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

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

Email Sabrina & Susan at:  Info@TheCatonTeam.com

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Will Rising Mortgage Rates Cool the Market?

Will Rising Mortgage Rates Cool the Market?

What a FANTASTIC question that Realtors and their clients are certainly thinking.  Please enjoy this article from the Daily Real Estate News.

A big jump in mortgage rates over the past two months may start to cool the rapid rise of home prices in the second half of the year, The Wall Street Journal reports.

Mortgage rates have shot up from lows of 3.59 percent in the beginning of May, to 4.58 percent during the last week of June, according to the Mortgage Bankers Association. Rates are at their highest levels in two years.

“A rule of thumb holds that every one percentage point increase in interest rates reduces affordability by 10 percent, so the recent move in rates just made homes about 10 percent more expensive to buyers who need to finance their purchase,” The Wall Street Journal reports.

Still, economists say mortgage rates at 4.5 percent or 5 percent is still very affordable by historical standards. Merrill Lynch analysts say that home prices would have to rise by 20 percent or mortgage rates would have to soar to around 6 percent to chip away at housing’s affordability.

Some economists see rising mortgage rates as a positive. John Burns, chief executive of John Burns Real Estate Consulting, says that rising rates produce more sustainable price increases. “I don’t think it’s the end of price increases, but I think they’re going to moderate significantly,” Burns told The Wall Street Journal.

Source: “Why Home-Price Gains Will Slow Amid Higher Mortgage Rates,” The Wall Street Journal (July 8, 2013)

 

I read this article at:  http://realtormag.realtor.org/daily-news/2013/07/09/will-rising-mortgage-rates-cool-market?om_rid=AACmlZ&om_mid=_BR3FkGB8zy7Id2&om_ntype=RMODaily

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

Email Sabrina & Susan at:  Info@TheCatonTeam.com

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

 

Let’s Make Things Harder for the Bad Guys!

Easy ways to make it harder for burglars

Easy ways to make it harder for burglars

You’ve probably seen the clever TV ads featuring Professor Burke as he educates customers on the finer points of insurance and offers informative risk-prevention tips. In one ad, Burke asks: What if you didn’t know that boxes by the curb make you a target for thieves? Burke and a customer walk by a home with expensive electronics boxes by the curb. The home’s door is open and we see a burglar walk out with an expensive flat screen TV followed by another wearing 3D glasses.

If you’ve ever been burglarized however, you know what an awful feeling it is to have your home violated and to lose your personal property. Unfortunately, burglary is the crime of choice for many criminals but for a minimal investment, you may be able to make your home potentially less appealing to burglars.

  • Trim your shrubs — Don’t offer unwanted intruders a safe place to hide, albeit unwittingly. Make sure your home’s windows, porches and doors are visible to neighbors and passersby and not shrouded by vegetation.
  • Close the blinds, shutters or shades — Burglary is often a crime of opportunity — if you don’t offer one, burglars will typically move on. Closing shades, blinds and the like may help to prevent burglars from window shopping at your place.
  • Install motion sensors and use them — Dark or poorly illuminated areas make it easier for a burglar to move about unseen. Motion-sensing security lights are fairly inexpensive and readily available at home improvement stores. They are activated when motion is detected and the sudden change from darkness to bright light will typically startle intruders and may provide a visual alert to you and your neighbors.
  • Use indoor timers to control lighting — Timers hooked up to indoor lights and TVs that switch on when it gets dark make it appear as if someone is home and may serve as a deterrent to thieves.
  • Install deadbolts — Consider installing a deadbolt on every exterior door; the bolt should have a throw of at least one inch.
  • Don’t post your travel plans or whereabouts on social media sites — Sharing your vacation plans and checking in can be fun, but doing so is a public declaration of your whereabouts and a potential invitation to thieves.

Use common sense
Always lock all your doors and windows whenever you leave your home — even if you’re just running out for a few minutes. It’s a simple and smart thing to do. At Farmers, we make you smarter about insurance — because as Professor Burke will tell you, when it comes to insurance, what you don’t knowcan hurt you.

Thanks to my faithful Insurance Agent Gary Neely – I found this article on his newsletter. THANK YOU!

I read this article at:  http://farmersinsuranceemail.com/ffv/201306/02.html

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

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Please enjoy my personal journey through homeownership at:

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Thanks for reading – Sabrina

Hip Hip Hooray!!! Tax Relief Bill PASSES SENATE!

UPDATE ON SB 30

C.A.R.’S TAX RELIEF BILL PASSES SENATE

The state Senate today passed C.A.R.’s tax relief bill without a single “no” vote. SB 30, which provides tax relief to those who are selling a home in a short sale, will now be considered in the state Assembly.

In late May, the Senate Appropriations Committee linked SB 30 to SB 391, a C.A.R.-opposed bill that creates a recording tax. This link, in the form of an amendment, says that SB 30 cannot take effect unless SB 391 does as well. While we are troubled by this transparent political maneuver meant to force C.A.R. to support the recording tax, C.A.R. will continue to work toward the passage of SB 30 in the Assembly, the defeat of the recording tax, and the delinking of the two bills.

Thank you to the thousands of REALTORS® who contacted their senators in support of SB 30 and in opposition to the recording tax.

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

Email Sabrina & Susan at:  Info@TheCatonTeam.com

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

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina