A Real Estate Market Shift

Family Home Prices, Interest Rates & More…

As of the time of this writing, the 30-year Fixed [Mortgage] Interest Rate was hovering at about 5.75+% Conventional (down 20 basis points recently) & 5.6+% FHA. With the next Fed meeting pointing toward an upward adjustment still (in rates), then expect about 6.25% (+ or -, on 30-year Fixed Conventional loans). Talk about stifling home purchase interest for the Average American…

Please keep in mind that in the new popular 5-year ARM (Beginning Rate is about 4.75%), in 5-years you are legally bound to maybe pay dangerously quite a bit more in a monthly payment…after the rate adjustment (usually done annually thereafter). Don’t forget what happened when rates adjusted in 2009, it ended with industry melt-down. The quick climb in mortgage rates finally paused this week however, but high borrowing costs continue to slow-down price-frightened home buyers. In fact, Consumer Confidence / Home Buyer Confidence has dropped, as shown by a drop in home purchase contract numbers, the 2nd Quarter of this year. The trickle-down effect is a slow degradation in home “listing” prices, sometimes homes are being [placed on the market] at 10–15% below ‘expected appraised’ value, in some markets. Realtor.com is especially useful for the Average Real Estate participant to determine their home’s value. For example, enter a home’s address, then just…