Of course, everyone wants a clear answer. But the reality is that it’s not so cut and dry.

Some believe that the high interest rates are a good enough reason to put off a home purchase for now. But others think that the ease of buyer competition could make it the perfect time to find the home of your dreams.

Housing market: A current look

At the macroeconomic level, most prospective home buyers are aware that mortgage rates have increased dramatically in recent years.

Although average mortgage rates have started to dip after hitting a recent high of 7.79% for a 30-year fixed-rate mortgage in late October 2023, rates are still significantly higher than they were in 2021. As of writing in December 2023, the average interest rate on a 30-year fixed-rate loan is 6.61%, which is higher than buyers are used to seeing for the last twenty years.

Higher interest rates can take a bite out of anyone’s home purchase budget. The possibility of lower rates is tangible, with the Fed indicating it might not raise interest rates again. But even if the Fed stops its string of rate increases, some experts predict mortgage rates will remain above 6% for the foreseeable future.

In addition to high interest rates, buyers are facing high home prices. A recent report from the National Association of Realtors found that the median price for existing home sales was $387,600 in November 2023, which is up 4% from the same time last year. Of course, that’s just the median. Buyers in some areas are facing significantly higher prices based on a relatively low supply for a higher demand.

2024 housing market predictions

As we move into the New Year, prospective buyers who want to make a home purchase this year cannot help but consider the question of is it a good time to buy a house?

In terms of mortgage rates, many expect these to fall a bit in 2024. However, the expected drop is relatively slight and buyers should expect to see elevated rates throughout 2024. Since a higher interest rate eats into your home purchase budget, it could force buyers to consider more affordable options. For example, buyers might need to consider smaller homes or less desirable locations to find a property that suits their budget.

How to know if it’s a good time for you to buy a house

When it comes to buying a house, the macroeconomic factors might not be as relevant as you think. Of course, interest rates and housing supply play into your ability to afford the home you desire. But the reality is that the decision to purchase a home requires as much introspection as it does monitoring interest rate trends.

Below are some things to consider before moving forward with a house search.

Personal financial situation

First and foremost, prospective buyers should consider their personal financial situation. Before you purchase a home, it’s important that your finances are in a stable position to accommodate the costs of homeownership.

Take a look at your income, savings, and current debts. Buying a house often involves taking on a relatively large loan, in the form of a mortgage. It’s best to avoid taking on this debt if you already have a lot of high-interest debt acting like a drain on your budget.

For prospective buyers with lots of debt, like credit card debt, consider paying off this debt before pursuing a home purchase. Not only will this improvement to your balance sheet come in handy on your mortgage application, but it can also free up necessary cash flow to support your homeownership endeavors.

It’s important to note that homeownership comes with lots of hidden costs. While you’ll definitely need to keep up with your mortgage payment each month, other expenses can sneak into your budget. For example, you might need to pay for lawn care and other maintenance. Additionally, repair bills can add up. It’s a good idea to expect extra costs beyond your mortgage payment. If you don’t have any extra wiggle room in your budget, your finances might not be ready for the responsibility of homeownership.

In addition to room to support ongoing homeownership costs, consider the fact that you’ll likely need to make a significant down payment. While you may not need to make the traditional 20% down payment, you should expect to make a down payment of at least 3% to 10%. If you don’t have a down payment available, start saving now to set the stage for homeownership.

Homeownership goals

Homeownership is a long-term financial commitment that can have a significant impact on your lifestyle. Before diving into a home shopping journey, consider what your goals are.

One top consideration is determining how long you plan to live in a space. For example, someone who wants to live in the same location for at least five to seven years might find a lot of value in homeownership. But someone who is planning to leave the area in one or two years might be better off renting.

Additionally, consider your family size and expectations. If you are planning to grow your family, finding a place with the space you need can pay off in the long run. Since homeownership is usually a long-term commitment, it’s a good idea to consider your lifestyle goals before moving forward.

If you think you’ll live in a place long-term, homeownership might be the right move for you.

Credit score

The right credit score can make all the difference to your home buying experience. A higher credit score not only offers you higher approval chances, it also unlocks the potential for a lower interest rate.

Take a minute to check your credit score. If you have a great score, you can move forward confidently. If you have a poor credit score, it’s worth taking the time to improve it. You can prioritize improving your credit score by committing to on-time payments, paying off credit card balances, and checking your credit report for any errors.

Understanding of the current market

The real estate market is constantly changing. A combination of high interest rates and relatively high prices has made this a difficult time for home buyers. But if your finances are ready for the commitment of homeownership, then it can still be a good time to buy.

Consider talking your options over with a local real estate agent to understand the current market conditions in your area. With more information about your location, you can start the home shopping process with your eyes wide open.

FAQ

Should I buy a house now or wait for a recession?

While it’s tempting to wait for home prices to drop dramatically before buying a house, there is no guarantee that will happen in the near future. If you are ready to buy a house based on your lifestyle goals and financial situation, it makes sense to move forward with your home purchase.

Will 2024 be a good time to buy a house?

Mortgage rates are expected to stay relatively high in 2024, which means it might not be the best time to make a home purchase. However, by purchasing a home, you’ll have the potential for home appreciation in the future.

Is the housing market going to crash in 2024?

Based on the current forecasts, it seems unlikely that housing prices will crash in 2024. In contrast, home prices are expected to remain stable or increase slightly.

