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Displaying blog entries 11-20 of 31

What Do You Want to Spend on Housing Each Month??

by Desi Sowers

Mortgage Rates Change Home Affordability

Payment is paramount in the home search because — unlike purchase price — it’s something to which homeowners must tend monthly. Irrespective of health, wealth, or family, mortgage payments are due.

Once I've helped buyer client make a budget, I have to be sure to keep tabs on it. The budget can be victimized by mortgage rates.

See, homes are more affordable today than at any time in recorded history, but it’s not because home prices are down. It’s because mortgage rates are. And every time mortgage rates change, your maximum purchase price changes, too.

Did you know that in In June 2011, mortgage rates changed every 3 hours, 23 minutes on average.

With mortgage rates changing as rapidly as they are, your home affordability can be short-lived. Consider the budget-busting impact of rising mortgage rates.

For every 1 percent rise in mortgage rates, a buyer's maximum purchase price falls 10.75%!!

For example, if a buyer has 20 percent to put down and sees a $300,000 home, today, he can borrow at 4.500% and pay $1,216 monthly. But if the buyer wants to wait for a price reduction and, 4 weeks later, he gets it — all the way to $285,000. He’s ecstatic. Until he talks to his lender and finds out mortgage rates are up 1 point.

That same home - selling for $15,000 less, now costs $1,295 to carry.  It's a $79.00 monthly increase and $28,440 extra payments over the life of the loan.

This is why it’s foolish to “time” the housing market.

Sure, Mr. Buyer, you may get that “great price”, but rising mortgage rates wipe out the savings (and then some).

So......the moral of the story is buy now while rates are low, inventory is high and prices are soft.  It just makes dollars and sense!

New Listing - Backs up to Jefferson Natl Forest

by Desi Sowers

<p><span class="expanded_field_value">Gorgeous mountain views surround this  comfortable home nestled adjacent to Jefferson National Forest. </span></p>
<p><span class="expanded_field_value"> Screened by nature,  the property offers a quick commute to Blacksburg,   Salem or Roanoke. </span></p>
<p><span class="expanded_field_value"> Bright and open floor plan,  hardwood floors and  fresh paint are just a few features you will enjoy. </span></p>
<p><span class="expanded_field_value"> Just over 3 acres  offers plenty of room for gardening,  pets and privacy - Come See!   Please View Virtual Tour.</span></p>
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Gorgeous mountain views surround this comfortable home nestled adjacent to Jefferson National Forest.

Screened by nature, the property offers a quick commute to Blacksburg, Salem or Roanoke.

Bright and open floor plan, hardwood floors and fresh paint are just a few features you will enjoy.

Just over 3 acres offers plenty of room for gardening, pets and privacy - Come See! Please View Virtual Tour.

Must See Video - This Month in Real Estate

by Desi Sowers

This Month In Real Estate (US) February 2011

Mortgage Rates Drop Slightly for the Week

by Desi Sowers

Interest rates took a slight dip this week as economic uncertainty continued to plague the market, according to Bankrate.com’s national survey of large lenders. 

The average 30-year fixed rate mortgages dropped slightly to 4.94 percent for the week. Meanwhile,15-year fixed rate mortgages were 4.32 percent for the week, while 5-year adjustable-rate mortgages held nearly steady at 3.99 percent. 

The drop in rates suggests the financial market may have overreacted to the inflation fears that had originally pushed rates higher in late December, according to Bankrate.com. 

"Unemployment is starting to stabilize. Housing is stabilizing, although there are still soft pockets. Stocks are up, and there are inflationary fears with energy prices going up, so directionally and logically, we're in for potentially higher interest rates," predicts Anthony Hsieh, chief executive of loanDepot.com, a direct mortgage lender in Irvine, Calif.

Rising Rates Could Get Buyers Moving

by Desi Sowers

Rising Rates Could Get Buyers Moving

Ironically, it could be rising interest rates that finally push home buyers off the fence

and into the market.  While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.

Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales of Capital Economics.

The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.

