Mortgage Rates Impact on 2017 Home Values

Mortgage Rates Impact on 2017 Home Values - There is no doubt that historically low mortgage interest rates were a major impetus to housing recovery over the last several years. However, many industry experts are showing concern about the possible effect that the rising rates will have moving forward.

The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are all projecting that mortgage interest rates will move upward in 2017. Increasing interest rates will definitely impact purchasers and may stifle demand.

In a recent study of industry experts, “rising mortgage Interest rates, and their impact on mortgage affordability” was named by 56% as the force they think will have the most significant impact on U.S. housing in 2017. If rising rates slow demand for housing, home values will be impacted.

To this point, Pulsenomics, recently surveyed a panel of over 100 economists, investment strategists, and housing market analysts, asking the question “In your opinion, at what level will the 30-year fixed rate mortgage rate significantly slow home value appreciation?” The survey revealed the following:

Bottom Line

Most experts believe that rates would need to hit 5% or above to have an impact on home prices.

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Thinking of Selling? Don’t Overlook an Outdated Kitchen, Buyers Won’t

If you are planning on listing your home for sale, make sure that you don’t overlook the condition of your kitchen. A recent article on realtor.com listed “7 Signs Your Kitchen Is Way Overdue for a Renovation,” in which they warned:

“Dated kitchens—just like bathrooms—are a major barrier for resale. Buyers want modern amenities and styling, and most aren’t interested in renovating post-purchase.”

Kitchen remodels can be pricey, with many complete remodels costing $20,000 or more. But not every kitchen needs a full remodel. There are many smaller projects that will help buyers see themselves trying their favorite Pinterest recipe in your home!

Here are a couple of project ideas that, if you’re handy or know someone who is, could end up boosting your home’s value without breaking the bank:

• Are the cabinets in good shape but need an update? A new coat of paint and some updated hardware will instantly freshen up the space and drastically change the feel of the room all for under $300.
• A new backsplash to match the freshly painted cabinets updates the space and adds some style while staying under $200, depending on the size of the room.
• If the kitchen seems dark, consider adding LED under cabinet lighting for around $40.
• If replacing the countertops in the kitchen isn’t within your budget, consider using a top coat to cover the current countertops.

If you decide to complete a full remodel of your outdated kitchen, you can expect a 67% return on a $30,000 upgrade (the national median cost). The benefits of a kitchen remodel aren’t purely financial, according to Houselogic:

“Eighty-two percent of homeowners said their updated kitchen gave them a greater desire to be at home, and 95% were happy or satisfied with the result.”

Bottom Line

Kitchens and bathrooms are often make or break for buyers when touring a home or searching through photo galleries online. Let’s get together to identify which small projects could pay off big!

Student Loans = Higher Credit Scores

According to a recent analysis by CoreLogic, Millennial renters (aged 20-34) who have student loan debt also have higher credit scores than those who do not have student loans.

This may come as a surprise, as there is so much talk about student loans burdening Millennials and holding them back from many milestones that previous generations have been able to achieve (i.e. homeownership, investing for retirement).

CoreLogic used the information provided on rental applications and the applicants’ credit history from credit bureaus to determine if there was a correlation between student loan debt and credit scores.

The analysis concluded that:

“Student loan debt did not prevent millennials from access to credit even though it may delay their homebuying decisions.”

In fact, those with a higher amount of debt actually had higher credit scores.

“Renters with student loan debt have higher average credit scores than those without; and those with higher debt amounts have higher average credit scores than those with lower student loan debt amounts.”

Bottom Line

Millennials are on pace to become the most educated generation in our nation’s history, with that comes a pretty big bill for education. But there is a light at the end of the tunnel:

“Despite the fact that student loan debt has grown into the nation’s second largest consumer debt, following mortgage, and has created a significant financial burden for millennials, it does not appear to prevent millennials from accessing credit.”

How Long Do Families Stay in a Home?

HOW LONG DO FAMILIES STAY IN A HOME?

The National Association of Realtors (NAR) keeps historic data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a #home. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.

Why the dramatic increase?

The reasons for this change are plentiful. The top two reasons are:

1. The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their #home was worth less than the mortgage on the property).
2. The uncertainty of the economy made some #homeowners much more fiscally conservative about making a move.