The bottom line: Is now a good time to buy a house?

It’s impossible to predict the future of the housing market. However, you can evaluate your own financial situation to determine if you are ready for homeownership.

If you decide you are ready for homeownership, explore your mortgage options today.

The post Is it a good idea to buy a house in 2024? first appeared on My Mortgage Insider.

The property can become a second or vacation home while staying in America. It could also be an investment property. During the housing crash nearly nine years ago, some banks got out of the foreign national market entirely. Those who stayed in to the market required borrowers to put down 40 to 50 percent of the purchase price.

But things have changed again, and many of the major banks are offering foreign national mortgages, says Rebecca Abella, senior vice president of residential lending and production manager at Total Bank in Miami.

“These loans never really went away for some banks and some areas,” she says. “In Miami, you have to lend to foreign nationals, or you’d be out of business.”

According to a recent survey by National Association of REALTORS®, five countries accounted for 51 percent of purchases by foreigners: Canada, China, Mexico, India, and the United Kingdom.

Although foreigners purchased property across the country, the four states that accounted for 50 percent of international sales included Florida, California, Texas, and Arizona. Approximately 209 thousand houses were bought by foreign buyers over the time period of March 2014-March 2015 — approximately 4 percent of total Existing Home Sales. The total foreign sales dollar volume is estimated at $104 billion.

Check your home buying eligibility. Start here (Sep 16th, 2024)

Foreign National Home Buying Habits

These foreign clients aren’t buying anything too cheap either. On average, they paid on average nearly $500,000 for a house, compared to the overall U.S. average house price of about $256,000.

“We get foreign buyers from all ages from those in their early 30s to those up in their 70s, and some are buying for their children or purchasing a place for their families for vacation,” Abella said.

She adds that her bank lends to people in most countries except several ones in the Middle East, plus now Total Bank is restricted from giving mortgages to those in Russia, Venezuela and Argentina. Many of those in Venezuela and Argentina are paying cash, anyways, for properties, she says.

“We get a lot of Europeans, too, and many Brazilians,” she says. “Sometimes, people are coming from countries where their monies are worth a little more by investing in the United States’ properties.”

Check your home buying eligibility. Start here (Sep 16th, 2024)

Foreign National Mortgage Qualification

To get a foreign national mortgage, lenders have to verify their income in their country either through a letter from an accountant or CPA, plus information from their place of employment. They must show proof of their income from the past two years.

“We verify their assets through bank statements from the last two years of bank statements, plus obtain two reference letters from two banking installations in their country,” Abella says. “We also check a few days before the closing to verify their income and employment.”

Also, the bank researches their clients’ businesses in their country. They check to see if there are any negative or derogatory things regarding them and their companies.

At Total Bank, foreign nationals must put down 30 percent if they are buying a single family home with a loan of $750,000 or less. If they are buying a condo with a loan $750,000 or less, they must put down 35 percent. For any loans from $750,000 up to $1 million, they must put down 35 percent for a condo or a single family.  If the loan is over $1 million, the borrower must bring 40 percent to the table.

Each lender creates its own set of qualification rules and down payment requirements.

“This is just a way to protect the bank,” she says. “But many of our mortgage customers are our bank customers. They bank with us for all their needs, so we get to know them.”

Communication with Lenders

Most of the lenders at Abella’s bank speak Spanish, plus a variety of them speak other languages, too.

“If there is a language that we don’t speak, we have professional translators that have to be certified. The documents all have to be translated into English,” she says.

She adds that most of those inquiring about foreign national mortgages are usually buying homes anywhere from $300,000 to $4 million and higher.

“They come here to Miami for sunshine, the weather, the nightlife and the beaches,” she says.

Check your home buying eligibility. Start here (Sep 16th, 2024)

The post Foreign National Mortgage Qualification and Loan Products first appeared on My Mortgage Insider.

Mortgage software company Ellie Mae reported in their most recent Origination Insight Report that home loan closings are taking seven days longer than they did last year at this time.

Ellie Mae tracks more than 2 million loan applications per year through its Encompass software, a platform used by thousands of mortgage companies and banks across the U.S.

According to the report, the average mortgage loan in June 2014 would close in 41 days. Today, borrowers can expect to wait 48 days to close.

The numbers look different when looking at purchase and refinance applications separately. The average home buyer can expect to close in just 45 days while a homeowner looking to refinance will need a whopping 52 days to close. A year ago it only took 39 days to refinance.

Extended closing times require longer lock periods and greater expense, but there are things borrowers can do to speed up the process.

Check your home buying eligibility. Start here (Sep 16th, 2024)

Avoid a Longer Closing than Necessary

If you’ve ever bought a home or are in the process of doing so, you know that the dragged out process can be frustrating and scary.

By being proactive and staying ahead of the process, you can ensure a smooth approval and home closing. While some elements might be out of your control, there are some things you can do so that you’re not hit with an unexpected delay or worse.

1. Large deposits can set you back

While it’s important to have sufficient funds in your bank account to cover closing costs, the down payment, and still have some savings left over for a rainy day, lenders want to know where those dollars came from.

If you make any bank deposits – sometimes even as small as $100 – in the months leading up to your home loan application, you’ll need to have a valid explanation, and show any necessary documentation to back it up. In other words, money hidden under your mattress, so to speak, isn’t going to fly.

If you received a large tax refund, you’re covered since that will be easily identifiable. But if a relative gives you a gift, you’ll most likely need to get a letter stating that it is indeed a gift, not a loan. If you’ve sold something – say an old car – you’ll have to show proof of the sale.

In short, be ready to hand over a paper trail if any of your savings are called into question.

2. You can’t hide from your past

If something significant has happened to you in the last couple of years – whether it’s a big change in income or a big gap in your employment – you’ll no doubt be asked to explain it. Lenders look for consistency, so those who have longer-term employment with the same company might speed through that portion of the application versus a job hopper or someone who has unsteady self-employment income.

Either way, be at the ready to verify anything questionable.

3. Speaking of jobs…try to stick with yours a bit longer

It’s probably not a great idea to make a big career change or start up that entrepreneurial endeavor you’ve always dreamt about right before closing on a home. Your loan approval is based on the information you provide in your initial application, so anything that changes in the interim will surely cause a delay and a whole new round of paperwork.

4. Curb your spending

While you might be tempted to go buy a new patio set or living room furniture for your soon-to-be home, be careful about taking on new debt right before you close. The same goes if you’re due for a new car. Try to hold off on any major spending since mortgage lenders will catch wind of it, and could think twice about lending you money.

Don’t think your lender will find out? Think again. Lenders pull your credit the day of loan funding to check for any new accounts and even recent applications for new credit.

5. Know your credit status

So many people have no clue what their credit score is until they begin applying for home loans. Experts agree that you should know where you stand well in advance of home shopping, that way you have time to try to raise your scores and qualify for more favorable interest rates and loan terms. Ideally, you should get a handle on your credit score at least six months prior to applying for a mortgage so there are no surprises.

6. Be proactive with your paperwork

You can bet on the fact that you’re going to have to turn over pay stubs, tax returns, and bank statements from at least the last couple of months. Put in any necessary requests with your HR department if need be, and print out or request paper copies of statements from your financial institutions.

7. Ask for updates along the way

If you’re working with a knowledgeable mortgage broker and/or a real estate lawyer, he or she should keep in touch to provide the next steps in the process. But if communication is lacking, ask a lot of questions, such as what to expect in terms of loan processing times, and what delays could impact the closing. Then, right before you’re scheduled to complete the transaction, touch base to see if there’s any last-minute paperwork needed from you so you can have it prepared the day of closing.

By doing your part to keep the process moving along and educating yourself, you can at least avoid unnecessary delays from your end. When all is said and done, hopefully your home purchase will go off without a hitch… even if it takes a few extra days to get it done.

Check your home buying eligibility. Start here (Sep 16th, 2024)

The post 7 Tips to Speed Up Your Loan Closing first appeared on My Mortgage Insider.

“Real estate transactions aren’t always easy. So make sure you have an agent who knows values, knows the local market and knows the area,” says Traci Jennings, broker/owner of RE/MAX Real Estate Center in Ames, Iowa.  

Since the real estate market has been strong the last few years, a lot of people have gotten into the industry because they figure it’s easy money, and it’s easy to get involved, she adds.

“But the brokerage market is changing, including the technology used. My opinion is that there are lot of new, very inexperienced agents out there, and some haven’t done many transactions at all,” Jennings remarks.

So, to make sure you are getting the best person for you and your hopes and dreams, here are seven things to consider when choosing the right realtor:

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Choose a realtor, not just an agent

The American Homeowners Association (AHA) say that the terms agent, broker and realtor are often used interchangeably. But not everyone is a realtor. The term identifies a real estate professional who is a member of the National Association of Realtors (NAR) and is held to a stricter code of ethics, which sometimes goes beyond state law.     

Check licensing, background and years on the job

The NAR and professional licensing websites through individual states can tell you how long realtors have been licensed, Jennings says. But remember that just because they have been licensed for 10 years doesn’t mean they have a lot of experience. Ask them how many sales they have made in the past year, and check real estate websites that offer mini-resumes of agents.

Search their listings

If you go to the agent’s or their company’s website, look for all their listings. Do these homes match the type you are selling or want to buy? Or do they only have foreclosed homes or luxury homes, but you want a new built median-priced home? Finding someone who understands your wants and needs.

Understand their designations

The NAR and other organizations offer schooling and designation or certifications for various types of real estate expertise – such as vacation homes, foreclosed homes, military or senior citizens. There are also those who can help divorcing couples, condo buyers, those who seek out luxury homes, and those who want a cabin in the woods.

Interview a few realtors

Even if one person seems good for your situation, find a few more. Make sure to interview them all and ask questions about their experience, their marketing plans, whether they work alone or have a team, and do they have any vacation plans in the near future.

A client should be able to trust and have fun with their agent and be completely honest with them,” Jennings says. A lot of realtors become friends for life with their clients. But not every client wants that. Make sure you understand where your agent is coming from and their personality traits.

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Pay attention to their response time

If someone has all the right credentials, then, personally call them. The amount of time it takes them to call you back should be a green light or red flag, Jennings explains. Busy realtors are busy. If they are with a client, their cell phone voicemail should say they are with another client and they will call you back. It also should say that they will get back to you in the next few hours – not a few days.

Find someone with experience plus negotiation skills

There is a low inventory of homes across the country. So, that means there is going to be more and more crazy, multiple offers going to sellers. In a strong market you have to have a realtor who can win your offer over all the other offers, she adds. “Inexperienced agents will lose out on many houses to agents who have thought through on how to present the best offer in that market.”

