Raleigh Triangle Real Estate Blog

Empty Nesters: Best to Remodel or Time to Sell?

Empty Nesters: Best to Remodel or Time to Sell? | Simplifying The Market

Your children have finally moved out and you and your spouse now live alone in a four-bedroom colonial (or a similar type of house). You have two choices to make:

  1. Remodel your house to fit your current lifestyle and needs
  2. Sell your house and purchase the perfect home

Based on the record of dollars spent on remodeling and renovations, it appears that many homeowners are deciding on number one. But, is that the best long-term solution?

If you currently live in a 3-4-bedroom home, you probably bought it at a time when your children were the major consideration in determining family housing needs. Along with a large home, you more than likely also considered school district, the size of the property and the makeup of other families...

Mortgage Rates Improve 8-31-2017

By James Brooks

The bond market is up 4/32 (2.13%), which should improve Raleigh area mortgage rates by approximately .125 of a discount point.

July's Personal Income and Outlays report was posted at 8:30 AM ET this morning, revealing a 0.4% increase in income and a 0.3% rise in spending. The income reading exceeded forecasts by 0.1%, but the spending reading came in light by the same amount. This means consumers had more money to spend but spent less than thought. That makes the data neutral to slightly positive for bonds and mortgage rates.

Also posted early this morning was last week?s unemployment figures. They showed that 236,000 new claims for unemployment benefits were filed last week, matching expectations. This was a slight increase from the previous week?s revised total of 235,000 initial filings. Because this is only a weekly release that had a minimal variance from forecasts, it has had little impact on this morning?s mortgage pricing.

Tomorrow is a very...

Number of Buyers Putting Down Less Than 10% Hits 7-Year High

Number of Buyers Putting Down Less Than 10% Hits 7-Year High | Simplifying The Market

According to Black Knight Financial Service’s Mortgage Monitor Report, 1.5 million Americans have purchased a home with down payments under than 10% over the last 12 months. This is great news for buyers as this marks a 7-year high.

Many mortgage programs offered by agencies like Freddie Mac and Fannie Mae allow buyers to put down as low as 3% to purchase their dream homes. The strength of the housing market has aided buyers who used low-down-payment programs to buy. As a recent CNBC article points out,

“Defaults on...

Minor Movement In Today's Mortgage Rates 8-30-2017

By James Brooks

The bond market is down 5/32 (2.14%), which should push Raleigh area mortgage rates higher by approximately .125 of a discount point.

Yesterday?s 7-year Treasury Note auction went pretty well with investor demand above average. This was a bit better than Monday?s 5-year Note auction, but wasn?t strong enough to cause much of a move in bonds or mortgage rates during afternoon trading yesterday.

The first of today?s two pieces of economic data was August?s ADP Employment report at 8:15 AM ET. It showed that 237,000 new private sector jobs were added to the economy last month. This was much stronger than the 180,000 that was expected, indicating the employment sector may have been better off this month than many had thought. The truth will come in Friday?s governmental report, but if we see similar results then, we could see mortgage rates move higher.

Also posted early this morning was the first revision to the 2nd Quarter Gross Domestic Product (GDP). It...

Where Are Home Prices Heading in The Next 5 Years?

Where Are the Home Prices Heading in The Next 5 Years? | Simplifying The Market

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 5.0% over the course of 2017, 4.0% in 2018, 3.2% in 2019, 3.0% in 2020, and 3.0% in 2021. That means the average annual appreciation will be 3.64% over the next 5 years.

Where Are the Home Prices Heading in The Next 5 Years? | Simplifying The Market...

Good Day For Mortgage Rates 8-29-2017

By James Brooks

The bond market is up 10/32 (2.13%), which should improve Raleigh area mortgage rates by approximately .125 of a discount point.

Yesterday?s 5-year Treasury Note auction went fairly well with a couple of benchmarks showing a decent level of investor interest. The bond market reacted positively but not enough for broad rate improvements from lenders. However, it does allow us to be optimistic about today?s 7-year Note auction. Results will be posted at 1:00 PM ET, so if there is a reaction to today?s sale it will come during early afternoon trading.

Today?s sole piece of economic data was August?s Consumer Confidence Index (CCI) at 10:00 AM ET. The Conference Board announced a reading 122.9 that exceeded forecasts of 120.3 and higher than July?s revised 120.0. Analysts were expecting to see a decline, meaning surveyed consumers were more optimistic about their own financial situations than many had thought. That is negative for bonds and mortgage rates because rising...

Don’t Disqualify Yourself… 52% of Approved Loans Have A FICO® Score Under 750

Don’t Disqualify Yourself… 52% of Approved Loans Have A FICO® Score Under 750 | Simplifying The Market

The results of countless studies have shown that potential home buyers, and even current homeowners, have an inflated view of what is really required to qualify for a mortgage in today’s market.

One such study by the Wharton School of Business at the University of Pennsylvania revealed that many millennials have not yet considered purchasing homes simply because they don’t believe they can qualify for a mortgage.

A recent article about millennials by Realtor.com explained that:

About 72% of aspiring millennial buyers said they’re waiting because they can’t afford to buy…

...

No Change In Today's Mortgage Rates 8-28-2017

By James Brooks

The bond market is unchanged (2.16%), which should keep Raleigh area Mortgage rates unchanged.

Today has no relevant economic data set for release. The rest of the week brings us the release of seven pieces of economic data for the markets to digest, including a couple of extremely important reports. Those more important reports come late in the week.

What today does have is the first of this week's two Treasury auctions that may affect bond trading and mortgage rates. There are auctions several days, but the two relevant ones are today's 5-year Note and tomorrow's 7-year Note sales. Results of these will be posted at 1:00 PM ET each day, so any reaction will come during early afternoon trading. If investor interest is strong in the auctions, we can expect the broader bond market to rally and mortgage rates to possibly move slightly lower. However, lackluster demand could lead to bond selling and higher mortgage rates later this afternoon and possibly tomorrow.

...

Home Prices Up 6.64% Across the Country!

Home Prices Up 6.64% Across the Country! [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • The Federal Housing Finance Agency (FHFA) recently released their latest Quarterly Home Price Index report.
  • In the report, home prices are compared both regionally and by state.
  • Based on the latest numbers, if you plan on relocating to another state, waiting to move may end up costing you more!
  • Alaska & West Virginia were the only states where home prices are lower than they were last year.
...

Study: FSBOs Don’t Save Real Estate Commission

Study: FSBOs Don’t Save Real Estate Commission | Simplifying The Market

One of the main reasons why For Sale By Owners (FSBOs) don’t use a real estate agent is because they believe they will save the commission an agent charges for getting their house on the market and selling it. A new study by Collateral Analytics, however, reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” ...