interest rates: Can You Afford to Buy a Home? - 10/30/19 08:25 AM

Shutterstock
The gap between the increase in personal income and residential real estate prices has been used to defend the concept that we are experiencing an affordability crisis in housing today.
It is true that home prices and wages are two key elements in any affordability equation. There is, however, an extremely important third component to that equation: mortgage interest rates.
Mortgage interest rates have fallen by more than a full percentage point from this time last year. Today’s rate is 3.75%; it was 4.86% at this time last year. This has dramatically increased a purchaser’s ability to afford a home.
Here are three reports validating … (0 comments)

interest rates: The Fed Will Probably Cut Rates Today - 09/18/19 08:38 AM
By Matthew C. Klein – Barron’s
Photo: Washington Examiner
Market prices currently imply a 90% chance the Federal Reserve will reduce short-term interest rates by a quarter-point to a range of 1.75%-2.0% when policy makers meet this week. Such a move would be consistent with the Fed’s “midcycle adjustment” that began in July.
The interesting question, therefore, is not what the Fed will do to rates when its two-day policy meeting concludes Wednesday, but what it will indicate it wants to do over the next few years. Current pricing implies a 60% chance that the Fed’s rate band will be lowered again before the end of 2019, and … (0 comments)

interest rates: WHERE ARE MORTGAGE INTEREST RATES HEADED IN 2019? - 09/25/18 09:58 AM
Download your HOME SEARCH app
What’s my HOME WORTH in today’s market?
The interest rate you pay on your home mortgage has a direct impact on your monthly payment; the higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next year.
HOW WILL THIS IMPACT YOUR MORTGAGE PAYMENT?Depending on the amount of the loan that you secure, a … (0 comments)

interest rates: Rising Interest Rates Have Not Dampened Demand - 07/11/18 08:27 AM
Download your HOME SEARCH app
What’s my HOME WORTH in today’s market?
Since the beginning of the year, mortgage interest rates have risen over a half of a percentage point (from 3.95% to 4.52%), according to Freddie Mac. Even a small rise in interest rates can greatly impact a buyer’s monthly mortgage payment.
First American recently released the results of their quarterly Real Estate Sentiment Index (RESI), in which they surveyed title and real estate agents across the country about the impact of rising rates on first-time homebuyers.
Real estate professionals around the country have not noticed a slowdown in demand for housing among young buyers; nearly 93% of all first-time homebuyers … (1 comments)

interest rates: Will Home Prices Fall as Mortgage Rates Rise? - 05/31/18 08:30 AM
Download your HOME SEARCH app
What’s my HOME WORTH in today’s market?
 
Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year’s end. Because of this increase in rates, some are guessing that home prices will depreciate.
However, some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates.
Mark Fleming, First American’s Chief Economist: “Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage … (0 comments)

 
Kurt Davidson, Gratefully Serving Greater Portland-Vancouver (Davidson Home Group | Keller Williams Portland Central) Rainmaker large

Kurt Davidson

Gratefully Serving Greater Portland-Vancouver

Portland, OR

More about me…

Davidson Home Group | Keller Williams Portland Central

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog