Curious About Mortgage Interest Rates?
Hello Hampton Roads,
Curious about mortgage rates? I thought so!
Today I'd like to talk a bit about current mortgage interest rates for those of you thinking of buying ta home. Looking at the monthly trend of rates in the image below, we see that rates are down from where they were a year ago!
The Trend is Your Friend
This is good news for home buyers because lower rates mean you can buy more house for the money. Typically for every 1% increase in interest rates, buyers lose about 10% purchasing power and that 10% can mean the difference between being able to buy a home you love to a home you like. To put this in perspective, according to our MLS (Multiple Listing Service), the median sold home price in South Hampton Roads as of September 2019 was $256,345. If a home buyer were qualifed for the median purchase price and rates went up by 1%, this would reduced the buying power by approximately $25,000.00.
Timing is Everything
Timing is everything and buying in the fall combined with today's low interest rate environment makes you a prudent buyer! The fall/winter is considered the off-season in real estate--there is less inventory and less competition. Less competition reduces the chances of a bidding war and though low inventory may seem like a negative, the sellers who list in the fall or winter seem to be more motivated, which can mean a lower purchase price.
A Word About Negative Interest Rates
If you've been reading the news lately, I'm sure you've heard stories about negative interst rates and even negative mortgage interest rates (like a Dannish Bank is offering). No, you can't take out a mortgage there to buy a house here! It sounds good at first, but that's just not sustainable for a bank to lose money by lending credit and it de-insentivizes them to lend. Fewer loans with higher standards make it harder for people to get loans, not easier. I don't think this is something we need to worry about now in our mortage market, but I think it's important to look below the surface and see what may initially sound like a good thing for buyers is not truly the case!
Learn More About Buying a Home
Want to find out more about buying a home?
Come to the upcoming Free Home Buyer Class and Wine Tasting Event on November 5th from 6pm-8pm.
Register here: http://Liz.FreeHomeBuyerClass.us
Thanks for Reading,
_________________________
Serving your Hampton Roads andVirginia Beach Real Estate needs. Liz Schuyler on Google+
Curious about mortgage rates? I thought so!
Today I'd like to talk a bit about current mortgage interest rates for those of you thinking of buying ta home. Looking at the monthly trend of rates in the image below, we see that rates are down from where they were a year ago!
The Trend is Your Friend
This is good news for home buyers because lower rates mean you can buy more house for the money. Typically for every 1% increase in interest rates, buyers lose about 10% purchasing power and that 10% can mean the difference between being able to buy a home you love to a home you like. To put this in perspective, according to our MLS (Multiple Listing Service), the median sold home price in South Hampton Roads as of September 2019 was $256,345. If a home buyer were qualifed for the median purchase price and rates went up by 1%, this would reduced the buying power by approximately $25,000.00.
Timing is Everything
Timing is everything and buying in the fall combined with today's low interest rate environment makes you a prudent buyer! The fall/winter is considered the off-season in real estate--there is less inventory and less competition. Less competition reduces the chances of a bidding war and though low inventory may seem like a negative, the sellers who list in the fall or winter seem to be more motivated, which can mean a lower purchase price.
A Word About Negative Interest Rates
If you've been reading the news lately, I'm sure you've heard stories about negative interst rates and even negative mortgage interest rates (like a Dannish Bank is offering). No, you can't take out a mortgage there to buy a house here! It sounds good at first, but that's just not sustainable for a bank to lose money by lending credit and it de-insentivizes them to lend. Fewer loans with higher standards make it harder for people to get loans, not easier. I don't think this is something we need to worry about now in our mortage market, but I think it's important to look below the surface and see what may initially sound like a good thing for buyers is not truly the case!
Learn More About Buying a Home
Want to find out more about buying a home?
Come to the upcoming Free Home Buyer Class and Wine Tasting Event on November 5th from 6pm-8pm.
Register here: http://Liz.FreeHomeBuyerClass.us
Thanks for Reading,
_________________________
Serving your Hampton Roads andVirginia Beach Real Estate needs. Liz Schuyler on Google+
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