“It’s really about the client getting somebody to listen to them about their budget, their concerns and their needs,” she says. “This is a stressful process. There are expectations on both sides. Setting expectations from the get go is the key to whether you have a successful relationship.”

Click to get connected with multiple lenders.

The post Why the Right Realtor Matters first appeared on My Mortgage Insider.

According to the National Association of REALTORS, median sales price of existing single family homes in the third quarter of 2017 shows huge disparities in certain metropolitan areas.

For instance, you can buy a home for $170,000 median price home in Appleton, Wis., But to get a median price house in San Diego, it would take $607,000. Denver costs you $418,000 for that median-priced home if you can find one.

But go to the warmer state of Florida and buy a home for $210,000 in Panama City. You can even get a median priced home for less than $150,000 in some spots of the country such as Springfield, Ill.; Rochester, N.Y.; and Cleveland, Ohio.

Some people are saying no to the big prices and moving to other parts of the country to save thousands and thousands on housing. Here are some success stories of people who bought a cheaper house in another state:

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Reduction in home price by 80 percent

Patrick Madigan, owner and broker-in-charge at Madigan Realty Co. for Keller Williams Downtown Raleigh, N.C., helped sell his client’s house near downtown Raleigh. The family was relocating closer to family in Ohio. They had purchased their Raleigh home in 2011 for $225,000, and Madigan sold it earlier this year for $427,000.

“Raleigh has been an incredibly hot market in the past few years. But the east side, where my clients lived, is appreciating especially quickly as downtown attracts more businesses and residents,” he says.

On top of that, their home was actually sitting on two lots. So, they were able to sell that, too, for almost $100,000 to a developer, while also seeing over $100,000 appreciation on the house itself in just six years.

“My clients were giddy with excitement when they told me about the prices in their specific town in Ohio. They were able to find the right home for less than $100,000, downsizing their financial investment by almost 80%, while increasing their square footage by 35%,” Madigan adds.

Their house in Raleigh was right at 2,000 square feet, but now they own 2,700 square feet in Ohio, with an unfinished basement of about 800 square feet.

Their new place in Ohio is a 4-bedroom split level with three full bathrooms built in 1956. Even with the larger split-level in Ohio, that orientation allows for a larger usable yard space and a big back deck that they didn’t have in Raleigh.

“Although leaving friends is never easy, and Raleigh is a great place to live, my clients were quite pleased with how everything turned out,” he says.

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Upgraded to 3 times bigger, third of the price

Justin Udy’s real estate clients moved from the very expensive Palos Verdes Estates in California to Salt Lake City to be closer to family and to take advantage of a business opportunity.  They sold their home in California for $1.35 million, which was only a 1,492 square foot home with three bedrooms and 1 ¾ bath.

Udy was able to find them a home that was three times larger home with 6 bedrooms and 3.5 bathrooms for only $520,000 for their growing family in Utah. This home with a bigger lot, too.

“They were excited to upgrade their property and spend less,” says Udy, leader for the Justin Udy & Team Real Estate for Century 21 Everest in Salt Lake City.

San Francisco happens to be the city with the highest median price point — $900,000 – in the NAR report. Salt Lake City’s is only at $293,000.

Retirees get big drop in price

A couple recently retired and moved from Ellicott City, Md., to Williamsburg, Va., to experience a lower cost of living.

Jeff Miller, co-founder of AE Home Group in Baltimore, sold their 1,900 square-foot home for $580,000 to allow them to move to 2,800 square foot home in Williamsburg that they purchased for $425,000. That big drop in price allows them to not worry about living the retired life they have dreamed of.

“Their new home has more updates and is located within a gated community that was close to historical museums, outlet shopping malls, and numerous restaurants,” he says. “They were able to maintain their quality lifestyle while reducing their monthly mortgage payments.”

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The post Success Stories – Buying a Better, Inexpensive Home in Another State first appeared on My Mortgage Insider.

In fact, last month’s sales were still well above year-ago levels.

In February, home sales dropped 3.7 percent to and seasonally adjusted annual rate of 5.48 million homes sold. However, this is 5.4 percent higher than one year ago.

The decrease was largely caused by falling sales in the Northeast region of the country. Existing home sales dropped by 13.8% previous month.

Home sales in the south, on the other hand, rose by 1.3 percent, and current sales are well above year-ago levels.

The decrease in the number of homes sold could be a worrying sign for home buyers, but home sellers should be happy. Right now, home sellers are dictating the market, and buyers are having to settle for whatever they can find.

Home sales have been steadily dropping over the past year, emphasizing the current housing shortage. Until more homes are built, or until more homeowners begin putting their homes on the market, the shortage will continue.

The shortage is also pushing home prices higher, making it harder for home buyers to afford homes they can find.

With mortgage rates holding steady near their current levels, home buyers may want to lock in on purchase a home that fits their needs before it becomes harder to find proper housing.

Check current mortgage rates.

About Existing Home Sales

Each month, the National Association of Realtors (NAR) tracks the number of homes sold. The existing home sales report is part of this, and it tracks all homes that are not newly built. This includes houses, townhouses, co-ops and condos.

Last month, the total number of homes sold dropped from January’s numbers. This was largely due to fewer homes being made available on the market.

Generally speaking, February is not a popular month for home buyers or sellers. Usually, both want to wait until summer when there’s better weather, fewer holidays and freer schedules, especially for those with children.

