First Time HomeBuyer Downpayment Assistance is BACK!- Atlantic RE Brokerage

Published by:

The Florida’s Hardest-Hit Fund Program is back and offers a bridge to homeownership with up to $15,000 downpayment assistance.   This program provides federal funding for qulified first time homebuyers in areas hardest hit by housing and job market decline.    Brevard County is one of the few counties where this is availalbe.    What a fantastic time to to purchase your first home.

 

As a full service brokerage, Atlantic Real Estate Brokerage can help every step of the way.  We can introduce you to lenders that offer this program, and the move on to finding you the perfect home.  But there are a lot of details thrown in along the way and that is what your REALTOR will be able to help you with.  Laying out the homebuying plan and executing it !! That is our speciality.

There are several criteria for homebuyers to qualify for this program, however this is a fantastic opportunity to first time homebuyers to get into a new home with less money down.  A few things to consider:

  • The downpayment assistance is a 5 year deferred loan that is forgiven at 20% per year
  • Must be first mortgage with a 30 year term
  • Must be primary residence
  • Education is required

To find out if you qualify, call us and we will introduce you to one of our lending partners that offers this loan.

 

About Atlantic Real Estate Brokerage – Satellite Beach, FL

Laura D Hazlett has been a Florida Broker for over 8 years and in the Real Estate Management Industry for over 12 years. She is a proud mother of a college graduate (USF), is a graduate of University of Miami, and a successful business owner.  Laura’s no-nonsense approach to real estate makes transactions easy, because of her direct style of communication and her team of successful partners.

Laura has assembled a great team of Agents. Selected with professionalism and a concierge approach to clients and vendors, Atlantic Real Estate Brokerage Agents are the best in their field.  They are selective with their client base which proves to be an effective way to serve all clients with world-class service.

Please follow and like us:

The Worst Mortgage Advice – Atlantic RE Brokerage

Published by:

worst mortgage adviceThe Worst Mortgage Advice Home Buyers Actually Believe

 

Getting a mortgage is a daunting prospect, which explains why so many people seem eager to pat your hand and say, “Let me give you a little advice.” Sure, those pearls of wisdom may come from an ocean of good intentions, but the suggestions might not necessarily be right for you. In fact, they could be dead wrong.

So before you take some friendly outside counsel as gospel, be sure to check it against our list of the worst mortgage advice people often give.

———

‘Don’t bother getting pre-approved for a mortgage’

Why you might hear this: Hey, you’ve barely begun shopping for a home! There’s no need to get all serious about mortgages just yet. And besides, a mortgage pre-approval isn’t real anyway your application isn’t reviewed by an underwriter,

Why it’s bad advice: While a pre-approval might not be “official,” it will help you avoid major problems down the road.

“Getting pre-approved by a bank is one way to avoid the heartbreak that comes from falling in love with a house you can never buy,” says Maryalene LaPonsie of MoneyTalks. “It may also give you an edge if there are multiple offers for the same property. A seller will feel more confident selecting a bid from someone with a mortgage pre-approval rather than a person who hasn’t even begun the process.”

———

‘Get your mortgage from the bank where you already have an account’

Why you might hear this: When it comes to convenience, you just can’t beat the bank you’re already using. Plus, since you have an existing relationship with it, it’ll give you the best rates, right?

Why it’s bad advice: You already know to shop around for a home. You need to do the same with your loan.

“Even though the big bank where I keep my checking and savings accounts claims they’ll give me better service and an easier application process, that may not always be true,” says Albert Tumpson, a banking and real estate attorney who owns several properties and refinances them every couple of years. “I’ve found more favorable terms with other venues. Always go with the most favorable terms.”

———

‘Don’t bother reading the fine print’

Why you might hear this: Because actually perusing all that mortgage paperwork will drive you insane! And besides, this is the standard contract that everyone gets. Just sign here, here, and here—and you’ll save yourself a ton of headaches.

Why it’s bad advice: Because that fine print contains some clauses that could cost you serious money!

