You cannot hang out with negative people and expect a positive life
Freddie Mac: Mortgage Rates Remain Ultra-Low
Mortgage rates remained unchanged near record-low levels, according to Freddie Mac’s weekly survey released Thursday.
The 30-year fixed rate was unchanged at 3.43 percent, marking the ninth week below 3.5%.
Mortgage rates are showing surprising resolve. At the end of June, Britain voted to leave the European Union. This unprecedented move, now known as Brexit, sent mortgage rates sliding to current levels.
Rates have refused to move up since then, staying within a tight range. This is giving home buyers and refinancing homeowners extended opportunity to lock-in historic rates.
Current and future homeowners agree: it’s an ideal time to shop for a mortgage.
How Long Will Low Rates Last?
Each week, government agency Freddie Mac surveys 125 banks for its Primary Mortgage Market Survey (PMMS), a recap of the current “going rate” for three common mortgage loans.
The survey covers the conventional 30-year fixed-rate mortgage, 15-year fixed-rate mortgage, and 5-year adjustable-rate mortgage (ARM).
Mortgage rates were surprisingly steady this week.
- 30-year fixed-rate mortgage: unchanged at 3.43 percent
- 15-year fixed-rate mortgage: unchanged at 2.74 percent
- 5-year ARM: down one basis point to 2.75 percent
Mortgage consumers are asking how long rates can stay this low. Anything can happen in the mortgage market, but many groups are calling for an extended period of low rates.
Freddie Mac estimates that the 30-year fixed rate will remain at or below 3.7% into 2017. That forecast should be encouraging. Still, consumers should be wary of unexpected increases.
The mortgage rate market moves quickly based on up-to-the-minute information. In 2013, rates increased a full 100 basis points (1.0%) in eight weeks in reaction to an approaching Federal Reserve policy shift.
No one expects such a sharp upturn in 2016; at the same time, consumers should consider the effects of rising rates on their homeownership goals.
Ultra-low rates are here now, providing a special opportunity for prepared mortgage shoppers.
Low Rates, Low-Downpayment Programs Spur Buyers
Home buyer demand shows no sign of slowing down into 2017.
Low mortgage rates and rising home values are winning over on-the-fence home shoppers. Many realize now is the time to buy.
Home buying power is at its strongest level in nearly three years. Rates are down about 50 basis points (0.50%) since the beginning of 2016. That’s equal to a $17,000 boost in buying power on a $350,000 home.
So, even though home values are rising, homes are not getting more expensive for buyers who get a mortgage. Reduced rates are offsetting potentially higher monthly payments.
And buyers that are getting a mortgage have chosen the right time in history to do so.
A recent report by loan software company Ellie Mae states that 75% of purchase loan applications “closed” in July, meaning the home buyer successfully completed the loan application and home buying process.
Compare that to a less-than-ideal 63 percent closing rate in 2014.
Lenders are loosening standards and getting more applicants approved. Home purchase mortgage programs are improving too.
A little-known program called HomeSteps is offered by Freddie Mac, the same agency that conducts the weekly rate survey. It offers special financing in 10 states for its current book of properties. These homes can be purchased at five percent down with no mortgage insurance.
Homes are available nationwide, even outside of the states in which special financing is offered.
Furthermore, owner-occupying residents can make offers with no competition from investors for the first 20 days the property is listed.
Other niche mortgage programs are helping home buyers, too. The USDA loan accounts for only a few percent of all home purchase loans, but it is one of the most advantageous financing options available. It requires zero downpayment, and, if the appraised value is higher than the purchase price, the home buyer can finance their closing costs into the total loan amount.
USDA loans are eligible for homes in designated “rural” areas. These geographical boundaries account for 97% of U.S. land mass.
Some entire states are eligible.
Many suburban neighborhoods are USDA-eligible, too. Check with your lender to see if your area is eligible before you opt for an FHA loan.
Whereas USDA finances your purchase price in full, FHA requires 3.5% down. Still, FHA has no geographical restrictions, making it the right choice for 23% of today’s buyers, and about 40% of buyers age 37 and younger.
It’s not difficult to see why so many choose the FHA loan program. It ultra-lenient on credit scores. Some lenders are approving 580-credit-score buyers.
For many new college graduates, though, it’s not low credit that hinders them from buying, but the lack of a credit score.
That’s not a problem with FHA.
According to guidelines, lenders should not turn down a home buyer due to little or no credit history. Rather, an alternative credit report should be created using payments for utilities, rent, auto insurance, and even cell phone service.
Other home buying programs include the popular VA home loan, which accounts for about nine percent of all purchases according to Ellie Mae.
Eligible U.S. military veterans include those who have served for 90 days during wartime, 181 days during peacetime, or served six years in the National Guard or Reserves.
These home buyers are eligible for a zero-down loan that requires no mortgage insurance. That could save the veteran hundreds of dollars per month, which they could apply toward a bigger home purchase price, home improvements, or other financial goals.
The right loan program depends on your situation, but the important thing is to take the opportunity to purchase a home using one of the programs, before home prices — or rates — rise too much.
What Are Today’s Rates?
Mortgage rates are dropping, and there are few reasons left for current and future homeowners to delay securing a fantastically low rate.
Get a rate quote and lock in a rate. No social security number is required to start, and all quotes come with instant access to your live mortgage credit scores.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Phoenix Commercial Real Estate and Investment Real Estate: investors and Owner / Users need to really know the market today before making a move in Commercial Properties or Investment Properties in Phoenix / Tucson / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land in Phoenix / Tucson / Arizona. Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties.
I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international. Click here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail email@example.com or call me on my cell 520-975-5207
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
2821 E. Camelback Rd. Suite 600
Phoenix , AZ 85016
Delivering the New Standard of Excellence in Commercial Real Estate
- Commercial Real Estate Scottsdale
- Commercial Real Estate Phoenix
- Commercial Real Estate Arizona
- Commercial Investment Properties Phoenix
- Commercial Investment Properties Scottsdale
- Commercial Investment Properties Arizona
- Land Specialist Arizona
- Arizona Land Specialist
- Land Specialist Phoenix
- Phoenix Land Specialist
- Land For Sale Phoenix
- Land for sale Arizona
- Commercial Properties For Sale Phoenix
- Commercial Real Estate Sales Phoenix
- Commercial Properties Phoenix
- Commercial Properties Arizona
- Commercial Land Specialist Phoenix
- Commercial Land Phoenix
- Multifamily land Phoenix
- Retail Land Phoenix
- Industrial Land Phoenix
- Land Commercial Phoenix
- Land Retail Phoenix
- Land Industrial Phoenix
- Land Multifamily Phoenix
- Industrial Land for sale Phoenix
- Land Industrial
- Investment Real Estate
Disclaimer of Liability
The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.