Interest rates, mortgage payments and affordability … these are the reasons most people decide to buy or sell. Interest rates are starting to creep up, according to most industry gurus. Why is this important?
As long as interest rates remain stable, potential buyers and sellers can remain indecisive if now is the time. As interest rates start to rise, motivation kicks in; you are costing yourself money!
On the local scene ...
Home prices in
Inventory and selection are good … but, with the bump in activity, homes that people have been undecided about are starting to move. Unemployment in
The changes in rules and regulations regarding financing your purchase means more complicated loan requirements, more time spent on the paperwork … thereby making it more costly for the transaction. Experts say expect higher fees, higher mortgage insurance payments and bigger down payments. Expect more 10% down payments, as well as fewer 0-5% down-payments.
The Obama administration has stated it wants to put more of the mortgage guarantees to be placed in the private sector, as opposed to the 9 out of 10 guarantees now being handled by the fed. Fannie Mae and Freddie Mac are projected to reduce the number of loans they guarantee.
While some regulations have taken effect, new regs like the Dodd-Frank Wall Street Reform and the Consumer Protection Act (CPA) are getting ready to take effect. The quicker you make your buying or selling decisions, the more of these regulations you won’t have to deal with. Experts are going to have to sort out the confusion these changes will bring, so buyers and sellers are the ones that will be footing the bill.
We’ll have more information on these changes soon; keep your eyes out for more WhyRice.com blogs!