Source: Fortune, Nin-Hai Tseng (12/10/2010)

30-Year Mortgage Rates Plumb New Depths

by Desi Sowers

30-Year Mortgage Rates Plumb New Depths

Freddie Mac reports that the average interest on 30-year fixed mortgages slipped to an all-time low, for the third consecutive week, to 4.19 percent.   WOW!!!

Source: The Wall Street Journal, Nathan Becker (10/15/10)

Open House Tomorrow the 26th - Come See!!

by Desi Sowers

Open House Tomorrow the 26th from 1:00 to 3:00

Located just blocks to VT, beautifully updated and the best yard in the neighborhood with blueberry, apple, pear and apricot trees.  Come See!!! 

Real Estate Outlook: 2010 Stark Contrast to 2009

by Desi Sowers

Real Estate Outlook: 2010 Stark Contrast to 2009

Even the grumpiest, grinchiest economist would have to admit that New Year's 2010 looks a whole lot more positive for real estate and housing than things did last year at the same time.

You may remember that dark and scary time. We had just come through the Wall Street financial panic, but it wasn't yet clear what the federal government could - or would - be able to do to prevent a total collapse.

The outlook right now is a complete contrast: Home sales have been rising for months, thanks in part to the federal tax credit programs; new home starts and permits are up in most parts of the country; and prices generally are trending up in most of the markets that got shell-shocked in the bust.

Now new market data from last week point to continued growth just ahead, but with an ominous warning sign as well.

The latest pricing numbers released by the Federal Housing Finance Agency found home values nationwide up modestly in the latest month -- by six tenths of a percent. That sounds really small, but annualized it comes to more than seven percent, which is not bad at all.

And recent sales results from key local markets also are encouraging. For example, in November, every major metropolitan area in Florida saw sales of houses and condos up compared with the year before for the second straight month.

Overall, according to the Florida Association of Realtors, sales of houses were 61 percent higher than November of 2008. Condo sales were up by an amazing 111 percent!!

Plus consumer confidence has been trending upward nationally, by 7.5 percent during December, according to the University of Michigan's bellwether survey.

But now to a sobering subject: Mortgage money is getting more expensive, week after week. At least one big player in the market -- Freddie Mac -- is projecting rates to move from just over five percent today for 30-year loans to 6 percent or higher later in 2010.

Freddie Mac's deputy chief economist, Amy Crews Cutts, says the Federal Reserve's scheduled phase-down of its multi-billion dollar purchases of mortgage backed securities, plus expected moderate growth in the economy, will force rates at least a percentage point higher.

Mark Zandi, chief economist for Moody's Economy.com, agrees. He said last week that six percent for mortgages "sounds about right. I don't think there's any question rates are headed up."

Bottom line here: If you or your clients care about rates, nail down financing sooner, not later. It could cost you if you wait.

Great Video! Know About the 2009-2010 Tax Credit

by Desi Sowers

Please click here to view a very informative video that explains the 2009-2010 Tax Credit.  We RE/MAX agents want you to be informed!

How Full Is The Glass Anyway?

by posted by Desi Sowers

How Full Is The Glass Anyway?

We all know the economy will get even better and that we'll all look back at this time in history with a whole new perspective. In fact it's already improved from just a year ago! What keeps us strong and keeps a nation from failing is hope fueld by optimisism.

"The optimist proclaims we live in the best of all possible worlds; and the pessimist fears this is true." - James Cabell, American novelist and journalist (1879-1958)

What is optimism? It is a belief that things in our past were good for us and taught us lessons even if they were hard. It is also the belief that things will be better in the future.

Contrasts between optimism and pessimism: Optimism breathes life into you each day. Pessimism drains you. Optimism helps you to take needed risks. Pessimism plays it safe and never accomplishes much. Optimism empowers those around you. Pessimism drags them down. Optimism inspires people to greater heights. Pessimism deflates people to new lows. The only way that optimism and pessimism are the same is that they are both self-fulfilled. We choose to look at the world the way we want. Have you ever met a successful pessimist? Become an optimist and see your world change before your eyes. Remember, the glass is always half full -- we're halfway there!

"What you spend years building may be destroyed overnight. Build anyway." - Kent M. Keith

Displaying blog entries 11-20 of 31

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