Surging mortgage rates may have little effect on the housing market, at least in the near term, housing experts say. Mortgage rates rose sharply last week following comments from Federal Reserve Chairman Ben Bernanke that the Fed will begin tapering off its asset purchases later this year if incoming data continues to show the economy is on the mend.
Category Archives: Buyers
Home Ownership Makes Happier, Healthier Families, Survey Shows
Owning a home can make families healthier, happier, and more financially secure, according to new research by Canada Mortgage and Housing Corp. on the benefits of home ownership. Researchers worked with Habitat for Humanity families to evaluate how their lives changed after moving into their homes.
Eighty-nine percent of the Canadian families surveyed said their lives improved since they moved into their homes. Eighty-six percent said they’re happier since owning a home.
Home Prices Rising at ‘Unsustainable’ Rate
Home prices have been soaring by double digits compared to last year’s numbers and the National Association of REALTORS® are calling the rises “unsustainable.”
The price for existing home sales surged 15.4 percent higher in May compared to last year.
“Some of the increases can be explained by the fact that it is recovering from an over-corrected situation,” says Lawrence Yun, NAR chief economist. “But with people’s income rising at only 1 or 2 percent and prices rising in double digits, it cannot continue.”
5 Real Estate Recovery Myths
Like anything else, real estate has its urban legends, its stories that get told so often they seem like they must be true. But unlike urban legends about exploding Pop Rocks, housing market myths have the potential to cause panic, poor decisions, and substantial financial losses. The recent market upturn, coming on the heels of 6 years of near-depression, has given rise to a long list of real estate myths. Don’t get lost in the legends — find out what’s fact and what’s fiction.
Freddie Mac Green Lights Fed Tapering
Mortgage rates have risen sharply over the last month and Freddie Mac, in its monthly Economic and Housing Market Outlook for June, focuses on what happens to the housing market recovery if those increases continue. Recent movements have raised rates from the 3.5 percent range where they have been for most of 2013 to just over 4.0 percent.
While many market participants are concerned about the impact of higher rates on the economy and the chance that Fed tapering could take them higher, Freddie’s research suggests moderately higher rates are livable, even if they have some downside risks.
Top Reasons Renters Say They Want to Own
A recent study by mortgage giant Fannie Mae showed that 90 percent of renters aspire to be home owners one day, and the top reason behind that desire is for the sense of gaining greater control over their living arrangements.
The survey revealed the following top reasons why renters want to own…
Why Some Buyers Are Feeling Like They Missed Out
Mortgage rates and home prices are on the rise, and some home buyers who were waiting around for the housing market to reach bottom are realizing now they may have missed the boat.
Mortgage rates are inching up, with the 30-year fixed-rate mortgage averaging 3.91 percent last week — up from 3.3 percent in early May, according to mortgage giant Freddie Mac.
Foreclosure Activity Back on the Rise
Foreclosure filings—which include default notices, scheduled auctions, and bank repossessions—increased 2 percent in May, rising from a 75-month low in April, according to the latest foreclosure report from RealtyTrac. Still, foreclosure filings are down 28 percent from a year ago.
The May increase was largely attributed to an 11 percent increase in bank repossessions. Foreclosure starts also ticked up 4 percent in May over last month, with 26 states posting increases, according to the report.
Impact of Rising Mortgage Rates on Home Sales
NAR Chief Economist Lawrence Yun says mortgage rates will continue to rise.
Read his latest blog post to learn how that could impact home sales.
Top Markets for Buyers and Sellers
If you’re considering buying a home, you might want to know whether you’re in a buyers or sellers market.
Tight inventory favors sellers in the Southwest, while buyers have the upper hand in some Midwestern and Eastern cities.
Read the details here, and see where Seattle is on the list!
Managing The Real Estate Details 