What the New Mortgage Interest Rate Mean for Home Buyers

What the New Mortgage Interest Rate Mean for Home Buyers

The average rate on the 30-year fixed sat just below 4 percent a year ago, after dropping below 3.5 percent in 2016. It just crossed the 5 percent mark, according to Mortgage News Daily. The benchmark 30-year mortgage rate spiked fifteen basis points to 5.04 percent from 4.89 percent in the previous week, according to Bankrate.com’s weekly survey of the nation’s largest mortgage lenders. Meanwhile, the average 15-year fixed mortgage rate surged 15 basis points to 4.41 percent and the average rate for a 5/1 adjustable-rate mortgage rose 7 basis points to 4.42 percent.

Mortgage borrowers are taking note of soaring rates. Total mortgage applications fell 1.7 percent from the previous week, according to data from the Mortgage Bankers Association’s weekly applications survey for the week ending Oct. 5. That’s down nearly 15 percent from a year ago.

Refinances, which are more sensitive to rate changes, dipped 3 percent from a week ago, the MBA reported. Overall, refinance activity sank to 39 percent of total applications from 39.4 percent the previous week and is down about 32 percent from a year ago.

Rising home prices and tight inventories for starter homes won’t abate in the year ahead, says Joel Kan, an MBA economist. And although year-over-year growth in purchase applications is expected, the movement will be gradual, Kan says.  “With the economy doing well and job market still strong, we’re starting to see the fruits of that and opportunities will be there,” Kan says of home buying demand.

So, what does the new mortgage interest rate mean for home buyers? Higher mortgage rates mean now is a good time to buy a home as higher home prices are likely to become more affordable and home buyers will have a better chance of finding a home in their price range and more likely to have an offer accepted. Its important to note that while higher rates may drive prices down, a higher interest rate does impact your buying power. What does buying power mean? Simple put, what you can afford to buy at an interest rate of 5 percent will be less than what you can afford to buy at an interest rate of 3 percent.

So, if you’re in the market to buy a home, now is the perfect time take advantage before rates go up more, and your buying power goes down. Contact The Voss Team today for more information about the new mortgage rates and get pre-qualified to buy a home in Phoenix.

Roberta Voss

The Voss Team

20241 N 67th Ave A1

Glendale, AZ 85308

(602)-697-0730

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This communication is provided to you for informational purposes only and should not be relied upon by you. RE/MAX Professionals or The Regal Team are not a mortgage lender and so you should contact a qualified mortgage broker directly to learn more about its mortgage products and your eligibility for such products.

RE/MAX National Housing Report September 2018

RE/MAX National Housing Report September 2018

The RE/MAX National Housing Report for September 2018 showed the trends of fewer closings and stabilizing inventory continued through September, punctuated by a surprisingly big 11.6 percent year-over-year drop in home sales. At the same time, the RE/MAX National Housing Report for September 2018 posted a Median Sales Price of $241,000 that marked the 30th consecutive month of year-over-year price increases. It is the highest September price in the 10-year history of the report. To access the housing report infographic, visit: https://rem.ax/2phKHWT.

The decline in home sales year-over-year was the largest since May of 2011, as September became the seventh month of 2018 to record lower sales than 2017. Even so, year-to-date 2018 home sales resemble 2017’s.

“The big drop in September closings catches your attention. The market is clearly rebalancing as buyers and sellers continue to process the increasing interest rate environment and what that means to them,” said RE/MAX CEO Adam Contos. “The slower drop in inventory – a visible trend for nearly half a year – further illustrates the ongoing shift toward market equilibrium, and that’s healthy in the long-term.”

Active inventory dropped for the 119th consecutive month, the decline of 4.7 percent from September 2017 was the smallest year-over-year decrease since August 2014. In addition, the September year-over-year inventory drop was the fifth consecutive month in 2018 to post single-digit percent declines rather than the double-digit monthly drops consistently seen over the previous three years.

“It’s a little surprising to see prices staying so strong, but it’s hardly shocking in such a tight market,” said Contos. “The headwinds of rising prices and interest rates amid already tight inventory levels have been crimping affordability and slowing sales for most of the year, but it varies by geography.  In circumstances like these, where the market is tricky to navigate, both buyers and sellers can benefit by aligning themselves with a professional agent – a local expert who can cut through the noise and advocate on their behalf.”

