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All posts tagged 'property-values'

What to expect with rising mortgage rates.

by Eric Allee 11. August 2013 10:26

Home Prices and Mortgage RatesSince early May 2013 to mid-July 2013, 30-year fixed interest rate mortgages have jumped from 3.35% to 4.51%.  This has led people to the question of what, if any, impact this trend will have on home sales prices.  To address this question, The Federal National Mortgage Association, FNMA or more commonly known as Fannie Mae, studied mortgage rates going back to the 1990s.  Fannie Mae’s research came to the surprising conclusion that rising interest rates had no impact on home sales prices but decreased the number of homes sold.


Fannie Mae’s study examined two time periods with increasing mortgage interest rates:  1) October 1993 – December 1994 when interest rates increased from 6.8% to 9.2%; and 2) October 1998 to May 2000 when interest rates increased from 8.5% to 6.7%.  During the first interest rate increase, home prices leveled and fell slightly.  During the second period, there was no impact whatsoever on housing prices.  The historical study showed increasing mortgage interest rates are more likely to be linked to a decrease in the number of home sales not in home prices.   The study concluded that home sellers are reluctant to lower prices regardless of the interest rate and homebuyers are eager to  purchase and are willing to take on an adjustable rate mortgage loan to achieve their goal.  The Mortgage Bank Association supports the study’s conclusion by saying people’s motivation for purchasing a home is primarily linked to personal factors such as, the need to relocate, changing space needs, and human emotion where the buyer simply falls in love with a particular house and wants to buy it.

Nonetheless, some experts predict that the rapid increase of mortgage points to 4.51% since May 2012 will have a negative impact on housing prices and the housing market recovery.  An economist with Moody Analytics predicts, however,  that buyers will not shy away from the current mortgage rate because it is far lower than the historical average of 6%. 

Regardless of the viewpoint, it appears that the rising interest rate will not hurt housing prices but will simply reduce the volume of houses being sold.  

 

If you would like to read more about the current trends in home sales, please refer to the following links that were used to write this article:

http://money.com

http://www.housingwire.com

http://www.fanniemae.com


Eric Allee

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Real Estate Market Trends

Helpful websites for rehab property investors

by Carla Palmer 22. May 2011 06:19

Need some easy ways to determine property values, monitor foreclosures and short sales, and follow housing market trends? Here are several websites that we’ve found to be reliable and informative. (Some may require a subscription):

Zillow – www.zillow.com

  • Homes for sale, past sales, and estimated property values throughout the entire U.S.
  • Current mortgage rates and mortgage calculator
  • Information on loan options, refinancing, and equity lines of credit
  • Advice from professionals
  • List your own property for sale

Foreclosure Destination – www.foreclosuredestination.com

  • Details, photos, and videos of over 15,000 foreclosure and short sale properties across all cities in Southern California
  • Easy sorting by zip code, price, size, home age, and other criteria
  • Demographic and school district information included
  • General foreclosure and short sale information
  • Access to local real estate experts
  • Sponsored by First Team Real Estate

Foreclosure Radar – www.foreclosureradar.com

  • Targeted to the real estate professional
  • Tracks foreclosures and pre-foreclosures throughout the U.S.
  • Search by over 60 criteria
  • Reports and charts by state and area
  • Daily auction updates
  • Financial analysis software available
  • Title research services, among others
  • Learning center with blogs and forums

Loop Net – www.loopnet.com

  • Information on commercial properties listed and sold throughout the U.S.
  • Boasts over 800,000 active listings
  • Property records and comparables research available
  • Monitoring of housing market trends
  • Auction and distressed properties featured

Realtor – www.realtor.com

Over 100 million property listings, including 3.5 million homes actively for sale

  • Local mortgage rates and mortgage calculator
  • Free home value reports based on comps in the area
  • Monitoring of market conditions
  • Financing options presented
  • Find a realtor
  • Check your credit
  • Moving and storage services

- Carla Palmer


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