February

Year-over-year sales of previously owned homes rose 14.5 percent to a seasonally-adjusted pace of 4.58 million sales. Analysts expected 4.20 million sales of pre-owned homes as compared to January’s year-over-year reading of 4.0 million sales. February’s increased sales halted 12 months of falling sales of previously-owned homes. February’s reading marked the highest pace of sales since July 2020, when sales of pre-owned homes rose by 22.40 percent.

The National Association of Realtors® said that February’s reading represented the largest increase in existing home sales since the inception of reporting sales of previously-owned homes in 1999. The median sale price of existing homes was $363,000 in February. There was a 2.6-month supply of homes available in February.

February sales of new single-family homes rose to 640,000 sales from January’s reading of 633,000 sales. While analysts said that a brief lull in climbing mortgage rates contributed to increased home sales, new home sales remained 22.60 percent lower than in February 2021.

FOMC Statement: Fed Strives to Hold Inflation in Check, Mortgage Rates Fall

The Federal Reserve’s Federal Open Market Committee released the minutes of its March meeting; the Committee voted to raise its key interest rate range to 4.75 to 5.00 percent; the Committee reaffirmed its goal of returning inflationary growth to two percent. Fed Chair Jerome Powell said that the Fed was planning to continue rate hikes before the failure of Silicon Valley Bank. Chairman Powell said the bank’s failure forced Fed policymakers to consider a halt to interest rate hikes.

Freddie Mac reported lower average mortgage rates as the rate for 30-year fixed-rate mortgages fell by 18 basis points to 6.42 percent. The average rate for 15-year fixed-rate mortgages fell by 22 basis points to 5.68 percent. Initial jobless claims fell slightly to 191,000 claims as compared to the previous week’s reading of 192,000 first-time claims filed. Continuing jobless claims rose to 1.69 million claims filed from the prior week’s reading of 1.68 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic reports include readings on home prices, inflation, and consumer sentiment. Weekly reports on mortgage rates and jobless claims will also be released.

Filed Under: Financial Reports Tagged With: Financial Report, Home Sales, Mortgage Rates

Six Key Reasons You’ll Want to Work With a Real Estate Agent When Pricing Your Home

March 24, 2023 by Rhonda Costa

Six Key Reasons You'll Want to Work With a Real Estate Agent When Pricing Your HomeWhether you know a little bit about the market or you’ve sold a home before, you may be considering pricing your own home to avoid the assistance of a real estate agent. However, there are a number of benefits associated with consulting an agent when selling your home. Before making a final decision, consider the following tips.

They Know The Neighborhood

It’s great if you have familiarity with market prices, but knowing a neighborhood is key when it comes to determining price. The right agent will be able to help you arrive at a price that is good for your home and practical for the area you’re selling in.

Is The Market Hot?

The price may be right, but if the market has cooled off, you may have to make a compromise in order to sell it. Instead of trying to arrive at this on your own, an agent will be able to provide insights into the best strategy.

They’ve Sold In The Area

A local agent may have sold properties in your area recently and may be well aware of the price potential. With this added expertise, they can walk the line between your ideal price and what you can get.

Preparing A Plan B

An agent may agree to go with a higher selling pricing if you’re committed to it, but they will also help you make another plan if the price doesn’t work out. It’s disappointing to not get what you’re asking for, but it’s better to have a plan just in case.

Saving On Stress

It’s one thing to decide on the price of your home, but it’s quite another to deal with all the stress if it lingers on the market without an offer. If an agent assists you in determining your price, they’ll also be there to shoulder some of the stress.

When It Comes To Negotiating

The negotiation following a home offer is make-or-break for selling your home, so having an agent is a great benefit. While they won’t be able to make the decision for you, they can serve as a helpful guide in determining an appropriate counter offer.

Many homeowners want to embark on selling their home on their own, but a real estate agent can be very helpful in determining a purchase price and assisting with the negotiations. If you’re currently getting prepared to sell your home, contact one of our real estate professionals for more information.

