Tag: home lending

Mortgage Interest Rates Remain At Historic Lows

…but for how long?

Interest Rates Remain at Historic Lows... But for How Long? | Keeping Current Matters

The interest rate you pay on your home mortgage has a direct impact on your monthly payment; The higher the rate, the greater your payment will be. That is why it is important to look at where the experts believe rates are headed when deciding to buy now or wait until next year. The 30-year fixed mortgage rate has fallen half a percentage point since the beginning of the year and has remained at or below 3.5% for the last 11 weeks according to Freddie Mac’s Primary Mortgage Market Survey. The chart below shows how far rates have fallen this year (on the left), and uses an average of the projections from Freddie Mac, Fannie Mae, the Mortgage Bankers Association and National Association of Realtors (on the right). As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

Interest Rates Remain at Historic Lows... But for How Long? | Keeping Current Matters

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.0% over the last year and are predicted to be 5.4% higher next year. If both the predictions of home prices and interest rate increases become a reality, families will wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Meet with a local real estate professional to evaluate your ability to purchase your dream home.

Save

Save

Save

92% of Homes Now Have Equity

(via: Realtor®) Daily Real Estate News | Wednesday, December 16, 2015

About 256,000 U.S. homes regained equity in the third quarter of this year, bringing the total number of residential properties with equity to about 46.3 million, according to CoreLogic’s latest equity report. That equates to about 92 percent of all mortgaged homes.

The number of residential properties in negative equity dropped to 8.1 percent, or 4.1 million, in the third quarter, down 20.7 percent year-over-year, according to CoreLogic’s report. Negative equity refers to properties where borrowers owe more on their mortgage than their homes are currently worth.

“Home-price growth continued to lift borrower equity positions and increase the number of borrowers with sufficient equity to participate in the mortgage market,” says Frank Nothaft, chief economist for CoreLogic.

In the third quarter, about 37.5 million borrowers had at least 20 percent equity, up from 35 million a year ago. In the last three years, the number of borrowers with at least 20 percent equity has climbed by 11 million, “a substantial uptick that is driving rapid growth in home equity originations,” Nothaft says.

The bulk of properties with positive equity is concentrated in the high-end housing market, CoreLogic’s report notes. Ninety-five percent of homes that are valued at $200,000 or more have equity compared to 87 percent of homes valued at less than $200,000.

Home prices are expected to rise at least 5 percent in 2016 and continue to build wealth among home owners in the new year, says Anand Nallathambi, president and CEO of CoreLogic.

The following 10 metros had the highest percentage of residential properties with positive equity in the third quarter:

  • Houston-The Woodland-Sugar Land, Texas: 98.2%
  • Dallas-Plano-Irving, Texas: 97.9%
  • Los Angeles-Long Beach-Glendale, Calif.: 95.4%
  • Minneapolis-St. Paul-Bloomington, Minn.-Wis.: 94.4%
  • New York-Jersey City-White Plains, N.Y.-N.J.: 94.3%

Meanwhile, the following metros had the highest percentage of residential properties with a mortgage that continued to be in negative equity:

  • Phoenix-Mesa-Scottsdale, Ariz.: 14.2%
  • Chicago-Naperville-Arlington Heights, Ill.: 13.8%
  • Riverside-San Bernardino-Ontario, Calif.: 11.4%
  • Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.: 10.8%
  • Atlanta-Sandy Springs-Roswell, Ga.: 9.7%

Source: CoreLogic