Home prices rose by 5.6 percent over September 2017, more than twice the year-over-year price increase of 2.3 percent from September 2016 to September 2017. That reversed a trend seen in the previous three months, when year-over-year price increases trailed 2017’s rate of growth.

Months Supply of Inventory totaled 3.7, which is the second-lowest for September in report history, second only to 3.6 months in September 2017. Days on Market of 46 was a September record for the report – three days less than September 2017. Of the 54 metro areas surveyed in September 2018, the overall average number of home sales is down 1.1percent compared to August 2018, and down 11.6 percent compared to September 2017.

Click here to download your copy of the RE/MAX National Housing Report for September 2018. Looking to sell your Phoenix home or buy a home in Phoenix? Contact the VossTeam today! We offer unparalleled service to all clients in the Phoenix real estate market. Your complete satisfaction with our service and representation is our number one priority!

Roberta Voss

The Voss Team

(602)-697-0730

7111 West Bell Road Ste 101

Glendale, Arizona 85308

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One-of-a-Kind Modern Designed Home in Scottsdale

One-of-a-Kind Modern Designed Home in Scottsdale

Come see this one- of-a kind design three-bedroom, three bath home in the lovely Las Haciendas subdivision in Scottsdale! The focal point of this contemporary modern home is the central courtyard patio with a relaxing pool. Most rooms in this home feature a view of the pool through the newly installed, floor-to-ceiling, dual pane energy efficient windows and sliders.

This 2,800+ square foot home was certainly designed for entertaining, so you will not want to miss the sleek kitchen that was completed in 2017. Upgrades in this stellar kitchen include Bosch ovens, granite counters, gas cook top, walk-in pantry and so much more!

Each bedroom is situated in its own wing of the home with a bathroom and outdoor access to a patio. Additional features include numerous living spaces inside and out with fireplaces, a wet bar, patios, a formal horseshoe pit, a putting green, and recreation room ready for all sorts of games!

Contact the Voss Team today to schedule a private showing of this one-of-a-kind modern designed home in Scottsdale located at 5201 E Oakhurst Way, Scottsdale, AZ 85254.

Roberta Voss

The Voss Team

(602)-697-0730

7111 West Bell Road Ste 101

Glendale, Arizona 85308

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The Arizona State Fair is Back!

The Arizona State Fair is Back!

Photo courtesy of visitphoenix.com

Calling all lovers of roller coaster rides, concerts and deep-fried Twinkies! The Arizona State Fair is back and residents across the Valley of the Sun are flocking to one of the most anticipated events of the fall season!

The Arizona State Fair is the state’s largest festival, attracting over one million guests annually to rank as the third highest attended state fair in the country and in the top fifteen of North American Fairs. Featuring professional midway rides and games by Ray Cammack Shows, unique fair foods, livestock and animal attractions, national headline and local entertainment, special shopping vendors, and various contests, the Arizona State Fair has something for everyone! The Fair is a showcase of Arizona talent, community, and spirit all in one location.

Located on the Arizona State Fair Grounds at 1826 W. McDowell Rd, Phoenix this year’s concert series features big acts like 38 Special, Pitbull, Paulino Rubio and The Wallflowers just to name a few. Concert line up and tickets can be purchased online here. Discounted admission tickets and discount days are also available throughout the month of October thanks to generous sponsors such as SRP, Fry’s Food and Drug, and Sanderson Ford here.

Making memories for Arizona families is what the Arizona State Fair is about. Whether it’s your first date on the Sky Ride, at a coliseum concert, indulging in a funnel cake or winning a giant stuffed panda, the Arizona State Fair brings our community together. So come out and enjoy the fair now until October 28th! For more fun things to do in Phoenix or if you’re looking to buy or sell your Phoenix home, please contact The Voss Team today!

Roberta Voss

The Voss Team

(602)-697-0730

7111 West Bell Road Ste 101

Glendale, Arizona 85308

thevossteam.com

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