Monthly Archives: January 2015

Will the Real Estate Market Sleep in the year of the Sheep?


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One of the most important aspects of the real estate market regardless of where you live is the interest rate on mortgage loans.  Not just for buyers, but sellers depend upon buyer traffic and this is usually driven by lower interest rates. According to the National Association of Realtors, Chief Economist Lawrence Yun, mortgage rates will rise to 5% in the next year (2015) and 6% in the next two years.  Economists base their predictions on many market factors.   Any dramatic event that affects our economy could change those predictions but assuming we don’t have a major event such as 911 (Sept. 11th tragedy) or another housing crash, the Economists’ predictions are usually pretty sound.  Continue reading

FHA to cut mortgage insurance premiums

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The Obama Administration is directing, via executive action, the Federal Housing Administration to reduce annual mortgage insurance premiums by 50 basis points, from 1.35% to 0.85%. (T)oday, the President announced a major new step that his Administration is taking to make mortgages more affordable and accessible for creditworthy families,” according to a statement from the White House. The White House statement says that the typical first-time homebuyer, this reduction will translate into a $900 reduction in their annual mortgage payment.

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