“Take your time and go over every last word with a fine-toothed comb,” says Jamie, a homeowner who purchased her second home two years ago. She was astounded when her lender asked her to sign a mortgage contract involving hundreds of thousands of dollars without “bothering” to read the details. Jamie ended up taking several hours to go over the contract and found several items to dispute. So what if the process took a little longer? It was well worth the wait.

———

‘Always go with the lowest interest rate’

Why you might hear this: A lower interest rate means lower monthly payments. Duh.

Why it’s bad advice: Lower interest rates can have all sorts of strings attached—often in the form of an adjustable-rate mortgage.

ARMs are not always a bad thing, but just be on the alert when someone suggests an interest-only ARM, says Shant Khatchadourian, president of SKR Capital Group. “Interest-only ARMs can result in significant payment shock, especially if rates increase down the line and amortization kicks in.”

In the past, as interest rates were dropping and home values were rising rapidly, interest-only ARMs worked well for some people—especially those who didn’t plan to stay in the home beyond the length of the loan’s first term. But although interest rates are low, they’re likely to rise soon, so beware.

———

‘Borrow as much as you’re approved for, even if you don’t need it’

Why you might hear this: Who doesn’t want a bigger and better house? Besides, a bank wouldn’t approve you for all that money unless you could afford to pay it back, right? Right?

Why it’s bad advice: It’s always wise to live slightly below your means, since you never know when life might pitch you a financial curveball, such as a layoff or medical problem.

“You can qualify for monthly payments up to 50% of your income these days,” says Khatchadourian. “But half of your gross income seems like quite a bit for most people, especially when they factor in taxes and insurance.”

So be sure to make a budget, decide what monthly payment you’re comfortable with, and stick to it.

 

 

Article From realtor.com by Lisa Johnson Mandell

 

Please follow and like us:

Energy-efficient upgrades increase home values – Atlantic RE Brokerage

Published by:

Energy-efficient upgrades not only shrink your utility bill, they can increase the value of your home.

energy-efficientHomebuyers are becoming increasingly aware of the benefits of energy-efficient homes. In fact, they’re often willing to pay more for homes with “green” upgrades, says Sandra Adomatis, a specialist in green valuation with Adomatis Appraisal Service in Punta Gorda, Florida.

Just how much your home will increase in value depends on a number of factors, Adomatis says, like where you live, which upgrades you’ve made and how your home is marketed at sale time. The length of time to recoup the costs of green upgrades also depends on the energy costs in your area.

In 2014, upgraded homes in Los Angeles County saw a 6 percent increase in value, according to a study from Build It Green, a nonprofit based in Oakland, California, that works with home professionals. Upgraded homes in Washington, D.C., saw a 2 percent to 5 percent increase in 2015, according to a study Adomatis authored.

Consumer Reports suggests that upgrades like a gleaming new kitchen or a finished basement may give you more bang for your buck than energy-saving features. But if going green appeals more than adding quartz countertops, here’s where you can begin.

Find out how much energy your home uses

Getting a quick energy assessment or a more thorough energy audit can determine how much energy your home uses, as well as which upgrades would make the most sense for your home and finances. An audit may include an energy rating, a number that indicates how energy-efficient your home is and how much it will increase if you make recommended upgrades.

The Department of Energy (DOE) website lists ways to find assessors in your area. The Environmental Protection Agency’s Energy Star program offers assessor and advisory services to help you determine what to upgrade. Your utility provider may also offer energy audits.

The cost varies depending on location and who’s providing the service. Your utility company may offer an assessment for free or at a discount. A full audit may run $300 to $500 depending on the complexity, according to Don Knapp, senior marketing manager with Build It Green. You may not want to foot the bill for a full audit unless you’re planning to take advantage of it with major upgrades.

Once you know where you can improve your energy use, begin by making the changes that are most affordable and have a quicker payoff, Adomatis advises. Then consider whether the costlier ones are worth the investment. Keep in mind that a variety of tax credits and financing options are available for energy-efficient improvements.

