Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra Properties's blog

Some Buy ‘Second Home’ Before Primary Residence

Buying what is considered a second home before purchasing the more conventional first is beginning to appeal to some renters. Those in metro areas are watching the red hot housing market and may be interested in a place of their own. With remote work trending, they can take advantage of the opportunity to spread out and buy a small getaway home with a vacation-first mentality, Apartment Therapy reports.

Will Rising Mortgage Rates Dampen Buyer Demand?

The interest rate for the 30-year fixed-rate mortgage rose slightly this week to an average of 3.18%, inching even higher from its sub-3% average just a month ago. Still, by historical standards, mortgage rates remain low, and some buyers are in a rush to complete their home purchases ahead of any further increases.

Are ‘Sight Unseen’ Offers Offers Here to Stay?

Whether they're trying to get ahead of the competition or have concerns about COVID-19, more buyers are still choosing to purchase a home without ever stepping foot inside. Clients are relying on virtual tours or video walkthroughs from their real estate agent to help decide which home is right for them.

Buyers Feeling Interest Rate Pressures

Home buyers may feel even more of a rush to lock in mortgage rates trying to get ahead of any further increases. Over the last month, the 30-year fixed-rate mortgage has moved above its sub-3% ultra-low averages to jumping this week to a 3.17% average.

Home Loan Rates Continue to Climb

Sub-3% mortgages are slowly fading into the rearview mirror as the 30-year fixed-rate mortgage continues to inch up. The 30-year fixed-rate mortgage averaged 3.09% this week, Freddie Mac reports.

So far, the increase in mortgage rates has not appeared to deter would-be buyers. Home purchase mortgage activity continues to remain elevated and sales of both new and existing homes are at a 14-year high.

Freddie Mac reports the following national averages with mortgage rates for the week ending March 18:

Mortgage Rates Top 3% as Would-be Buyers Pull Back

Since reaching an all-time low in January, mortgage rates have risen , “and the impact on purchase demand has been noticeable,” says Sam Khater, Freddie Mac’s chief economist. “While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic.”

Mortgage Rates Rise But Stay Near Historic Lows

The 30-year fixed-rate mortgage came off its recent all-time lows to average near 3% this week.

Rates continue to remain near historic lows, said Sam Khater, Freddie Mac’s chief economist. The all-time low for the 30-year fixed-rate mortgage was set in January, averaging 2.65%.

Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 25:

*30-year fixed-rate mortgages: averaged 2.97%, with an average 0.6 point, up from last week’s 2.81% average. Last year at this time, 30-year rates averaged 3.45%.

Mortgage Rates Rise to 3-Month High

The 30-year fixed-rate mortgage reversed course this week, moving up to a 2.81% average. That marks its highest point since mid-November, Freddie Mac reports.

“Economic spending has improved, due to the most recent stimulus, but supply chain shortages are causing downstream inflation, leading to higher mortgage rates,” says Sam Khater, Freddie Mac’s chief economist. “While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.”

Why Are Credit Scores Soaring in a Recession?

Credit scores have never been higher, positioning more Americans to qualify for some of the best mortgage rates ever. Yet, nearly 10.1 million Americans remain unemployed and have skipped mortgage or debt payments. How can this be?

“It’s been bizarre with this recession to see credit scores go up,” Matt Schulz, chief credit analyst at LendingTree, told MarketWatch.

Average Mortgage Amounts Reach Record Highs

The average purchase loan amount has reached a new record high: $402,200, the Mortgage Bankers Association reported Wednesday. The higher-priced segment of the housing market continues to perform strongly, the MBA says.

Mortgage amounts have been climbing to new record highs since April 2020, near the start of the COVID-19 pandemic.

Mortgage applications for home purchases were up 17% last week over last year, the MBA reports.

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