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

thevossteam.com

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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.

5 Fast Ways to Improve Your Credit Score for Home Buying

5 Fast Ways to Improve Your Credit Score for Home Buying

Want to buy a home but know your credit score needs work? You’re not alone. The average credit score in the U.S. is 695 according to the AAA Credit Guide, which is considered to be fair on a scale of 300 to 850. Our credit report tells a financial story of us as payers of debt, and it has a long memory. A low credit score means that you will be charged a much higher interest rate when you apply for a home loan. Additionally, you may be required to contribute a much larger down payment of cash. Finally, if your score is very low, you might simply be denied altogether, although virtually every mortgage company now has special programs designed to help those with bad credit get loans for home purchases.

Because your credit score affects everything from qualifying for a car loan to, in some cases, qualifying you for employment, it makes since that having the best score will help you obtain your real estate goals. Here are 5 fast ways to improve your credit score for home buying.

  1. If you have any collections or judgments against you, pay them off as quickly as possible.
  2. Pull your credit report at least once a year to review any discrepancies.
  3. Pay all your bills on time by utilizing payment reminders or automatic bill pay options.
  4. Don’t close your credit card accounts because then you’ll be using a higher percentage of your overall credit limit.
  5. Try to reduce your credit card debt to twenty-five percent or less of your credit line on each card.

The sooner you begin implementing these fast 5 ways to improve your credit score, the easier it will be when it’s time qualify for a home loan. If you’re ready to buy a home in Phoenix or if you’re ready to sell your Phoenix home, please contact The Voss Team today to assist you with your real estate needs! Contact us today for a knowledgeable and unforgettable real estate experience!

Roberta Voss

The Voss Team

(602)-697-0730

7111 West Bell Road Ste 101

Glendale, Arizona 85308

thevossteam.com

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3 Ways to Know if You Have Good Buyer Etiquette

3 Ways to Know if You Have Good Buyer Etiquette

Man gives a woman the keys to a new home. Chrome pedant with house shape
Man gives a woman the keys to a new home. Chrome pedant with house shape

Believe it or not, good etiquette doesn’t just apply to practicing polite behavior at parties and other social gatherings. It can also apply to buying a home as well, especially when you’re on the search for the perfect Phoenix home. If you’ve ever been a seller, hosted an open house, or worked with an agent, then you’ve been in situations that require a certain social civility. Do you have good buyer etiquette? Ask yourself these three questions to find out:

1.) Do you know what you’re looking for?

If you’re looking to buy, but have absolutely no idea what you want, you’re going to waste a lot of time viewing spaces that may not fit your needs. Take the time to identify exactly what you want before you and your agent hoof it to view properties. How many bedrooms do you want? Do you want a single story or a two-story? Having a list of what you’re looking for will save everyone time.

2.) Do you criticize while you browse?

If you walk into a seller’s house that you’re not crazy about, hold your tongue. They still call it their home and definitely won’t appreciate you calling their look dated or complaining about the lack of space. Criticizing a property during the tour is in bad taste and you never know who could be listening. If you end up in a multiple offer situation, you don’t want the seller to choose another buyer because they heard you badmouth their home.

3.) Do you take pictures while you tour?

In an age where most everyone has a smart phone, it may seem like no big deal to snap a photo or make a quick video to show your friends and family how your home search is going. But in many cases, the homes you are viewing are still someone’s private residence and they may not appreciate having it photographed or shared. Always ask permission to take photos or video of the house.

Practicing good buyer etiquette towards sellers, their agents, and your REALTOR® is easy. Just remember to be respectful and practice common courtesy when you’re in someone else’s home, even if you’re not exactly thrilled with what you see. If you’re ready to put that good buyer etiquette to the test and buy a home in Phoenix, then 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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