Common energy upgrades, from least expensive to most

1. Insulation. A 2016 Cost vs. Value report from Remodeling magazine found that the average attic air-seal and fiberglass insulation job costs $1,268, with an added value to the home at resale within a year of completion of $1,482. That amounts to a 116 percent return on investment. And according to Energy Star, homeowners can save $200 a year in heating and cooling costs by making air sealing and insulation improvements.

2. Appliances. Your appliances account for about 15 percent of your home’s energy consumption, the DOE says. Certified clothes dryers can save you $245 over the life of the machine, according to Energy Star. A certified dryer from General Electric can run from $649 to $1,399.

When upgrading, look at the kilowatt-hour usage of a new appliance and compare it to your current one — a good Energy Star rating doesn’t necessarily mean it will use less energy than your existing appliance, Adomatis says.

3. Heating and cooling systems. These systems account for about 43 percent of your energy bill, according to the DOE. Replacement costs for an entire HVAC system — heating, ventilation and air conditioning — vary widely depending on equipment brands and sizing, but may run several thousand dollars. Energy Star estimates that you can save 30 percent on cooling costs by replacing your central air conditioning unit if it’s more than 12 years old.

According to Energy Star, a certified heat pump water heater has a payback time of two years and can save a four-person home $3,400 over its lifetime. A 50-gallon Geospring hybrid electric water heater from General Electric costs $1,399, plus installation.

While addressing your home’s heating and cooling systems, bear in the mind that leaky duct systems can be the biggest wasters of energy in your home, according to Charley Cormany, executive director of Efficiency First California, a nonprofit trade organization that represents energy-efficient contractors. The cost of a professional duct test typically runs $325 to $350 in California, he says.

4. Windows. Replacing the windows in your home may cost $8,000 to $24,000, and it could take decades to pay off, according to Consumer Reports. You can recoup some of that in resale value and energy savings. Remodeling’s Cost vs. Value report found that installing 10 vinyl replacement windows, at a cost of $14,725, can add $10,794 in resale value. Energy Star estimates that certified windows, doors and skylights can reduce your energy bill by up to 15 percent. If you’ve already tightened the shell of your home, installing a set of new windows may not be worth the cost. But the upgrade may be worth considering if you live in a colder climate.

5. Solar panels. EnergySage, a company offering an online marketplace for purchasing and installing solar panels, says the average cost of a solar panel system is $12,500. The payoff time and the amount you’ll save will vary depending on where you live. Estimated savings over a 20-year period in Philadelphia, for example, amount to $17,985, while it’s more than twice that amount in Seattle: $39,452, according to EnergySage.

Last: Let buyers know

When it comes time to sell, your real estate agent can help you market your home as energy efficient. Provide your agent with utility bills or your energy rating, if you received one with your audit, to include when describing the house on a multiple listing service, or MLS. There’s a growing trend in the real estate industry to make energy upgrades visible, Knapp says; energy disclosures are now a common practice in cities like Berkeley, California, and Chicago.

“If it’s reflected on the MLS, “it’s more likely to be reflected in the resale value,” Knapp said.

Bottom line: If you weigh the costs and savings carefully, going green can be worth the investment.

AP Logo Copyright 2016 The Associated Press, Michael Burge. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. This article was provided to The Associated Press by the personal finance website NerdWallet. Email staff writer Michael Burge: mburge@nerdwallet.com. 

Please follow and like us:

More single women buying homes – Atlantic RE Brokerage

Published by:

According to NAR More single women are buying homes and First-Time home buyers increased after 3 years of declines.

single women

Single women increased their share in the market, hitting levels not seen since 2011, according to the National Association of Realtors’ annual Profile of Home Buyers and Sellers survey.

While married couples make up the largest share of homebuyers at 66%, and had the highest income at $99,200, single women are increasing their role. Last year the share of single women fell to its lowest point since 2002’s 15%, but this year they seem to be making a comeback. Single women represented 17% of the market this year, the highest point since 2011.

