I just received a note from a client that I have been working with for some time. She and her husband started looking as the overall market was weak, and they knew some good deals could be made. However, they decided last night that the ecnomoy was too shaky and they were going to sit it out for while longer until things started to get better.
Ok, what is going to get better for a buyer?
-Low interest rates? Lowest in years! If you qualifiy for the Texas Veteran Program and have a VA disablity of 30% or more, you can get a 30 year fixed for a guaranteed rate of 4.78% this week!!!
-Low home prices? Home prices in the greater San Antonio area have weatherd the economy better than most, but our prices have either been steady or seen some decline. Will every house for sale go lower? I doubt it seriously. So current prices are probably as good as we will see for some time as well.
-Availability/Inventory of existing homes? The most we have had on the market - ever! The San Antonio MLS currently has about 10,790 singel family residential units available. If there isn't something you want, you may never find it!
-Availablity of mortgage money? Again, loads of money out there. Every lender I talk to is looking for new buyers. A lot of refinancing in the works, and that should spark a bit of new purchases as well, but where are the buyers? Yes, the requirements are a bit more stringent than a couple of years ago. you have to do more than breath to get a loan!
The money is there and it is cheap and the houses are there and they are priced well. Get out and see what we have and if you have a job and want a new house, now may be the best time in years to make that happen!
Showing posts with label interest rates. Show all posts
Showing posts with label interest rates. Show all posts
Thursday, January 29, 2009
Tuesday, January 27, 2009
Interest Rates At Historic Lows
As interest rates hover in historically low levels, there are certain things happening that will start to slow down some of the refinancing and purchases.
For openers, the lenders are trying to slow down the flow so they can keep their costs low. Underwriting is reviewing packages and taking weeks to finalize, often with last minute requirements that have even caused loans to be disapproved at the last minute.
Another is the use of many legal, but sometimes questionable, fees. These can add hundreds to thousands of dollars to the cost of obtaining a loan. The banks need this money to offset the low interest rates. They are not making a lot of money on the low rates, so they are not waiving or reducing the fees they charge.
Even our highly regarded Texas Veteran Loan program is keeping their rates higher than usual, and have reduced the Veterans with disability discount to 0.5%. This is to slow down the number of loans and keep their program funded through the rest of the year.
So, we may be at the lowest cost of obtaining a loan and may see more fees, higher interest rates, and longer times for approval as the economy starts to "recover" and the stimulus packages kick in.
I'll let you know if I see things changing anytime soon.
Sorry about the spelling earlier, I missed spell check!
For openers, the lenders are trying to slow down the flow so they can keep their costs low. Underwriting is reviewing packages and taking weeks to finalize, often with last minute requirements that have even caused loans to be disapproved at the last minute.
Another is the use of many legal, but sometimes questionable, fees. These can add hundreds to thousands of dollars to the cost of obtaining a loan. The banks need this money to offset the low interest rates. They are not making a lot of money on the low rates, so they are not waiving or reducing the fees they charge.
Even our highly regarded Texas Veteran Loan program is keeping their rates higher than usual, and have reduced the Veterans with disability discount to 0.5%. This is to slow down the number of loans and keep their program funded through the rest of the year.
So, we may be at the lowest cost of obtaining a loan and may see more fees, higher interest rates, and longer times for approval as the economy starts to "recover" and the stimulus packages kick in.
I'll let you know if I see things changing anytime soon.
Sorry about the spelling earlier, I missed spell check!
Tuesday, January 6, 2009
2009 Housing Forecast
We attended the 2009 Housing Forecast put on by the San Antonio Board of Realtors (SABOR) this morning and have a lot of information to share.
For starters, as we all know, the greater San Antonio area is weathering the recession well and is poised to be the front runner during the upcoming growth period. We are still affected by the many folks moving to the area for good jobs, Military, and quality of life that are unable to sell or rent their homes in other areas. As this situation starts to slow amid the normal spring moving season, as well as with the promised stimulus packages, we will see an increase in sales.
For the time being we have over 12,000 available homes on the market and interest rates are at all time lows. This is still a buyer's market and will be into 2009 or even 2010. However, statistics show that home prices have stabilized in our region and even appreciated in some areas over the last year. This indicates that the buyer's market may not allow for some of the slashing that has occurred in other markets such as Florida and Las Vegas.
Dr. Mark Doutzour, the Chief Economist for the Texas A&M Real Estate Research Center is strong on home ownership, but is also supportive of realistic lending practices. He tells us that we will start seeing recovery in our area this spring, and history shows that we will start to see both home prices begin to move up and interest rates to possibly increase as well. He flatly states that now is probably the best buying opportunity for the next 20 or more years!
There were all kinds of statistics and trend lines thrown around to make the numbers types feel involved, but bottom line is we are in a great location and now would be the time to lock in future appreciation at phenomenal prices and rates.
Call and I can provide details and share more with you as well!
It sure is nice to be in Texas!
For starters, as we all know, the greater San Antonio area is weathering the recession well and is poised to be the front runner during the upcoming growth period. We are still affected by the many folks moving to the area for good jobs, Military, and quality of life that are unable to sell or rent their homes in other areas. As this situation starts to slow amid the normal spring moving season, as well as with the promised stimulus packages, we will see an increase in sales.
For the time being we have over 12,000 available homes on the market and interest rates are at all time lows. This is still a buyer's market and will be into 2009 or even 2010. However, statistics show that home prices have stabilized in our region and even appreciated in some areas over the last year. This indicates that the buyer's market may not allow for some of the slashing that has occurred in other markets such as Florida and Las Vegas.
Dr. Mark Doutzour, the Chief Economist for the Texas A&M Real Estate Research Center is strong on home ownership, but is also supportive of realistic lending practices. He tells us that we will start seeing recovery in our area this spring, and history shows that we will start to see both home prices begin to move up and interest rates to possibly increase as well. He flatly states that now is probably the best buying opportunity for the next 20 or more years!
There were all kinds of statistics and trend lines thrown around to make the numbers types feel involved, but bottom line is we are in a great location and now would be the time to lock in future appreciation at phenomenal prices and rates.
Call and I can provide details and share more with you as well!
It sure is nice to be in Texas!
Monday, November 17, 2008
Local Real Estate Notes
Now that we have seen the DOW go back and forth a thousand points in a day, are you still watching the news? What to believe, which way to go, what to buy? Well, let's look local and see what is out there:
In the Schertz and Cibolo zip codes we have 465 current listings ranging from a $65,000 mobile home to a great custom home on over 28 acres for $930,000. Most of the listings are single family homes under $225,000! So, we can pretty much meet any buyer's needs.
As for forclosures, we have 11, ranging from $69,900 to $199,900. That is only 2.3% of our active market!
For renters, or investors looking to see what the local market has, we have 86 rentals ranging from a $650/month townhouse to a new exectuive home for $1795/mo. The average single family home rents for about $1200/month.
What does this mean? It means that we have a strong market with few foreclosures, and good values for both owners and renters. It means we have more inventory than historically at this time of the year, but this is historically the slowest time of the year for sales as well.
Interest rates are stying between 6% - 6.75% as well, making for attractive rates for long term ownership. And the Texas Vet program strives to stay about 1/2 point lower when it can.
Coem on out and see for yourself, we have a lot of great value now and why wait for the stock market when you can at least live in your investment, no matter what the DOW is doing!
In the Schertz and Cibolo zip codes we have 465 current listings ranging from a $65,000 mobile home to a great custom home on over 28 acres for $930,000. Most of the listings are single family homes under $225,000! So, we can pretty much meet any buyer's needs.
As for forclosures, we have 11, ranging from $69,900 to $199,900. That is only 2.3% of our active market!
For renters, or investors looking to see what the local market has, we have 86 rentals ranging from a $650/month townhouse to a new exectuive home for $1795/mo. The average single family home rents for about $1200/month.
What does this mean? It means that we have a strong market with few foreclosures, and good values for both owners and renters. It means we have more inventory than historically at this time of the year, but this is historically the slowest time of the year for sales as well.
Interest rates are stying between 6% - 6.75% as well, making for attractive rates for long term ownership. And the Texas Vet program strives to stay about 1/2 point lower when it can.
Coem on out and see for yourself, we have a lot of great value now and why wait for the stock market when you can at least live in your investment, no matter what the DOW is doing!
Friday, July 25, 2008
Interest Rates Moving Up
This just in from the Wall Street journal --
30-Year Mortgage Rates Rise Again Freddie Mac reports a more than 0.25-percentage point gain in the 30-year fixed mortgage rate to 6.63 percent during the week ended July 24 from the prior week, marking the highest level since it reached 6.68 percent last August. The 15-year fixed mortgage rate also increased, climbing to 6.18 percent from 5.78 percent. Meanwhile, the five-year hybrid adjustable mortgage rate rose to 6.16 percent from 5.80 percent; and the one-year ARM surged to 5.49 percent from 5.10 percent. Freddie Mac chief economist Frank Nothaft attributes the jump to "market concerns about rising inflation, further weakness in the housing market and greater probability that the Federal Reserve will raise short-term rates this year." Source: Wall Street Journal (07/25/08)
We may not see any more increases like this, but the trend is in place. If you are considering buying a home, now is the time! As interest rates increase, the less house you can afford comfortably.
30-Year Mortgage Rates Rise Again Freddie Mac reports a more than 0.25-percentage point gain in the 30-year fixed mortgage rate to 6.63 percent during the week ended July 24 from the prior week, marking the highest level since it reached 6.68 percent last August. The 15-year fixed mortgage rate also increased, climbing to 6.18 percent from 5.78 percent. Meanwhile, the five-year hybrid adjustable mortgage rate rose to 6.16 percent from 5.80 percent; and the one-year ARM surged to 5.49 percent from 5.10 percent. Freddie Mac chief economist Frank Nothaft attributes the jump to "market concerns about rising inflation, further weakness in the housing market and greater probability that the Federal Reserve will raise short-term rates this year." Source: Wall Street Journal (07/25/08)
We may not see any more increases like this, but the trend is in place. If you are considering buying a home, now is the time! As interest rates increase, the less house you can afford comfortably.
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