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Should I Buy a Home Now? Or Wait Until Next Year?

Should I Buy a Home Now? Or Wait Until Next Year? [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 4.4% by next year.
  • CoreLogic predicts home prices to appreciate by 5.0% over the next 12 months.
  • If you are ready and willing to buy your dream home, find out if you are able to!

Movement In Today's Mortgage Rates 9-29-2017

By James Brooks

The bond market is down 6/32 (2.33%), Which should increase Raleigh area mortgage rates by approximately .125 of a discount point.

Yesterday?s 7-year Treasury Note auction went well with several benchmarks pointing towards strong investor interest. Bonds had already improved before results were posted at 1:00 PM ET, but did extend that move afterward. That led to many lenders improving mortgage pricing before the end of the day.

There were two economic reports posted this morning, beginning with August's Personal Income and Outlays at 8:30 AM ET. The Commerce Department announced that personal income rose 0.2% while spending increased 0.1%. These matched expectations, but a secondary reading that tracks consumer level inflation came in a little lighter than forecasts. That allows us to consider the data good news for bonds and mortgage rates.

Also released this morning was the University of Michigan's revised Index of Consumer Sentiment for...

Thinking of Selling your Home? Competition is Coming

Thinking of Selling your Home? Competition is Coming | Simplifying The Market

The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of these permits were up 7.7% over last year.

How will this impact buyers?

More inventory means more options. Danielle Hale, Realtor.com’s Chief Economist, explained this is good news for the housing market – especially for those looking to buy:

“It’s not spectacular construction growth, but it’s slow and steady in...

Slight Movement On Today's Mortgage Rates 9-28-2017

By James Brooks

The bond market is down 4/32 (2.32%), which should push Raleigh area mortgage rates slightly higher.

Yesterday?s 5-year Treasury Note auction went fairly well but not particularly strong. The benchmarks we use pointed towards an average level or slightly better interest in the securities. The bond market weakened a little after the results were posted yesterday. More relevant though is the fact that yesterday?s results and reaction don?t give us much to be optimistic about in today?s 7-year Note sale. Results of today?s auction will be posted at 1:00 PM ET, so any reaction will come during early afternoon trading.

The first of today's two economic releases was the second revision to the 2nd Quarter Gross Domestic Product (GDP) at 8:30 AM ET. It showed that the economy grew at a 3.1% annual rate during the April, May and June months. This was a tad stronger than the 3.0% that was estimated last month and what analysts were expecting to see. Because this...

What to Look for in Your Real Estate Team

What to Look for in Your Real Estate Team | Simplifying The Market

How do you select the members of your team who are going to help you make your dream of owning a home a reality? What should you be looking for? How do you know if you’ve found the right agent or lender?

The most important characteristic that you should be looking for in your agent is someone who is going to take the time to really educate you on the choices available to you and your ability to buy in today’s market.

As Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Do your research. Ask your friends...

Today's Mortgage Rates Begin To Rise 9-27-2017

By James Brooks

The bond market is down 18/32 (2.30%), which should push Raleigh area mortgage rates higher by approximately .125 of a discount point.

Today?s only relevant economic report was August's Durable Goods Orders at 8:30 AM ET. The Commerce Department announced that new orders for big-ticket items such as airplanes, appliances and electronics rose 1.7% last month. This was stronger than the 0.7% increase that was expected, indicating strength in the manufacturing sector. However, this data is not what is driving this morning?s bond trading. The variance from forecasts that we saw this morning would be significant in many other releases. Not in this one though. This data is known to be quite volatile from month to month. In fact, a secondary reading that excludes more volatile transportation and airplane orders pegged expectations at up 0.2%.

We also have today?s 5-year Treasury Note auction taking place today that may influence this afternoon?s trading. Results of...

More Than Half of All Buyers Are Surprised by Closing Costs

More Than Half of All Buyers Are Surprised by Closing Costs | Simplifying The Market

According to a survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com gathered closing cost data from lenders in every state and Washington, D.C. in order to share the average costs in each...

Slight Change In Mortgage Rates 9-26-2017

By James Brooks

The bond market is currently down 2/32 (2.24%), but strength late yesterday should improve Raleigh area mortgage rates slightly.

This morning had two relatively minor pieces of economic data posted. The first was August's New Home Sales at 10:00 AM ET that showed sales of newly constructed homes fell 3.4% last month. That size of a decline is due to an upward revision to July?s sales, but the number of transactions was still below expectations before the revision is applied. That makes the data good news for bonds and mortgage rates.

September's Consumer Confidence Index (CCI) was also posted at 10:00 AM ET, revealing a reading of 119.8 that was a bit stronger than the 199.4 that was expected. That variance isn?t enough to bring much attention. What makes the data negative actually, is a revision to August?s reading. It was revised down from 122.9 to 120.4. Analysts were originally expecting to see this month?s reading fall 3.5 points, but the revision makes the...

How to Get the Most Money from the Sale of Your Home

How to Get the Most Money from the Sale of Your Home | Simplifying The Market

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

How to Get the Most Money from the Sale of Your Home | Simplifying The Market...

Monday Mortgage Rate News 9-25-2017

By James Brooks

The bond market is up 2/32 (2.23%), which should keep Raleigh area mortgage rates unchanged.

There is nothing of importance scheduled for release today. The rest of the week brings us the release of six monthly and quarterly economic reports for the markets to digest in addition to two Treasury auctions. None of the data is considered to be key, but several of the reports can directly affect mortgage pricing. There is at least one release set for each day except for today, so we can expect to see a fairly active week in the bond and mortgage markets.

August's New Home Sales will start the week's activities at 10:00 AM ET tomorrow morning. The Commerce Department is expected to say that sales of newly constructed homes rose last month, indicating the new home portion of the housing sector strengthened a little. This report will likely not have a noticeable impact on mortgage rates unless it differs greatly from forecasts. It is the week's least important report in...