Wednesday, July 31, 2013
Tuesday, July 23, 2013
As Interest Rates Increase, Housing Market to Remain Hot
Just the Facts
Frisco May Get Dallas Cowboys
The Dallas Cowboys reportedly are in final talks to move from Valley Ranch to Frisco. Irving has been the Cowboys home for 28 years, but Frisco has the space and financial incentives to move the team north. It appears the new facility will be part of the Frisco Station project, on the northwest corner of Warren Parkway and Dallas North Tollway. Houston-based Hines Development recently unveiled plans to develop office, shopping and residential on the 317-acre site. Preliminary indications are the Cowboys would make the move before the start of the 2016 season.
- Dallas Morning News, July 23, 2013
Stellar Year for Home Sales in DFW
Dallas needs more housing as the market continues to be very tight. Over 104,000 jobs have been created in the DFW area in the past 12 months, and based on that number new construction should be double what it currently is. All of this makes for continued home price increases and quick turnaround of inventory. The three hottest markets in North Texas based on the shortest time to sell continue to be The Colony, 32 days; Coppell 36 days; and Grapevine 37 days. When calculated for only the moderate price ranges in Coppell and Grapevine, the time to sell drops below 21 days.
- Dallas Morning News, July 19, 2013
As Interest Rates Increase, Housing Market to Remain Hot
Economists are not worried that higher interest rates will undercut the housing recovery. Mortgage rates are still at historically low levels, and home prices remain relatively affordable despite the price increases of the past year. In addition, higher mortgage rates will encourage potential buyers to come off the sidelines and purchase homes before rates rise further.
- Dallas Morning News, July 23, 2013
First Time Homebuyers Drop to 28% of Market
For the last several years during the Great Recession, first-time homebuyers typically made up 40% of all buyers, peaking in 2009 at 50% of buyers. With the improving market that percentage has changed considerably. As more repeat homebuyers are now selling their homes and buying a larger home, the move-up buyer is now the largest segment of the housing market – for the first time since 2006. The first-time homebuyers are still strong, and in fact their numbers have not dropped. It is just that the increased number of buyers have come from the move-up demand.
- Dallas Morning News, July 23, 2013
Friday, July 5, 2013
As Interest Rates Rise…… …Those Low FHA & VA Interest Rate Loans Are Assumable ……….and Valuable
As Interest Rates Rise……
…Those Low FHA & VA Interest Rate Loans Are Assumable
……….and Valuable
Not many buyers have assumed a mortgage in the past 25 years. Most people think it was because FHA and VA in the late 80’s began to require that buyers qualify for the assumptions. Not having to qualify for a mortgage would certainly benefit certain buyers.
If a homeowner must qualify for an assumption like a new loan, they'll generally choose the mortgage with the lower interest rate. Over the past 25 years, rates have been trending down but it appears that rates have bottomed out and will gradually increase. As they continue to rise, the lower rates on the FHA and VA loans created in the last few years will appeal to buyers even if they do have to qualify for the assumption.
There are significant advantages to assuming one of these government insured mortgages if the current interest rate on a new loan is higher:
1. Mortgage is further into amortization schedule
2. Lower interest rate loans amortize faster than higher interest rate loans
3. Lower closing costs than a new mortgage
4. Easier to qualify than on a new mortgage
5. No appraisal required
2. Lower interest rate loans amortize faster than higher interest rate loans
3. Lower closing costs than a new mortgage
4. Easier to qualify than on a new mortgage
5. No appraisal required
FHA assumptions are only allowed as owner-occupied residents. The borrower must meet current FHA guidelines for borrowers. The total debt ratio including house payment to be assumed cannot exceed 41% of borrowers’ monthly gross income.
VA loans are also assumable with buyer qualification. However, in order for the veteran Seller to have their eligibility reinstated, the buyer must also be a veteran with eligibility.
VA loans are also assumable with buyer qualification. However, in order for the veteran Seller to have their eligibility reinstated, the buyer must also be a veteran with eligibility.
A 1% difference in the current rates and a lower assumable mortgage rate begins to make it very attractive to assume a mortgage. When the differential becomes even greater, assumptions will become more prevalent than they’ve been in over twenty years.
- Pat Zaby
Tuesday, June 25, 2013
Surging Interest Rates Will Not Slow Market
Just the Facts
Rates Will Have to Pass 7% Before Housing Slows
The rise in interest rates may only accelerate the market as buyers on the fence begin to buy, feeling the pressure of rising interest rates. Major economists agree that rates will have to surpass 7% before there is a slow-down in the real estate market. And even then with the pent-up demand, the market should continue briskly. History shows that when rates went from 7% to 18% in 1979-1981, the housing market showed no signs of slowdown until about 12%.
- Dallas Morning News, June 21, 2013 (excerpts)
Surging Interest Rates Will Not Slow Market
Surging mortgage rates may have little effect on the housing market, at least in the near term, housing experts say. Mortgage rates rose sharply last week following comments from Federal Reserve Chairman Ben Bernanke that the Fed will begin tapering off its assets purchases later this year if incoming data continues to show the economy is on the mend. The average cost of a 30-year fixed-rate mortgage loan increased to 4.36% on June 21st, from 3.94% on June 14th, and a record low of 3.36% in December according to Bankrate.com.
- Inman News, June 24, 2013
Which Real Estate Brand Comes to Mind?
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