However, with #homeprices rising dramatically over the last several years, over 90% of homes with a mortgage are now in a positive equity situation with 70% of them having at least 20% equity.

And, with the #economy coming back and wages starting to increase, many homeowners are in a much better #financial situation than they were just a few short years ago.

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstances. They could be #babyboomers living in an empty, four-bedroom colonial, or a #millennial couple planning to start a family that currently lives in a one-bedroom condo.

These #homeowners are ready to make a move. Since the lack of housing inventory is a major challenge in the current housing market, this could be great news.

Looking for a Real Estate Agent that can Assist you with all your Real Estate Needs Call Celina Vazquez 909-697-0823

Comprando Una Casa? 4 Demandas Que Hacer A Su Agente de Bienes De Raices

Comprando Una Casa? 4 Demandas Que Hacer A Su Agente De Bienes De Raices

¿Está pensando en comprar una casa? ¿Teme el tener que caminar a través de las casas de extraños? ¿Le preocupa conseguir el papeleo correcto? Contratar a un agente profesional de bienes raíces puede eliminar la mayoría de los desafíos al comprar. Un agente excelente siempre vale más que la comisión que cobra, como un médico o un contador excelente.

Usted quiere tratar con uno de los mejores agentes en su mercado. Para hacer esto, usted debe estar en capacidad de distinguir entre un agente promedio, a uno que es excelente.

Aquí están las 4 demandas principales que hacer a su agente de bienes raíces al comprar una casa:

1. Que diga la verdad sobre el precio

Al hacer una oferta en la casa que usted quiere comprar, asegúrese que su agente le muestra su plan para hacer que, juntos el vendedor - y el banco - acepten ese precio. Muchos agentes solamente tomaran la oferta que usted sugiere y entonces trataran de ‘trabajar’ con juntos, usted y el vendedor en la fase de negociación más adelante. En un mercado competitivo, usted necesita un agenta que le va a ayudar a hacer la mejor ‘oferta inicial’ para que se destaque de la multitud. Cada casa en el mercado actual debe venderse dos veces – primero a usted y luego a su banco.

La segunda venta puede ser más difícil que la primera. Cuando los precios están aumentando, es difícil para el tasador encontrar ventas adecuadas y comparables (casas similares en el vecindario que cerraron recientemente) para defender el precio de venta al realizar la evaluación para el banco. Una señal de alerta debería levantarse si su agente no está discutiendo esto con usted en el momento de la oferta original.

2. Que entienda el horario con el que su familia está lidiando

Usted va a mover su familia a una casa nueva. Sea que la mudanza gire alrededor de un nuevo año escolar o un trabajo nuevo, usted va a tratar de poner un plan de mudanza.

Esto puede ser muy agotador emocionalmente. Exija de su agente apreciación por el horario que usted está estableciendo. Su agende no puede escoger la fecha exacta para la mudanza, pero ellos deben ejerza cualquier influencia que pueda para hacer que funcione.

3. Que quiten tantos desafíos como sea posible

Es imprescindible que su agente sepa cómo manejar los desafíos que surgirán. La habilidad de un agente para negociar es fundamental en este mercado.

Recuerde: Si usted tiene un agente que fue un negociador débil con usted en partes de la oferta de compra, no espere que ellos se conviertan en un súper héroe cuando ellos estén negociando con el vendedor por usted y su familia.

4. ¡Que le ayude a encontrar LA CASA correcta!

Hay una razón por la que usted está poniendo a su familia a través de este proceso de mudanza.

Usted sigue adelante con su vida de alguna forma. La razón es importante o usted no estaría lidiando con los dolores de cabezas y desafíos que vienen junto con la compra. No permita que su agente olvide estas motivaciones. Asegúrese que ellos no se preocupan más por sus sentimientos que lo que se preocupan por su familia. Si ellos descubren algo que se necesita hacer para obtener su objetivo insista que ellos tengan el coraje de informárselo.

Los agentes buenos saben cómo dar buenas noticias. Los agentes excelentes saben cómo dar noticias malas. En el mercado de hoy, ¡USTED NECESITA UN AGENTE EXCELENTE!

call Celina Vazquez 909-697-0823 or celina@celinavazquezrealtor.com