Low Mortgage Rates Are Lingering

Low Mortgage Rates Are Lingering

 

The average percentage rates for fixed-rate mortgages inched up slightly this week, but continue to hover near yearly lows.

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 11:

  • 30-year fixed-rate mortgages: averaged 4.12 percent, with an average 0.5 point, up slightly from last week’s 4.10 percent average. Last year at this time, 30-year fixed-rate mortgages averaged 4.57 percent.
  • 15-year fixed-rate mortgages: averaged 3.26 percent, with an average 0.5, rising from last week’s 3.24 percent average. A year ago, 15-year fixed-rate mortgages averaged 3.59 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.99 percent, with an average 0.5 point, rising from last week’s 2.97 percent average. Last year at this time, 5-year ARMs averaged 3.22 percent.

1-year ARMs: averaged 2.45 percent, with an average 0.4 point, rising from last week’s 2.40 percent average. A year ago, 1-year ARMs averaged 2.67 percent.

 

My 2 cents – Talk around the water cooler is interest rates will rise since the market has recovered. So if you’re thinking about investing in real estate – the Spring/Summer rush has cooled and Autumn is a great time to find investments with not as much competition. If a property is for sale over the holidays it needs to sell – and we’ve assisted several clients buy homes during the off season for a great price compared to earlier this year.

 

I read this article at: http://realtormag.realtor.org/daily-news/2014/09/12/low-mortgage-rates-are-lingering?om_rid=AACmlZ&om_mid=_BUEz4EB88ZKvTn&om_ntype=RMODaily

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

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Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ Office BRE# 0149900

 

4 Saving Solutions for Buyers on a Budget – had to share this article

Buying – rather saving to buy a home, especially on the San Francisco Peninsula take time and patience.  I too am in the same boat as my clients while I save for our next purchase.  That will explain why you don’t see me out to dinner as much!

I came across this article from Tara at Trulia and thought it easier to share than write my own.  Great points made to save and get a better picture of your monthly financials.  Enjoy and share your thoughts!

 

4 Saving Solutions for Buyers on a Budget

Most folks do all the math they can find online about how much house they can afford. Then they think about what they are currently paying in rent and how much they’d be comfortable going up from there, if any. Finally, they hit up the mortgage broker, have them run the numbers and get some final, definitive answer on what the bank will allow them to finance and spend.

Somewhere amongst all those numbers they pick a price that sits well in their heart, their mind and, hopefully, their monthly budget, as a maximum home purchase price – complete with its corresponding monthly expenses like taxes and insurance.

Unfortunately, there are a few critical line items that commonly slip through the cracks of one or more of these calculations. Our mortgage pros only know what they have in front of them, which is mostly based on expenses that show up on our credit reports or loan applications. Additionally, when it comes to our DIY budgets, we often create our household spending plans based on our ideal spending patterns, vs. our actual ones.

One critical exercise to do before you lock in a price range is to look back at your bank statements and spending breakdowns from the preceding few months to see how your actual spending measures up against what you think it should be. Find the places where you need to either adjust your spending or your budget to reflect reality before you buy a home. The other critical exercise is to understand what expense categories should be factored into your calculus on how much house you can afford, even though they are commonly viewed by budget software and banks as discretionary or even luxury line items.

Here are four of those overlooked expense buckets to make sure you consider:

1. Essential “Extras.” Sometimes what we say is important to us is slightly different than what is really important, but I believe you can tell what someone values by what they invest their time, energy, love and money in. So, it’s no surprise that there are lots of meaty expenses that some home buyers-to-be see as essential which a bank or even a financial planner might not have on their radar screen.

Just a few of those items include:

▪   Charitable giving and religious tithes, dues and offerings

▪   Expenses related to caring for an aging parent

▪   Non-western health cares and therapies that are not covered by your insurance, like acupuncture, massage and chiropractic.

I call these out in particular because they are categories which millions of Americans spend hundreds or thousand of dollars on every month – and because there might be no place to even enter such an expense on a loan application or budget software. If you invest a great deal of cash into these items and value them enough to keep doing so after you close escrow, make sure you factor them into your own decision making about what you can afford. It’s permissible – even advisable – for your personal price max to be a lot lower than what the bank deems your top dollar.

