Thursday, July 12, 2018

House-Buying Power at Near-Historic Levels

Article Courtesy of Keeping Current Matters/The KCM Blog

House-Buying Power at Near-Historic Levels | Keeping Current Matters
We keep hearing that home affordability is approaching crisis levels. While this may be true in a few metros across the country, housing affordability is not a challenge in the clear majority of the country. In their most recent Real House Price Index, First American reported that consumer “house-buying power” is at “near-historic levels.”
Their index is based on three components:

  1. Median Household Income
  2. Mortgage Interest Rates
  3. Home Prices
The report explains:

“Changing incomes and interest rates either increase or decrease consumer house-buying power or affordability. When incomes rise and/or mortgage rates fall, consumer house-buying power increases.”
Combining these three crucial pieces of the home purchasing process, First American created an index delineating the actual home-buying power that consumers have had dating back to 1991.
Here is a graph comparing First American’s consumer house-buying power (blue area) to the actual median home price that year from the National Association of Realtors (yellow line).
House-Buying Power at Near-Historic Levels | Keeping Current Matters

Consumer house-buyer power has been greater than the actual price of a home since 1991. And, the spread is larger over the last decade.

Bottom Line

Even though home prices are increasing rapidly and are now close to the values last seen a decade ago, the actual affordability of a home is much better now. As Chief Economist Mark Fleming explains in the report:

“Though unadjusted house prices have risen to record highs, consumer house-buying power stands at near-historic levels, as well, signaling that real house prices are not even close to their historical peak.”

Wednesday, July 4, 2018

HAPPY INDEPENDENCE DAY!

 
Wishing you a fun-filled and safe 4th of July

IN CONGRESS, JULY 4, 1776
The unanimous Declaration of the thirteen united States of America
When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
CLICK ON LINK FOR COMPLETE TEXT OF THE DECLARATION OF INDEPENDENCE.

VA LOANS: MAKING A HOME FOR THE BRAVE POSSIBLE

VA Loans: Making a Home for the Brave Possible
Article Courtesy of Keeping Current Matters/The KCM Blog


VA Loans: Making a Home for the Brave Possible | Keeping Current MattersSince the creation of the Veterans Affairs (VA) Home Loans Program, over 22 million veterans have achieved the American Dream of homeownership. Many veterans do not know the details of the program and therefore do not take advantage of the benefits available to them.
If you are a veteran or you know someone who is, here is a breakdown of the VA Home Loan benefits that can be used to achieve the American Dream!

Top 5 Benefits of a VA Home Loan

  1. The greatest benefit of a VA Loan is that borrowers can buy a home with a 0% down payment. In 2016, 82% of all VA Loans put down 0%!
  2. Primary Mortgage Insurance (PMI) is not required! (Most other loans with down payments under 20% require PMI, which adds additional costs to your monthly housing expense!)
  3. Credit Score requirements are also lower for VA Home Loans. The average FICO® score of a borrower for an approved VA Loan is 620, compared to 676 (FHA) or 753 (Conventional).
  4. There is also a limitation on a veteran buyer’s closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4% in concessions in some cases.
  5. Even with interest rates rising, VA Loans continue to have the lowest average interest rates of all loan types.

Who Qualifies for a VA Home Loan?

One of the most important first steps when applying for a VA Home Loan is obtaining your Certificate of Eligibility (COE). “The COE verifies to the lender that you are eligible for a VA-backed loan.”

You Can Apply for a VA Loan if You:

  • Serve 90 consecutive days during wartime
  • Serve 181 consecutive days during peacetime
  • Have more than 6 years in the National Guard or Reserves
  • Are the spouse of a service member who has died in the line of duty or as the result of a service-related disability

You Can Use a VA Loan To:

  • Purchase a Home
  • Purchase a Condo
  • Build a Home
  • Refinance an existing home loan
  • Make improvements to a home by installing energy-related features or making energy-efficient improvements

Bottom Line

For more information or to find out if you or a loved one would qualify to use the VA Home Loan Benefit, contact a local real estate professional who can help! Thank you for your service!

Wednesday, June 20, 2018

3 Issues Facing Today's Real Estate Market

3 Issues Facing Today's Real Estate Market
Article Courtesy of Keeping Current Matters/The KCM Blog


3 Issues Facing Today’s Real Estate Market | Keeping Current MattersLast week, the National Association of Real Estate Editors (NAREE) held their 52nd Annual Journalism Conference in Las Vegas, NV. Among the many highly anticipated sessions was one called “Top Ten Issues Affecting Real Estate™,” given by Joseph Nahas, Jr., Chair of the Counselors of Real Estate & Senior Vice President of Equus Capital Partners. 

The Counselors of Real Estate (CRE) “is an international organization of high profile property professionals which include principals of prominent real estate, financial, legal, and accounting firms as well as recognized leaders of government and academia.” 
Their annual “top 10” list spans any and all issues that could have an impact on the real estate market. This year, the list was broken up into “Current” and “Long-Term Issues.”
Today we’re going to focus on three of the five “Current” issues with a brief explanation of their impacts on the housing market today!

E-Commerce & Logistics

With promises of 2-day shipping no matter where you live, we are benefiting more now than ever before from the speed and ease-of-use of online retailers like Amazon. These e-retailers haven’t changed whether or not we buy certain items, but rather HOW we buy them!

Many traditional malls or big-box stores are being repurposed as warehouses or distribution centers for online retailers so that they can get their products out faster.

A Look to the Future: “Developers who are including experiences into their locations are the ones who will succeed. It’s about the experience and gaining something over just going to buy a product.”


Generational Change & Demographics

By now we’ve all heard that the millennial generation is the largest yet, just by sheer volume. The largest group of millennials turns 30 years-old in 2020. The average first-time homebuying age is between 30 and 32, depending on marital status. Real estate professionals will be inundated with more and more buyers as the years roll on. Nahas commented on this in his presentation, saying that,

“Too many developers have become dependent on making decisions based on baby boomer’s preferences.
The 75 million millennials are coming, and they will influence real estate and commerce even faster than the baby boomers in the 50s and 60s.”

Interest Rates & the Economy

The interest rate that you secure for your mortgage is a big factor in your monthly housing cost and in how much you ultimately pay for your home. According to Freddie Mac’s Primary Mortgage Market Survey, rates rose to 4.62% on a 30-year fixed rate loan last week.

The Federal Reserve also raised the federal funds rate for the second time this year. If unemployment continues to be at or near record lows, two more hikes are likely to come later this year.
Nahas added,

“Rising rates can be good and bad for the economy. Bad for borrowing money with additional costs, but good to control inflation and help grow the economy at a moderate pace.”

Bottom Line

If you are planning on buying and/or selling a home this year, consult a local real estate professional who can help you navigate the conditions in your market and set you up for success.

Tuesday, June 19, 2018

5 Reasons You Shouldn't FSBO (For Sale By Owner)

5 Reasons You Shouldn't FSBO (For Sale By Owner)
Article Courtesy of Keeping Current Matters/The KCM Blog

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

According to the 2017 Profile of Home Buyers and Sellers from NAR, last year 95% of buyers search online for a home. That is in comparison to only 15% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?
  • 49% on the internet
  • 31% from a Real Estate Agent
  • 7% from a yard sign
  • 1% from newspapers
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:
  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Friday, June 15, 2018

Top 4 Home Renovations for Max ROI (Return on Investment)

Before you consider renovating your home, consider how it will affect the value of your home.  Here are the the four updates that Keeping Current Matters suggests will give you the best return on your investment.

Infographic Courtesy of Keeping Current Matters/The KCM Blog 

Tuesday, June 5, 2018

State-of-the-Art YMCA Coming to Indian Land

Lancaster News/Carolina Gateway Article 
6/5/18
Announcement has been made that a state-of-the-art 74,000 square foot YMCA will be built at CrossRidge Center in Indian Land.  The YMCA will be the "anchor" of a 170-acre planned development which, according to the Lancaster News/Carolina Gateway Article, will include a "business park, gated residential community, retail businesses, walking trails, greenways and other amenities."  

