Rates take a Hit. Changes to come.

Reblogger Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Real Estate Agent with Get Results Team...Just Call (408) 252-8900! CalBRE# 00901962 Lic.1985
https://activerain.com/droplet/4XqL

roller coaster imageI had already read this morning from another lender that interest rates rose .5% in 3 days post-election. In Ashley's post you can see it's now actually close to a full percent  at .8725%.

What does that mean for our sellers and buyers?

Usually in the short term there's a jump to action for buyers who've been on the fence with buying. It means buyers with the same money can now afford less home, so they may have to adjust from a SFH to a TH.

We're in for a ride-stay tuned.

Original content by Ashley Sharum 0595204

"Election" and "politics" are likely trigger words that you avoid at your workplace, over dinner with friends, and even at home by now. After 19 months of campaign drama, the nation elected a new POTUS last week - and the ripples came roaring after. 

There was a bit of immediate volatility in the stock market, and values fluctuated a bit after the polls had closed. But what does it all mean for you, and your real estate goals? Maybe you plan to buy a home in the next year? Maybe you plan to sell your home?

As of today, financing rates for a mortgage are:

30 Year Fixed - 4.125%

15% Year Fixed - 3.765% 

30 Year Jumbo - 4.125%

These depend on your credit history, downpayment and more... but are sharply higher than the 3.165% (30-year fixed) that we saw two weeks ago. So rates are being driven up. Will it be for long? 

As your Realtor, I wish that I had the ability to look into a crystal ball and foretell the long range implications of a world market on your wallet. Unfortunately, I can't. But I'm here to share what I have, as up to the minute as it can be. 

It might be a good idea to move forward on the purchase or refinance you have been putting off.

Also coming are some changes to the ways in which loans are processed. While not for all banks, many lending institutions are working to simplify and streamline the process on several fronts.

First, employment information will be verified through The Work Number. This not only provides a lender with a confirmed history of employment, but also your income data within hours. Instead of asking for paystubs, a lender will have been given access directly.

Second, deposits will be verified through banking information. At the time of loan application, consumers will be able to grant their lender access to their banking institution for a 'snapshot' of their accounts. This will eliminate the request for bank statements in many cases.

And most importantly, appraisals may be eliminated in some instances where an AVM is performed. AVM stands for Automated Valuation Model, and eliminates the need and the inconsistencies of an appraisal up front. The AVM will pull comps, just like an appraiser, and provide a detailed analysis of your home's value. An appraiser isn't needed, unless there is a question of condition, or the value comes in too low.

This could greatly shorten the timeline needed for Freddie Mac and Fannie Mae loans, and allow a value to be found early in the contract period, which offers protection for both parties and their investment. 

DFWAshley, Ashley Cox, Dallas Realtor (972) 978-3109

Search Listings Homes for Sale Dallas, DFW  Sell, List my Home for Sale in Dallas  Get CMA Property Value in Dallas

Ashley Cox is a Realtor® with Dallas City Center Realtors and strives to provide excellent service and assistance to Buyers and Sellers in the Dallas/Fort Worth Metroplex.

Buy | Sell | Rent  - call/txt (972) 978-3109

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Rainer
397,074
John Dotson
Preferred Properties of Highlands, Inc. - Highlands, NC - Highlands, NC
The experience to get you to the other side!

Michelle, I have been saying for 9 years that "we are not going to get out of this mess with free money"

I'm not so sad to see a rate hike... a little at a time.

Nov 14, 2016 05:26 AM #1
Rainmaker
1,160,472
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Hold your hats, we are in for ride of our careers.

Nov 14, 2016 06:39 AM #3
Rainmaker
820,274
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL - (561) 716-7824 - CRS, ABR, GRI

Michelle Carr-Crowe-Top 1% Diamond Certified Agent Sells Homes San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900 Thanks for passing along this information.  That seems like a lot in just a few days.

Nov 14, 2016 07:01 AM #4
Rainmaker
1,084,490
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Michelle Carr-Crowe-Top 1% Diamond Certified Agent Sells Homes San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900 - Rates are moving up, and you're right the higher they are the less home you can afford to buy.  A great choice for a re-blog!

Nov 14, 2016 09:08 AM #5
Ambassador
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Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Thank you all for reading and commenting-please be sure to do the same for the original post!

Nov 14, 2016 09:10 AM #6
Rainmaker
817,249
Sheila Newton Team Anderson & Greenville SC
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
Selling the Upstate since 1989

I'm very concerned about the rates ... we are so low on inventory that the buyers can't really "jump" right now.. and if they keep going up, they won't be able to afford the price range they have been looking in... I really hope the rates don't continue to go up!

Nov 16, 2016 07:26 AM #7
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