One of the unfortunate realities of today’s world is that wire fraud exist. it is very important that you protect yourself against wire fraud whether you’re buying of selling. Have the conversation with your real estate agent, title company and or attorney working with you in your real estate transaction. Understand who will be asking you for what and how they will be communicating with you. Always verify with the agent, title company or attorney any requests for wire information – sending or receiving. Don’t take this lightly. Wire fraud is real. You don’t want to become a victim.
According to the latest data from CoreLogic, the average homeowner gained $64,000 in home equity over the past 12 months.
That much equity can be a game-changer when you move. When you sell, it could be some (if not all) of what you need for a down payment on your next home.
To find out how much equity you have in your home and how you can use it, let’s connect today.
Freddie Mac today released the results of its Primary Mortgage Market Survey® for the week ending July,7, 2022 showing that the 30-year fixed-rate mortgage (FRM) averaged 5.30 percent.
“Over the last two weeks, the 30-year fixed-rate mortgage dropped by half a percent, as concerns about a potential recession continue to rise,” said Sam Khater, Freddie Mac’s Chief Economist. “While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown.”
30-year fixed-rate mortgage averaged 5.30 percent with an average 0.8 point as of July 7, 2022, down from last week when it averaged 5.70 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent.
15-year fixed-rate mortgage averaged 4.45 percent with an average 0.8 point, down from last week when it averaged 4.83 percent. A year ago at this time, the 15-year FRM averaged 2.20 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.19 percent with an average 0.4 point, down from last week when it averaged 4.50 percent. A year ago at this time, the 5-year ARM averaged 2.52 percent.
For information on daily mortgage interest rate movements, check with your mortgage lender. You can also find information online at sites such as Mortgage News Daily.
If you’ve been watching the news or reading the newspaper you can’t miss all of the talk about a possible recession. The Federal Reserve is trying to engineer a so-called soft landing for the economy as it raises interest rates to fight inflation. Fighting inflation is one of the Federal Reserves’ primary mandates.
According to a recent survey, more and more Americans are concerned about a possible recession. Those concerns were validated when the Federal Reserve met and confirmed they were strongly committed to bringing down inflation. And, in order to do so, they’d use their tools and influence to slow down the economy.
All of this brings up many fears and questions around how it might affect our lives, our jobs, and business overall. And one concern many Americans have is: how will this affect the housing market? We know how economic slowdowns have impacted home prices in the past, but how could this next slowdown affect real estate and the cost of financing a home?
“Throughout history, during a recessionary period, interest rates go up at the beginning of the recession. But in order to come out of a recession, interest rates are lowered to stimulate the economy moving forward.”
Here’s the data to back that up. If you look back at each recession going all the way to the early 1980s, here’s what happened to mortgage rates during those times (see chart below):
As the chart shows, historically, each time the economy slowed down, mortgage rates decreased. Fortune.com helps explain the trend like this:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing.
Bottom Line
Concerns of a recession are rising. As the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one knows exactly what the future holds, you can make the right decision for you by working with a trusted real estate professional to get expert advice on what’s happening in the housing market and what that means for your homeownership goals.
This article provided by Keeping Current Matters.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
It’s true that record levels of home price appreciation have spurred significant equity gains for homeowners over the past few years. As Diana Olick, Real Estate Correspondent at CNBC, says:
“The stunning jump in home values over the course of the Covid-19 pandemic has given U.S. homeowners record amounts of housing wealth.”
That’s great for your home’s value over the last couple of years, but what if you’ve lived in your home for longer than that? You may be wondering how much equity you truly have.
The National Association of Realtors (NAR) has done a study to calculate the typical equity gains over longer spans of time. The data they compiled could be enough to motivate you to move. Just remember, to find out how much equity you have in your specific home, you’ll want to get a professional equity assessment from a trusted real estate advisor.
How Your Equity Grows
Let’s start by establishing how you build equity in your home. While price appreciation is clearly a factor that can help boost your equity, you also build equity over time as you pay down your home loan. NAR explains:
“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”
Average Equity Growth over Time
The study from NAR breaks down the typical equity gain over time (see graph below). It calculates the equity a homeowner potentially gained if they purchased the median-priced home 5, 10, or 30 years ago and still own it today.
These six-figure numbers are impressive and certainly enough to help you fuel a move into your next home, but they’re not a promised amount. Remember, your own equity gain will be different. It depends on how long you’ve been in the house, your home’s condition, any upgrades you’ve made, your area, and much more.
If you want to find out how much equity you have, partner with a trusted real estate professional for an equity assessment on your home. They can provide an expert opinion on what your house is worth today and how the equity you’ve gained over time can help you when you purchase your next home. It may be some (if not all) of what you need for your next down payment.
Bottom Line
If you’re thinking about selling your house and making a move, home equity can be a real game-changer, especially if you’ve been in your current home for a while. If you’re ready to find out how much equity you have, let’s connect.
This article provided by Keeping Current Matters
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
So you’re ready to buy your first house. Here are a few tip from the Federal Housing Administration (FHA) for you to review. Knowledge is power, especially when it comes to homebuying. Use this information to become more knowledgeable about the homebuying process. You
increase your ability to be succeed in achieve your goal of purchasing your new home by taking time to learn more about the homebuying process. Contact me and let’s get you started on the path to homeownership.
Did you know what it takes to afford a home? This presentation by the federal Housing Administration (FHA) helps you to understand what affording a home means. There’s more to homing a home than paying the principal and interest on a loan. Understanding what it takes to afford a home will help you as you search for your new place. It may seem daunting at first, but there are many reasons why homeownership makes sense for lots of people. Take a look. Contact me when you’re ready to start down the path of homeownership.
What is one of the most important first steps in your homebuying journey? Getting the pre[approval letter from your lender and qualifying for a loan. Most sellers today will not even entertain an offer for their property without a pre-approval letter is the buyer is financing the purchase of the property. It’s important as a homebuyer that you understand what it takes to qualify for a loan. This presentation provided by the Federal Housing Administration (FHA) will help you understand what it takes to qualify for a loan. Remember — Knowledge is power!
If you have more questions or want to get started on your homebuying journey – Contact me.
One of the most important aspects of buying a house is understanding what it takes to be successful. This presentation from the Federal Housing Administration is your opportunity to learn more about homebuying. FHA loans are one of of the most used financing vehicles for homebuyers. Take an opportunity to view this presentation. Contact me if you have additional questions on purchasing your new home.
My goals is to help you be successful in reaching your real estate goal.
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