Filed Under: Home Seller Tips Tagged With: Home Seller Tips, Real Estate Tips, Selling A Home

White Lies That Could Make It Harder To Buy A Home

March 23, 2023 by Rhonda Costa

White Lies That Could Make It Harder To Buy A HomeRight now, the real estate market is very competitive, and you might be tempted to use a few white lies to make your offer seem more competitive. No matter how much you want to purchase a home, you need to make sure you are completely honest and open when you go through the process from start to finish. What or a few examples of common white lies that people tell that could jeopardize your application or your mortgage as a whole?

Lying About Your Primary Residence

If you plan on living in the house full-time, make sure you say so. You might get a lower interest rate if you tell the lender you are going to use the house as your primary residence. On the other hand, if you plan on renting out the house, you need to be honest on the application. If you lie about living in the house, it could be considered mortgage fraud, which is a crime.

Not Disclosing The Source Of Your Assets

Lenders have a legal duty to make sure money laundering is not taking place. If the source of your down payment is coming from someone else, such as a parent, there is certainly nothing wrong with that. On the other hand, you need to be honest about where the money came from. If you look like you are hiding the source of your money, it will only make the application process more complicated. 

Omitting Sources Of Debt

No matter how small you might think your debt might be, you need to disclose every single source. A few examples include student loans, car loans, and credit card debt. There is a detailed underwriting process that has to take place, and if your mortgage lender finds out that you lied on your application, they could deny your application outright, no matter how competitive you might be. 

Be Honest When You Apply For A Mortgage

Lenders have a legal duty to review each application in full. Every question has a purpose, and you need to be honest when you answer them. If you need help applying for a mortgage, you should reach out to an expert who can help you put your application in the best position possible to be successful. 

Filed Under: Real Estate Tagged With: Application, Honesty, Real Estate

Expecting a Newborn? Baby-proof Your Home With This Quick and Easy Checklist

March 22, 2023 by Rhonda Costa

Expecting a Newborn? Baby-proof Your Home With This Quick and Easy ChecklistIt’s a very exciting time for most parents when their kids begin to crawl, but it can also be much more difficult to watch over your child and ensure their safety. If your child is starting to get along on their own and you’re preparing to baby proof, here are the main areas and items you’ll want to watch out for.

Clearing Away The Crib

There’s no place your child is going to spend more time, so ensure that there are no toys left in their crib when they’re going to sleep. You’ll also want to stay away from fluffy blankets that can smother their breathing. It’s entirely likely that you’ll have a lot of stuff to store for your baby, but ensure there are no heavy pieces of furniture in the room that they will be able to pull over or move.

In The Bathroom

It goes without saying that you should never leave a baby in the bathtub alone, but there are other things to do as soon as they become mobile. In addition to non-slip mats for the tub and the area outside of the tub, you may also want to invest in soft covers for the knobs and the spout on the bathtub. It’s also good to keep any hazardous cleaning products out of reach.

Care In The Kitchen

Your baby is likely to wreak havoc on all of the door handles they can, so ensure that you have cabinets that don’t close automatically and a latch for your oven door. If you happen to be cooking in the kitchen when your baby is about, ensure that all pot handles are turned in and all cooking items are kept away from the edges of the counter.

Around The House

Your quickly crawling child will be able to find many hazards if they move fast, so ensure you’ve covered up any electrical outlets or cords that can be pulled out. If there are sharp edges your infant can reach, put safety guards on them to protect your baby’s head. Safety gates should also be used at the top and bottom of stairs to avoid any falls.

Most parents get pretty enthusiastic about the idea of their baby starting to crawl, but it’s important to be prepared for that time by baby proofing your home. If you’re currently getting ready to buy a home for your growing family, contact your trusted real estate professional for more information.

Filed Under: Around The Home Tagged With: Around the Home, Homeowner Tips, Upgrades and Renovations

An Overview Of A Wrap-Around Mortgage: What To Know

March 21, 2023 by Rhonda Costa

An Overview Of A Wrap-Around Mortgage: What To KnowAre you having a difficult time qualifying for a traditional mortgage in the current market? If so, there are other options available, and a lack of financing can frustrate not only the buyer but the seller as well. For example, one option that you may have heard about is called a wrap-around mortgage. The entire goal of this mortgage is to help the buyer get financing to purchase the house while making sure the seller still turns a profit. What do you need to know about a wrap-around mortgage? 

