Homebuyers need to act now

Homebuyers need to act now

CHICAGO – Feb. 4, 2015 – Homebuyers need to move fast if they want to spend less, according to Jonathan Smoke, chief economist at realtor.com.

“Delayed purchases will only result in higher monthly mortgage payments as prices and rates rise,” Smoke writes. Realtor.com forecasts that affordability may decline as much as 10 percent over the year.

The Federal Reserve continues to remind the financial markets that it plans to raise its target federal funds rate this year, which will cause mortgage rates to rise. Many economists predict that 30-year fixed-rate mortgages will average near 5 percent by the end of the year.

For now, mortgage rates are near historical lows for homebuyers and homeowners. Freddie Mac reported last week that the 30-year fixed-rate mortgage averaged 3.66 percent (last year at this time it averaged 4.32 percent), and 15-year fixed-rate mortgages averaged 2.98 percent (a year ago, it averaged 3.40 percent).

“Right now, the Fed is using the word ‘patient’ to describe its approach to picking the time to raise the target rate,” Smoke notes. “However, when the Fed ‘loses patience,’ rates will go up at least 20 to 40 basis points in anticipation of the target rate officially going up. … So, buyers beware: The clock on these low mortgage rates may be ticking.”

Source: “2015: Buy Now, Before the Fed’s Patience Ends,” realtor.com® (Jan. 30, 2015)

© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688

Completely Remodeled Village Walk in Sawgrass Country Club

DSC_0745-r
Sawgrass Country Club Lake

Totally remodeled, this home is ready to move into just as it is.  Wonderful details with the remodel, but the core items were done too: Roof, siding, plumbing, wiring, added electrical power, added second floor…the list goes on.   The result is a very livable three bedroom, three and a half bath home.  Two bedrooms and the half bath are downstairs including the master. Large open kitchen. Second master is upstairs along with a office space.

Open floor plan with views of the lake from almost every room.  Make use of the patio to the side of the home for a pool or outside oasis.  This home boasts one of the largest backyards in the Village Walks.   See 26VillageWalk.com for more details. Call for your private showing today.

Freddie Mac Economist: Buy now vs. later in 2015

Fixed-rate mortgages fell back near yearly lows again this week, lowering borrowing costs for home buyers and refinancers. The 30-year fixed-rate mortgage averaged 3.99 percent this week, Freddie Mac reports in its weekly mortgage market survey.

“If you are planning to buy a home in the next year, it’s better to do it sooner rather than later,” Frank Nothaft, Freddie Mac’s chief economist, said in the video commentary embedded here.

http://www.youtube.com/watch?feature=player_embedded&v=s9-KO08p6Gc