Construction of the YMCA, which will include a large water park, will begin in the fall and it is expected be competed in 2020.

Thursday, May 31, 2018

Will Home Prices Fall as Mortgage Rates Rise?

Will Home Prices Fall as Mortgage Rates Rise?
Article Courtesy of Keeping Current Matters/The KCM Blog

Will Home Prices Fall as Mortgage Rates Rise? | Keeping Current Matters
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 rates into perspective – they are unlikely to materially impact the housing market…
The driving force behind the increase are healthy economic conditions…The healthy economy encourages more homeownership demand and spurs household income growth, which increases consumer house-buying power. Mortgage rates are on the rise because of a stronger economy and our housing market is well positioned to adapt.”

Terry Loebs, Founder of Pulsenomics:

“Constrained home supply, persistent demand, very low unemployment, and steady economic growth have given a jolt to the near-term outlook for U.S. home prices. These conditions are overshadowing concerns that mortgage rate increases expected this year might quash the appetite of prospective home buyers.”

Laurie Goodman, Codirector of the Housing Finance Policy Center at the Urban Institute:

“Higher interest rates are generally positive for home prices, despite decreasing affordability…There were only three periods of prolonged higher rates in 1994, 2000, and the ‘taper tantrum’ in 2013. In each period, home price appreciation was robust.”
Industry reports are also calling for substantial home price appreciation this year. Here are three examples:

Bottom Line

As Freddie Mac reported earlier this year in their Insights Report, “Nowhere to go but up? How increasing mortgage rates could affect housing,”
“As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”

Friday, May 25, 2018

MEMORIAL DAY MESSAGE

 
I have always found it strange to wish someone a Happy Memorial Day and I can never bring myself to say those words.  Yes, we all look forward to the first long weekend that marks the unofficial beginning of summer and the first barbecue of the season, picnic, trip to the lake... or the Indy 500.  But, while all of those things make Memorial Day weekend a fun time, we need to remember the real meaning of Memorial Day.  As we enjoy time with family and friends, let us be sure to take time to honor the memory of those who made the ultimate sacrifice to protect the freedoms we cherish.    


As we remember those who died in service to our country, let us give thanks to those who are serving now and to all our Veterans for their past service to our country. 
----------------------------------- 

On a personal note, in September 2017 my husband and I attended the 50th reunion of his United States Marine Corps Officers Basic School Class.  As we gathered with his Marine Corps brothers, the bond was strong, as memories were shared, and those who are no longer with us were remembered.  Memorial Day has a special meaning for these men and it is with heavy hearts that they remember those who made the ultimate sacrifice.


SEMPER FI

Wednesday, May 23, 2018

Why Have Interest Rates Jumped to a 7-Year High?

Why Have Interest Rates Jumped to a 7-Year High?
Article Courtesy of Keeping Current Matters/The KCM Blog

Interest rates for a 30-year fixed rate mortgage have climbed from 3.95% in the first week of January up to 4.61% last week, which marks a 7-year high according to Freddie Mac. The current pace of acceleration has been fueled by many factors.
Sam Khater, Freddie Mac’s Chief Economist, had this to say:
“Healthy consumer spending and higher commodity prices spooked bond markets and led to higher mortgage rates over the past week.
Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.”

But what do gas prices have to do with interest rates?

Investopedia explains the relationship like this:
“The price of oil and inflation are often seen as being connected in a cause-and-effect relationship. As oil prices move up or down, inflation follows in the same direction.”
You may have noticed that filling your gas tank has become substantially more expensive in recent months. The average national gas price has climbed nearly $0.50 from the beginning of the year, leading to the highest price for Memorial Day weekend since 2014.
As rates go up, your purchasing power goes down, but don’t worry; rates are still well below the averages we’ve seen over the last four decades.
“Freddie Mac said this year’s higher rates have not yet caused much of a ripple in the strong demand levels for buying a home seen in most markets, but inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.”
Buying sooner rather than later will help lock in a lower rate than waiting, as the experts believe rates will continue to climb. Even a small increase in interest rates can have a big impact on your monthly housing cost.