“Despite having a much lower income ($55,300) than single male buyers ($69,600), female buyers made up over double the amount of men (7%),” NAR Chief Economist Lawrence Yun said.

“Single women for years have indicated a strong desire to own a home of their own, as well as an inclination to live closer to friends and family,” Yun said. “With job growth holding steady and credit conditions becoming somewhat less stringent than in past years, the willingness and opportunity to buy is becoming more feasible for many single women.”

What’s more, a recent report from ATTOM Data Solutions, the new parent company of RealtyTrac, shows that women are better than men at paying their mortgages on time, and are better with finances in general.

However, while men may be slower to enter the market, homes owned by single men have a 10% greater value, and appreciate 16% more than homes owned by single women, according to an analysis released by RealtyTrac.

But single women aren’t the only ones increasing their share in the market – although first-time homebuyers have been decreasing every year for three straight years, 2016 seemed to bring an end to the trend, according to the survey.

The results of the survey, which dates back to 1981, do not include investors or vacant homes.

After a three-year decline, the number of first-time homebuyers increased to 35% of market sales, its highest since 2013’s 38%, the survey showed. This is up from last year’s 30-year low of 32%. The first-time homebuyer 35-year average rests at 40%.

“Young adults are settling down and deciding to buy a home after what was likely a turbulent beginning to their adult life and career following the Great Recession,” Yun said.

“Demand increased over the past year because of a robust job market for those with a college degree and renter fatigue at a time when homeowners continue to see their equity rise,” Yun said. “Even with the affordability challenges many buyers face, the allure of homeownership is not lost among the younger generation. Those under age 35 made up 61% of first-time buyer transactions.”

While the increase is encouraging, the lack of housing supply could still cause problems for first-time homebuyers if they continue to move towards homeownership.

“First-timers’ ability to enter the market more convincingly over the next year greatly depends on supply improvements at the lower end of the market and if wages can finally awaken from their sluggish pace of growth,” Yun said.

Article from Housing Wire – Kelsey Ramírez is a Reporter at HousingWire. Ramírez is a recent journalism graduate of University of Texas at Arlington. Ramírez previously covered hard issues such as homelessness and domestic violence and began at HousingWire as an Editorial Assistant.

Please follow and like us:

Save your credit this holiday season – Atlantic RE Brokerage

Published by:

Buying a house in the spring? Here’s how to save your credit score through the holidays.

save your credit scoreThere’s not much time left before the malls are flooded with busy holiday shoppers. And for the yearlong planners, the shopping probably started a long time ago. A recent blog from VantageScore emphasizes the importance of making sure shoppers don’t destroy their credit score right before the busiest home-buying season.

The holidays may still seem far off, but when the possibility of securing a home in the spring is on the line, the time to plan is now.

So what is the main area where consumers hurt their credit during the holidays? Credit cards.

Here’s what VantageScore suggests to consumers:

First and foremost, if you apply for a new credit card or higher spending limits on existing cards for the holiday season, the card issuers will probably request your credit score from one or more of the national credit reporting companies (CRCs), Equifax, Experian and TransUnion. The same is true if a new car is on your shopping list or if you choose to open a store credit card account. Just as they would at any other time of year, those score inquiries from lenders can cause a dip in your credit score.

The shopping-season strategy here is twofold: You want to maximize your score before applying for this holiday-related credit, and you want to avoid having these holiday loans lower your score in advance of any major borrowing you may be planning in the early months of the new year.

 

 

Article from Housing Wire :  Brena Swanson is the Digital Reporter for HousingWire.com, providing expert coverage on Millennials, lending and housing. Brena joined the HousingWire news team in February 2013, also serving in the roles of Reporter and Content Specialist. Brena graduated from Evangel University in Springfield, Missouri. Follow Brena on twitter at @BrenaSwanson.

