First Time Buyer Interest Strong Despite Rising Interest Rates

Interest rates are rising. According to Freddie Macthe current rate for a 30-yr fixed mortgage is 4.81%, which is up a nearly a full percentage point from a year ago. While some were concerned the rising interest rates would have a negative impact on the market, particularly with first-time homebuyers, it looks as if the changes in interest rates are doing little to dampen buyer demand.

According to First American’s most recent Real Estate Sentiment Index (which explores how sensitive first-time homebuyers are to rising interest rates), mortgage rates would have to hit 5.6% before first-time buyers delay entering the market. And because mortgage rates aren’t predicted to rise that drastically anytime soon, we shouldn’t see any negative impact on buyer interest in the coming months.

The Takeaway

If you’ve been hesitant to list your home thanks to fears that rising interest rates will limit the number of buyers, there’s nothing to worry about. Buyer demand is showing no signs of slowing.

Myths about Real Estate

I love trivia… he’s useful information that helps understand some myths about Real Estate posted from NAR website on 2/26/15

Myth Article

87% of all homes qualify for some sort of down payment assistance program and over 90% of all DAP’s across the country are funded

Check out the link below to see if you qualify. Then give us a call. The market is active and moving out there!!!!!

Qualifying Programs

Tax Extensions Passed

Polychron on passage of tax extensions
Posted in Legislative, by NAR on December 17, 2014

National Association of Realtors® President Chris Polychron has issued the following statement on key legislation passed by Congress:

“The package of tax extensions approved by the U.S. House and Senate, and headed to the President’s desk for signature, includes important provisions that will help distressed homeowners and commercial property investors with transactions made during 2014. NAR applauds Congressional leaders in both chambers for their effort to pass this legislation before adjournment.

“Realtors® strongly supported the bipartisan Mortgage Forgiveness Tax Relief Act, which was included in the package to prevent underwater borrowers from paying taxes on any mortgage debt forgiven or cancelled by a lender in a workout or after their home was sold for less money than was owed. We are grateful to Sens. Debbie Stabenow, D-Mich., and Dean Heller, R-Nev., and Reps. Tom Reed, R-N.Y., and Charlie Rangel, D-N.Y., for championing the provision.

“The legislation also includes one-year extensions of the 15-year depreciation schedule for leasehold improvements and the deduction for improvements to energy efficient commercial buildings.”

Real Estate Loan Pre Approval

Pre-approval in Texas real estate market means a written commitment made by the lender to offer you a loan. It is subject to some conditions and an acceptable appraisal. It is based on a critical analysis of your economic conditions. If you want to buy property in Texas, having a letter of pre approval shows that you mean business. It appeals to the sellers and they value you more. So if you want to buy your dream house in Central Texas and you want to beat the competition, make sure you have a letter of pre approval. Having pre approval does not mean that it is mandatory for you to take a loan. Instead, it shows the sellers in Texas that you are capable to buy the house you’re interested in. Do not confuse it with the term pre qualification. While pre approval is reported by a lender, the pre qualification is self reported, and is far less weighted than pre approval. Though pre approval is important, it is not the only component of a real estate proposal. Other important components are contingency clauses and earnest money. Before you find your dream house, make sure you get a Texas Realtor and get to know more about the contract. This way, when you find the perfect house, you can make offer that the seller can’t resist.

Amazing Interest Rates!

Have you noticed the 4.58% interest rate today?!?!?  Use the mortgage calculator on my home page to calculate estimated payments.  You will need to add in taxes and insurance.  Note:  If you put 20% down you will not have to pay P.M.I. (Private Mortgage Insurance), which is a chunk of change each monthly payment.  Plus, you will have great equity in your home!  It’s a fantastic time to buy!!  I have a couple of wonderful lenders that I would love to refer you to if you need one.