One of the biggest reasons why the housing market boom may continue is because of real mortgage rates. Right now we have seen the fixed mortgage rate jump from 3.1% to 5.25% in the time period between December to April which is basically unheard of. The real mortgage number even went negative for the first time since the 1970s back in January. We are currently going through an era where the real … [Read more...]
Buying New Construction? 5 Costly Mistakes to Avoid | Bankrate
Increased demand for existing homes along with limited inventory has caused the price of homes to significantly increase. Therefore, a newly constructed home might be the better option. However, while these homes offer improved energy efficiency and amenities, the costs can quickly get out of control. So, if you want to avoid expensive mistakes when purchasing a new house consider negotiating … [Read more...]
The odds home prices will decline in your local housing market, as told by one interactive chart
There is a chance that home prices will decline in local housing markets according to an interactive chart. One of the big problem with spiking mortgage rates is that it out prices some of the potential homebuyers which leads to higher prices but also more of a demand. The 30 year fixed mortgage rate increased from 3.11% in December to 5.11% just four months later. That may not seem like much but … [Read more...]
VA Loan Limits Are Higher in 2022 Because of Rising Home Prices. What Veterans Need to Know
Due to the increase of rising home prices, the loan limits for Veterans Affairs are much higher. These limits are put in place because it guarantees a specific amount that a veteran can borrow. It also will come up with a figure that fits both your debt to income ratio as well as your credit score. You can calculate the limit of your loan by writing down the loan amount and multiplying it by 0.25. … [Read more...]
Nearly 75% of Americans Are Confused by Closing Costs, Preapproval or Other Homebuying Steps: Here’s a Helpful Cheat Sheet
A recent survey from GOBankingRates found that only a quarter of Americans feel they have a good understanding of the home buying process. Pre-approval and closing costs are the most confusing aspects. Pre-approval refers to mortgages. After conducting research, the lender can issue pre-approval for up to a certain amount of money. Note that there are a number of different types of mortgages: both … [Read more...]
5 Tips for Buying a House When Inflation Is High
Inflation is higher now than it has been in years, which is negatively impacting the housing market. Inflation impacts both home prices and mortgage rates. This article lists five tips for buying a house when inflation is rising: buy a house immediately so that you can get today's price, determine your maximum budget for monthly mortgage and factor in other high costs, branch out and look at … [Read more...]
Housing Market Too Hot? What to Do While You Wait for Competition to Cool
There are many things that you can do when it comes to waiting for the housing market to cool down. One of the best things that you can do is improve your credit score. A great credit score will allow you to buy a house at a much more affordable rate. You also should try to save up money as that will allow you to place a larger down payment. Finally, look into an extended mortgage rate as that … [Read more...]
7 Bidding War Mistakes Today’s Homebuyers Are Making in Droves
Housing market is really wild it really took off at the beginning of the global pandemic. Prices are at the historically high levels and people looking for a property for the first time have a difficult task in securing the dwelling of their choice. Bids are extremely competitive and wars between bidders are expected, regardless of the quality of the property. It is important to know some … [Read more...]
The biggest mistakes home buyers make in a seller’s market
The current seller's market makes things difficult for home buyers. Everyone wants a great deal, but experts advise that this is not the time to try lowball buying tactics. In addition, while it's often good for buyers to ask for inspection contingencies, this isn't the right market to go too far with them. Another mistake is trying to go without a realtor in order to save money. Buyers also need … [Read more...]
What to expect in the 2022 spring housing market, as told by 3 charts
In 2021, over two-thirds of home purchases were decided by a bidding war. Moreover, in 2022, many experts believe that the housing market for buyers will continue to be competitive for homebuyers. This is because during the pandemic, the availability of homes has changed. Also, housing prices have been a steady rise over the past several decades. Finally, after a two year decline from 2019 to … [Read more...]