One worrying statistic is that home prices have jumped 7.7% from February of 2015, a sizeable jump for just one year. The price jump is largely due to the shortage of homes.

Also, available homes were only on the market for an average of 45 days, down from 50 days in January.

Home buyers are probably having a hard time finding the right home for them. There just aren’t many homes available, especially in many metropolitan areas.

Click to see today’s rates.

Currently A Seller’s Market

Unfortunately for home buyers, the housing market remains a seller’s market.

Right now, the shortage of homes is driving up home prices. Current homeowners understand that it is a seller’s market, but many don’t want to put their home for sale.

However, February saw a slight improvement in terms of homes available.

The total housing inventory rose by 4.2 percent last month, meaning there were more homes made available in February than in January.

The unsold inventory of homes also rose to 3.8 months. In this fictional statistic, the NAR determines how long it would take to sell every home currently on the market, assuming the current pace of homes sold remains the same and that no additional homes are added to the market.

Of course, this statistic would never be real, but it showed a 0.3 month increase from January, again showing that more homes are being made available.

Home buyers have to make a tough decision: either wait until more homes are made available and hope they aren’t too expensive, or lock in on current rates and find a home as soon as they can.

Current Mortgage Rates

Mortgage rates have been rising gradually for the past few months, and that makes home buying more expensive.

However, current rates are still much lower than they have been historically. Rates are expected to rise throughout the year, so keeping track of rates could help when looking to buy a home.

Click to see current rates.

The post Existing Home Sales Drop, But Still Improving first appeared on My Mortgage Insider.

Home sales are on the rise for the second month in a row, rising almost two percent to a seasonally adjusted annual rate of 5.45 million in April. Current home sales are now above April 2015 levels, a sign of strength for the current market.

There are particular signs of strength in the Midwest where sales skyrocketed. The Midwest has been a booming area for housing, and homes there continue to remain affordable thanks to low mortgage rates.

The momentum is expected to continue across the country as more home buyers typically ramp up their home searches in the summer months.

Buyers who get a jump on the pre-approval process now will not only find super-low mortgage rates but will also be better positioned to negotiate in the fast-paced home sales environment.

Click here to see to check your home buying eligibility.

More Homes Becoming Available

One of the biggest issues in 2016 was a shortage of homes for sale. Low rates and a healthy market have attracted buyers, but there haven’t been enough sellers to meet the demand.

However, home buyers should feel comfortable know that there are well over 2 million existing homes for sale. This is close to the same number of homes available in April 2015.

April saw an increase of over nine percent in new homes available for sale – the biggest gain of 2016. Added to March’s six percent increase, that’s 15 percent more homes on the market now than there were in February.

With favorable weather and the end of the school year approaching, there is a good chance that more home sellers will enter the market. This could drive home supply even higher than April’s levels. In April, there was a 4.7 month supply, meaning that it would take that long for the currently available homes to sell if no other houses came on the market.

This is a hypothetical scenario since more homes are constantly being added to the housing market. That number has been gradually getting closer to six months which realtors consider “healthy.”

Homes also sold at the fastest pace since June 2015, and they have been getting sold at an increasingly quick clip throughout 2016 As inventory grows, buyers can take more time shopping around and negotiating for the best deal.

Mortgage Rates Holding At Low Levels

The Existing-Home Sales report, published each month by The National Association of Realtors (NAR), reports on the number of existing homes sold each month. It then annualizes the amount based on 12-month sales figures.

The report also tracks home prices. In April, the median existing-home price was $232,500, an increase of about 6 percent from April 2015. That marks 50 consecutive months of year-over-year increases.

Rising home prices are not discouraging buyers, though, thanks to historically low mortgage interest rates that are keeping pricier homes affordable. Mortgage rates are falling faster than home prices are rising, so homes today are more affordable than they were at the beginning of 2016.

Rates have been staying low recently, and there is no sign of them hiking back up to January levels anytime soon.

This bodes well for both buyers and sellers to close home sales quickly, and if more inventory comes into play, it could be quite the busy season.

Click here for today’s mortgage rates.

Starting The Home Buying Process

All signs point to more homes coming on the market, and favorable interest rates are likely to continue. But home prices are still rising, so now is a good time to make some progress by getting mortgage pre-approval.

A pre-approval letter will illustrate to realtors and sellers that you are ready to move forward with a home purchase, and it will give you an idea for home much home you can afford at current rates.

Click here to get started.

The post Home Sales Climb as Buyers Have More Options first appeared on My Mortgage Insider.

Homes are being added to the market faster than they’re being sold. Buyers and sellers alike will find the numbers encouraging.

Home sales rose at an annualized rate of over five percent in March, showing signs that the housing market is rebounding nicely after a February that showed declines.

Compared to last year, homes are selling at a higher pace with growth in sales coming from all four regions of the country.

But homes were added to the market at an even quicker pace.

This is good news for buyers who have a pre-approval in hand, but are finding it difficult to find a home to buy due to low inventory.

With spring weather in full swing, buyers will be heading out to find homes so they can complete a move during the summer months.

Home prices and the number of sales are expected to keep rising in the coming months. Buyers who find a home they like will want to act quickly and should request pre-approvals and rate quotes now.

Click here to begin the pre-approval process.

More Housing Steadily Becoming Available

Homes are being sold quickly, but it shouldn’t discourage home buyers from searching for a new home.

