Home Price Reductions Move Toward A Peak – Today’s Mortgage and Real Estate News

This is Dan on your inside team at Growella. It’s Friday, July 6, 2018. Get ready for today’s The Mortgage Minute-and-a-Half. If your name is Jay, and you don’t name your
twin daughters Kaye and Elle, you’ll miss a golden opportunity. And, if you’re an active home buyer in today’s
market, you might also miss a golden opportunity because, sometimes, getting a great deal on
a home and is about more than doing great research — it’s about having great timing,
too. And, new data from Altos Research shows we’re
approaching a time of year when home sellers begin cutting prices on homes more aggressively
in hopes of attracting buyers. Nationwide, at the end of June, thirty-four
percent of homes listed for sale took price reductions, up from thirty-one percent in
May and thirty percent the month before that. And it’s a figure probable to rise clear through
November, when price reductions from sellers typically peak. Now, this doesn’t mean that today’s buyers
of homes should wait to buy in hopes of getting a home marked down twenty or thirty percent;
the market doesn’t work like that. It just means that homes MLS-listed for sale
are more likely to take price cuts heading into fall. Know which homes are for sale and what’s dropping
in price in your neighborhood. Connect with a local real estate agent to
get local market intel. Mortgage rates are doing work today. Interest rates for conforming loans, VA loans,
FHA loan, USDA and jumbo loans — everything’s improved to close out the holiday week. Just remember that mortgage rates are always
customized and more than a dozen factors go into your rate quote. Also — different lenders, different rates. So talk to two or more lenders when you’re
doing you’re shopping and find your preferred combination of rates, fees, and service. Shoppers who shop are shoppers who save. Frankenstein is more well known than all the
other monsters put together. And, as a home buyer, when you put together
the mortgage payments you’ll make over the next five years, you’ll well know that you’re
paying less than you otherwise might have. Because Freddie Mac data shows conforming
mortgage rates down for the third straight week this week. At today’s rates, for every hundred thousand
borrowed, a home buyer with a 30-year fixed will pay thirty-thousand five-hundred dollars
to its lender between now and five years from now. This is down from May and June, but still
sits above the year-ago levels when interest rates were down and homes were sold more cheaply. Affordability is worse, but clawing back. And the same is true for buyers using other
fixed-rate products like the fifteen and twenty-year fixed, and adjustable rate mortgages including
the five and seven year ARM. We can’t know where rates will go through
the end of the year into 2019, but for now, they’re on a dip. So, get with a lender to see what rates you
can get to help you buy or refinance a home. Growella does timely and relevant mortgage
news three times weekly and you can visit the site at Growella dot com for more excellent
mortgage and real estate news. Go on and click the like button. And, hey… so I was walking behind this magician
on the street the other day and she turned into a store.

One Comment

  • Jump to today's mortgage rates: https://youtu.be/FU05HYtEDB0?t=1m11s

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