Skip to content

Average Interest Rates & Mortgage Payments Through the Decades

September 18, 2014

mortgage rate history

It’s understandable when prospective buyers get fearful about the thought of mortgage rates increasing in coming months. But let’s put this in perspective.

Yes, it’s true that mortgage rates hit their low almost two years ago. We likely won’t see rates down below 4% again anytime soon. But historically speaking, even a 5 or 6% mortgage rate is low compared to what we’ve seen in recent decades. Read more…

Tips for Successfully Marketing Your Home

September 11, 2014

Pricing your property correctly demands more than pulling a few recent sales. Look around in your neighborhood. The number of signs and how long they have been there can tell you a lot.

Using an educated and successful agent will help you get your pricing and market analysis right. S/he will also be able to market your home to other agents, which will make a big difference in the exposure your home gets.

Make sure you get the basics right, such as using a yard sign to show that your home is for sale. Virtual exposure is also important, since over 80% of all home searches begin on the internet.

New tax credits, tax deductions, and tax laws complicate the process of selling a home, but having the right agent helps you wade through the maze. Pricing, staging, branding, and marketing need to come together all at once – another example of how a good realtor helps.

Get Free of the Renter’s Trap!

September 4, 2014

renter's trapIf not careful, it’s easy for those currently renting to get caught up in a cycle where increasing rents make it impossible for you to save for a down payment.

Even though home prices and interest rates are rising, they are still very affordable for buyers who are able to save enough for a down payment and take advantage of the historically low rates. But with rents going up nearly as fast as home prices, attaining homeownership becomes very difficult for renters who find they have nothing left over each month to save for a downpayment.

Here is an interesting statistic recently uncovered by Zillow in their recent press release called “Only a Dozen Large Metro Housing Markets Feature Both Affordable For-Sale Housing and Affordable Rental Housing: While homes remain more affordable to buy in 94 of the country’s 100 largest metros compared to historic averages, renting is more expensive than ever in 88 of the country’s 100 largest markets.

The current Zillow Home Value Index is $174,800, while the current Zillow Rent Index is $1,318. Read more…

Where Are Foreclosures At These Days?

August 28, 2014

Not too many months ago, sales on distressed properties (short sales or foreclosures) made up a good number of the total real estate transactions each quarter.

Fortunately for homeowners (though not such good news for investors), that number has steadily decreased in recent months.

In fact, as you can see from the graphic below (compliments of KCM, based on data from the June 2014 Corelogic National Foreclosure Report), this past June was the 32nd consecutive month with year-over-year declines in national foreclosure inventory.

Right now, there are only approximately 648,oo0 homes in some stage of foreclosure. That’s down 35% from this time last year, and represents just 1.7% of all U.S. homes with a mortgage!

Take a look below to see which parts of the country are still experiencing higher levels of foreclosure distress, and which have recovered nicely.

With home prices and interest rates going up, investors may no longer have the great deals available to them that they had over the past 5 years. But we’re happy for all the homeowners who are recovering financially and are no longer in danger of losing their homes.

foreclosures

How Homeownership Affects Net Worth

August 21, 2014

net worth of homeownersIn previous decades, real estate was considered to be one of the most solid and stable financial investments. Parents and grandparents encouraged their offspring to buy a home as soon as they were able, rather than renting for years without building up any equity.

The recent turbulence in the market, however, has caused homeownership to lose much of its traditional allure. As many homeowners suffered through being upside down in their mortgage or faced foreclosure or short sales, they began to question whether investing in a home purchase was really the best way to build wealth.

A study by the Federal Reserve provides a bottom line answer that may help to alleviate the concerns and uncertainty of prospective or current homeowners. Here are some of the study’s findings: Read more…

Why You Should Use an Agent When Buying or Selling Your Home

August 14, 2014

importance of using a RealtorTechnology has drastically changed the behavior of today’s prospective home buyers during the home buying process.

With easy access to MLS and a host of other real estate sites such as Zillow or Trulia, purchasers are able to do a good chunk of their research on their own, shopping around within the location and price range they want to find out what’s available.

In fact, according to the National Association of Realtors’ 2013 Profile of Home Buyers & Sellers, 92% of all buyers use the internet to search for a new home.

Interestingly enough, however, that very same report indicated that 96% of those buyers who used the internet ended up purchasing their home through either a real estate agent/broker, or from a builder or builder’s agent. It appears that buyers search for their future home online, but then turn to a Realtor to help with the more challenging aspects, including: Read more…

Where Are Home Mortgage Rates Headed?

August 7, 2014

Mortgage interest rates are hovering in the low 4% range right now, but it’s not likely that they’ll stay there for long.

Below is a KCM graphic indicating where 30-year fixed mortgage rates have been over the last 18 months.

mortgage rates

As for where interest rates will go over the next several months, no one can be certain – but here is what some experts are predicting: Read more…

Follow

Get every new post delivered to your Inbox.

Join 37 other followers