Posts Tagged ‘interest rates’

Trends & Predictions For 2017 Real Estate Market

Posted on: January 10th, 2017 by Tim Garcia

 

Trends and Predictions for the 2017 Real Estate Market

With 2016 and the holidays now in the rear-view mirror, it’s time for you to begin establishing, focusing and achieving your goals for 2017.

Is this the year you close your first million-dollar listing? Is 2017 the year you finally launch a custom-designed website that’s user-friendly and packed full of awesome information for your clients whether they’re on mobile or desktop?

Whatever your goals might be over the next 12 months, they’re sure to be impacted in some capacity by trends and predictions for the coming year. Here are just a few of the prognostications for the 2017 real estate market by some of the best and brightest experts in the industry.

 

Chris Matthews –

“In December, the Federal Reserve raised interest rates for only the second time since 2006, and a majority of the members of the Fed’s rate-setting board predict there will be three more increases coming in 2017. These decisions will cause mortgage rates to rise, potentially making it more difficult for prospective homebuyers to be able to afford the home of their dreams.”

Ilyce Glink – CBS News

“As the oldest of the millennials push into their mid-30s, many will start to settle down and buy houses. A number of factors are contributing to this generation’s decision to start buying homes. More jobs are being created for 25- to 34-year-olds than any other age group, and wages are rising. Millennials are also reaching an age at which they’re thinking about marriage and children.

Baby boomers, the oldest of whom are entering their late 60s, are also looking to move as they reach their retirement years. In the last several years, baby boomers’ participation in the housing market has dwindled. Many already own homes and may have been reluctant to sell until their properties recovered the value they lost in the housing bust.”

Beth Braverman – The Fiscal Times

“It’s easier to get a mortgage now than at any time in the past eight years. That reflects an increased availability of both jumbo loans and low down-payment loans. Banks may also be more willing to work with borrowers over the next few years as they look to make up for a decline in refinancing business when interest rates go up.”

Kelsey Ramirez – HousingWire

The hottest real estate markets for 2017 will include Phoenix, Los Angeles, Boston, Sacramento and Riverside.

Tawd Frensley – PropertyMinder

“As it becomes more difficult for buyers to purchase homes due to higher interest rates, I believe every agent should turn their attention to the homeowners they know. If you were to refer back to what Glink and Braverman stated about Baby Boomers, refinancing will not be much of an option in 2017. The only real way to free up cash for retirement will be to sell. Reach out to every 55-plus-year-old homeowner you know and make yourself top-of-mind when they make the decision to sell. You can’t make someone sell, but you can make them remember you first when they make that decision.”

PropertyMinder is here to help

Want to learn how PropertyMindrr can help you stay one step ahead of the curve in 2017? Check out our video below to learn a bit more and then take AccelerAgent for a test drive for free today. It’s our impact product that will help you adapt to the constant fluctuations of the industry.

We’ll get you on the fast track to capturing and closing leads in no time.

 

 

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What Rise In Interest Rates Really Mean…

Posted on: December 3rd, 2016 by Tim Garcia

Howdy,

 

You may have read in the news recently that interest rates are starting to climb. As interest rates increase, it could have a ripple effect that includes the decline of property values, less folks buying homes, a surplus of homes remaining on the market and more.

As you can probably imagine, your clients may have just a few of the following questions:

 

  • What does this mean for my family and me?
  • Will there be an influx of bank-owned homes about to hit the market?
  • Will this create a flood of listings on the market?
  • Are we about to shift to a buyer’s market?
  • Are we finally facing equilibrium?

 

These are just a few examples of the potentially dozens of questions your clients and leads might have.

So what do experts in the industry think about these questions and more?

Today we’re going to take a quick tour around the web to show you what some of the top journalists and researchers are saying about interest rates suddenly shifting skyward.

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Mortgage rates surge, but homebuyers advised to be patient

Marcy Gordon and Josh Boak, Associated Press

“The low rates have helped boost home sales and prices this year. But there are economic unknowns as the new administration’s economic policy starts to take shape. And constraints on home purchases like tight credit standards and affordability remain, bolstered by market expectations of further rate increases.

Steadily rising rates would ultimately limit the number of possible buyers and how much they can afford to pay. And existing homeowners who might otherwise be looking for an upgrade could choose to stay put rather than face higher interest costs.”

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Mortgage rate increases dampen refinancing

Nathan Bomey, USA TODAY

“Mortgages issued to purchase homes, rather than refinancing existing mortgages, are still humming along at an encouraging clip. Some “fence sitters” are buying now to avoid higher rates later. What’s more, the strong housing market and wage increases are encouraging many buyers to take the plunge. Even some notoriously cautious Millennials are increasingly jumping into the market. Rent increases averaging 5% might be a contributing factor for them.”

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The era of super-low interest rates might be ending. What’s in it for you?

Jim Puzzanghere, Los Angeles Times

“The sudden increase has cooled the market for mortgage refinancing and is likely pushing some prospective home buyers to rethink how much house they can afford.

When mortgage rates are low and dropping, refinancing activity rises as homeowners look to replace higher-rate loans with cheaper ones. With rates now headed the other way, refinancing activity is expected to drop off in 2017, according to the Mortgage Bankers Association.”

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Mortgage Applications Drop 9.4 Percent as Interest Rates Continue to Soar

McGuire, Newsmax

“With mortgage rates going up, affordability is down. But affordability is still at a fairly high level. Even though mortgage rates go up doesn’t mean people will buy fewer homes.

To be sure, a sustained surge in borrowing costs could further hinder first-time purchases at a time when rising values are already hurting affordability and pricing out buyers in many markets.”

 

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What are your thoughts on interest rates going up? We’d love to hear from you.

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