Thursday, August 21, 2014

2014 Home Buying and Selling: Where Are Mortgage Rates Headed?

2014 Home Buying and Selling: Where Are Mortgage Rates Headed?





Where are Mortgage Rates Headed?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

According to a recent article in Kiplinger, 30 year mortgage rates are about to increase:

“Now around 4.1%, rates will edge slowly toward 4.4% by the end of this year. Then they’ll follow the Treasury bond rate’s upward move in early 2015. Thirty-year home loans should end 2015 at around 5.1%, still low by historical standards.”

Here is a graph created by using interest rate projections in Freddie Mac’s August 2014 U.S. Economic and Housing Market Outlook:



How will this impact a mortgage payment?

Research released this month by Zillow reveals:

“We examined how a 1 percentage point rise in mortgage rates would impact monthly payments for the typical home in 35 metro areas, and found that the difference this year versus next year varies dramatically from market to market. In the San Jose/Silicon Valley area, for example, potential buyers should expect to see a monthly payment increase of more than $700 if they waited a year to buy the same home they were considering today. By contrast, in St. Louis, the difference is only $65 per month.”

Bottom Line

Again, we turn to the Zillow research:

“As rates rise, new home buyers will confront higher financing costs and monthly mortgage payments. For many, this will mean tightening their budgets and sacrificing some luxuries they may take for granted today.”

Click here to search Lake County Illinois Homes for Sale.

Jim Starwalt

Thinking of making a move?

Download the New Free RE/MAX Home Search App or text the word MOBILE to 224-677-2200.

Log onto my website at www.StarHomeTeam.com and search Northern Illinois Homes for sale.

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

Jim Starwalt, Real Estate Broker
RE/MAX Center
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online

      

2014 Home Buying and Selling: Where Are Mortgage Rates Headed?

2014 Home Buying - Now is a Good Time to Buy a Home

2014 Home Buying - Now is a Good Time to Buy a Home


Kevin Kelly, Chairman of the National Association of Home Builders (NAHB), recently explained that:
“With interest rates near historically low levels and strengthening job growth, now continues to be a great opportunity to buy a home.”

However, with prices and interest rates both projected to increase, waiting could cost us.

There are two organizations that look at the affordability of purchasing and actually measure it over time. The National Association of Home Builders has their Housing Opportunity Index (HOI) and the National Association of Realtors’ has the Housing Affordability Index .

Both indexes are reporting the same thing. The cost of buying a home is beginning to increase leading the affordability indexes to dip.

Both indexes say we passed the bottom of the housing market


According to NAHB’s HOI housing affordability dipped slightly in the second quarter of 2014. NAHB’s Chief Economist David Crowe explains:
“The second quarter HOI reflects the slow but steady march toward the historic levels of price appreciation and interest rates that result in affordability levels we experienced before the mid-2000s boom.”

According to NAR in a recent Economists’ Outlook post, home affordability is down from both one month ago and one year ago in all regions.

Michael Hyman, Research Assistant at NAR said:
“At the national level, housing affordability is down for the month of June due to higher prices and qualifying income levels despite the lowest mortgage rates of the year.”

In a recent article, the Wall Street Journal also revealed that the cost of home ownership is higher than any time in over five years:
“Housing affordability hit its lowest level in nearly six years in June as home prices continued to climb."

Bottom Line

If you were waiting for the bottom of the market, you missed it.

Yet, with prices below values of seven years ago in most parts of the country and interest rates near historic lows, it is still a great time to buy a home…but hurry!

Click here to search Lake County Illinois Homes for Sale.

Jim Starwalt

Thinking of making a move?

Download the New Free RE/MAX Home Search App or text the word MOBILE to 224-677-2200.

Log onto my website at www.StarHomeTeam.com and search Northern Illinois Homes for sale.

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

Jim Starwalt, Real Estate Broker
RE/MAX Center
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online

      

2014 Home Buying - Now is a Good Time to Buy a Home

Wednesday, August 20, 2014

Open House Sunday 8/24/2014 - Beautiful Home on Pond

Open House Sunday 8/24/2014 - Beautiful Home on Pond

33981 Wooded Glen, Grayslake IL 60030


Date: Sunday August 24, 2014

Time: 12 noon to 3:00 pm



Click here to search Grayslake Homes for Sale.

Jim Starwalt

Thinking of making a move?

Download the New Free RE/MAX Home Search App or text the word MOBILE to 224-677-2200.

Log onto my website at www.StarHomeTeam.com and search Northern Illinois Homes for sale.

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

Jim Starwalt, Real Estate Broker
RE/MAX Center
Phone: 847-548-2625
Jim@StarHomeTeam.com
 
Find Me Online

      


Open House Sunday 8/24/2014 - Beautiful Home on Pond

Open House Saturday 8/23/14 - Highland Lake Waterfront Home for Sale

Open House Saturday 8/23/14 - Highland Lake Waterfront Home for Sale

21780 Washington, Grayslake IL 60030


Date: Saturday August 23, 2014

Time: 12 noon to 3:00 pm



Click here to search Grayslake Homes for Sale.

Jim Starwalt

Thinking of making a move?

Download the New Free RE/MAX Home Search App or text the word MOBILE to 224-677-2200.

Log onto my website at www.StarHomeTeam.com and search Northern Illinois Homes for sale.

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com
Jim Starwalt, Real Estate Broker
RE/MAX Center
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online

      


Open House Saturday 8/23/14 - Highland Lake Waterfront Home for Sale

Tuesday, August 19, 2014

Open House 34388 Sunshine, Ingleside IL 60041: 8/23/14

Open House 34388 Sunshine, Ingleside IL 60041

Saturday, August 23, 2014 from 12 noon to 3:00 pm




Click here to search Ingleside Homes for Sale.

Jim Starwalt

Thinking of making a move?

Download the New Free RE/MAX Home Search App or text the word MOBILE to 224-677-2200.

Log onto my website at www.StarHomeTeam.com and search Northern Illinois Homes for sale.

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

Jim Starwalt, Real Estate Broker
RE/MAX Center
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online

      


Open House 34388 Sunshine, Ingleside IL 60041


Open House 967 Cambridge Drive, Grayslake IL 60030

Open House 967 Cambridge Drive, Grayslake IL 60030

Sunday, August 24, 2014 from 12 noon to 3:00 pm




Click here to search Grayslake Homes for Sale.

Jim Starwalt

Thinking of making a move?

Download the New Free RE/MAX Home Search App or text the word MOBILE to 224-677-2200.

Log onto my website at www.StarHomeTeam.com and search Northern Illinois Homes for sale.

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

Jim Starwalt, Real Estate Broker
RE/MAX Center
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online

      

Open House 967 Cambridge Drive, Grayslake IL 60030

Monday, August 18, 2014

Heritage Park, Lindenhurst - 3 Bedroom Townhouse for Sale

Heritage Park, Lindenhurst - 3 Bedroom Townhouse for Sale

3103 Redbud Drive, Lindenhurst IL 60046




Click here to search Lindenhurst Homes for Sale.

Jim Starwalt

Thinking of making a move?

Download the New Free RE/MAX Home Search App or text the word MOBILE to 224-677-2200.

Log onto my website at www.StarHomeTeam.com and search Northern Illinois Homes for sale.

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

Jim Starwalt, Real Estate Broker
RE/MAX Center
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online

      


Heritage Park, Lindenhurst - 3 Bedroom Townhouse for Sale