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Mortgage Rate Forecast

January 30, 2021 Mortgage Rate Forecast
by Lawrence Yun, Chief Economist National Association of Realtor

Mortgage rates across the board are at historic lows.  Everything, from 1-year adjustable rates to 30-year fixed rates, is lower now than it ever has been in most people’s experience.

However, there are gaps to consider.  The 15-year mortgage is at 3.2 percent while the 30-year can be obtained at 3.9 percent, a difference of 70 basis points.  The 5-year hybrid ARM is 2.8 percent.  The 1-year ARM is of no value since it is also being quoted at 2.8 percent.  These rates are based on a Freddie Mac survey of lenders.

The 5-year hybrid option is best for those who are fairly sure they will be moving within the next 5 years.  On a $200,000 mortgage, the 5-year hybrid monthly payment will be $822 with the remaining loan balance at $177,200 in 5 years.  By contrast, [Read more…]

Hallmark Idaho Properties has adjusted to consumer’s buying trends

According to a recent study by the Pew Research Center more than half of adult cell phone owners used their cell phones while they were in a store during the 2011 holiday season to seek help with purchasing decisions. During a 30 day period before and after Christmas:

  • 38% of cell owners used their phone to call a friend while they were in a store for advice about a purchase they were considering making
  • 24% of cell owners used their phone to look up reviews of a product online while they were in a store
  • 25% of adult cell owners used their phones to look up the price of a product online while they were in a store, to see if they could get a better price somewhere else

Taken together, just over half (52%) of all adult cell owners used their phone for at least one of these three reasons over the holiday shopping season and one third (33%) used their phone specifically for online information while inside a physical store—either product reviews or pricing information.

Why is the study important regarding buying and selling real estate?

People want instant information [Read more…]

First-Time Buyers More Willing to Compromise

When it comes to space and upgrades, first-time home buyers are more willing to compromise than repeat buyers, according to the National Association of REALTORS®’ 2011 “Profile of Home Buyers and Sellers.”

While they have big wish lists too, first-time buyers seem to be most driven by finding a home that offers a reasonable monthly mortgage payment.

“Single home buyers tend to value affordability above all when [Read more…]

$115,000 – Close in country living on 2+ acres great for horses

Within 1 mile of the Bellevue city limits, this home has room for larger pets including cows or horses. Clean home with an irrigation canal creating a water feature in back and views over a large open field creates privacy not normally found in this price range. Large living room, dining area has sliders to view deck, master bedroom also has a walk-in wardrobe and doors to exterior deck, separate utility room, forced air gas heat, oversized, 350 sq. ft. heated garage, mature trees and more.

Mortgage Rates Reverse Course on Positive Housing Data

McLEAN, Va., Jan. 26, 2012 Freddie Mac today released the results of its Primary Mortgage Market Survey®, showing average mortgage rates climbing as the housing market ended 2011 on a high note. The 30-year fixed-rate mortgage averaged 3.98 percent reversing its previous three-week trend of setting all-time record lows.

Despite the jump, this marks the eighth consecutive week the 30-year fixed has remained below 4.00 percent.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.98 percent with an average 0.7 point for the week ending January 26, 2012, up from last week when it averaged 3.88 percent. Last year at this time, the 30-year FRM averaged 4.80 percent.
  • 15-year FRM this week averaged [Read more…]

Tablet Ownership nearly doubles in a 1 month period. If your selling real estate make sure . . .

According to a recent report published by the Pew Research Center, the percentage of adults in the United States who own tablet computers nearly doubled between mid-December and early January.

In the tablet world, Amazon’s Kindle Fire and Barnes and Noble’s Nook Tablet were introduced at considerably cheaper prices than tablets such as the IPad, Galaxy and others.

The report also reveals that 36% of the adult group that own a computer tablet earn in excess of $75,000 per year. Along with normal desktop computer usage [Read more…]

Hailey Posts 325% Gain in year to year pending sales comparison

The market is heating up in comparison with 2011. In comparing the pending sales numbers 2011 versus 2012, Hailey has experienced a 325% gain (17 sales versus 4) in single family sales. The chart below is based on data pulled January 25, 2012.  Lower prices, lower rates, and what appears to be a pent-up demand seems to be driving the up-tick. More information for other areas is always available by request.

New Listing: $132,900 Sure to sell within days!

You won’t find anything currently on the market in Hailey in this price range that is a better value for your money. This new listing is sure to sell within days.

Split floor plan design (master on opposite side of other bedrooms), large window package, custom interior faux painting, vaulted ceilings, custom designer lights, open kitchen with all appliances, warm wood door and millwork package, large laundry room off kitchen, oversized 2 car garage with opener and extra man door, large covered porch, double door cold entry, mature landscaping, corner lot and more.

More Buyers Ready to Get Off the Sidelines?

When you compare the cost of owning a home to renting, you’ll find that buying may soon make more sense, Paul Diggle, a housing economist at Capital Economics, told MSNBC.com.

Diggle’s analysis of the housing market showed a 33 percent drop in home prices, record-low mortgage rates (with 30-year fixed-rate mortgages available under 4 percent now), and a 15 percent rise in rents since the housing market turned sour are making more consumers take a closer look at buying.

“The median monthly mortgage payment of about $700 has fallen to about the level of a median monthly rent check,” an article at MSNBC.com notes about Diggle’s analysis.

If mortgage rates keep falling and rents keep rising, the equation will tip even further toward owning.

Case in point: Diggle says that a buyer who purchases a median-priced home and stays there for at least seven years would likely come out ahead  by about $9,000 than if they chose to rent for those seven years. Diggle’s calculations factor in rents continuing to rise 3 percent a year, and housing prices staying flat for the next two years before rising in 2014.

But while more Americans may be motivated to buy, many still can’t, Diggle notes. Home owners who lost their home to foreclosure may be forced to wait on the sidelines before owning again, other Americans may not have a 20 percent down payment that more lenders are wanting, lack a high credit score to qualify for the best financing, or have steady employment.

SOURCE: Realtor Daily News – CNBC

Price reduce just under $67 per sq. ft. – Quality Hailey Location

Over 2,800 square feet the home features 4 bedrooms, 3 baths, huge recreation room with wood burning stove, tons of storage, sliders off master to large deck with trellis, spacious attached garage, fenced corner lot, garden area, mature landscaping with variety of trees and more.

Close to hiking – biking trails, school and downtown Hailey.

If you need a large home, this is the one to see.