Mortgage Rates lowest now since December 2012!

While a possible pandemic is causing alarm (and fear mongering) throughout the U.S. - not all news is bad news!

As economic uncertainty about the coronavirus drives down interest rates, house hunters are applying for mortgages at a level not seen in more than a decade. U.S. mortgage rates fell to the lowest levels in eight years last week, according to official data published Wednesday, while refinancing spiked following the Federal Reserve's emergency interest rate cut.

The Fed slashed its benchmark lending rate by 50 basis points, to a range of 1% to 1.25%, on March 3, citing "evolving risks to economic activity" from the coronavirus.

For the week ending March 6, mortgage loan applications rose 55.4% as compared to a week earlier, reaching their highest number since April 2009, according to the Mortgage Bankers Association's weekly survey.

Homeowners are flocking to take advantage of lower interest rates. Refinancing applications jumped 79% week over week, the biggest weekly jump since November, 2008. The volume of refinance applications was also the highest in nearly 11 years.

BUT BE CAREFUL

As the mortgage business continues to try to deal with the repercussions of interest rates hitting an all-time low last week, it appears that some lenders are inflating their advertised mortgage rates to try to stem the tidal wave of mortgage applications they’re receiving. 

A review of the top mortgage rate comparison sites (LendingTree, Bankrate, Zillow, Credit Karma and several others) shows lenders advertising rates well above the all-time low that rates fell to just last week. 

Some lenders may be keeping their mortgage rates above where they could be in an effort to control the demand for mortgages.

Put simply, many lenders are so busy right now trying to process the loan applications they’ve already received that they’re pushing their interest rates well above the prevailing market rate so they can actually deliver on the loans they already have in their pipeline. 

What does this mean?

The timing, with the annual Spring housing market literally opening its doors right now, could not be better to list your home for sale. List with Real Estate expert Greg Rapp, and get the ball rolling in the right direction. Call 704.213.6846.

Sources:

https://www.usatoday.com/story/money/2020/03/11/

https://www.thestreet.com/investing/

https://www.housingwire.com/articles

Greg Rapp Realtor®
Wallace Realty
704.213.6846
GregRappRealtor@gmail.com
Facebook.com/GregRappRealtor/

Now is the Ideal Time to List Your Property With Greg Rapp

Realtor® Greg Rapp is closing property deals in the Salisbury/Rowan County area!  You'll want to talk to Greg, (704) 213-6846, if you are thinking of selling YOUR home or commercial property!

"The real estate market has been booming in recent years, but the market never heads in a straight line. If you're looking to sell your home or your vacation property, now may be an ideal time to cash out.

Let's go over a few of the reasons it makes sense to sell your home now.


1. Mortgage rates are likely heading higher. The Federal Reserve has made it clear that interest rates will be moving higher. Fed chief Janet Yellen recently said that rates will move higher later this year after seven years of central bank easing that helped the battered real estate market bounce back following the subprime lending crisis.

We're already seeing market sentiment starting to factor in the inevitable hike. After bottoming out at 3.77 percent in April, rates for 30-year mortgages have crept up to 4.26 percent, according to rate monitor Bankrate (RATE).

This should be alarming if you have a house to sell. It means that potential buyers are getting less bang for their borrowed buck, and that could drive home prices lower to balance things out. With cash buyers peaking last year, the market's now at the mercy of mortgage-seeking buyers. Higher rates won't help.

2. You may as well get out while the getting is good. Last month was great for sellers. Existing homes sold at the fastest pace since early 2007. The National Association of Realtors is reporting that home sales rose 3.2 percent in June, pushing the seasonally adjusted annual rate to 5.49 million homes changing keys. Even the real estate agency is conceding that the strength in turnover is likely tied to fears that rates will move higher in the near future. Median sale prices have risen 6.5 percent over the past year -- to a new record of $236,400 Nationally -- but that momentum will be challenged in the new normal of rising mortgage rates.

3. Locking in today's low rates. A common gripe during the housing boom is that if someone sells a home, they still need to find a new place to live. This could be an ideal time to consider trading down, moving to a more affordable housing market, or possibly even renting. However, if selling now results in buying now, it's probably a good idea to do it sooner rather than later to lock in today's rates.

Waiting for rates to move higher may result in better prices as a buyer, but is that a chance you want to take? You don't want to be priced out of your next address.

4. Your home will stand out. There were 2.3 million existing homes on the market at the end of June, according to the National Association of Realtors. Given the recent spike in buying we can divide that by the 5.49 million annual rate of seasonally adjusted sales to see that we have just a five-month supply of homes in the market. That's the lowest that it's been in years, making it easier for your own property to stand out if it's put on the market.


Home prices have posted year-over-year gains for 40 consecutive months. No streak lasts forever, and the climate is right now to consider moving on if it's something that you were planning on doing anyway." (Rick Aristotle Munarriz, 4 Reasons to Sell Your Home Now, DailyFinance.com, July 27, 2015)

So if you're thinking about selling your property, now is the time to contact Greg Rapp at Wallace Realty and get it on the market!  Call 704.213.6846 today!

Greg Rapp 
Wallace Realty Co. 
704 213 6846 Mobile 
704 636 2021 Office 
www.realestatesalisbury.net 

Wondering What Mortgage Rates Look Like Today? Here You Go!

Let's get you started! Call me today! 

Greg Rapp 
Wallace Realty Co. 
704 213 6846 Mobile 
704 636 2021 Office 
www.realestatesalisbury.net