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Mortgage Interest Rates 2018

Where Are Mortgage Interest Rates Headed in 2018?

Mortgage interest Rates 2018 Campagna Real Estate

Where are Mortgage Interest Rates Headed in 2018?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

 

Campagna Real Estate Freddie Mac Rates

Freddie Mac 30 Year Fixed Rate Increase 2018

Where Are Interest Rates Headed? How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.

Are you considering buying a home this year? Do you need a recommendation for a trusted mortgage professional?  Schedule a consultation with Franceanna to discuss your Real Estate plans for 2018 and make sure you are on the right path.

By | 2018-02-07T08:53:56+00:00 February 7th, 2018|Finance, Mortgage, Real Estate|0 Comments

Millennials and Home Ownership 2018

Dallas, TX – Millennials and Home Ownership.

Study Shows “Millennials Deserve More Credit”

Franceanna Campagna Real Estate Millenial Buyers

Millennials have an invested stake in home ownership

When it comes to talking about millennials, there are many stereotypes out there that have influenced the way the public feels about the generation. Whether it’s the assumption that millennials are irresponsible with money and would rather buy avocado toast than save for a down payment, or that millennials jump from job to job, the majority of these stereotypes paint the generation in a negative light. Millennials have an invested stake in home ownership.

A new study by Bank of America entitled Better Money Habits Millennial Report recently came to the defense of the generation when it reported that:

“Millennials deserve more credit – both from themselves and from others – for their mindfulness when it comes to money and their lives.”

Here are some key takeaways from the study proving that millennials deserve more credit for what they are already doing:

  • 63% are saving – (47% have $15,000 or more in savings)
  • 54% are budgeting – (73% who have a budget stick to it every month)
  • 57% have a savings goal – (67% who have a goal stick to it every month)
  • 46% have asked for a raise in the past 2 years – (80% who asked for a raise got one)
  • 59% feel financially secure – (16% have $100,000 or more in savings)

Many have wondered if millennials even want to own their own homes or if they would choose to rent instead. Well, not only do they want to own their own homes, but many already do and are looking to trade up! Millennials have an invested stake in home ownership. A recent study  by realtor.com shows that 49% of Americans who plan to sell their home in the next 12 months are millennials!

Danielle Hale, realtor.com’s Chief Economist, gave some insight into why millennials are looking to sell,

“The housing shortage forced many first-time homebuyers to consider smaller homes and condos as a way to literally get their foot in the door. Our survey data reveals that we may see more of these homes hitting the market in the next year.”

Bottom Line

Not every millennial fits into the stereotypes that are so prominent in our society. Those who have risen above the stereotype are ready and willing to buy a home of their own, and many others already have!

If you are thinking about buying or selling a home, schedule a consultation.  Franceanna Campagna specializes in educating her clients to help them make informed financial decision.  What’s your Real Estate plan for 2018?

By | 2018-01-31T10:47:21+00:00 January 31st, 2018|Real Estate|0 Comments

Appraisal Gap

Dallas, TX: Appraisal Gap

The Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 4% or more over the next twelve months. One major challenge in such a market is the bank appraisal.

When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

Every month in their Home Price Perception Index (HPPI), Quicken Loansmeasures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to note as even a .5% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home)

The chart below illustrates the changes in home price estimates over the last two years.

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years | Campagna Real Estate

Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges homeowners to find out how their local markets have been impacted by supply and demand:

“Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity.”

“With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows.”

Bottom Line 

Every house on the market must be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to discuss this and any other obstacles that may arise.

Franceanna is an expert in pricing properties.  If you are looking for a detailed market analysis and broker price opinion, contact her to request a free report. No pressure. No obligation.  If you have another home buying or selling question, contact her to request a consultation.

By | 2018-01-24T23:43:01+00:00 January 24th, 2018|Finance, Real Estate|Comments Off on Appraisal Gap

Impact of New Tax Code on Home Values

What Impact Will the New Tax Code Have on Home Values?

How the Tax Code will Affect Home Values | Campagna Real Estate

Dallas, Tx – Impact of New Tax Code on Home Values. Every month, CoreLogic releases its Home Price Insights Report. In that report, they forecast where they believe residential real estate prices will be in twelve months.

Below is a map, broken down by state, reflecting how home values are forecasted to change by the end of 2018 using data from the most recent report.

Impact of New Tax Code on Home Values | Campagna Real Estate

As we can see, CoreLogic projects an increase in home values in 49 of 50 states, and Washington, DC (there was insufficient data for HI). Nationwide, they see home prices increasing by 4.2%.

How might the new tax code impact these numbers?

Recently, the National Association of Realtors (NAR) conducted their own analysis to determine the impact the new tax code may have on home values. NAR’s analysis:

“…estimated how home prices will change in the upcoming year for each state, considering the impact of the new tax law and the momentum of jobs and housing inventory.”

Here is a map based on NAR’s analysis:

The Impact New Tax Code Have on Home Values? | Campagna Real Estate

Bottom Line

According to NAR, the new tax code will have an impact on home values across the country. However, the effect will be much less significant than what some originally thought.

Franceanna helps clients sell homes quickly and for top dollar!   If you want to know what your home is worth, you can get an instant valuation here. 