2. “Superfluous” Cushion Stuffing. Ding dong, the recession’s over, folks! And we made it through. But during those long, dark years, many people cut back on investing and saving for rainy days and retirement days alike. If that’s you, and your personal economy has recovered enough to support buying a home, congrats! Just make sure you circle back to those recession-era cutbacks and correct for them before you increasing your monthly housing spend. You might want or need to save more than traditional financial guidelines would suggest in order to reposition your retirement or to fluff your cash cushion back up to your personal comfort level.

Make sure you don’t overextend yourself on a home without accounting first for stuffing the cushion(s) you’ll need in the future.

3. Enriching Experiences. Buying a home is one of the single-most high ROI (return on investment) life enriching experiences a person can have, if it’s done smartly and sustainably. But lots of us also invest lots of dough into other enriching experiences, and want to avoid being so cash poor we can’t afford any of them after escrow closes.

Some of the big-ticket items that you might be expending cash on to engage in include:

  • Travel, vacations and family outings
  • Trainers, coaches and therapists
  • Yoga and mind-body wellness activities
  • Retreats and workshops
  • Schooling, conferences, basic and continuing education

If you decide you’re willing to cut back on these sorts of things or forego them entirely to redirect those funds into your home, that’s fine. Just make sure you go into that decision with eyes wide open, while you still have time to decide to spend less so you can continue to engage in these enriching activities.

4. Kid-related Cash Outlays. The honest-to-goodness truth about kidlets is as follows: they cost. Sure, the rewards of parenthood are well worth the cash expenses, but the costs are considerable and are often overlooked when it comes time to list out the line items relevant to how much you can afford to spend on housing. The big ones generally get on the list, like monthly child care for very young children and private school and college tuition for the older ones.

Lots of others get lost in translation of your ideal spending categories and allocations against where your money really goes on a monthly basis. Items that often get underestimated or flat-out omitted in this category include:

  • Extracurriculars – language lessons, music lessons, clubs and classes
  • Gear and equipment – all the gear they need to engage in the above, but also things like pricey school books and educational electronics
  • College Savings – Whether or not you have a formal 529 plan, if you have children you hope to help pay for higher education, you should be allocating some level of regular savings for this.

ALL: What sneaky expenses have you underestimated when trying to build out a budget or understand what you can really and truly afford to spend on housing?

I read this article at:  http://www.trulia.com/tips/2014/03/4-saving-solutions-for-buyers-on-a-budget/?ecampaign=cnews&eurl=tips.truliablog.com%2F2014%2F03%2F4-saving-solutions-for-buyers-on-a-budget%2F

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

 

New Fannie Mae/Freddie Mac mortgage rules to reduce buyer purchasing power

New Fannie Mae/Freddie Mac mortgage rules to reduce buyer purchasing power

A New Year’s gift from Fannie Mae and Freddie Mac: higher mortgage rates!

Fannie and Freddie recently announced a 10-point increase in the guarantee fee paid by lenders for loan commitments, effective on mortgages with commitment dates on or after April 1, 2014. The fee isn’t directly charged to homebuyers, but you can bet lenders are going to pass the extra cost along in the form of higher interest rates.

Plans to increase Fannie and Freddie’s guarantee fees have been loosely imminent since 2012. Still, the implementation of higher fees comes at a bad time for California’s housing market, which is still reeling from:

▪ a mid-2013 hike in mortgage rates that continues to hold on; and
▪ too-high home prices, brought about by rampant speculation in 2013.

Of course, Fannie and Freddie’s reasons for raising fees is sensible: they want more money to offset the risk associated with their business of guaranteeing home loans (made all the riskier in the aftermath of the housing crash and following foreclosure crisis). More money means becoming independent of U.S. taxpayers sooner. But their timing is questionable.

Buyer purchasing power is at an all-time low as of December 2013. Homebuyers qualify for 10.4% less principal when purchasing a home with the same income compared to a year ago, due to higher mortgage rates alone.

