CENTRAL MA BORROWERS SEE SLIGHT FALL IN MORTGAGE INTEREST RATES

It was fairly clear that the table had been set for last week’s Federal Reserve meeting to

mortgage interest rates
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result in a minimal rise in mortgage interest rates. Their Fed Funds rate directly influences the mortgage interest rates that banks observe. Since Central MA real estate activity can be spurred or dampened by the monthly payment amounts Central MA mortgage lenders offer applicants, this national story has meaningful local repercussions.

It wound up as a non-event that nonetheless spawned action—albeit in a minor way. In May, Chair Yellen had said that a rate increase would be “appropriate” over the summer months. In the lead-up to last week’s meeting, other Fed governors had strongly implied that it was now time for a slight Fed Funds bump.

Still, most commentators kept their prognostications vague; they had been vociferously anticipating a move for many cycles, only to hear serial postponements from the Fed. In addition to having been burnt before by Fed head fakes, there was also another reason why a no-go might happen this time around. Regardless of what the jawboning had been, economic and employment growth was still stuck in first gear—and a rate hike could retard improvement.

The commentators weren’t wrong to hold fire. Once again, the Fed did nothing (except make even more noise about an interest rate hike…later).

Yet, even so, the market forces that nudge mortgage interest rates one way or the other did seem to react. After the non-announcement, rates barely budged at first—but then continued steadily lower (the lowest in weeks, in fact). By week’s end, the Mortgage News Daily announced that the string of moves had brought mortgage interest rates into a “post-Brexit range”—similar to the conditions “that sent rates plunging toward all-time lows.”

The reasons last week were less than certain, although frustration with the Fed’s lack of coherence was fairly unanimous. CNBC interviewed big time investment manager Bill Gross, who said that investors were left “very confused” by the meeting’s outcome. He

Home Mortgage Rates
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pointed to the likely rate raise that Yellen had emphasized at last month’s Jackson Hole speech, as well as to Fed Vice Chair Stan Fischer’s earlier assurance that there would be two hikes this year.

All this left Central MA mortgage interest rate watchers to make their own assessments about what to expect for future conditions—most importantly, whether current favorable low interest rates could be counted on for long. There had been at least one indicator that optimists could welcome. Almost unnoticed was a footnote to the Fed’s announcement. Back in June, the Fed had predicted the lending rate to end 2016 at .9 percent. It now said the likely number would be .6%. That would result in Central MA mortgage interest rates still comfortably in the historically low range—hardly a flashing red light for would-be borrowers.

Wherever the Fed heads eventually, it’s indisputable that right now Central MA mortgage interest rates remain fetchingly low—creating rare opportunities for buyers and sellers both. Why not give me a call to explore how you can take advantage today?…..Realty Ace, LLC

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THE COST OF NOT OWNING YOUR HOME

The Cost of NOT Owning Your Home | Simplifying The Market

The Cost of NOT Owning Your Home

Owning a home has great financial benefits. Because of this, more and more experts are growing concerned about the ramifications of a falling homeownership rate. Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

MORTGAGE STANDARDS EASING TOO MUCH? NO!!!

Mortgage Standards Easing TOO MUCH? NO!! | Simplifying The Market

Mortgage Standards Easing TOO MUCH? NO!!

There is no doubt that getting a mortgage is easier today than it was right after the housing crash a decade ago. However, the easing of credit availability has led to some questioning of whether or not we are headed for another housing crisis.

INTEREST RATES REMAIN AT HISTORIC LOWS…BUT FOR HOW LONG ?

Interest Rates Remain at Historic Lows… But for How Long? | Simplifying The Market

Interest Rates Remain at Historic Lows… But for How Long?

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

CENTRAL MA “FSBO” SELLERS RIDE THE BUS (BUT PAY FOR A LIMO)

Once you have decided to sell your Central MA home, one of your first action items is to

For Sale By Owner Real Estate Sign and Beautiful House.
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recruit a good REALTOR®. About 90% of sellers choose a licensed REALTOR® to head up their effort, not just because it’s the popular thing to do, but because the alternatives are few. You could recruit a business person from some other discipline, but few do that. Most in the minority group decide to do it all themselves; to go the FSBO route: “For Sale By Owner.”

The reason for settling on this choice is usually a dollars and cents one: to eliminate the real estate commissions. Any home sale in Central MA is a weighty transaction, so pocketing that percentage looks like a businesslike decision. It usually does have financial ramifications, but not necessarily the kind that the FSBO seller was hoping for:

  1. Statistics tell us that fewer than 3% of home buyers hear about their ultimate purchase directly from the seller. Missing out on 97% of prospective buyers greatly diminishes the chance that more than one party will compete to buy the property.
  2. The longer a property lingers on the market, the lower its ultimate selling price is likely to be. Interviews confirm that only 1 in 8 FSBO sellers succeed in selling within their planned length of time…
  3. …and even fewer “get what they consider the right price.”
  4. Advertising expenses have to be paid by the seller. There is $5.95 for a front yard FSBO sign, plus $2.35 for the wooden stake that holds the sign up. If no additional advertising expenses are incurred, it means there is no advertising; with likely outcomes described in 1, 2, and 3.
  5. If the Central MA FSBO seller has regular job responsibilities, the time devoted to handling prospects and addressing the business and legal ramifications that accompany a residential real estate transaction can become costly distractions. High among the tasks past FSBO sellers rated most difficult was “understanding and
    Sale of real property
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    performing the paperwork.”

  6. The average price of a FSBO sale is 75% of one carried out by a professional.
  7. Even if a sale is accomplished, the premium gained may be less than anticipated. Since the buyer is likely to be represented by a buyer’s agent, the hoped-for savings are cut in half.

A positive financial result is the usual reason for most Central MA FSBOs; but too often it’s the opposite result of the one intended. You might say that the FSBO strategy should really only be attempted by those for whom money is no object. In effect, the vast majority of FSBOs who do sell get the satisfaction of selling without a pro but not the financial reward.

I suggest that you give me a call for a free consultation when it’s time to sell your own Central MA property!…..Realty Ace, LLC

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WHY PEOPLE USE A BUYER’S AGENT

A  huge-proportion of serious Central MA house hunters ultimately decide it makes the

Real estate agent shows details to customers
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most sense to team up with a real estate professional to get the job done. Worcester County buyers may begin the process of finding and buying their next home on their own, checking through the online listings or driving target neighborhoods to check out the “For Sale” signs, but the NAR® reports that 9 out of 10 of U.S. buyers will eventually use a real estate agent in their search process.

The most obvious motivation for that is because the buyer’s agent’s fee is paid from the seller’s proceeds. That alone could explain a 90% level of popularity. When you can benefit from a professional’s services at no cost to yourself, Central MA house hunters would have to think long and hard to come up with what the downside could possibly be. To run down the arguments that could explain how 10% might decide to pass up the buyer’s agent service, I looked for the most common arguments against the grain.

Here are the Top Four, presented in no particular order. (Since I definitely do have an interest in this fight, I’ve also included some counterarguments):

  1. Distrust. Something for nothing? A free lunch? Common sense teaches the same lesson, always and forever: THERE’S NO SUCH THING AS A FREE LUNCH! (Counter: the service is not free: the seller pays).
  2. Independent Spirit. Some people know that they work and think better when they take sole responsibility. They may have been misled by “experts” too many times and may regret not relying upon their own instincts. After all, Americans are individualists by nature: they are at their best using their own native ingenuity to solve problems. (Counter: a substantial portion of the process of purchasing a home in Central MA requires mastering technical legal and timing requirements. Although a buyer can take the time to learn about all of them, since their buyer’s agent has already handled them successfully many times, it’s wasted effort. IOW, this is a wheel that doesn’t need to be reinvented).
  3. Commitment. If asked to okay an agreement that spells out the ground rules for working with a buyer’s agent, it’s as if a commitment is being forced prematurely.
    Happy girl given house key - indoor
    “© Creativa Images/Adobe Stock”

    After all, who knows for certain that the right area house at the right price is even out there? It just feels like putting the cart before the horse. (Counter: this is never a commitment to buy, just an agreement for how the search and commission will be handled if a suitable home is found and purchased. The buyer can make sure the arrangement can be severed without penalty if the service is not satisfactory).

  4. Motivation. Since a buyer’s agent will profit from any sale they’ll try to sell me anything. (Counter: Every buyer’s agent is legally and ethically duty-bound to represent their client’s interests—plus, since their entire career is utterly dependent on their reputation, their interests align).

Whenever I represent any buyer, my motivation is 100% that of helping them reach their desired outcome. Reaching that goal—finding the right Central MA home, then negotiating and closing at the right price is the way I keep the phone ringing. See for yourself by giving me a call!…..Realty Ace, LLC

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NEW CONSTRUCTION NUMBERS: NOW VERSUS 2005

New Construction Numbers: Now Versus 2005 | Simplifying The Market

New Construction Numbers: Now Versus 2005

There is some thinking that the pace of the housing recovery is unsustainable and that we may be heading for another housing bubble. However, Jonathan Smoke, the Chief Economist of realtor.com explains the basic difference between 2005 and today:

IS THE CURRENT PACE OF HOME SALES SUSTAINABLE?

Is the Current Pace of Home Sales Sustainable? | Simplifying The Market

Is the Current Pace of Home Sales Sustainable?

There are some experts questioning whether the current pace of residential home sales is sustainable. Are too many people buying homes like in 2004-2006? Are we headed for another housing crisis? Actually, if we look closely at the numbers, we can see that we are looking at a very healthy real estate market.

5 REASONS TO SELL THIS FALL

5 Reasons to Sell This Fall | Simplifying The Market

5 Reasons to Sell This Fall

School is back in session, the holidays are right around the corner, you might not think that now is the best time to sell your house. But with inventory below historic numbers and demand still strong, you could be missing out on a great opportunity for your family.