Rising mortgage rates have been the big story in real estate this year. However, buyers are still in the market, adjusting to the “new normal” and confident their dream home is within reach. National mortgage lender – and @properties Christie’s International Real Estate strategic partner – Proper Rate, notes that thoughtful planning and a wide range of available loan products can help buyers and sellers deal with the evolving market conditions.
Unless you were recently rescued from a desert island or returned to earth from deep space, you’ve probably heard the news that mortgage interest rates have been on the rise. In fact, the average rate on a 30-year fixed-rate mortgage has almost doubled since the beginning of the year. But buyers who have been battling rising rates aren’t entirely powerless against the trend, and one tool for locking in below-market rates has been gaining favor – mortgage points.
Mortgage points haven’t been in the home-finance conversation for a while because interest rates have maintained a historic downward trajectory for the past 15 years. However, in today’s rising-rate environment, “paying points” is worth a closer look.
Mortgage interest rates have gone up significantly over the past three months, and the changing market has certainly impacted many buyers. But being financially prepared and planning for current and future market conditions can offset much of the uncertainty that accompanies rising rates. Dan Moran, executive vice president of sales for mortgage banker Proper Rate, reminds us that a little perspective can help too. According to Moran, though the national average 30-year fixed rate is now around 6%*, that’s still more than 1.5 points below the 50-year historical average.
Following are some helpful suggestions as you embark on – or continue – the search for your dream home.
In addition to planning ahead, a little creativity can go a long way when submitting an offer to purchase a new home, especially when inventory remains low amid intense buyer demand. Assuming your offer is competitive financially, here are a few more suggestions that will help you stand out to a seller.
Get Pre-Approved
Cash has always been the gold standard when evaluating competing offers; however, for most buyers, forgoing a mortgage isn’t an option. That’s why getting pre-approved is essential. With their exclusive Proper Approval program*, Proper Rate gives buyers an even bigger leg up by not only pre-qualifying an individual but approving and underwriting the mortgage ahead of time. This can be just as attractive as having cash in hand.
With interest rates rising amid high inflation, it can be a challenging time to save for a down payment and break into the housing market. However, there are a variety of things both large and small that can immediately shave costs and grow your nest egg – perhaps even faster than you anticipated. Here are a few tips:
Household Audit
Begin by auditing all your expenses each month and know exactly where your money is going. This may sound obvious, but forgotten expenditures add up and can often be scaled back. This is where you’ll notice subscriptions and streaming services you may not use, or insurance policies that you are potentially overpaying on. Take the time to cancel items or renegotiate how much you’re paying for certain things, and you’ll soon tally up savings.
When we recorded our 2021 Market Outlook at the beginning of the year, Proper Rate executive vice president of sales, Dan Moran, talked about how national average mortgage rates were sitting at record lows, with the rate on the 30-year fixed rate averaging 2.65%. Fast forward a couple of months, and that national average rate has jumped to 3.18%*, its highest level since last summer.
Buyers in search of a new home this spring are benefitting from Zenlist, a new technology that offers access to the most complete and up-to-date database of homes in the Chicagoland marketplace. Zenlist is a gamechanger for how buyers and their agents work together to successfully conduct home searches, especially in today’s very competitive, low-inventory market.
Whether you’re in the process of buying or selling a home, or just keep up with real estate news, you’ve probably heard about the lack of inventory in housing markets throughout the country.
While fewer properties on the market means increased competition for buyers, there are still ways for home shoppers to navigate inventory challenges and have an edge in the marketplace. Here are a few tips : Continue reading
The Federal Housing Finance Agency (FHFA) recently announced that it will raise loan limits for mortgages backed by Fannie Mae and Freddie Mac, giving some homebuyers greater purchasing power. Starting in 2021, the maximum conforming loan limit for single-unit properties will increase to $548,250 – a 7.4% increase from the current limit of $510,400.
At the beginning of the year, @properties co-founders Mike Golden and Thad Wong predicted the 2020s would be the decade of the millennial homebuyer. Well, the decade started fast and furious. In August, the Wall Street Journal reported that millennials now account for over half of all new home loans.
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