Last week I wrote about refinancing... and why it's important to align yourself with a great, knowledgable and local lender. It also helps when you've got an agent or broker you can turn to for information, referrals and to help sort out the industry jargon that goes along with home financing.
I'm going to piggy back on that entry with something that's come up in the last couple of weeks - Interest Rates.
Any time you're financing (whether it's a house, car, student loan, credit card, etc) you should be concerned with where interest rates sit. If you're looking to make a big purchase, say, a home or investment property you should also be concerned with where those rates have been recently, and how the current status plays into the marketplace.
Currently, the Phoenix Valley / Maricopa County is a strong seller's market. In the lower and more affordable price points, between $200k-400k, demand is up by almost 20% versus the same time last year. Add to that, that the supply in this price point is down by approximately 5%.* This strong seller's market continues to get strong, and only has signs of continuing this same trend.
Why is it continuing to get stronger?
From Melissa Al-Rifai, Senior Loan Officer (NMLS 568624), Bell Mortgage:
"The market is in a little boom as rates took an unexpected turn for the better mid-2019. This was an unexpected but well received turn of events for consumers in the real estate market.
Buyers are locking in at lower rates which means they are either A) Now getting a lower payment locked in on their new house or B) Qualifying for a bigger/nicer house because the payment is more affordable now.
Whether buying or refinancing, if you are in the market to make a move, there is no better time than now. We don’t know how long these good rates will hold. I heard many clients saying… “I wish I had” back when the rates were low.
Now is the time! Don’t let it pass you by again.
An example of how much a 1% difference in rate can really mean:
Loan Amount: $250,000
Interest Rate: 4.250%
Principal and Interest (30 yr): $1,230
Loan Amount: $250,000
Interest Rate: 5.250%
Principal and Interest (30 yr): $1,380
THAT’s $150 every month!! That’s $1,800 a year."
Who doesn't need that kind of extra savings? Do you know how many flights I could buy with that in my pocket?
If you've been thinking about buying your first home, buying an investment property, refinancing or upgrading... the time is now. As always, if you're in the market to buy or sell, I'd be honored to work for you. If you have questions about any of this, please reach out.
Rates vary by lender and by applicant, of course. But we *have* seen lower rates in the more recent months.
If you've found this entry helpful, please like or comment below.
*Information gained from Tina Tromber, Senior Housing Analyst, Cromford Report