John Capozzi- “Dig where the gold is unless you just want some exercise.” “Location, location, location,” experts say is the most important real estate facet.  If you are a homeowner, a home seller, or a homebuyer, the timing element determines the amount of gold you mine from your home or your financing. “Is there still gold in them there hills?”  Watch out for the effects of inflation.   Inflation is pushing onto the scene, and inflation is the archenemy of low interest rates.  This week the Federal Reserve chairman, Jerome Powell, announced that the Fed would continue keeping their rate low, even in the face of rising inflation. The Fed vowed they would continue to buy mortgage-backed securities to keep mortgage rates affordable.  However, the bond markets have been running against the Fed's efforts like a game of chicken.  “Is there gold in them there hills?”  When it comes to your…
Posted On Sunday, 26 May 2024 00:00 Written by
Prices keep rising because this spring’s inventory is lower than usual. The sliver of good news for buyers is that mortgage rates have declined slightly The median U.S. home-sale price hit a record $387,600 during the four weeks ending May 19, up 4% from a year earlier. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Weekly average mortgage rates dipped to 7.02% from a five-month high of 7.22% at the start of the month, bringing the median monthly housing payment to $2,854, roughly $20 shy of April’s all-time high. High housing costs pushed pending home sales down 4.2% year over year, the biggest decline in three months (except the prior 4-week period, when sales declined 4.4%). Prices keep rising despite declining sales because there aren’t enough homes on the market: New listings are up about 8% year over year, but inventory remains lower than…
Posted On Saturday, 25 May 2024 06:48 Written by
Another 27% of mortgages went to buyers aged 35-44. Young people take out the majority of mortgages because they’re of prime homebuying age, gaining financial stability and growing families. Plus, they’re less likely than older people to pay cash. Two in five (39.7%) new mortgages issued in 2023 went to homebuyers under 35, and 26.5% went to buyers aged 35-44. Next came 45-54 year olds, who took out 16.1% of new mortgages, 55-64 year olds (10.8%), and 65-74 year olds (5.4%). That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This is according to Redfin’s analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of primary homes. It does not cover purchases of investment properties or second homes. The breakdown of homebuyers by age has remained stable over the last five years, with younger Americans as the most common mortgage borrowers. The likelihood of…
Posted On Friday, 24 May 2024 07:02 Written by
“A bend in the road is not the end of the road, unless you fail to make the turn.” Successories You just parked your car in the driveway, unpacked your suitcase and holiday presents and swept the last of New Year’s confetti out of the floorboard. Once inside the house, you flip on the news to get the latest financial headlines.  Inflation, higher interest rates and increasing real estate values are the headlines.  It’s time for another road trip—a financial road trip, using your real estate to protect your finances.  No one has a crystal ball, but history tells us that inflation erodes the value of our money and higher interest rates reduce our buying and borrowing power.  Which road do we take to protect ourselves against inflation and rising rate market forces?  Here are the routes some homeowners decided to take to protect their wealth based on market predictions:…
Posted On Friday, 24 May 2024 01:00 Written by
Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.94 percent. “Spring homebuyers received an unexpected windfall this week, as mortgage rates fell below the seven percent threshold for the first time in over a month,” said Sam Khater, Freddie Mac’s Chief Economist. “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing homes is up. Greater supply coupled with the recent downward trend in rates is an encouraging sign for the housing market.” News Facts The 30-year FRM averaged 6.94 percent as of May 23, 2024, down from last week when it averaged 7.02 percent. A year ago at this time, the 30-year FRM averaged 6.57 percent. The 15-year FRM averaged 6.24 percent, down from last week when it averaged 6.28 percent. A year ago at this…
Posted On Thursday, 23 May 2024 09:21 Written by
Pushing a car and driving new business have some interesting parallels. Effort, strategy and momentum are all required. Here are some interesting analogies to consider in real estate sales: Initial effort: Pushing a car: The hardest part is getting the car to start moving from a standstill. This requires a ton of effort and perseverance. Sales and business: The initial stages of building a real estate or any other business requires a ton of effort. Building momentum: Pushing a car: Once the car starts moving, it becomes easier to push. Less effort is needed once the momentum is built. Sales and business: Once you start building up clients and closing deals, the effort needed to sustain growth typically decreases. Word-of-mouth, repeat clients and a strong reputation all stem from momentum in real estate. Overcoming obstacles: Pushing a car: Encountering obstacles like a hill, requires extra effort. Sales and business: Challenges…
Posted On Thursday, 23 May 2024 00:00 Written by
Your Personal Velocity is about task accomplishment and the creation of positive momentum. High velocity will enable us to achieve more in a defined time frame. We can attain high velocity through focused direction and applied energy. This underlines the premise that it is vital to have your clarified goals in writing. No goals = No Velocity. Our mission today is to talk about how we can increase our velocity in a manner that gets our desired outcome in a timely manner. In my decades of consulting and training with corporations, I have been amused at the intensity with which high-powered executives make things happen fast. By understanding velocity better we can sort out the derivation of exceptional results. My friend, Minor Perkins, was the Executive Managing Director at Morgan Keegan Investment Bankers when one of his clients, a hotel company, lured him away to be president of their firm. It was an…
Posted On Wednesday, 22 May 2024 00:00 Written by
Awareness about emotional and mental health challenges is crucial for reducing the stigma involved. Many professionals, including realtors, secretly struggle with depression, anxiety and a host of other issues. The stress and pressure in the real estate industry can amplify these problems. Fluctuations in market conditions, for instance, can contribute to the stress realtors face. Overdoing it in sales or even not having the proper focus to drive sales can result in burnout. Deals that fail or clients who are unsatisfied can impact realtors’ sense of self. Self esteem and resilience are needed in the field to succeed. Setbacks are a big part of real estate. Overcoming them is expected and almost necessary to excel.  Furthermore, real estate agents often work independently, which can lead to feelings of isolation. Loneliness is a real thing. It can negatively impact day-to-day job demands. To make matters worse, dealing with unhappy or insatiable…
Posted On Tuesday, 21 May 2024 06:13 Written by
“After closing, you can paint an ugly house, but you can’t paint over ugly financing.” Jo Garner Real estate is still hot, and mortgage rates are still low.  When a home buyer gets his offer accepted, he had better be able to move –and fast.  As a mortgage loan officer, the best advice I can give anyone getting a mortgage is to get preapproved and compare more than one financing option.    When you sign the last paper at the closing table, you want the contented feeling of satisfaction, knowing that you made the very best decision. Here are some general rules of thumb to consider: 1. If you plan on keeping the mortgage for over five years, strongly consider getting a mortgage with a fixed rate and not a variable interest rate.  You will enjoy the stability of a principal and interest payment with a fixed interest rate that…
Posted On Tuesday, 21 May 2024 00:00 Written by
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