While you are still at a bit of a disadvantage using financing in our area due to the extreme seller’s market, it is slowly looking better for buyers. Accordingly, I thought I would revisit the financing question. You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.
As fraudsters continue to become more creative, it is critical that we stay vigilant. Here are some tips for your real estate transaction.
We saw mortgage interest rates continue to trend higher in the last 30 days. The recent change will cost new borrowers another $7.50 per month for every $100,000 borrowed. Average U.S. rates for 30-year fixed rate mortgages were at 3.01% as of this week. Last month at this time, they were sitting at 2.87%. Of course, both are historically low.
One of the measures of the health of the real estate market is to track how mortgage loan repayments are performing. Understanding the trends regarding homeowner likelihood of default is important to understanding how the future supply of homes for sale will adjust. Of course, data is a bit skewed on the foreclosure front now due to the Pandemic induced moratorium on foreclosures.