We often discuss the difference in family wealth between homeowner households and renter households. Much of that difference is the result of the equity buildup that homeowners experience over the time that they own their home. In a report recently released by the nonpartisan Employee Benefit Research Institute (EBRI), they reveal how valuable equity can be in retirement planning.
Last week, following the Fed’s hike in the rates they charge banks, you might expect a
matching rise in mortgage rates for Central Mass home buyers and refi applicants. If the experts are right, that’s far from a done deal.
The Washington Post headline said it all:
“Mortgage rates move slightly higher but could be headed back down again.”
Mortgage News Daily reported the same: a slight nudge upward, then back down:
“By holding flat, rates remain very close to the best levels seen in more than 8 months.”
The consensus was all but unanimous, with even Freddie Mac predicting that “mortgage rates are likely to follow” Treasury yields; that is, downward.
When the Fed raises the rates banks must pay, it’s only logical to expect the move to echo through the money markets, finally reaching home loan lenders. After all, they must raise rates to maintain the same profit level. But following the Fed announcement, investors drove Treasury rates sharply lower. The reason for the market’s seemingly reverse reaction wasn’t due to the Fed’s move: rather, it was because of “a surprisingly weak” Consumer Price Index report (which the Fed had chosen to ignore). In other words, investors believed the CPI instead of the Fed.
The likely effect on Central Mass home buyers and sellers remains very good news. With Central Mass mortgage rates holding at the “best levels seen in more than 8 months,” more families’ budgets allow moves to bigger and better homes. And for those who read
the Fed rate news and feared it might be too late to take advantage of historically low interest rates, the Mortgage News Daily offered a further prediction about mortgage rates that even “stand a shot at going lower this summer.”
Central Mass mortgage rates do rise and fall daily and knowing for certain where they are headed is famously impossible. As Bloomberg.com noted by the end of the week, “it’s been an especially rough six months” for those charged with predicting trends. What needs no crystal ball to establish is that it now seems likely that this year’s spring-summer busy season will continue to produce real estate bargains that would have seemed almost inconceivable in earlier inflation-ridden decades.
With both sellers and buyers seeing Central Mass mortgage rates that translate into more house for lower monthly payments, it remains prime time to check out the market—and to give me a call!…..Realty Ace, LLC
Many real estate economists have called on new home builders to ramp up production to help relieve the shortage of inventory of homes for sale throughout the United States. The added inventory would no doubt aid buyers in their search to secure their dream home, while also helping to ease price increases throughout the country.
CoreLogic’s latest Equity Report revealed that 91,000 properties regained equity in the first quarter of 2017. This is great news for the country, as 48.2 million of all mortgaged properties are now in a positive equity situation.
The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
As has become traditional on the third Sunday in June, Central Mass fathers can look
forward to being honored and fussed over. For most families, Father’s Day in Central Mass is considered to be every bit as important a celebration as Mother’s Day. At least that’s what most families pretend. But there are two basic reasons why it’s usually an uphill battle.
First, there’s the checkered history. Then, there’s the reality.
HISTORY: Mother’s Day got the jump on Father’s Day because, starting in 1905, its zealous originator (Anna Jarvis) wouldn’t give up on the idea. Because the holiday was dreamed up right at the start of the 20th century, men were exclusively in charge of the calendar and holidays. Since they were men and because telephones were only starting to be installed, most of them had neglected to call their mothers often enough. So when Jarvis pointed out that they had better recognize “the person who has done more for you than anyone in the world,” the men mumbled that they agreed, and Mother’s Day became a national holiday. Then Hallmark got wind of the idea. The rest is history.
Father’s Day, on the other hand, got its start five years later (in 1910). But it waspromoted by Sonora Dodd, who was less zealous than Jarvis. In fact, when Dodd went off to college, she forgot about the idea for a while. It was only in the 30s that she resumed her promotion of a Father’s Day holiday. Then Hallmark got wind of the idea. The rest is history.
REALITY: Regardless of whether or not it’s fair, Mother’s Day has always been taken a notch or two more seriously than Father’s Day possibly because it’s impossible to resist
the idea that mothers deserve to get a day off. (Try arguing against that and you’ll be sent to your room). Everybody knows that from the start, mothers have a harder time than fathers. If you don’t agree, please recall what took place on the day you were born. Fathers’ level of participation during that occasion was optional; not so for mothers.
Additionally, the traditional stereotype for fathers is that they are less sentimental so the Hallmark cards have fewer flowers on them. If so, when you forget to shop for a Father’s Day gift until the last minute, fathers are not supposed to care much. This is a purely sexist argument, but many fathers have learned to pretend it’s true. Even Wikipedia says that all you have to get for Father’s Day is a necktie or “something mechanical.”
Here in Central Mass, Father’s Day celebrations may involve letting Dad watch sports on TV, go golfing, or generally just goof off. The best part will be if the family can gather ‘round to let the Old Man be proud of them. But if he can’t be there, it’s a day to doubly recall why Father’s Day really is a day that deserves to be celebrated!…..Realty Ace, LLC
As home values continue to rise, some are questioning whether we are approaching another housing bubble. Zillow just reported that:
In a blog post published last Friday, CNBC’s Diana Olnick reported on the latest results of the FAU Buy vs. Rent Index. The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers at FAU use a “‘horse race’ comparison between an individual that is buying a home and an individual that rents a similar-quality home and reinvests all monies otherwise invested in homeownership.”