Mortgage Rates At Lows Again

Mortgage Rates Again at Historic Lows | Keeping Current Matters

Just two weeks ago, we posted an article discussing where mortgage interest rates may be heading over the next twelve months. We quoted projections from Fannie Mae, Freddie Mac, the Mortgage Bankers’ Association and the National Association of Realtors. Each predicted that rates would begin to rise slowly and steadily throughout 2016. However, shaky economic news and a volatile stock market have actually caused rates to drop six out of the last seven weeks, and have remained at 3.65% for the past two weeks.

Mortgage Rates Again at Historic Lows | Keeping Current Matters

Rates have again fallen to historic lows yet many experts still expect them to increase in 2016. The only thing we know for sure is that, according to Freddie Mac, current rates are the best they have been since last April.

Bottom Line

If you are thinking of buying your first home or moving up to your ultimate dream home, now is a great time to get a sensational rate on your mortgage.

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Saving More for a Down Payment

 

No one likes to have a budget – I know I don’t but the reality is that it is one of the most important financial fundamentals you need to succeed.  It is the ground work for creating Wealth.  So let me share this – think of it as a Spending Plan instead and focus your energies on spending in the right places.

Building Trust and Relationships into Homes & Great Experiences
In our business, the most profound assets that we possess are your respect and trust


thanks to the following for sharing
The Keyes Company – 
Wade & Barnwell Realty Group

Path to Create Family Wealth

 

How To Create Real Family Wealth | Keeping Current Matters

Some Highlights:

  • Buying a home is often the biggest financial decision that any family will make.
  • The average net worth of a homeowner is 45x greater than that of a renter.
  • Homeownership puts your housing costs to work for you.
  • Infographic was created in cooperation with Jensen & Co.

How Much Equity Do You Have?

Do You Know How Much Equity You Have In Your Home? You May Be Surprised! | Keeping Current Matters

CoreLogic’s latest Equity Report revealed that 256,000 properties regained equity in the third quarter of 2015. This is great news for the country, as 92% of all mortgaged properties are now in a positive equity situation.

Price Appreciation = Good News For Homeowners

Frank Nothaft, CoreLogic’s Chief Economist, explains:

“Home price growth continued to lift borrower equity positions and increase the number of borrowers with sufficient equity to participate in the mortgage market. In the last three years, borrowers with at least 20 percent equity have increased by 11 million, a substantial uptick that is driving rapid growth in home equity originations.” 

Anand Nallathambi, President and CEO of CoreLogic, believes this is a great sign for the market in 2016 as well, as he had this to say:

“Homeowner equity is the largest source of wealth for many Americans. The rise in home prices, expected to be at least 5% in 2016, will continue to build wealth and confidence across America. As this process continues, it will provide support for the housing market and the broader economy throughout [the] year.”

This is great news for homeowners! But, do they realize that their equity position has changed?

study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their home as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 8% of homes are in that position (down from 9% in Q2). The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%), when in actuality, 74% do!

Do You Know How Much Equity You Have In Your Home? You May Be Surprised! | Keeping Current Matters

This means that 37% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing). Fannie Mae spoke out on this issue in their report:

“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”

Bottom Line

If you are one of the many Americans who are unsure how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2016! Meet with a local real estate professional today, who can help you evaluate your situation and assist you along the way!

Net Worth 45x’s Greater as a Home Owner

Homeowner’s Net Worth is 45x Greater Than a Renter's | Keeping Current Matters

Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400). In a Forbes article the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater. The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

Homeowner’s Net Worth is 45x Greater Than a Renter's | Keeping Current Matters


Put Your Housing Cost to Work For You

Simply put, homeownership is a form of ‘forced savings’. Every time you pay your mortgage you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth. The latest National Housing Pulse Survey from NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:

“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

Bottom Line

If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, meet with a real estate professional in your area who can guide you through the process.

“Be careful what you wish for!”

So here we go again, people are getting themselves all worked up over how hard it is to get a mortgage and how hard it is to buy a home. Yes, even those who should know better are looking for ways to lower standards so more people can qualify for mortgages. Are you kidding me? Has anyone forgotten what happens when you lower standards? Did we not just get through an entire era where everyone thought it was a great idea to lend people money that had no chance of repaying it on some misguided effort to grow percentage of ownership in this country only to find out that this was a bad idea and almost bankrupted the world?

We do NOT need to lower standards; we need to TEACH fundamental financial management in our schools at a very early age. We need to teach SAVING. We need to teach people about CREDIT, DEBT, and DISCIPLINE! We need to stop sending kids to colleges and universities who are borrowing huge sums of money in pursuit of a degree that won’t get them a job that pays enough to repay their obligations. We need to provide more opportunities to train our children in a skilled labor and technical trades that can provide great incomes for far less money than college cost and reduce the demand on these institutions so the cost of that education will go DOWN due to less demand. We need to understand that there are people in this world that will NEVER be in a position to OWN a home because it isn’t the best situation for them. We also need to understand a few basic concepts.

  • If you want to buy a home and can prove you are in a position to repay the money you want to borrow, there is no shortage of mortgage money.
  • With such a shortage of available homes for sale in many markets across the country, why the sudden need to find MORE BUYERS to fight over that limited supply?
  • In most of the country, renting is more expensive than ownership; shouldn’t we be looking into generating more rental opportunities?
  • As more and more people conduct their business outside a tradition office setting, and even some work many miles away and rarely if ever make a trip to a traditional office location, why aren’t we moving out of the cities that are too congested and find or grow new or smaller areas of the country where it is far cheaper to acquire land and build?

As a country we need to take a breath and stop over reacting to everything. Everyone needs realize that so much of the self-absorbed behavior and the almost constant victimization just need to stop. If you are offended, then get over yourself. Grow up and realize that being offended by everything is YOUR PROBLEM, not anyone else’s problem. You’re NOT entitled to own a home in this country. You are not entitled to an equal outcome. You are not entitled to be offended. You have freedoms and liberty and the choice to do with that the best you can to suit your own personal needs. That’s it. No guarantee, just opportunity. And while I am at it, let’s get rid of all the participation trophies. We need to go back and teach winning and losing. It feels good to win and it really stinks to lose. If you don’t like losing than practice and get better or quit and go find something you can win at.

So as the government begins another push to “level the playing field” by lowering standards and making it “easier” for people to borrow money. Maybe we need to take a step back and ask ourselves if this is really a good idea since we have already seen what will happen? Stop lowering the standards and spend your time making better people!

Questions or comments: Mike@IMTcoaching.com  or visit us online at http://imtcoaching.com

Where are They Moving too?

Where Are Americans Moving? [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • For the 4th year in a row the Northeast saw a concentration of High Outbound activity.
  • Oregon held on to the top stop of High Inbound states for the 3rd year in a row.
  • Much of this Outbound activity can be attributed to Boomers relocating to warmer climates after retiring.