Please follow and like us:

Quirky elements that can affect your home’s value

Published by:

Your home's valueBesides the obvious factors, there are some quirky elements that can affect your home’s value. Find out what they are. By Laura Agadoni 

Surprise! You might know more about real estate than you think. For example, you know that square footage, number of bedrooms and bathrooms, lot size, and location determine home value: A 4,000-square-foot, five-bed, five-bath beachfront home for sale in Miami, FL, will almost always be worth more than a 2,000-square-foot, two-bed, two-bath home on a quarter-acre lot 20 miles inland.

But those obvious factors aren’t everything you need to calculate your home’s property value estimate. Other, less obvious features can negatively or positively come into play — features you might not have considered. Here are eight frequently overlooked (and not always fixable) things that, for better or for worse, can impact the value of your home.

1. The name of your street (really!)

People typically prefer the street they live on to have a name versus a number. It’s true nationwide (with the exceptions of New York, NY, and Atlanta, GA, where there is no difference, and Denver, CO, where numbers are favored). According to a study by Trulia, “street” is the least expensive address suffix by price per square foot, and “boulevard” is the most expensive.

2. Your house number

Ever heard of house numerology? This is the practice of assigning a single-digit number to your home based on its address. Let’s say your address is 1219 Main St. Add 1 + 2 + 1 + 9 to get 13. Then add 1 + 3. Your house would be 4: good for investments and security but bad for adventure and excitement. While this type of house numerology may be passed off as a superstition, buyers who subscribe to this theory may overlook potential homes because of their numerology calculations. However, whether or not you’re into numerology, house numbers do matter. If your address is 13 (a universally unlucky number), you might choose to price your home slightly less than your neighbor at number 12 did.

3. Sketchy neighbors

The closer you live to your neighbor, the more important it will be for your tastes, habits, and personalities to jibe with theirs. “In a condo, the last thing a potential buyer wants is to purchase a unit where the neighbors above are noisy or inconsiderate,” says Thomas Miller, who specializes in Washington, DC, real estate. Owners of single-family homes can thank fastidious neighbors with good taste to increase the values of all nearby homes. But, of course, the opposite is also true: “I know a homeowner who had great difficulty selling their home because their next-door neighbors constructed a giant memorial dedicated to Michael Jackson on the front lawn,” says Miller. The next time you want to complain about your homeowners’ association, picture that image.

4. Mature trees

Tree-huggers and environmentalists unite! It’s common practice for developers to cut down most of (or all!) the trees on a property to build homes. But mature trees almost always enhance property values. Still don’t believe it? Check out the National Tree Benefit Calculator to see the full benefits of planting specific types of trees. If you have the space, make a trip to your local nursery to discuss the best tree options for your home.

5. Crown moldings

If you’ve worked hard to select just the right neutral and serene paint color scheme that will probably attract the most buyers, you’re doing yourself a disservice if you neglect one important element: crown moldings. “People love crown moldings,” says Alexander Boriskin, a New York, NY, agent. “Of course, everyone loves high ceilings too,” he says. Although you can’t do anything about how high your ceilings are, you can put in crown moldings — even with lower ceilings. Just make sure they work with the scale of the room, and don’t veer too far into the trend zone.

6. Yankees paraphernalia

Yankees fans, relax. We’re not picking on just you. Although this anecdote from New Jersey real estate agent Kevin Lawton happens to be about the New York baseball team, you could insert any team here. “Everything in the home was Yankees,” he says. “[The sellers] even had carpeting in the family room that had baseballs on it.” The verdict? Many people were turned off, especially Red Sox fans. If you don’t want to alienate a potential buyer, you might want to stash the fan gear away while your home is on the market.

7. Starbucks

And Trader Joe’s and Whole Foods. If you have any of those establishments close by, typically within a mile, up goes your property’s value. “Homes near Trader Joe’s have increased in value by an average of 40% since purchased,” says Chris Leavitt, a South Florida and New York, NY, agent and past star of the TV series Million Dollar Listing Miami. “Nearby Starbucks and Whole Foods Markets also enjoyed double-digit gains on home value.”

