March roars in like a lion with early snow and home sales at a fast pace but prices continue their slow decline. Home sales have been exceeding new inventory for several weeks now which is leading to shorter market times. Since this is a Buyer's market, prices are not yet moving higher as excess inventory is consumed. However, if the supply and demand trend continues, the market will move towards balance and we will likely to see upward pressure on pricing.
Part of the move to a more balanced market is buyers realizing how great a time it is to buy. Right now with rates continuing at historic lows, home are extremely affordable. For many buyers the mortgage payment is less expensive then renting a comparable home.
Many home owners are refinancing to take advantage of these extremely low rates. One of the measures I use to help a borrower determine if a refinance makes sense is to calculate the "recapture" of the refinance expense. This is simply a matter of dividing the cost of obtaining the refi with the monthly savings. The refinances I am doing for my clients at Northstone Mortgage average 10 months for recapture so if you are staying in your home for 10 months or more the refinance probably makes sense.
If you would like a detailed analysis of the benefits of a refinance check out my refi calculator by clicking here.
This blog was written by
Brian serves clients within the Northwest Multiple Listing Service. And specializes in residential re sale homes, condo’s and land, and is uniquely qualified as a short sale negotiator holding both real estate and mortgage licenses.
You can contact Brian directly by phone at 800-806-3145 or by email at
Brian is licensed with the
Washington State Department of Licensing and the Washington State Department of Financial Institutions License number MLO-114864 and is a member of the Seattle King County Association of Realtors and Northwest Multiple Listing Service.