Blessings Realty | Colorado Springs and Monument Realtor
Changing minds about Realtors
If you’re looking to buy your first home, you’re likely balancing several factors. Because both mortgage rates and home prices have risen this year, it costs more to buy a home than it did even just a few months ago. But that doesn’t mean you have to put your plans on hold.
If you partner with a trusted real estate advisor and hone your strategy, you can navigate today’s market and find the home you’re looking for. Here are two tips to help you get started.
Selling a home in the summer can be difficult, but it is certainly not impossible. Summer is usually a joyous time. However, one of the most crucial drawbacks of trying to sell your home in summer is the fact that people tend to purchase properties in spring more than in summer. Nevertheless, the trick of selling your property in summer is to present it in the greatest light possible. That is why staging can play an essential role in selling your home. Fortunately, the summer can be a great time to get creative and make your home stand out to potential buyers. There are many fun and inviting ideas to incorporate summer into home staging.
When it comes to decorating or staging a property, color is crucial. Color may influence the overall ambiance of a home and the feelings of visitors or buyers. To begin, you might want to stick to neutral colors. The use of neutral hues allows other aspects of your home to become emphasized. Neutralizing the décor will allow potential buyers to imagine how they will decorate it. After neutralizing the interior, you might want to introduce some charm. You can opt for white walls. Moreover, you might add brightly-colored furniture items to bring the summer vibes. There are many bright trendy colors that are perfect for summer.
First and foremost, adding some sparkle to your entrance might attract potential buyers. The advantages of staging your front door are various. Namely, it doesn’t require much time or money. You might want to give them that warm feeling from the very time your potential buyers enter the house. The first impression is always crucial, so make sure to make a good one.
Pretty much everyone knows the Fed raised interest rates a half a point in early May, but what does that really mean? For the most part, the Fed has been planning to inch up rates in order to deal with record inflation, which means it hopes to stem the rise in prices we’re seeing on nearly everything we buy today, from groceries to household supplies.
Rising interest rates also mean you could earn a higher return on your savings, whether you bank with a traditional institution or you park your savings in an online bank.
Unfortunately, there’s another side to rising rates — borrowing money is going to become a lot more expensive than it was in previous years.
Article source: https://www.keepingcurrentmatters.com/2022/05/27/bright-days-are-ahead-when-you-move-up-this-summer-infographic/.
If you’re planning to buy a home, it’s critical to understand the relationship between mortgage rates and your purchasing power. Purchasing power is the amount of home you can afford to buy that’s within your financial reach. Mortgage rates directly impact the monthly payment you’ll have on the home you purchase. So, when rates rise, so does the monthly payment you’re able to lock in on your home loan. In a rising-rate environment like we’re in today, that could limit your future purchasing power.
Today, the average 30-year fixed mortgage rate is above 5%, and in the near term, experts say that’ll likely go up in the months ahead. You have the opportunity to get ahead of that increase if you buy now before that impacts your purchasing power.
The chart below can help you understand the general relationship between mortgage rates and a typical monthly mortgage payment within a range of loan amounts. Let’s say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within that range, while the red is a payment that exceeds it (see chart below):
As the chart shows, you’re more likely to exceed your target payment range as mortgage rates increase unless you pursue a lower home loan amount. If you’re ready to buy a home, use this as your motivation to purchase now so you can get ahead of rising rates before you have to make the decision to decrease what you borrow in order to stay comfortably within your budget.
It’s critical to keep your budget top of mind as you’re searching for a home. Danielle Hale, Chief Economist at realtor.com, puts it best, advising that buyers should:
Get preapproved with where rates are today, but also consider what would happen if rates were to go up, say another quarter of a point, . . . Know what that would do to your monthly costs and how comfortable you are with that, so that if rates do move higher, you already know how you need to adjust in response.
No matter what, the best strategy is to work with your real estate advisor and a trusted lender to create a plan that takes rising mortgage rates into consideration. Together, you can look at your budget based on where rates are today and craft a strategy so you’re ready to adjust as rates change.
Even small increases in mortgage rates can impact your purchasing power. If you’re in the process of buying a home, it’s more important than ever to have a strong plan. Partner with a trusted real estate advisor and lender to strategize so you can achieve your dream of homeownership this season. Get in touch with us today to get started.
Article source: https://www.keepingcurrentmatters.com/2022/05/09/how-todays-mortgage-rates-impact-your-home-purchase/.
As data trickles in for April, it’s becoming clear that the historically hot housing market has flipped trajectories. It’s now in cooling mode. The number of homes listed for sale is rising again. Fewer shoppers are scheduling tours. And Redfin reports 15% of home sellers in April cut their asking price—up from 9% a year ago.
The red-hot housing market’s days are numbered. While I don’t anticipate a collapse á la the Great Recession, rising mortgage rates and inventory are sure to cool what has been an unprecedented time for the U.S. housing market,” says Ralph McLaughlin, chief economist at Kukun, a real estate data and analytics company.
This softening is by design. The Federal Reserve is done watching inflation run away, and has made it a priority to cool down one of its biggest drivers: the housing market. To do so, over the past few months, the Fed has put upward pressure on mortgage rates. In December, the average 30-year fixed mortgage rate sat at 3.11%. As of last week, that rate is up to 5.27%—its highest level since 2009.
