The U.S. Federal Reserve raised its key, Federal Reserve Funds Rate (Fed Funds) .25% on Monday, March 13th, 2017 for the second time this year, citing economic growth, job gains and confidence.
Then the mortgage market did something odd. Mortgage rates dropped. The yield on the 10 year US treasury peaked at 2.60% the day the FOMC chair, Janet Yellen announced the Federal Reserve would raise its key Fed Funds rate to 1.00%, from .75%.
The reason? Consumer debt gets pricing from DC and mortgages get their pricing from Wall Street. Fed Funds is the interest rate the Federal Reserve changes its member banks for short term loans. There is no direct correlation between the Federal Reserve raising rates and mortgage rates.
So in other words, Fed Funds going up has an effect on your credit card rates and consumer loan rates, rates tied to the prime lending rate, but not mortgage rates.
So what do I do if I’m in the mortgage market? The best indicator of mortgage rates is the yield on the 10 year US Treasury which can be found here https://finance.yahoo.com/quote/%5ETNX?p=^TNX
Good news. Your real estate agent just called with a buyer who would like to see your house. Trouble is, there’s only so much your real estate agent can do and it’s up to you to make your home as presentable and attractive as possible, with the goal of engaging the buyer emotionally. Here are some tips for showing your home. Continue reading “Tips for Showing Your Home to Buyers”
In “Buying a House in a Buyer’s Market – Part I,” we explored the importance of timing when it comes to buying a house in a buyer’s market. Finding the right house at the right price should be a buyer’s first and final goal with a long term plan of living there as a means of riding out bad market conditions that can occur. This time we’ll take a look at how technology and an experienced buyer’s agent, negotiating effectively and avoiding gimmicks are also essential when it comes to buying a house in a buyer’s market. Continue reading “Buying a House in a Buyer’s Market Part Two”
When the time comes to get ready for a home appraisal it’s important to keep in mind there are factors you can and cannot control. While you can’t control the location of your neighborhood and the value of other homes on your block, you can control what the appraiser sees when he walks up to the front door. Like many things in life, good preparation, careful attention to detail and a dose of fortunate circumstances all play a role in successful home appraisals and there’s a lot you as a homeowner can do to give yourself the best chance for a favorable appraisal. Here are some tips. Continue reading “Getting Ready for a Home Appraisal – Part One”
Closing on a home is not something people do every day. Buying a home is one of the biggest investments a person will make in their lifetime. So it’s important to be prepared when you’re finally ready to close. The following tips will help.
Smoother Closing – Having Things Prepared
Before you sign any mortgage loan paperwork, it’s important that you have thoroughly inspected the property you’re buying. It’s better to know your new home needs a new roof before you sign the papers rather than to discover it once the deal is done. In addition to the required home inspection, many experienced homebuyers also make arrangements with the real estate agent and seller to have a trusted friend or repairman take a look at the property for a second opinion about any necessary repairs.
Continue reading “Tips for a Smoother Closing”
You put your home on the market several months ago but your neighbor’s home sold faster than yours. Why? Because they followed their realtor’s advice, making their home “sparkle.” Realtors know that it takes a lot more than a new roof for buyers to feel comfortable buying a home. When buyers see a well-cared for home, they are often correct that what they can’t see is most likely maintained too. So how do you as a homeowner make your home sparkle? Here are some tips for getting your house ready to sell.
Continue reading “Getting Your Home Ready to Sell”
Lenders are a lot more cautious these days making buying your first home with bad credit seem like mission impossible. Trouble is circumstances have changed in the past few years with new loan limitations making it harder for people to get loan approval. While there are things you can do to maximize your chances of getting a loan, you should ask yourself some tough questions before investigating loan options.
First, consider if buying a home is good for your financial situation. Owning a home can be a lot of pressure with costs like homeowners insurance, repairs and property taxes many first time homebuyers have not had to pay before. Buying a home is one of the biggest lifetime investments many people will make. So you’ll have to do some soul searching to determine if owning a home is right for you.
Continue reading “Buying Your First Home with Bad Credit”