8. A death on the property

In some states, such as California, sellers must disclose whether there was a death on the property, which can be a deal breaker for some buyers. California agent Tracey Hampson once showed a home where a fatal drug overdose had occurred in the master bedroom. “On average, once the buyers found out there had been a death on the property, two out of five buyers that were interested suddenly said, ‘Thanks, but no thanks.’”

There’s even a name for a home someone died in: stigmatized. “It refers to a home that has been the site of a murder, suicide, or paranormal activity or haunting,” says Michigan agent Kelly Jo Choate. But even if your state doesn’t have a death disclosure requirement, certainly if someone asks, you should fess up. It’s the right thing to do.

 

Please follow and like us:

Hidden Costs of Buying your First Home

Published by:

Buying your First Home

There’s only one way to be totally prepared for all the costs of buying your first home.   By Jonathan Deesing

You’re excited because you just found the perfect home. The neighborhood is great, the house is charming, and the price is right.

But if you’re a first-time home buyer, you might find out that the price is pretty far from perfect.

If you’re shopping for your first home, additional — and often unexpected — home-buying costs should be top of mind. These costs catch many home buyers unaware, and can quickly leave you underwater on your new home.

The best way to deal with this is by preparing yourself and making sure you have enough cash tucked away for a rainy day.

Costs coming out of the woodwork

For almost every person who buys a home, the spending doesn’t stop with the down payment. Homeowners insurance and closing costs, like appraisal and lender fees, are typically easy to plan for because they are lumped into the home-buying process, but most costs beyond those vary.

The previous owners of your home are the biggest factor that goes into your move-in costs. If they take their refrigerator when they move out, you’ll have to buy one to replace it. The same goes for any large appliance.

And while these may seem like a small purchase compared to buying a home, a few thousand-dollar appliances quickly add up — especially if you just spent most of your cash on a down payment.

Similarly, unless you negotiate it as part of your home purchase agreement, you’ll also be on the hook for any immediate improvements the home needs.

Unfortunately, these costs are the least hidden you may encounter.

When purchasing a home, it’s strongly recommended that you hire a home inspector(this costs money, too!) to ensure the home isn’t going to collapse the next time it rains. Inspectors look for bad electrical wiring, weak foundations, wood rot, and countless other problems.

Worse still, these problems are rarely covered by home insurance. If an inspector discovers a serious problem, you’ll then have to decide if you still want to purchase the home. Either way, you’ll be out the cost of hiring the inspector.

Creature comforts

Another cost is your own comfort. It’s easy to not think fully about what you are expecting from your new home until after you move in.

Are you used to having cable television? If so, is your new home wired for cable? It’s much harder to watch a technician crawling around punching holes in your walls when you own those walls.

prepare to sell

Because you’re likely moving from the world of renting to the world of homeownership, you’ll probably be faced with much higher utility bills. Further, you could find yourself paying for utilities once covered by a landlord, like water and garbage pickup.

 

Plan ahead

The only way to face the unexpected and unknowns of home buying is with research and planning. This starts with budgeting before house hunting, and should continue throughout your search.

Look at homes in your budget that need improvements, then research how much those improvements could cost.

Nothing is worse than buying a home thinking you can fix the yard for a few hundred dollars and then realizing it will cost thousands.

There is really no upper limit to how prepared you can be. Say you find a nice home that’s priced lower than others in the area because of its age. You may save money on the list price, but with an older house you could be slapped with a much higher home insurance payment, effectively making the house more expensive in the long run.

This is where preparation comes in. Research home insurance and property prices in the areas you’re house-hunting to make more educated decisions before you ever make that first offer.

Clearly define how much you intend to put toward your down payment, then look at how much cash that leaves you with for improvements and even minor costs, like changing the locks. That way when you find a house at the high end of your range, you’ll know to walk away if it requires you to buy a new washer and dryer or upgrade the HVAC system.

Establish a rough estimate for as many costs as you can think of, and be extremely critical of homes at the top of your budget, or you could easily end up being house poor.

Know your budget and plan ahead. Buying a home is a lot less scary when you know what you’re getting into.

