Low Interest Rates Here to Stay?

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Interest rates for a 30-year fixed rate mortgage have been on the decline since November, now reaching lows last seen in January 2018.  According to Freddie Mac’s latest Primary Mortgage Market Survey, rates came in at 4.12% last week!

 

This is great news for anyone who is planning on buying a home this spring! Freddie Mac had this to say,mortgage broker St. Michael, mortgage broker Zimmerman, VA home loan Elk River, veteran home loan Elk River, zero down mortgage Ramsey, 0 down mortgage Ramsey, apply for VA home loan Elk River, down payment assistance Ramsey, FHA loan application Ramsey, FHA streamline loan Elk River, home construction loans Elk River

“Mortgage interest rates have been steadily declining since the start of 2019. These lower mortgage interest rates combined with a strong labor market should attract prospective home buyers this spring and could help the housing sector regain its momentum later in the year.”

To put the low rates in perspective, the average for 2018 was 4.6%! The chart below shows the recent drop, and also shows where the experts at Freddie Mac believe rates will be by the end of 2019.

Bottom Line

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« Homeowners: Now Is A Good Time To Sell Your House Buyer Demand Surging as Spring Market Begins »

For a hassle-free first-time home buyer mortgage consultation, contact DJ Riley today at 763-276-3960 or via email @ djriley@unitedfamilymortgage.com

 

 

 

 

Housing Is Affordable For First-Time Buyers

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The National Association of Realtors (NAR) reports on the percentage of First-Time Home Buyers (FTHB) on a monthly and yearly basis. Their latest report shows that FTHB’s made up 33% of buyers in March, which matches their reported share in 2018.

NAR uses survey data from their members to come up with this statistic, so their results do not include every transaction completed. Rather, they only show the transactions reported by members who complete the survey.mortgage broker St. Michael, mortgage broker Zimmerman, VA home loan Elk River, veteran home loan Elk River, zero down mortgage Ramsey, 0 down mortgage Ramsey, apply for VA home loan Elk River, down payment assistance Ramsey, FHA loan application Ramsey, FHA streamline loan Elk River, home construction loans Elk River

The other entity that reports on FTHB share is the American Enterprise Institute (AEI). The AEI uses data from mortgage applications that define an FTHB as “any borrower who did not have a mortgage for the preceding three years.”

This means the AEI measurement also includes former homeowners who transitioned out of a home they previously owned and re-entered the market after at least 3 years. The latest FTHB share data from AEI shows that first-time buyers made up 57.5% of all mortgages in August 2018. NAR’s data shows a 31% share for the same time period.

New research from the New York Federal Reserve shows that these traditional reports on FTHB share have been unable to give an accurate depiction of this group’s involvement in the market.

The NY Fed was able to take consumer credit data and identify when a mortgage payment entered a consumer’s credit report to determine when a first-time home purchase was made. Using this data, they were able to show that AEI’s reported FTHB share was consistently 10% higher. The NAR reports were right on par with their findings until 2010, when NAR’s share dropped to the 11% gap seen today.

So, what does this all mean?

0 down mortgage Ramsey, apply for VA home loan Elk River, down payment assistance Ramsey, FHA loan application Ramsey, FHA streamline loan Elk River, home construction loans Elk River, mortgage broker St. Michael, mortgage broker Zimmerman, VA home loan Elk River, veteran home loan Elk River, zero down mortgage RamseyFirst-time home buyers have not disappeared from the market as many analysts had believed. Buying a home is very much a part of the American Dream for younger generations, just like it had been for their parents and grandparents.

This also means that rising prices have not scared buyers away from the market. Many first-time buyers are making sacrifices to save their down payment and make their dream a reality.

Bottom Line

If you are one of the many renters who is scrolling through listings on your phone every night dreaming of buying your own home, there are opportunities in every market to make that dream a reality!

For a hassle-free first-time home buyer mortgage consultation, contact DJ Riley today at 763-276-3960 or via email @ djriley@unitedfamilymortgage.com

10 Steps to Buying a Home

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10 Steps to Buying a Home [INFOGRAPHIC] | MyKCM

Some Highlights:

  • If you are thinking of buying a home, you may not know where to start.
  • Here is a simple list of 10 steps that you will go through to purchase a home.
  • Make sure to ask your agent for details about each step and what else may be required in your area!

For a hassle-free first-time home buyer mortgage consultation, contact DJ Riley today at 763-276-3960 or via email @ djriley@unitedfamilymortgage.com

3 Questions You Need To Ask Before Buying A Home

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If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Ask yourself the following three questions to help determine if now is a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a study by realtor.com found that “73% said buying in a good school district was “important” in their search.

This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. The actual reasons are:

  • A good place to raise children and provide them with a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in February (the latest data available) was $249,500. This is up 3.6% from last year. The increase also marks the 84th consecutive month with year-over-year gains.

Looking at home prices year over year, CoreLogic is forecasting an increase of 4.6%. In other words, a home that costs you $250,000 today will cost you an additional $11,500 if you wait until next year to buy it.

What does that mean to you?

Simply put, with prices increasing, it may cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

Freddie MacFannie Maethe Mortgage Bankers Association and NAR have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:

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Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.

For a hassle-free first-time home buyer mortgage consultation, contact DJ Riley today at 763-276-3960 or via email @ djriley@unitedfamilymortgage.com