If you would like to discuss your selling strategy, contact Franceanna for a no obligation consultation.  Request an appointment here.

By | 2018-01-18T21:53:55+00:00 January 18th, 2018|Real Estate|Comments Off on Impact of New Tax Code on Home Values

Selling a Home in January? Yes! Now is a great time to sell!

Selling a home in January

Clients often ask if me selling a home in January is smart! Or should they wait.
Selling a home in January | Campagna Real Estate

It is common knowledge that a great number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes on the market until then. The question is whether or not that will be a good strategy this year.

The other listings that do come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market in the spring as compared to the rest of the year? The National Association of Realtors (NAR) recently revealed the months in which most people listed their homes for sale in 2017. Here is a graphic showing the results:

Thinking of Selling?January is a great time to sell! | Campagna Real Estate

The three months in the second quarter of the year (represented in red) are consistently the most popular months for sellers to list their homes on the market. Last year, the number of homes available for sale in January was 1,680,000.

That number spiked to 1,970,000 by May!

What does this mean to you?

With the national job situation improving, and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring; they are out looking for homes right now. If you are looking to sell this year, waiting until the spring to list your home means you will have the greatest competition amongst buyers.

Bottom Line

It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today.

Franceanna helps clients sell homes quickly and for top dollar!   If you want to know what your home is worth, you can get an instant valuation here. 

If you would like to discuss your selling strategy, contact Franceanna for a no obligation consultation.  Request an appointment here.

By | 2018-01-15T12:41:10+00:00 January 15th, 2018|Real Estate, Sellers|Comments Off on Selling a Home in January? Yes! Now is a great time to sell!

The American Dream of Homeownership

Dallas, TX: American Dream of Homeownership

93% Believe Homeownership Is Important in Attaining the American Dream

Homeownership aids in creating wealth | Campagna Real Estate

Americans continue to believe that homeownership is important in achieving the American Dream. A recent survey by NeighborWorks America reported that:

“Owning a home remains a core element of the American Dream.”

When asked “How important a part of the American dream is owning a home?”

  • 18% of those surveyed said it was the most important part
  • 53% of those surveyed said it was very important
  • 22% of those surveyed said it was somewhat important

Homeownership and Financial Stability

The survey also revealed that 81% of Americans believe that owning a home leads to a family being more financially stable. This feeling was reiterated by Zillow Senior Economist Aaron Terrazas who, in a recent press release, explained:

“After about a two-year slowdown, rent growth is starting to pick back up across the nation…Looking into 2018, rent is expected to continue gaining.

More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.” (emphasis added)

Bottom Line

Owning a home always has been, and always will be, a crucial part of attaining the American Dream.

If you are thinking about buying or selling a home, schedule a consultation with Franceanna.  Whether it is a first time purchase, a move up, or a right sizing decision, she can help you evaluate your real estate plan and provide you the guidance to make the right move.

By | 2018-01-12T12:16:07+00:00 January 12th, 2018|Real Estate|Comments Off on The American Dream of Homeownership

FICO Scores Drop Again

FICO® Scores on Approved Home Loans Drop Again

Dallas, TX – FICO Scores Drop

FICO® Scores on Approved Home Loans Drop Again
 In today’s competitive market it is is more important than ever for a buyer to obtain a pre-approval.  If you have been considering purchasing a home a home, the first step is to connect with a great lender.  It will save you time and effort and will help determine how much home you can qualify for.  It also lends credibility to your offer. In local markets with tight inventory and a saturated buyer pool, only the most competitive offers with pre-approvals make it to the table. Even if you think your credit is not high enough, you should speak to a lender. The good news is, the FICO scores on approved home loans have recently dropped.

According to Ellie Mae’s latest Origination Report, the average FICO® Score one all closed loans dropped to 722 which is its lowest mark since April. The average includes all approved refinance and purchase loans.

FHA and VA loans showed the most opportunity for millennials looking to enter the market with low down payments and even lower FICO® Score requirements.

Ellie Mae’s Millennial Tracker revealed that those who purchased homes in December with an FHA Loan were able to do so with an average down payment of 4% and a FICO® Score of only 684.

Joe Tyrell, EVP of Corporate Strategy at Ellie Mae commented on the opportunity this brings to buyers,

“With the average credit score dipping, lenders are extending credit to borrowers who may have had no previous access to the housing market.”

Bottom Line

More and more potential buyers are able to qualify for a mortgage loan now! Have mortgage questions? Need a referral for a good lender? Not sure where to start? If you are debating a home purchase, let’s get together and evaluate your ability to buy today! Contact me here!

By | 2018-01-10T09:52:03+00:00 January 10th, 2018|Finance, Real Estate|Comments Off on FICO Scores Drop Again

To Stage or Not To Stage

To Stage...or Not to Stage? That Is the Question

Some Highlights:

  • The National Association of Realtors surveyed their members & released the findings of their Annual Profile of Home Staging.
  • 50% of staged homes saw a 1-10% increase in dollar value offers from buyers.
  • 77% of buyer’s agents said staging made it easier for buyers to visualize the home as their own.
  • The top rooms to stage to attract more buyers are the living room, master bedroom, kitchen, and dining room.
By | 2018-01-10T09:47:31+00:00 January 10th, 2018|Real Estate|Comments Off on To Stage or Not To Stage