A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainty about the buying process. A specific cause for concern tends to be mortgage qualification.
For many, the mortgage process can be scary, but it doesn’t have to be!
In order to qualify in today’s market, you’ll need to have saved for a down payment (73% of all buyers made a down payment of less than 20%, with many buyers putting down 3% or less), a stable income and good credit history.
Throughout the entire home buying process, you will interact with many different professionals, all of whom perform necessary roles. These professionals are also...
By James Brooks
The bond market is down 1/32 (2.37%), but we still should see a slight improvement in Raleigh area mortgage pricing due to strength late yesterday.
This first of today?s economic releases was the 3rd Quarter Employment Cost Index (ECI) at 8:30 AM ET. It showed a 0.7% increase, exceeding forecasts of 0.6% rise. This means employer costs for wages and benefits rose slightly more than expected during the July ? September months. While this is considered a sign of wage inflation, making the data bad news for mortgage rates, it came from a moderately important release and had only a minor variance from forecasts. Therefore, it has had little impact on today's mortgage pricing.
Also released today was October's Consumer Confidence Index (CCI) 10:00 AM ET. The Conference Board announced a reading of 125.9 that was well above the 121.5 that was expected. That indicates surveyed consumers were much more optimistic about their own financial situations than many...
There are some people who have not purchased homes yet because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich,”
“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying...
By James Brooks
The bond market is up 7/32 (2.39%), we should improve Raleigh area mortgage rates by approximately .125 of a discount point.
The Commerce Department gave us September's Personal Income and Outlays report at 8:30 AM ET this morning, announcing a 0.4% rise in income and a 1.0% jump in spending. Both readings exceeded forecasts of up 0.3% and 0.8% respectively, indicating consumers had slightly more to spend last month and actually did spend more than thought. However, the increase in spending is being attributed to storm-related purchases, so we are seeing little response to the data in today?s early trading.
The 3rd Quarter Employment Cost Index (ECI) will be released at 8:30 AM ET tomorrow. This data tracks employer costs for salaries and benefits, giving us an indication of wage inflation pressures. Rapidly rising costs raises wage inflation concerns and may hurt bond prices. It is expected to show an increase in costs of 0.6%. A smaller than expected increase...
Many potential homebuyers believe that they need a 20% down payment and a 780 FICO® score to qualify to buy a home, which stops many of them from even trying! Here are some facts:
- 40% of millennials who purchased homes this year have put down less than 10%.
- 76.4% of loan applications were approved last month.
- The average credit score of approved loans was 724 in September.
By James Brooks
The bond market is currently up 2/32 (2.42%), but selling late yesterday will prevent an improvement in Raleigh areamortgage rates. There were widespread upward revisions to mortgage rates of approximately .125 of a discount point late yesterday as bond selling intensified. today's gains should offset that increase, causing today?s rates to be very close to Thursday?s early pricing.
Yesterday?s 7-year Note sale was pretty weak with several benchmarks pointing towards a lackluster interest in the securities. While that is bad news for the broader bond market, it really wasn?t the cause of yesterday?s late selling. The downward move in bonds (upward move in yields and mortgage rates) started well after the results of the auction were posted.
The preliminary reading of the 3rd Quarter Gross Domestic Product (GDP) was posted at 8:30 AM ET this morning. It showed that the economy grew at a 3.0% annual pace, noticeably better than the 2.4% that was expected. In addition,...
In Trulia’s recent report, Rent vs. Buy: Roommate Edition, they examined the impact that renting with a roommate has in determining whether it is more expensive to rent or buy. The study explains:
“Since we started keeping track in 2012, it’s been a better deal to buy than rent in America’s largest housing markets – and for much of that time it hasn’t been close.”
It then goes on to ask the question:
“But does the equation change for renters who share their rent with a roommate?”
The report reveals:
By James Brooks
The bond market is down 10/32 (2.45%), which should push this morning?s mortgage rates higher by approximately .250 of a discount point if comparing to Tuesday?s early pricing. Many lenders revised rates upward late yesterday as bond selling picked up momentum. If your lender did revise rates intraday yesterday, you should see less of an increase in todaypricing.
September?s Durable Goods Orders report was posted at 8:30 AM ET this morning. The Commerce Department announced a 2.2% rise in new orders for big-ticket products such as airplanes and appliances. This was a larger rise than the 1.3% that was expected, indicating stronger manufacturing growth. A secondary reading that excludes more volatile and costly transportation-related orders, such as airplanes, was also stronger than anticipated (+0.7% vs 0.5%). Those figures make the data bad news for bonds and mortgage rates. However, bonds were already set for a weak opening before this report was released. This data isn?t...
The National Association of Realtors (NAR) released the results of their latest Existing Home Sales Report which revealed that sales rose 0.7% month-over-month, but remain 1.5% lower than they were a year ago. Some may look at these numbers and think that now is not a good time to sell their house, but in fact, the opposite is true.
The national slowdown in sales is directly tied to a lack of inventory available for the buyers who are out in the market looking for their dream homes! The inventory of homes for sale has fallen year-over-year for the last 28 months and has had an upward impact on home prices.
NAR’s Chief Economist Lawrence Yun had this to say,
“Home sales in recent months remain...
By James Brooks
The bond market is down 12/32 (2.45%), which should push Raleigh area mortgage rates higher by approximately .250 of a discount point.
September?s Durable Goods Orders report was posted at 8:30 AM ET this morning. The Commerce Department announced a 2.2% rise in new orders for big-ticket products such as airplanes and appliances. This was a larger rise than the 1.3% that was expected, indicating stronger manufacturing growth. A secondary reading that excludes more volatile and costly transportation-related orders, such as airplanes, was also stronger than anticipated (+0.7% vs 0.5%). Those figures make the data bad news for bonds and mortgage rates. However, bonds were already set for a weak opening before this report was released. This data isn?t the cause of this morning?s selling, but has contributed to it.
Also posted this morning, but at 10:00 AM ET, was September's New Home Sales. It showed an 18.9% jump in sales of newly constructed homes last month. That was considerably...