For the last few months, new homes on the market have been hard to come by. But March saw an almost six percent increase in home inventory.

That trend is expected to continue as spring is traditionally a popular time for sellers to enter the market.

There are now nearly two million existing homes available for sale, just below year ago levels. However, the unsold inventory represents a 4.5 month home supply, up from 4.4 in February.

This stat imagines that if every home were to be sold with no additional homes becoming available, it would take 4.5 months for every home to be sold. While the statistic is improbable, it gives great insight on the current housing supply. The higher the number, the better for home buyers.

This upward movement should continue, and may approach the six-month benchmark that realtors like to see in a healthy housing environment.

Currently, the housing market is full of aggressive buyers. In March, 42 percent of homes sold were on the market for less than 30 days, the fastest pace since July 2015.

As more properties come on the market, buyers will have more options and won’t be forced to make aggressive offers.

Home Prices Still on the Rise

The Existing-Home Sales report from The National Association of Realtors (NAR) annualizes 12-month sales figures to reveal the number of existing homes sold per month. An existing home, as opposed to a new-construction home, is one in which someone previously resided.

The report also includes changes in home prices. In March, the median existing-home price was $222,700, up from 2015’s $210,700. That marks 49 consecutive months of year-over-year increases.

The tighter inventory is likely responsible for the continued increase in home prices.

While sellers may have the upper hand in a tight market, buyers can still reap the benefits of low-interest rates on home loans.

According to Freddie Mac, the 30-year fixed rate is at 3.59%, just 1 basis point (0.01%) higher than its three-year low.

This bodes well for both buyers and sellers to close home sales quickly, and if more inventory comes into play, it could be quite the busy season.

Click here to see today’s mortgage rates.

Preparing for Home Buying Season

For buyers who wish to seriously enter the market, be sure to begin the pre-approval process for a home loan. This will illustrate that you’re ready and able to move forward with a home purchase, which will give you at a competitive advantage in a tight housing market.

You’ll also have a more solid idea of your price range so your realtor can show you homes that match your specifications.

Click here to see if you qualify for buying a home.

The post Buyers To Have A Wider Selection Of Homes This Summer first appeared on My Mortgage Insider.

Her real estate conquests produce a more entertaining byproduct: funny real estate segments for her talk show. I’ve pulled together some of the funniest videos that highlight and poke fun at some of the situations in which you find yourself as a home buyer or seller.

Funny Real Estate Video #1: You won’t Believe the Amenities on this House

Check out the last featured listing. Warning: only watch this someplace you don’t mind laughing out loud.

Funny Real Estate Video #2: Interpret the Listings

Ellen reveals the true meanings of certain words you see on real estate listings.

Funny Real Estate Video #3: This Realtor is Unreal

Ellen asked a member of her staff to pose as a Realtor and pull off some outrageous stunts. Hidden cameras catch the priceless reactions of unknowing home shoppers.

Funny Real Estate Video #4: Will This Pic Help Sell the Home?

If you have ever had a nightmare of a doll coming to life you may want to skip this one.

Funny Real Estate Video #5: What were These Realtors Thinking?

We’ve all seen them. Realtors love to put their photos on their marketing. Most of these pics are tastefully done but here are some laughable fails including a space sheep.

Hilarious Bonus Video: Home Office Fail

Ellen describes a creative multipurpose home office.

The post 5 Funny Real Estate Videos from Ellen DeGeneres + Hilarious Bonus Video first appeared on My Mortgage Insider.

“Skyrocketing Rents will Convince Renters to Buy”

Jack Otto, REALTOR® at EXP Realty, Bellingham, Washington.

2016 will finally see the nation’s housing markets slow their pace to a steady but still healthy pace. Nationwide housing prices have increased an average of 5%-6% but we should see smaller home value gains in 2016.

National association of REALTORS® has predicted 3.5% increase in home values in 2016, which from everything I’ve seen seems about right.

Homeowners looking to capitalize on record values will finally list their home, if they haven’t already. This increase in housing supply will alleviate constricted supply in some of the nation’s hottest markets. Most markets will see supply and demand even out but not totally.

Markets such as Boston, St. Louis, San Diego, Charlotte, Atlanta and New Orleans will continue their fast pace through 2016 according to NAR.

2016 Real Estate Trends : Rental Rates Will Push Buyers into the Market

Where will this leave buyers? 2016 will be the year of the homebuyer. Record rental rate increases nationwide coupled with low interest rates will drive more buyers to the market.

Bloomberg is anticipating interest rate hikes in late 2016 or early 2017. With time running out on low mortgage rates and an increase in housing supply, home buyers will finally maximize their purchasing power in 2016.

So what does that mean for you? Get together with your REALTOR® and discuss what is best for you in your local market. But don’t wait until Spring to start this process, get started now if you haven’t already.

Jack Otto is a second generation REALTOR® with eXp Realty in Bellingham, Washington. He can be reached at Jack.Otto@exprealty.com, at JackOttoHomes.com and his blog.

“2016 Buyers Should Avoid Bidding Wars, Other Pitfalls”

Anita Clark, REALTOR® at Coldwell Banker, Warner Robins, Georgia.

If my local Warner Robins GA Real Estate market is an indication, I expect sellers to continue entering the market at a good clip with a steady increase in both buyers and investors as well. This past year was decent for our industry and I expect sale prices to continue rising around the country in 2016 (perhaps a bit slower than we saw in 2015 though).