Bottom Line

If you are planning on buying a home this year, keep an eye on gas prices the next time you’re at the pump. If you start to feel a big jump in price, know that rates are probably on their way up too.

Tuesday, May 22, 2018

How Current Interest Rates Can Have a High Impact on Your Purchasing Power

How Current Interest Rates Can Have a High Impact on Your Purchasing Power
Article Courtesy of Keeping Current Matters/The KCM Blog

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.61%, which is still near record lows in comparison to recent history!
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping your principal and interest payments between $1,850-$1,900 a month.
How Current Interest Rates Can Have a High Impact on Your Purchasing Power | Keeping Current Matters
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Act now to get the most house for your hard-earned money.

Tuesday, May 8, 2018

Home Inspections: What to Expect

Home Inspections: What to Expect 
Article Courtesy of Keeping Current Matters/The KCM Blog

So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. Oftentimes, agents make your offer contingent on a clean home inspection.
This contingency allows you to renegotiate the price you paid for the home, ask the sellers to cover repairs, or even, in some cases, walk away. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector

Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. HGTV recommends that you consider the following 5 areas when choosing the right home inspector for you:
  1. Qualifications – find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.
  2. Sample Reports – ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. The more detailed the report, the better in most cases.
  3. References – do your homework – ask for phone numbers and names of past clients who you can call to ask about their experiences.
  4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations often means that continued training and education are provided.
  5. Errors & Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human after all, and it is possible that they might miss something they should have seen.
Ask your inspector if it’s okay for you to tag along during the inspection, that way they can point out anything that should be addressed or fixed.
 
Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace and chimney, the foundation, and so much more!

Bottom Line

They say ‘ignorance is bliss,’ but not when investing your hard-earned money into a home of your own. Work with a professional who you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase.

Tuesday, May 1, 2018

SCCL TRAIL MAPS

The following information was shared by FirstService Residential in their April 27, 2018 Friday Flash.  The links go to the SCCL website.

Trails Maps
Thanks to the Trails Sub-Committee and friends, color booklet-like SCCL Trail Maps are now available for purchase at the Lake House front desk. They are being sold at cost, for $3.  SCCL residents can also download a copy from the website and print at home.
A special thank you to Jerry Burtcher for sharing his map drawings with the Association.

Wednesday, April 25, 2018

SUMMIT HOMES UPDATE 4/24/18

The link below is an update for the Summit homes collection at Sun City Carolina Lakes.  It includes information about currently active listings, homes currently under contract, and homes that have closed since March 1, 2018.  While the information is for anyone interested in Summit homes, it has been created specifically for the Grey Hawk neighborhood, highlighting Grey Hawk homes that are currently listed.  If you are interested in receiving regular updates on any particular collection of SCCL homes (Manor, Summit, River, Villa, or Carriage Homes), or a general update on the community, or if you would like a personalized property search, please contact me.  

CLICK HERE:  SUMMIT HOMES UPDATE
You can download and/or print this document from the above link, however, feel free to contact me if you would like me to send you a copy as an attachment.  
NOT INTENDED TO SOLICIT BUYERS OR SELLERS CURRENTLY UNDER CONTRACT WITH A BROKERAGE

Please note that you can always go to the PROPERTY SEARCH tab above for links to preset searches for both single family homes and Villas & Carriage Homes, or go to the UP-TO-DATE STATS FOR SCCL tab above to check out a variety of stats for all of Sun City Carolina Lakes.  Stats for currently active, under contract, and recently closed properties are updated daily.  The interactive graphs for New Listings, Homes for Sale, Pending Sales, Closed Sales, Average Days on Market, Months Supply of Homes for Sale, Average List to Close Days, and Average Percent of Original Price are updated monthly.

Friday, April 20, 2018

HOME BUYING MYTHS SLAYED (INFOGRAPHIC)

Information below courtesy of Keeping Current Matters/The KCM Blog

Home Buying Myths Slayed [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:


  • The average down payment for first-time homebuyers is only 6%!
  • Despite mortgage interest rates being over 4%, rates are still below historic numbers.
  • 88% of property managers raised their rents in the last 12 months!
  • The credit score requirements for mortgage approval continue to fall.

Monday, April 16, 2018

GETTING PRE-APPROVED SHOULD ALWAYS BE YOUR FIRST STEP

Getting Pre-Approved Should Always Be Your First Step
Article Courtesy of Keeping Current Matters/The KCM Blog

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:
  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time
Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so.

A TALE OF TWO MARKETS

The generalized information contained in the infographic below is based on stats provided by the National Association of REALTORS® and is not specific to a particular area.  
 
Remember that every market is different and sales in one community may vary greatly from other nearby communities.  For the most current stats for Sun City Carolina Lakes, click HERE.

A TALE OF TWO MARKETS
INFOGRAPHIC courtesy of Keeping Current Matters/the KCM Blog
A Tale of Two Markets [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • A trend that has been emerging for some time now is the contrast between inventory & demand in the Premium & Luxury Markets vs. the Starter & Trade-Up Home Markets and what that’s, in turn, doing to prices!
  • Inventory continues to rise in the luxury & premium home markets which is causing prices to cool.
  • Demand continues to rise with low inventory in the starter & trade-up home markets, causing prices to rise!

Saturday, April 7, 2018

JUST LISTED!

Looking for a home with an amazing view?   This is the one you've been waiting for!
Check out the VIRTUAL TOUR.

This gorgeous Surrey Crest with a spectacular view of Carolina Lakes 11th fairway offers a serene sanctuary for the most discriminating buyer. Enjoy fabulous views from the beautiful MBR, office, and bright and airy sunroom.  The custom paved patio with a charming pond is the perfect place to relax and enjoy beautiful sunsets and an amazing golf course view. This is the only single level home on the golf course side of a double cul-de-sac. Features include hardwood flooring throughout with tile in bathrooms and sunroom, plantation shutters, a custom TV cabinet in the family room, and custom storage cabinets in the garage. Searching for a special place to live?  This is the one you've been waiting for!  Come LIVE THE DREAM at Sun City Carolina Lakes and enjoy all the beautiful amenities and diverse activities this premier active adult community has to offer! 

Wednesday, March 28, 2018

Be Thankful You Don't Have to Pay Your Parents' Interest Rate!

Here's a great message for those concerned over rising interest rates... especially those younger first-time home buyers.  Granted, even small increases will affect your monthly payment and that's what is most important when you're analyzing how much of a home you can afford.  So, as interest rates start going up, moving ahead with making a purchase sooner, rather than later, is a prudent move, if you are in a position to do so.  That being said, this article gives a great perspective on interest rates over the past 45 years.  



Article Courtesy of Keeping Current Matters/The KCM Blog
3/28/18
 
Be Thankful You Don't Have to Pay Your Parents' Interest Rate!

Be Thankful You Don’t Have to Pay Your Parents’ Interest Rate! | Keeping Current MattersInterest rates hovered around 4% for the majority of 2017, which gave many buyers relief from rising home prices and helped with affordability. In the first quarter of 2018, rates have increased from 3.95% up to 4.45% and experts predict that rates will increase even more by the end of the year.

The rate you secure greatly impacts your monthly mortgage payment and the amount you will ultimately pay for your home. Don’t let the prediction that rates will increase stop you from purchasing your dream home this year.

Let’s take a look at a historical view of interest rates over the last 45 years.

Be Thankful You Don’t Have to Pay Your Parents’ Interest Rate! | Keeping Current Matters

Bottom Line

Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.