What to Expect from Mortgage Rates in the Second Half of 2016

Mortgage rates are a fickle beast affected by many factors. They can change on the drop of hat and fluctuate constantly. Your ultimate mortgage rate is determined by your overall risk as a borrower through a mechanism called loan level pricing (LLPA) which adds adjustments to your rate based on risk. Combine “base” rates - driven by actively traded pools of mortgages known as Mortgage-backed securities (MBS) - with your loan level pricing adjustments and you get your mortgage rate. Get a Customized Live Rate Quote If you have ever played the stock…
continue reading →

The Reason You Are Getting Higher Mortgage Rate Than Your Friend

You checked out Freddie Mac’s average mortgage rate report. You looked at Bankrate too. You called your mortgage lender - or multiple lenders - but your mortgage rate quote is higher than the rates you see online. Why? If you are consistently being quoted a higher rate than what you see listed online you likely pose more risk to the lender and the bump to your mortgage rate is the result something called "risk-based pricing". More formally, it's known as the loan-level pricing adjustments (LLPA). They apply to Fannie and Freddie - aka…
continue reading →

CA Home Prices Will Appreciate by >6% In Next 12 Months

CoreLogic predicted that California Home Prices will continue to appreciate at a rapid pace. It will remain one of the hottest markets in the country with an appreciation rate of >6% in the next 12 months. The news will be equally good across the nation where home prices are expected to increase by 5.3%. With buyers demand outpacing supply and pending home sales reaching new high, it promises to be another scorching hot home buying season.
continue reading →

Home Sales Price Increase For 49th Consecutive Month

The National Association of Realtors (NAR) released their monthly numbers on total existing-home sales for March recently. The result? Once again - for the 49th consecutive month - the data was strong and shows year-to-year gains from 2015. Existing home sales are defined as closed transactions that include single-family homes, townhomes and condos. They generally account for 90 percent of the overall housing market. The March numbers continue to show the strength of the housing market in nearly every market nationwide. Nationally, the numbers hopped up 5.1 percent to a seasonally adjusted annual…
continue reading →

FHA Changes Can Help More Buyers With Student Loans To Qualify

Millennials have two things in common, other than their age, they have student loan debt and they make up the primary market of first-time homebuyers. Sometimes, they have a lot of student loan debt which affects their ability - or perceived ability - to remove their renter tag and add the homeownership badge. American students borrow twice as much as they did two decades ago and the total student debt mountain has increased fourfold over that period. In 2012, students carried a median loan amount of $26,885 versus $12,434 two decades ago. Student…
continue reading →

These Charts Will Convince You To List Your Home Today

In school we all learned the Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise. SUPPLY The National Association of Realtors (NAR) recently reported that the inventory of homes for sale stands at a 4.4-month supply. This is considerably lower than the 6-month inventory necessary for a normal market. DEMAND Every month NAR reports on the amount of buyers that are actually out in the market looking for homes, or foot traffic. As seen in the graph below, buyer demand in February significantly outpaced the…
continue reading →

2016 Mortgage Rate Outlook

2015 was an easier year than most, for mortgage rate shoppers. Consistency was the standard,  with rates generally hovering  below 4% for most of the year. That consistency was a mortgage market anomaly though. In fact, it’s been nearly 20 years since we’ve had such a consistent mortgage rate environment. You have to go all the way back to 1998 according to Freddie Mac’s mortgage rate benchmark survey - the Primary Mortgage Market Survey® (PMMS®) - to find such a small amount of rate movement. Get PreApproved for a MortgageGet PreApproved for a Mortgage The “Primary Mortgage…
continue reading →

6 Predictions For 2016 Housing and Mortgage Market

2015 was an eventful year in the housing market. Plagued by lack of inventory, housing markets did what they could to keep up with the demand as rates defied prognosticators and stayed near historically lows throughout the year. Rents increased far beyond normal, stretching affordability in the rental market. Those increase will force some decisions to be made in 2016 amongst non-committal millennials and boomerang buyers who were biding their time before re-entering the market. Get PreApproved for a Mortgage #1 - Expect a wave of Boomerang Buyers to return to ownership During the Great…
continue reading →

The 2015 Housing Market Recap

It was an eventful year in the housing market. Demographic shifts, inventory issues, skyrocketing rents, historically low mortgage rates, sweeping changes in the mortgage industry, increasing reliance on technology by home shoppers and those pesky millennials - who continue to be the subject of housing market consternation. The post-crash hangover still lingers in some markets, but many have completely shrugged of the funk of the Great Recession. Get PreApproved for a Mortgage for a Mortgage Build baby build is the tune that most of California is singing as inventory continues to dog housing markets statewide. The lack…
continue reading →

Get Mortgage blog Delivered To You