Raleigh Triangle Real Estate Blog

Top 5 Reasons to Hire a Real Estate Professional When Buying or Selling!

Top 5 Reasons to Hire a Real Estate Professional When Buying or Selling! | Simplifying the Market

Whether you are buying or selling a home it can be quite the adventure, which is why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal. But in this world of instant gratification and internet searches, many sellers think that they can ‘For Sale by Owner’ or ‘FSBO.’
The 5 reasons you NEED a real estate professional in your corner haven’t changed but have rather been strengthened by the projections of higher mortgage interest rates & home prices as the market continues to pick up steam.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required...

Should I Wait Until Next Year to Buy? Or Buy Now?

Should I Wait until next Year to Buy? Or Buy Now? [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
  • Freddie Mac predicts interest rates to rise to 5.1% by 2019.
  • CoreLogic predicts home prices to appreciate by 4.3% over the next 12 months.
  • If you are ready and willing to buy your dream home, find out if you are able to!
...

You Might Want to Start Thinking About Locking In On Mortgage Rates 2-15-2018

By James Brooks

The bond market is up 1/32 (2.90%), but weakness late yesterday should still cause Raleigh Area mortgage rates to go higher by approximately .125 of a discount point.

January?s Producer Price Index (PPI) was released at 8:30 AM ET this morning, revealing a 0.4% increase in both the overall and core readings. As with yesterday?s consumer level version of this data, these exceeded expectations. Analysts were expecting to see a 0.3% rise in the overall and a 0.2% increase in the core data that excludes more volatile food and energy prices. The results point towards rising inflation, which is the number one nemesis of the bond market. Inflation erodes the value of a bond?s future fixed interest payments, causing them to be sold at a discount now to offset that decline. Rising inflation also allows the Fed to be more aggressive with increases to key short-term interest rates. Therefore, this was today?s bad news.

Also posted early this morning was last week?s...

Calm Down! The Real Estate Market is NOT Falling Apart

Calm Down! The Real Estate Market is NOT Falling Apart | Simplifying The Market

There has been tremendous volatility in certain markets over the last few weeks (for example, the stock and currency markets). When this happens, some tend to lump all of their investments together and create an almost ‘Armageddon’ scenario where everything loses value quickly and dramatically. Real estate is an investment that can get caught up in this hysteria. Does the concern about the current housing market have merit?

Financial advisors have been warning us for months that the stock market was ripe for a “correction.”

Experts have been questioning the value of alternative currencies for over a year.

In contrast, here are the opinions of three major players in the residential...

Which Comes First… Marriage or Mortgage?

Which Comes First… Marriage or Mortgage? | Simplifying The Market

According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2017 at 57% of all buyers. It is no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more attainable.

But, many couples are also deciding to buy a home before spending what would be a down payment on a wedding, as unmarried couples made up 16% of all first-time buyers last year.

If you’re single, don’t fret! Single women made up 18% of first-time buyers in 2017, while single men accounted for 7% of buyers. A recent report pointed to a sense of responsibility...

As Economy Gets Stronger Mortgage Rates Increase 2-14-2018

By James Brooks

The bond market is down 18/32 (2.89%), which should push Raleigh Area mortgage rates higher by approximately .250 of a discount point.

The Commerce Department gave us the first of this morning?s two important releases by posting January?s Retail Sales data at 8:30 AM ET. It showed a 0.3% decline in consumer-level sales, falling well short of the 0.2% increase that was expected. Even a secondary reading within the report that tracks more costly and volatile auto transactions came in well below forecasts (0.0% vs +0.4%). This data indicates that consumers spent much less last month than many had thought. Because consumer spending makes up over two-thirds of the U.S. economy and bonds tend to thrive in weaker economic conditions, this was very good news for the bond market and mortgage rates. Unfortunately, traders are paying more attention to the second release of the morning.

That release was January's Consumer Price Index (CPI), also at 8:30 AM. This index measures...

Low Inventory Pushes Home Prices Higher

Low Inventory Pushes Home Prices Higher | Simplifying The Market

According to CoreLogic’s latest Home Price Index, prices appreciated by 6.9% year-over-year from December 2016 to December 2017 on a national level. This marks the fifth month in a row with at least a 6.9% increase.

Dr. Frank Nothaft, Chief Economist for CoreLogic, gave insight into the reason behind the large appreciation,

“The number of homes for sale has remained very low. Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”

...

No Change In Today's Mortgage Rates 2-13-2018

By James Brooks

The bond market is up 3/32 (2.84%), but weakness late yesterday will prevent much of an improvement in Raleigh area mortgage rates.

There is nothing scheduled for today that is relevant to mortgage rates. Unless stocks go into a major sell-off again or strong rally, there is no reason to believe we will see much movement in bonds or mortgage rates the rest of the day. However, the possibility of seeing a significant move in stocks is elevated after the recent volatility. Therefore, you may want to keep an eye on the markets if floating an interest rate and closing in the near future.

Tomorrow brings us the first two reports of the week and both are considered to be highly important. The Commerce Department will give us the first with the release January's Retail Sales data. This report is very important to the financial markets because it measures consumer spending. Since consumer spending makes up over two-thirds of the U.S. economy, any related data is watched...

The #1 Reason to Sell Now Before Spring

The #1 Reason to Sell Now Before Spring | Simplifying The Market

The price of any item (including residential real estate) is determined by ‘supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to housing inventory at the beginning of 2017:

The #1 Reason to Sell Now Before Spring | Simplifying The Market

Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.

Bottom Line

Buyers in the market during...

Surprise Improvement In Today's Mortgage Rates 2-12-2018

By James Brooks

The bond market is up 4/32 (2.85%), but we still should see an improvement in Raleigh area rates by .125 of a discount point.

There is nothing of importance taking place today or tomorrow. The rest of the week brings us the release of six monthly economic reports that have the potential to influence mortgage pricing. Some of those releases are considered to be highly important to the financial and mortgage markets. In addition to the data, we also will be watching the stock markets for direction. The data scheduled this week can make it an active week for the bond and mortgage markets on their own. If we see more of last week?s volatility in stocks, it sure is going to be another crazy week for mortgage rates.

The calendar will start early Wednesday morning when the Commerce Department posts January's Retail Sales data and the Labor Department release the Consumer Price Index (CPI). These reports are very important to the financial markets as they measure consumer spending...