 

Please follow and like us:

Mortgage Rates are Down this Week

Published by:

home-1183150_1920

Mortgage rates wander lower this week and could be headed down even more.  By Kathy Orton

Mortgage rates were quiet ahead of news Wednesday that the Federal Reserve was leaving its Federal Funds Rate unchanged.

The announcement came too late in the week to be factored into the Federal Home Loan Mortgage Corp.’s mortgage-rate survey. The government-sponsored mortgage-backer aggregates rates from 125 lenders across the country to come up with a national average mortgage rate each week.

Although the central bank held fast this time around, it signaled that it was leaning toward raising its benchmark rate before the end of the year, most likely in December. It also revised its economic outlook. The Fed now expects rates to be about 1.1 percent by the end of 2017, down from June’s forecast of 1.6 percent. Those moves could lead to lower long-term bond yields, which would favor lower mortgage rates.

Mortgage rates moved slightly lower this week, according to the latest data released Thursday by Freddie Mac.

 

2300-Armschart0924

“The 10-year Treasury yield declined after last week’s post-Brexit high in anticipation of the Fed’s September policy meeting,” Sean Becketti, Freddie Mac chief economist, said in a statement. “The 30-year fixed-rate mortgage followed Treasury yields, falling 2 basis points and settling at 3.48 percent. Despite the decrease in rates, the Refinance Index plunged 8 percent to its lowest level since June.”

In its monthly outlook released earlier this week, Freddie Mac predicted that this year will be the best year in home sales since 2006. It expects mortgage rates to remain low with the 30-year fixed rate, the most popular mortgage product, on pace to average 3.6 percent this year. That would be the lowest annual average in 40 years, surpassing the previous low of 3.66 percent set in 2012.

“The housing market remains a bright spot for the U.S. economy, with solid job gains and low mortgage interest rates sustaining the economy’s momentum in September,” Becketti said in a statement. “In most markets, low mortgage rates have more than offset the rise in house prices, preserving homebuyer affordability for the typical household. Homeowners are also taking advantage of low rates and house price appreciation that is increasing their home equity. The share of cash-out refinances grew to 41 percent in the second quarter of 2016, compared to 38 percent in the first quarter and 15 to 20 percent during the housing crisis.”

The 30-year fixed-rate average slid to 3.48 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.5 percent a week ago and 3.86 percent a year ago. After moving above 3.5 percent for the first time since June 23 last week, the 30-year fixed rate retreated below that mark this week.

The 15-year fixed-rate average inched down to 2.76 percent with an average 0.5 point. It was 2.77 percent a week ago and 3.08 percent a year ago.

The five-year adjustable rate average dropped to 2.8 percent with an average 0.5 point. It was 2.82 percent a week ago and 2.91 percent a year ago.

Meanwhile, mortgage applications slumped this week, according to the latest data from the Mortgage Bankers Association.

The market composite index — a measure of total loan-application volume — sank 7.3 percent from the previous week. The refinance index dropped 8 percent, while the purchase index fell 7 percent.

The refinance share of mortgage activity accounted for 63.1 percent of all applications.

“Last week, mortgage rates increased to their highest level since June,” said David Stevens, MBA’s president and chief executive. “The increase was in part spurred by comments made by some Fed officials ahead of Wednesday’s meeting signaling that the Federal Reserve is closer to raising rates. Although on Wednesday the Federal Reserve again decided not to raise rates, Chair Yellen explicitly stated that she expects a rate hike this year. The fact that three FOMC members dissented is definitely a sign that the Fed is moving towards that anticipated rate increase. MBA’s economists project that hike will occur at the December meeting, and that the 30-year fixed interested rate for a conventional loan will end up at about 3.8 percent at the end of 2016. We continue to expect refinance activity will fall off through the remainder of 2016 and into 2017, but that purchase activity will be robust, backed by the strength of the job market.”

——————————————————————-
Kathy Orton is a reporter and Web editor for the Real Estate section.  She covers the Washington metropolital area housing market.

 

 
 
Please follow and like us: