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
© eteimaging/Adobe Stock

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
© freshidea/Adobe Stock

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

fair housing logo

WHY WE NEED A “PHIL DUNPHY” ON OUR SIDE

Why We All Need A ‘Phil Dunphy’ On Our Side | Simplifying The Market

Why We All Need A ‘Phil Dunphy’ On Our Side

Whether or not you’ve ever seen an episode of Modern Family, or know who Phil Dunphy’s character is, the concept of knowing that you have someone in your corner who is looking out for your best interests is something we all want.

US HOUSING MARKET MOVING FURTHER INTO “BUY TERRITORY”

US Housing Market Moving Further into ‘Buy Territory’ | Simplifying The Market

US Housing Market Moving Further into ‘Buy Territory’

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the U.S. housing market has continued to move deeper into buy territory, supporting the belief that housing markets across the country remain a sound investment.

4 REASONS TO BUY THIS FALL

4 Reasons to Buy This Fall | Simplifying The Market

4 Reasons to Buy This Fall

It’s that time of year; the seasons are changing and with them come thoughts of the upcoming holidays, family get-togethers, and planning for a new year. Those who are on the fence about whether or not now is the right time to buy don’t have to look much further to find four great reasons to consider buying a home now, instead of waiting.

5 STATS THAT PROVE THE REAL ESTATE MARKET IS GETTING STRONGER

5 Stats that Prove the Real Estate Market is Getting Stronger | Simplifying The Market

5 Stats That Prove the Real Estate Market Is Getting Stronger

Whenever there is talk about an improving housing market, some begin to show concern that we may be headed toward another housing bubble that will be followed by a crash similar to the one we saw last decade.

CENTRAL MA MORTGAGES MAKE THE BEST KIND OF DEBT!

If you have ever looked at your Central MA home’s mortgage balance and thought, “Yikes!

Mortgage written on Golden Keyring.
“© tashatuvango/Adobe Stock”

That’s a lot of money!” you’re not alone. Such a gulp-inducing moment can be triggered by listening to one of the celebrated financial gurus explaining personal finance. Much of the latest financial wisdom is aimed at extolling the virtues of an entirely debt-free existence—which would seem to preclude any six-figure home loans on the family ledger.

For most every Central MA family in the early or middle years, that debtless goal, although it pencils out as a good idea, is pretty much unattainable. If owning makes more financial sense than renting (it almost always does), unless the family can operate from a garden shed, taking on a home loan is unavoidable fiscal reality. Since home ownership is the acknowledged path for making headway when it comes to shelter, is there a good reason to worry about the mortgage that goes with it?

Daniel Bortz, a reporter in the Finance section of realtor.com, came up with “8 Surprising Facts” about mortgages, a few of which should serve to alleviate any free-floating anxiety homeowners might associate with their Central MA mortgages; even hefty ones. Here are three that may or may not be very “surprising,” but in any case, certainly are relevant:

  • Mortgage interest rates can get really high…

In October 1981, mortgage interest rates averaged 18.45%! When you take a look at your typical 2016 mortgage statement, and note how low your current monthly interest payment is, “Yikes! That’s a lot of money” should become, “Yikes! What a great deal!”

  • Even billionaires like Mark Zuckerberg have a mortgage

This could be the most anxiety-alleviating surprising fact of all. The Facebook founder refinanced his home with an adjustable-rate mortgage (the kind financial gurus tell you is the riskiest way to go). He refinanced a 1.75% adjustable with a new 1.05% adjustable, a

Mortgage concept with alphabet
“© Andrey Popov/Adobe Stock”

maneuver that saves him $1,981 a month! Why, since he could obviously pay cash for any property, would he take a mortgage at all? It could have something to do with the tax advantage home loans feature.

  • People celebrate their last mortgage payment in bizarre ways

This is hardly surprising but does bear indirectly on why your Central MA mortgage should be little cause for financial anxiety: it’s going to eventually disappear! And since the asset (the house) is counted as a positive which balanced the liability (the mortgage), month by month that liability gets smaller as the value you own grows. The Yikes! balance of the loan is negated by the Yippee! value of your property. (BTW, the “bizarre ways to celebrate” include Archie Bunker’s torching the paperwork in an episode of All in the Family).

These positives are the financial ones, but they are also bolstered by this real world big fat plus: owning your Central MA home undeniably imparts a feeling of security and stability, something that most of us find to be nearly priceless.

I hope you’ll feel free to give me a call for feedback or advice whenever any Worcester County real estate questions arise. I’ll be standing by!…..Realty Ace, LLC

fair housing logo

READY TO MAKE AN OFFER? 4 TIPS FOR SUCCESS

Ready to Make an Offer? 4 Tips for Success | Simplifying The Market

Ready to Make an Offer? 4 Tips for Success

So you’ve been searching for that perfect house to call a ‘home’ and you finally found one! The price is right, and in such a competitive market you want to make sure you make a good offer so that you can guarantee your dream of making this house yours comes true!

DON’T UNDERESTIMATE THE IMPORTANCE OF USING AN AGENT WHEN SELLING YOUR HOME

Don’t Underestimate the Importance of Using an Agent When Selling Your Home | Simplifying The Market

Don’t Underestimate the Importance of Using an Agent When Selling Your Home

When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers, the most important result is to actually get the home sold.

HOW MUCH EQUITY DOES YOUR CENTRAL MA HOME HAVE?

76% Of US Homeowners Now Have at Least 20% Equity in Their Homes! | Simplifying The Market

76% Of US Homeowners Now Have at Least 20% Equity in Their Homes!

CoreLogic’s latest Equity Report revealed that 91.1% of all mortgaged properties are now in a positive equity situation, while 75.9% now have significant equity (defined as more than 20%)! The report also revealed that 548,000 households regained equity in the second quarter of 2016 and are no longer under water.