This is not only bad news for homebuyers in 2014, but it’s just another headwind facing California’s slow, bumpy plateau housing recovery.

Congressman Mel Watt, who replaced Edward DeMarco as head of the Federal Housing Finance Agency (FHFA) earlier this week, is pushing to delay the increases until later in the year. If he’s successful, he’ll kick the can down the road a ways – but it’s coming.

What can agents do with this news?

First, educate your homebuyer and seller clients about the coming rise in mortgage rates. Knowing that rates will rise in the coming year may give them a needed push to buy or list before the rate hikes arrives and reduces buyer purchasing power further.

Second, caution your homebuyer when the inevitable temptation to turn to adjustable rate mortgages (ARMs) arises. ARMs are not for everyone, though the low teaser rates they offer lure homebuyers to look past their drawbacks. Generally, buyer incomes cannot keep up once the teaser rate expires and the new ARM rate increases – and it’s just the beginning of the next 30-year cycle of climbing mortgage rates.

Interest Rates we cannot control – and it is frustrating to see our clients purchase power diminish with each increase. We are not kidding when we say the market is constantly changing. If you are on the fence about buying, come in and chat with us. The Caton Team is happy to answer questions and simply help you make the right decision. Because we cannot control interest rates increasing, or demand increasing, but you have control over your finances and the ability to work your dream into a reality.

I read this article at: http://journal.firsttuesday.us/new-fannie-maefreddie-mac-mortgage-rules-to-reduce-buyer-purchasing-power/31671/

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

Want Real Estate Info on the Go? Download our FREE Real Estate App: http://thecatonteam.com/mobileapp

Visit our Website at: http://thecatonteam.com/

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

A Cinderella Story – Michael and Two Condos

A Cinderella Story – Michael and Two Condos

With 25+ years of combined Real Estate experience, The Caton Team is blessed with working with our clients one home after the other.

When Michael bought his first condo with Susan years ago – it was only natural for him to call her again now that he was ready to buy his next home.  By now Susan & I had teamed up and I had the joy of working with Michael as well.

Such a professional and patient gentlemen, we started our journey early in 2013.  Faced with limited inventory and competition we took our time to find choice properties and enjoyed finding the right condo complexes that would fit his lifestyle.

Finally on a sunny Tuesday we found a great 2-bedroom 2-bath condo in San Mateo.  It was a short sale but we were up for the task.  Offer in, up against three other offers – we were so happy to let him know his offer was accepted.

Then the wait begins.  For a short sale, the seller has a long to-do list.  Great clients do what they need to do to get a short sale approved.  Other types of people brush their responsibility off.   We knew short sales take time to get approved.  We knew short sales are a LOT of work. Each week we checked in with the seller’s agent and received short and useless updates.  We grew suspicious and Susan hit the Internet to do some investigating.  Much to our surprise, the unit was set for foreclosure auction the following day!  Quickly The Caton Team reached out to the seller’s agent to implore the urgency of a true update.  Sadly, not all Realtors are created equal and this particular agent brushed us off again.  We did all we could do as the buyer’s Realtor and the following day, with baited breath, we watched the auction site to see if it would be postponed.  Right before our eyes the unit was sold at auction.  When we called the sellers agent to get a handle on this situation – she kindly hung up the phone.

Without missing a beat Susan called Michael and we hit the ground running looking for a new home.  It didn’t take long, another unit, very similar to the one we just lost, was for sale – but they were taking offers the following day!

Michael is a trooper; he met Susan at the home the next morning, saw it, wrote the offer and submitted by the deadline.  By that evening we had the joy of telling him is offer was accepted!  Within less than 24 hours we went from bad news to fantastic news.

It ain’t over till it’s over though – that is a fact.  As the escrow proceeded we had a hiccup – the unit did not appraise for our offer price….which was less than the last sale of an identical unit.   When interest rates went up – the market had turned from a sellers market early in the year to a different market in a matter of weeks.  The appraiser was cautious – and we can’t blame him for being prudent.  No one wants another bust!  Thankfully both the listing agent and the sellers understood the situation and we were able to re-negotiate a win/win deal that evening.