While there are still pockets of resistance, I would expect to see distressed homes stay at reasonable levels as well.

The keys are for new buyers to not over-commit to homes they cannot afford and to ensure they get quality advice from their agent on whether or not the property they want has instant or growth equity. The last thing this industry needs is for consumers to start out underwater as new homeowners in 2016!

At its core, it still comes down to price, location, and condition for every market.

Here are some quick tips for new 2016 buyers no matter which real estate trends take shape. 1) Take a long(er) look at the neighborhoods buyers want to live in; 2) understand how to discern true value from unnecessary bells and whistles; 3) don’t get caught up in bidding wars or unrealistic sticker shock comparisons; 4) Know which remodeling ideas bring value; 5) Choose an agent to represent you who understands the local real estate market, is tech savvy, and puts your interests first.

Buyers who follow these pieces of advice will help 2016 to be a fantastic year for the local real estate market and nationally too.

Connect with Anita Clark at SellingWarnerRobins.com

“Buyers Should Prepare Now for a Seller’s Market in 2016”

Kyle Hiscock, leading REALTOR® in Rochester, New York.

One of the biggest predictions heading into 2015 was that the interest rates on mortgages were going to skyrocket. Well those who predicted that, myself included, were wrong. Here we are at the end of 2015 and the interest rates for mortgages are almost identical to where they were at this time last year.

So one has to think the interest rates are going to skyrocket this coming year in 2016, right? Not so fast! I believe as we head into 2016 the rates will remain pretty stable and we shouldn’t see a significant jump in rates in 2016. A significant jump in interest rates would be 1.0% or more.

While I don’t believe the interest rates will experience a significant increase, it does not mean buyers who are on the fence about buying a home should procrastinate. It is critical home buyers have a strong understanding about mortgages, the effect interest rates can have on them, and are familiar with some of the most FAQs about mortgages.

What Will Happen With House Prices In 2016?

Predicting the prices of houses and real estate trends across the country is tricky as every market is different. I know that the house prices in the Rochester real estate market will remain pretty stable over the next 12 months. Year over year the houses my market generally experience a small increase, usually 1-2%.

There are certain neighborhoods in my market that will experience larger value increases than others. This is the case in the markets that have lower housing inventory (also known as supply) and a large number of buyers looking to purchase a home in the area (also known as demand).

As long as the mortgage rates remain stable in 2016, there should be a significant amount of home buyers in the market, which generally means the house prices will increase, since there is more competition in the marketplace.

Will Real Estate Markets In 2016 Experience A Buyer’s Market or A Seller’s Market?

Throughout the past year there have been many headlines indicating that there is a shortage in the number of homes available for sale. A shortage of homes for sale in a real estate market means a competitive seller’s market.

I believe in 2016 the majority of real estate markets will continue to experience a competitive seller’s market. The competitive seller’s market will be magnified during the spring market, which is when the most number of homes are sold and for the highest price.

It’s important that buyers who are thinking of buying a home in a seller’s market take the proper steps to ensure they are prepared. It’s critical buyers are pre-approved for a mortgage, interview and hire a top buyer’s agent, and be prepared to make a decision if they find a home they love, amongst other things. Buying a home in a competitive seller’s market is not for the faint of heart and procrastinating may mean losing out the perfect house!

Other 2016 Real Estate Trends

Millennial Buyers Will Increase, But Slowly. For many years now, many experts have been predicting a huge influx of millennial buyers coming into the real estate market. While there has been a slow increase of millennial buyers it hasn’t lived up to the expectations.

I believe in 2016 that the number of millennial buyers will slowly increase but not as much as it could, due to student loan debts. The amount of student loan debt that many millennials have creates a crippling effect on their ability to purchase a home.

Gen Xers Will Make Up A Large Portion Of First Time Home Buyers. When many people think about who a first time home buyer really is, they think of someone in their early to mid-twenties. This may have been the case a decade or more ago.

In 2016, I believe that a large portion of first time home buyers will be Gen Xers. A Gen Xer is someone who is in their mid-thirties to late-forties.

Home Buyers & Sellers Will Utilize The Internet Even More Real Estate Information. Every real estate market has experienced a drastic change in the way both buyers and sellers are shopping for homes and information. It is called the internet.

Between 90-95% of home buyers are beginning their search online for real estate information and homes for sale. I predict that this percentage will continue to rise in 2016 with the evolution of real estate websites and their ability to be mobile friendly.

What is not talked about as much is how home sellers utilize the internet for their real estate information. I believe in 2016 homeowners who will be potentially selling their home will be turning to the internet to find information about potential real estate agents to hire but also for tips and tricks on selling a home.

First time home sellers, which is made up by 70% Gen Yers (or millennials), will be the largest percentage of homeowners who turn the internet for real estate information. The internet has impacted every real estate market across the county and will continue to do so each and every day.

Final Thoughts on 2016 Real Estate Market Predictions

The year 2016 should be another great one for real estate markets across the country. As long as the interest rates of mortgages remain stable, buying a house will continue to be a solid investment.

It will be critical in 2016 for both buyers and sellers to have strong representation by a top real estate professional as well as a top mortgage lender, real estate attorney, and other parties who are involved in the transaction!

Keep up with the latest home buyer advice at RochesterRealEstateBlog.com.

“Home Prices to Increase Faster than Inflation in 2016”

Bill Gassett, top producing real estate agent in Ashland, Massachusetts. 

2016 is shaping up to be what I would call a solid but not spectacular year for real estate. I expect inventory levels to remain in balance with demand which will keep home values firm but not so much that we will see a run up in prices.

With interest rates expected to increase, I expect those on the fence about purchasing a home will be very active in the first quarter of the year. Given our cold weather climate here in the Northeast, first quarters tend to be sluggish as many buyers will hold off until the spring. This very well could be different this year as buyers strive to lock in attractive interest rates.

There will be pockets in the market that could really flourish in certain communities in and around the city as well as points north and west of the city. The Metrowest area where I am located will again have certain towns that perform better than others due to desirability of important things such as access to major highways and the quality of the school system.

There of course will be variations from town to town by expect the overall market in Massachusetts to see a small increase in home values. My best guess would be slightly better than inflation or around 3 percent. It is unlikely we will see big swings in the market one way or the other unless interest rates unexpectedly spike or there is some kind of major world event that shakes up the market.

Bill is a top producing real estate agent in Ashland MA which is a suburb about 25 miles west of the city. Bill has been working as a Realtor for the past 28 plus years. See rich home buying and selling content at MaxRealEstateExposure.com.

“No Real Estate Crash in 2016”

Paul Sian, expert agent in Cincinnati, Ohio

With the Federal Reserve (Fed) predicted to start raising interest rates and also continue raising rates at a measured pace in 2016 the real estate market may get a bit of a boost in 2016 as compared to 2015.  The reason for a boost is that buyers who were sitting on the sidelines will be encouraged to start home shopping and buy something before higher interest rates price them out of a home that they can afford.

The Fed plans to stick to a cautious and measured approach to raising interest rates so mortgage interest rate increases will be slow.  As a result there will be dual pressure on the housing market that should keep prices steady.

One side will be pressure for home prices to rise due to a higher demand from buyers wanting to buy before rates go up.  The other side will be the increase in interest rates keeping home prices in check since people will be able to afford less.

Absent any major negative economic event or global problems housing prices should not crash as they did during the late 2000s.

One of reasons for that crash was home financing that used lax credit standards in mortgage lending.  As much as standards for lending money have become more strict, the chances of a price crash is reduced.

On the whole with the economy still showing strength the housing market should be able to absorb any modest interest rate increases without much concern.  Homebuyers should be spurred off of the sidelines to move into the market or risk having to settle for less in the future if interest rates rise enough.  Those looking to sell their home now should be ready to sell come springtime during peak market activity in order to take best advantage of buyer interest.

Paul Sian is a licensed real estate agent in the states of Ohio and Kentucky with over 10 years of experience.  Stay updated on the real estate market and how to buy and sell homes on Paul’s blog.

“Las Vegas could be the Place to Buy a Primary or Second Home in 2016”

Debbie Drummond, Las Vegas luxury real estate agent

The Las Vegas Real Estate market has had quite a ride over the past ten years. Prices have recovered from the bottom but are still 30-40% below the peak. Homeowners who bought in 2005-2008 tend to still be underwater.

The Las Vegas market has had a low supply of homes for sale throughout 2015. In Clark County we’ve got just over a three month supply of homes for sale. This seller’s market that has put upward pressure on prices. Our median price has been hovering around $220K since June. While it seems to be stabilizing over the last few months, it is up 10.1% over this time last year.

The biggest question we have about next year is when will interest rates go up and how much. A year ago, most experts predicted interest rates would rise closer to 5% by the end of this year. That hasn’t happened. Federal Reserve Chair Janet Yellen’s recently hinted that a rate hike may finally happen.

Rising interest rates will work to dampen home price appreciation but it won’t stop it.  Buyers who are sitting on the fence will start buying when they see rates going up. Low inventory combined with demand will bring moderate appreciation. We still feel home buyers are better to buy sooner rather than later. Zillow predicts the Las Vegas market will appreciate 5.8% in 2016. Most agents are not fans of Zillow but this sounds reasonable to us. We wouldn’t be surprised to see 6-8% and that would be a sustainable level.

We’re selling more homes than we did last year. Last month we sold 4.4% more than in October 2015. The increased demand is coming from several sources. Traditional home buyers are playing a bigger role now that investors have pulled back. Homeowners who did short sales and foreclosures are now coming back into the market. We expect this trend to continue in 2016.

In Las Vegas, we’re seeing more baby boomers buying second and retirement homes.  Some had put off buying their retirement home because they needed to sell elsewhere. Now that markets have improved in other areas, retirees are making their move.

The Las Vegas economy is improving. Las Vegas’ 6.8% unemployment is higher than the national average, but still an improvement over 7.4% a year ago. New home builders are having trouble finding workers. New industries, including high techs like Tesla and eBay moving into town. The improving economy with affordable home prices still make this a good time to buy a home in Las Vegas.

Connect with Debbie Drummond and find Las Vegas real estate at TheLasVegasLuxuryHomePro.com.

Buying a Home in 2016?

I hope you found these 2016 real estate market predictions helpful. If you’re interested it checking your home buying eligibility, click here to get your pre-approval so you can make an offer on a home.

MyMortgageInsider.com

The post Real Estate Trends : 2016 Predictions from 6 Leading Experts first appeared on My Mortgage Insider.