To help fight inflation, the Federal Reserve has hiked its benchmark Fed Funds Rate six times this year, including their most recent hike of 0.75%, taking the Fed Funds Rate from 0.25% to now 4.0%. Remember, the Fed Funds Rate is the overnight borrowing rate for banks, and does not directly affect mortgage rates. So, […]
How much have rents gone up this year?
According to Apartment List’s National Rent Report, rental prices went up $300 per month in 2021. And sources like MBS Highway expect this trend to continue in 2022, albeit at a slightly slower pace. If you’re currently renting or are considering renting, while you may have a roof over your head, renting doesn’t help you […]
Fed Taper, Inflation, and Rates
The Federal Reserve has been buying $120 billion worth of Mortgage Bonds and Treasuries each month in an effort to keep interest rates low. Lower rates often promote borrowing and stimulate the economy. These purchases have greatly influenced interest rates lower over the past year and a half. At their last meeting on November 3rd, […]
Understanding the Latest Data on Home Appreciation
Home values have been rapidly appreciating. And while appreciation is expected to continue, recent data suggests that the pace of appreciation may begin to slow. This is actually healthy for the markets, although you can count on the media to turn this into fear mongering. Let’s remember that positive appreciation means home values will continue […]
Making the Right Choice Between Buying and Renting
The real estate market has been very strong and because inventory levels are low, it may be more challenging to find a home to purchase. That has some people considering renting their next home instead of buying. There are a few factors to be considered before making that big decision. Some of the most respected […]
More Housing Bubble Fears in the Media
Home prices have risen 41% since 2006. This has prompted another round of media fearmongering that a housing bubble is imminent. As you know, the media has been talking about a housing bubble for the past several years, only to see home prices continue to be well supported. Comparing today’s housing market to the market […]
To Buy or To Rent?
Deciding between buying or renting your next home? It’s true that home values have gone up quite a bit, but so have rents. In fact, the largest landlord in the US, Invitation homes, said that rents have gone up 14% since last year and they forecast that rents will continue to go up about 6% […]
Is the Housing Boom Over?
The latest MBA data shows that home purchase applications are down 18% which is causing the media to interpret this as bad news for housing. But what’s really going on? When you take a closer look, cash buyers aren’t captured in the mortgage application data. When we figure in the big increase in cash buyers, […]
Don’t Delay Your Home Purchase or Refinance
Are you thinking about purchasing a home or refinancing your current loan? If so, I want to make sure you’re aware why now may be a great time to move forward. Interest rates are historically low, thanks in part to the Fed’s buying of Mortgage Backed Securities. But recently, the Fed has been coming under […]
Making The Most Of The Opportunity In Housing
Hi, I’m Christopher Graves with today’s Mortgage Minute. The Bond market has been volatile and unexpected changes to mortgage rates can be worrisome. A sudden adverse change can cause an increase in your monthly payment that can last for a long time, and worse yet, can make it more difficult to qualify for a loan. […]