What is A Wrap-Around Mortgage?

A wrap-around mortgage is a specific type of home loan that allows the seller to hang on to the mortgage they have in place as the buyer takes out a new mortgage to wrap around the loan that is already owed.

Using this type of mortgage, the buyer will make payments to the seller every month instead of the lender. While this secondary option usually means the interest rate is a bit higher, it also makes it easier for the buyer to finance the home while taking care of the seller at the same time. 

How Does The Approval Process Work?

Because there isn’t a traditional mortgage mediated by a lender, the buyer and the seller have to come to a mutual agreement on their own. The seller is responsible for maintaining the existing mortgage, but they offer secondary financing to the buyer, wrapping the new loan into the loan that the seller already has. The buyer and seller have to agree on the down payment, the total amount of the loan, and draw up a contract that outlines the terms of the loan. Then, the title passes from the seller to the buyer. 

Consider The Benefits And Risks Carefully

Even though it can help the seller sell his or her house, it is important to understand that there are some risks. There is still a primary mortgage on the home, which means that the seller still has to pay the primary lender. Furthermore, the seller is assuming a significant amount of risk, as they will be responsible for the mortgage if the buyer is unable to keep up with the payments. 

Filed Under: Real Estate Tagged With: Loan Approval, Real Estate, Wrap Around Mortgage

What’s Ahead For Mortgage Rates This Week – March 20, 2023

March 20, 2023 by Rhonda Costa

What's Ahead For Mortgage Rates This Week - March 20, 2023Last week’s economic reporting included readings on housing starts and building permits issued, the National Association of Home Builders Housing Market Index, and Fed Chair Janet Yellen’s Senate testimony. The Commerce Department reported on housing starts and building permits issued published, and a monthly reading on consumer sentiment was published. Weekly reports on mortgage rates and jobless claims were also released.

Two bank failures instill fear in depositors

In the aftermath of two bank failures last week,  US Treasury Secretary Janet Yellen said that “the banking system is sound” during testimony to the US Senate last Thursday. When asked if federal protection could be extended to deposit accounts exceeding $250,000, Secretary Yellen replied that such action would “require approval from super majorities of the Boards of the Federal Reserve, the FDIC.and consultation between the Treasury Secretary and the president to determine that failure to protect uninsured depositors would create system risk and significant economic and financial consequences.”

NAHB: home builder confidence in US housing market improves

The National Association of Home Builders reported that its Housing Market Index for March increased by two points to an index reading of 44. Home builders expected a reading of 40 and the February HMI reading was 42. Readings below 50 indicate that most home builders surveyed were not confident about current housing market conditions.

The Commerce Department reported that housing starts exceeded expectations in February with 1.45 million starts reported as compared to the expected reading of 1.31 million starts and January’s reading of 1.32 million starts. Building permits issued also rose in February with 1.52 million permits issued as compared to expectations of 1.34 million permits issued and January’s reading of 1.34 million building permits issued.

Mortgage rates, jobless claims fall

Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by 13 basis points to 6.60 percent. Rates for 15-year fixed-rate mortgages fell by five basis points to an average rate of 5.90 percent.

Initial jobless claims were also lower with 192,000 first-time claims filed as compared to the prior week’s reading of 212,000 claims filed. 1.68 million continuing jobless claims were filed as compared to 1.71 million ongoing claims filed in the previous week. 

What’s ahead

This week’s scheduled economic reporting includes readings on sales of new and previously-owned homes, the post-meeting statement from the Federal Open Market Committee, and Federal Reserve Chair Jerome Powell’s post-meeting press conference. Weekly readings on mortgage rates and jobless claims will also be published.

Filed Under: Financial Reports Tagged With: Financial Report, Jobless Claims, Mortgage Rates

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