The best feeling in the world is handing over the keys.  Though it was a long and bumpy ride, The Caton Team was able to get our client a better home and in the end Michael is happy – and that makes everything worthwhile.

How can The Caton Team help you?

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call The Caton Team at 650-568-5522

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Importance of Working with a Good Lender

The Importance of Working with a Good Lender – by Sabrina

Buying a home is serious business; especially on the San Francisco Peninsula where even a one bedroom condo can run about half a million bucks.

And in an industry where time is money and money talks, from time to time I will encounter a lender – that offers great rates and low fees – upfront.  And no customer service when you really need it.

Much too often a buyer is tempted to get the best rate – without really considering the whole picture.

Unless you are paying cash – the home loan is the most important aspect of buying a home – aside from the home itself.

So when taking into account that a home is generally the largest purchase of a person’s life – shouldn’t we work with a bank that treats it with the same respect?  YES!

There are hundreds of steps from finding the home to getting the keys.  The loan is probably the largest hurdle aside from home inspections.

Once a buyer’s contract is accepted by the seller – it’s rush time.  Most offers have a time frame – called a contingency period – to have the bank do their appraisal and have the loan/purchase terms reviewed and approved by underwriting.  It can be as long as 17 days in a buyers market – or as short as 5 days in a sellers market.  And this is where we separate the men from the boys.  Some of these out of state or on-line lenders are not located here – where one is buying – and it can be extremely difficult to get information and approvals done when they close shop at 5pm and it’s only 2pm here!

That friendly voice that quoted a buyer a fantastic rate isn’t calling us back anymore…..and when they do it’s often not what we were hoping to hear.  For example, they need more time to review the file – therefore we need to push back the close of escrow date – which seems easy – but again – time is money.   The seller is expecting the buyer to perform to the terms of the contract and it’s not worth losing a home due to a lackluster lender…..and changing lenders mid way is generally not an option.

So – what can a buyer do to be competitive?  Work with a local lender.  Once your credit is pulled the first time – a consumer has 30 days to loan shop without hurting their credit score.  So do it!  Loan shop the whole month and find the best rate, the best fees and make sure the lender is attentive, local and can move at the pace the current market is dictating.

The Caton Team has a list of Client Approved Lenders – so please reach out to us and we’ll introduce you to the team.

Got Questions? – The Caton Team is here to help.  What can we do for you?

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

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Please enjoy my personal journey through home ownership at:

http://ajourneythroughhomeownership.wordpress.com/

Thanks for reading – Sabrina

6 Wills, Won’ts and Worries of 2013 Home Buyers…. great article – had to share…

When I read this – I just had to share….

 

6 Wills, Won’ts and Worries of 2013 Home Buyers

 

Trulia Article By Tara-Nicholle Nelson

If you’ve ever taken up running, you might know what it’s like to strap on your new shoes, head over to the track and take those first few strides, then feel a pain in your chest, heaviness in your feet and possibly, actually see stars. Maybe your last steps off the track were accompanied by the thought process: “Either I’m crazy, or runners are.”

Until you have talked to a legitimate, dyed in the wool runner and told them your story, explaining why you detest running with every iota of your being you won’t know the runner’s secret: everyone feels that way at first. It’s the normal physiological adjustment to the increased load you’re putting on your cardiovascular and musculoskeletal systems, this pain you felt when you took those first few steps.  It goes away in just a moment, if and only if you keep on running.

Sometimes, knowing that others react to a tough situation by feeling the same emotions, thinking the same thoughts, or doing the same things you do flat out helps you feel less crazy, panicked and out of control of your situation. It’s the concept behind support groups but, last I checked, there really isn’t such a thing as group therapy for home buyers. (Well, some would say that’s what Trulia Voices is for, but I digress.)

Today’s rapidly rising prices and generally volatile market does make things tough for buyers, so we thought we’d systematically explore – and then share – what’s going on inside the minds of the buyers on today’s market.  Hopefully, sellers will find some insights for marketing their properties, too.

Fresh off the presses, here are some of the insights and takeaways from our latest American Dream Survey, pinpointing the things today’s buyers worry about, will and won’t do in their quest to get their own corner of the American Dream: a home.

Worry:  Mortgage rates and prices will rise before I buy.  Trulia’s Economist Jed Kolko reports that “the top worry among all survey respondents who might buy a home someday is that mortgage rates will rise further before they buy (41%), followed by rising prices (37%).”  The worry is valid, given the fact that the market was depressed for so long and has a long recovery road ahead of it.  It’s compounded by the fact that buying a home has gone from something that used to take a month or two and now routinely takes 6 months, 9 months, a year or even longer!

Here’s the deal: you can’t stop prices from rising. And fixating on this particular fear poses the potential pitfall of  rushing to buy or making compromises that will turn out badly in the end.  Don’t dilly dally, if you’re ready and in the market, and don’t mess around making lowball offers with no chance of success.  But otherwise, don’t let this fear drive your buying and timing decisions.

Will:  Be aggressive. B. E. Aggressive. Economist Kolko explained, “among survey respondents who plan to buy a home someday, 2 in 3 (66%)  would use aggressive tactics such as bidding above asking, writing personal letters to the seller, or removing contingencies, to name a few.”  What buyers do and don’t do in the name of aggressively pursuing their dream homes (and, consequently, what sellers expect) is slightly different in every town.

Knowing that other buyers are facing down the same challenges you are and coming up with similar, aggressive solutions can help you feel a little less crazy about your thought processes and emotions and the desperate measures that come to mind when you hear how many others think “your” home is their dream home. And that puts you back in control of what can sometimes feel like an out-of-control situation. Reality check: you are 100% in the driver’s seat when it comes to how aggressive you want to be in your pursuit of any given home, and which specific tactics you leverage in the course of that pursuit.

Worry:  I won’t find a home I like.  Forty-three percent of people who plan to buy a home in the next 12 months expressed the concern that they might not be able to even find a property they like. Perhaps these people were just seriously persnickety, but I suspect there’s a bigger issue at play here.  All of us can find a home we like, but whether there’s anything we like enough to buy in our price range is a completely separate issue.

This worry, then, seems to be closely related to the fear of rising prices – buyers are rightfully fearful that home value increases will put their personal dream homes out of their price range. This is why it’s super important to:

  • be aggressive about seeing suitable properties as soon as they come onto the market
  • work with an agent whose offer pricing advice you trust
  • adjust your house hunt downward in price range if the market dynamics include lots of over-asking sales prices, and
  • not to let months and months go by while you make lowball offers or otherwise be slow to  come to the reality of what homes are actually selling for in your area.

The sooner you put yourself seriously in the game and make reality-based offers, the more likely you’ll be able to score a home you like in your price range.

Worry:  I will have to compete with other buyers for the home I like. Twenty-seven percent of those who plan to buy at some point in the future and 32% of those who plan to buy in the next year said they feared the prospect of facing a bidding war. This worry is well-grounded. In California, the average property receives four offers – but stories of dozens of offers abound. And it’s not just a West Coast phenomenon: buyers from coast to coast trade tales of getting outbid and having to throw in their firstborn child, lastborn puppy and most precious earthly possessions just to get into contract.

Truth is, market dynamics vary from town to town, and even neighborhood to neighborhood, but if you’re buying on today’s market or planning to buy anytime soon, bidding wars, multiple offers and over-asking sales prices are a reality you will probably have to factor into your house hunt.

Won’t:  Bid way more than asking.  Only 9 percent of wanna-be buyers said they would bid between 6 and 10 percent over the asking price for a property. This finding surfaces the uber-importance of checking in with an experienced local agent to get a briefing on precisely how much over asking homes are selling for in your area.  This empowers you to tweak your online house hunting price range low enough that you can make an over-asking offer and be successful without breaking the bank.  And once you’ve gotten a reality-based estimate of the over-asking norm, it will loom less ominously in your mind’s eye as a potential American Dream-killer.

Worry:  I won’t qualify for a mortgage.  Thirty percent of all people who identified themselves as planning to buy a home in the future said they were worried they might not be able to qualify for a home loan. (Interestingly, only 25 percent of buyers in hot markets like Oakland and Las Vegas expressed this concern – rapidly rising prices and knowing lots of other buyers are closing transactions in your town seems to ease this fear.)

Of all the worries on the list, this is the one over which a smart buyer has the most power. So exercise it! Work with a mortgage broker who was referred by friends, family members or an agent you trust.  And ideally, work with them months – even a year or more – before you plan to buy.  They can help you put an action plan in place around boosting your savings and credit score, and minimize your debt and credit dings, that you can work to minimize mortgage qualifying dramas when the time is right. They can also help give you a stronger sense of what you can afford vis-a-vis your income, to help you anticipate any challenges related to what sort of home your dollar will buy in your market.

ALL: What worries do you have about today’s market? Which steps are you willing to take in your quest to achieve the American Dream?

I read this article at:  http://www.trulia.com/blog/taranelson/2013/07/6_wills_won_ts_and_worries_of_2013_home_buyers?ecampaign=cnews20+and1308A&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2013%2F07%2F6_wills_won_ts_and_worries_of_2013_home_buyers

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call The Caton Team at 650-568-5522

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Instagram: http://instagram.com/sunshinesabby/

Pintrest: https://pinterest.com/SabrinaCaton/

LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

What Will Waiting to Buy a Home Cost You?

What Will Waiting to Buy a Home Cost You?  Great article from Realtor.com

At the end of June, mortgage rates for a 30-year fixed-rate mortgage jumped to 4.5 percent, up from 3.9 percent on June 1 — and a notable jump from the historically low 3.35 percent monthly average rate toward the end of 2012. However, while higher rates do mean an increase in monthly mortgage payments, experts are urging potential home buyers not to resign themselves to renting for the next few years just yet — it’s still a good time to buy a home.

These moderate increases in payments may still be manageable, particularly if buyers look at less expensive properties, or negotiate a lower price.

For example, the difference in monthly payments for a $200,000 home at 3.9 percent and one at 4.5 percent is just $70.03. If budgeted correctly, this could be a manageable expense.

Rick Allen, chief operating officer of Mortgage Marvel, is one expert who says now is still the time to buy a house. His platform records online mortgage loan applications, about a million transactions a year, which serves as a barometer for how well the housing market is doing. He says that refinances are down, as to be expected with a rate increase, but that “shouldn’t scare people off.”

“Relatively speaking, rates are still at or near historic lows,” says Allen. “A 4.5 percent mortgage is still an incredibly attractive rate at which to finance a home. From a real estate perspective, we’re not far off from recent lows, and we’re heading to improve real estate values. The combination of those two factors make this still a good time to buy.”

As the unemployment rate continues to decline, Allen says we’ll see more potential homeowners enter the market as well. Though Allen says “theoretically, rates could go through the roof or back down to the floor” but he personally believes we’ll see rates around 5 percent through the end of the year.

This is the early stage of the recovery of the housing market, and the rising interest rates encourage potential home buyers to be more decisive, and act quickly. As more homes are bought, supply decreases, so prices may rise even further. So if you’ve been thinking about buying a home, don’t lose your confidence, but it may be prudent to act quickly as rates continue to rise.

My 2 Cents

I couldn’t agree more – and I am NOT trying to fear monger.  The truth of the matter is – no one has control of the Real Estate market.  We as a collective influence the market by our actions or lack of – but it the end – the market will move at its own pace.  In our experience, those trying to figure it out or ‘play the game’ generally miss the boat of opportunity. 

Instead The Caton Team has our clients consider what their overall plan is, and generally having a home to live in is pretty high on their list.  So we tackle the market in the moment and do our best to achieve their goal of homeownership. 

I read this article at: http://www.realtor.com/news/what-will-waiting-to-buy-a-home-cost-you/?cid=EML301130

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Thanks for reading – Sabrina