Raleigh Triangle Real Estate Blog

Existing Home Sales Surge into Summer

Existing Home Sales Surge into Summer [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Existing Home Sales reached their third highest mark this year in May.
  • Inventory of homes for sale has dropped 8.4% since last year, marking the 24th consecutive month of year-over-year declines.
  • NAR’s Chief Economist, Lawrence Yun had this to say: “Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher.”
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Another Bump In Today's Mortgage Rates 6-30-2017

By James Brooks

The bond market is down 8/32 (2.29%), which should increase Raleigh area mortgage rates by .125 of a discount point.

There were two economic reports released this morning. The first was May's Personal Income and Outlays data at 8:30 AM ET. The Commerce Department announced a 0.4% in the income reading and a 0.1% increase in spending. The income reading was a bit stronger than expected (0.3%), meaning consumers had more money to spend. However, the rise in spending matched forecasts. Therefore, we can consider the data neutral to slightly negative for bonds and mortgage rates.

The final relevant report of the week was the University of Michigan’s revised Index of Consumer Sentiment for June. It came in at 95.1, exceeding the 94.5 that was expected. The higher reading means surveyed consumers were more optimistic about their own financial and employment situations than many had thought. Since rising confidence usually translates into stronger...

Mortgage Rates Continue It's Move Higher 6-29-2017

By James Brooks

The bond market is currently down 12/32 (2.26%), which should push Raleigh area mortgage rates higher by approximately .125 of a discount point.

Yesterday’s 7-year Treasury Note auction didn’t go too well. Investor demand was average at best but we saw little reaction in the bond market and mortgage pricing. We did see bonds improve during afternoon trading yesterday, causing some lenders to revise rates slightly lower before the end of the day. However, it was due more to buyers taking advantage of recent selling and not a result of the Treasury auction.

The first of today's two 8:30 AM ET economic reports was the second revision to the 1st Quarter Gross Domestic Product (GDP) reading. It showed that the economy grew at an annual rate of 1.4% during the first three months of the year. This was an upward revision of 0.2% from the previous estimate. That makes the data negative for bonds and mortgage rates by theory, but in truth it has...

75% of Home-owners Think Now is a Good Time to Sell!

75% of Homeowners Think Now is a Good Time to Sell! | Simplifying The Market

The National Association of Realtors (NAR) recently released the findings of their Q2 Homeownership Opportunities and Market Experience (HOME) Survey. The report covers core topics like, “if now is a good time to buy or sell a home, the perception of home price changes, perceived ability to qualify for a mortgage, and [an] outlook on the U.S. economy.”

The survey revealed that 75% of homeowners think now is a good time to sell, compared to 70% last quarter. This is a considerable increase from more than a year ago when 66% agreed.

Even though homeowners believe that now is a good time to sell, many have not taken the step to list their...

Buyer's Market Helps Premium Home Sales Soar

Buyer's Market Helps Premium Home Sales Soar | MyKCM

We previously reported how a shortage of inventory in the starter and trade-up home markets is driving prices up and causing bidding wars, creating a true seller’s market. At the same time, in the premium home market, an over-abundance of inventory has started to see prices come down and put buyers in the driver’s seat, creating the beginning of a buyer’s market.

Last week, the National Association of Realtors released their Existing Home Sales Report which shed some additional light on the impact of inventory levels on sales in each price range.

The chart below shows the year-over-year difference...

Today's Mortgage Rates On The Move 6-28-2017

By James Brooks

The bond market is down 10/32 (2.23%), which should push Raleigh area mortgage rates higher by approximately .125 of a discount point.

Yesterday’s 5-year Treasury Note auction didn’t have much of an impact on yesterday’s mortgage rates. The benchmarks used for gauging investor demand for the securities showed average results. That prevents us from being too optimistic about today’s 7-year Note sale. If there is a strong demand, we could see bond prices rise and mortgage pricing improve later today. However, if there was a lackluster interest from investors, mortgage rates may move slightly higher during afternoon. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon hours.

There was no relevant economic data posted this morning. The selling in bonds is an extension of overnight weakness and yesterday’s negativity in the market. Comments made by the European Central Bank (ECB) president caused some ripples...

Pre-Approval Should Always Be Your First Step

Pre-Approval Should Always Be Your First Step | MyKCM

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the My Home section of their website:

“It’s...

Mortgage Rates Inch Higher 6-27-2017

By James Brooks

By The bond market is down 15/32 (2.18%), which should push Raleigh area mortgage rates higher by approximately .125 of a discount point.

Today’s only relevant economic data was June's Consumer Confidence Index (CCI) at 10:00 AM ET. The Conference Board announced a reading of 118.9 that exceeded forecasts of 116.7. It was also an increase from May’s revised 117.6, indicating surveyed consumers were more optimistic about their own financial situations than they were last month. Because higher levels of consumer confidence usually translate into stronger levels of consumer spending that fuels economic growth, today’s news was negative for bonds and mortgage rates.

Today also has the first of this week’s two Treasury auctions that may affect mortgage rates. These sales may influence broader bond trading enough to change mortgage rates slightly if they show overly strong or weak investor demand. 5-year Notes are being sold today while 7-year Notes go tomorrow. If...

2 Myths Holding Back Home Buyers

2 Myths Holding Back Home Buyers | MyKCM

In Realtor.com’s recent article, “Home Buyers’ Top Mortgage Fears: Which One Scares You?” they mention that “46% of potential home buyers fear they won’t qualify for a mortgage to the point that they don’t even try.”

Myth #1: “I Need a 20% Down Payment”

Buyers overestimate the down payment funds needed to qualify for a home loan. According to the First Quarter 2017 Homeownership Program Index (HPI) from Down Payment Resource, saving for a down payment was the barrier that kept 70% of renters from buying.

Rob Chrane, ...

Monday Mortgage Rates Improve 6-26-2017

By James Brooks

The bond market is up 5/32 (2.12%), which should improve Raleigh area mortgage rates by approximately .125 of a discount point.

Today's economic data came from the Commerce Department who posted May’s Durable Goods Orders report. It showed a 1.1% decline in new orders for big-ticket products such as appliances and airplanes. This was a larger drop than the 0.5% that was forecasted, indicating a softening manufacturing sector. However, this is not a wide variance for this data. This report is known to be quite volatile, so while the 0.6% difference would be highly noted in many releases, it is not big news for this one. Still, we can consider the data slightly positive for bonds and mortgage rates.

The rest of the week brings us the release of four more economic reports that may influence mortgage rates along with two Treasury auctions. Some of these reports certainly can cause a change in mortgage rates, but none are considered to be key releases. There are also several Fed-member speaking...