Bruce Richards’ Post

Did you know that a large percentage of loans are locked in at rates below 4%? You won't want to miss this! 📊 This chart shows why supply is so tight in the market. With homeowners holding onto these low rates, inventory is limited, making multi-family apartment housing a great opportunity! 🏢💡 Stay bullish—this trend could reshape the investment landscape! Message me to learn more about multi-family housing opportunities! 𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘈𝘭𝘸𝘢𝘺𝘴 𝘥𝘰 𝘺𝘰𝘶𝘳 𝘰𝘸𝘯 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘣𝘦𝘧𝘰𝘳𝘦 𝘮𝘢𝘬𝘪𝘯𝘨 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘥𝘦𝘤𝘪𝘴𝘪𝘰𝘯𝘴. #JKAMInvestments #RealEstate #PassiveIncome

Mortgage Rates: from today’s New York Times. “Mortgage rates have fallen to their lowest level since February 2023, but more palatable rates aren’t going to solve the affordability problem. Housing prices remain high, in large part because there simply aren’t enough homes to meet demand. Rates on 30-year fixed-rate mortgages don’t move in tandem with the Fed’s benchmark, but instead generally track with the yield on 10-year Treasury bonds, which are influenced by a variety of factors, including expectations about inflation, the Fed’s actions and how investors react. The average rate on 30-year fixed-rate mortgages was 6.2 percent as of Thursday, down from 6.35 percent the previous week and 7.18 percent this time last year. Rates are also more than a percentage point lower than their most recent peak of 7.22 percent in early May. Other home loans are more closely tethered to the central bank’s decisions. Home-equity lines of credit and adjustable-rate mortgages — which carry variable interest rates — generally rise within two billing cycles after a change in the Fed’s rates. Where and how to shop: Prospective home buyers would be wise to get several mortgage rate quotes — on the same day, since rates fluctuate — from a selection of mortgage brokers, banks and credit unions. That should include: the rate you’ll pay; any discount points, which are optional fees buyers can pay to “buy down” their interest rate; and other items like lender-related fees. Look to the “annual percentage rate,” which usually includes these items, to get an apples-to-apples comparison of your total costs across different loans. Just be sure to ask what’s included in the A.P.R.”

🏡 Mortgage Rates Update 🏡 Mortgage Rates Update: Freddie Mac reports that mortgage rates have dipped to a 7.02% average this week, marking the second consecutive week of declines. While the decrease in rates is small, it may provide a bit more wiggle room in the budgets of prospective home buyers. However, despite the easing rates, home buyers haven’t flooded back to the market. Mortgage applications for home purchases fell 2% nationally in the latest week and are down 14% from a year ago. The biggest decline has been seen in Federal Housing Administration loan applications, which tend to be favored by first-time or low-income buyers. 30-year Fixed-rate Mortgages: Averaged 7.02%, dropping from last week’s 7.09% average. A year ago, 30-year rates averaged 6.39%. 15-year Fixed-rate Mortgages: Averaged 6.28%, also falling from last week’s 6.38% average. A year ago, 15-year rates averaged 5.75%. Keep an eye on these rates if you’re in the market for a home! 🏠💰 Find the full article here https://lnkd.in/eafn-BQT #MortgageRates #HomeBuyers #RealEstate

Toronto Mortgage Rates and Trends Current Mortgage Rates (July 2024) 5-Year Fixed Mortgage: The average rate is around 4.54%. This type of mortgage offers stability with consistent monthly payments, making it a popular choice for many homeowners. 3-Year Fixed Mortgage: This rate is slightly higher, averaging about 5.04%. It provides a shorter commitment period, which can be beneficial if you anticipate changes in your financial situation or the market. 5-Year Variable Mortgage: Currently, the rate is approximately 6.55%. Variable rates can fluctuate with the market, potentially offering lower initial rates but with the risk of increases over time. High Interest Rates: The mortgage rates in Toronto remain relatively high compared to historical averages. This trend is influenced by broader economic factors, including inflation and central bank policies aimed at controlling it. High rates can make it more challenging for buyers to qualify for mortgages and afford higher monthly payments. Market Conditions: Despite the high interest rates, the Toronto real estate market continues to be highly competitive. The demand for housing remains strong, driven by factors such as population growth, immigration, and a robust job market. However, the supply of homes has not kept pace with this demand, leading to higher prices and bidding wars in many neighborhoods. Future Projections: Looking ahead, there is some optimism that mortgage rates may decrease slightly by late 2024. This potential decrease could be due to anticipated economic stabilization and adjustments in monetary policy by the Bank of Canada. A reduction in rates could provide some relief to prospective buyers, making homeownership more accessible and potentially stimulating more activity in the market. Practical Advice For Buyers: If you’re considering purchasing a home, it might be wise to lock in a mortgage rate sooner rather than later, especially if you find a rate that fits your budget. Keep an eye on market trends and consult with a mortgage advisor to explore your options. For Homeowners: If you already own a home and are thinking about refinancing, monitor the market for potential rate drops. Refinancing at a lower rate could save you money on interest over the life of your mortgage. For Sellers: The current market conditions favor sellers due to high demand and limited supply. If you’re planning to sell, now might be a good time to list your property, but be prepared for potential buyers who are more cautious due to higher borrowing costs.

Purchase mortgage demand drops 13% year over year: MBA https://ift.tt/qERiP6S Mortgage demand keeps on falling. Mortgage applications dropped 5.2% for the week ending May 31 compared to the prior week, according to the Mortgage Bankers Association (MBA), results that include an adjustment for the Memorial Day holiday. On an unadjusted basis, the MBA’s market composite index decreased 16% compared with the prior week as mortgage rates remain firmly above 7% and home prices continue to remain near record levels. “Mortgage rates moved slightly higher last week, with the 30-year conforming rate reaching 7.07 percent — its highest level since early May — despite incoming data indicating somewhat slower economic growth,” Mike Fratantoni, the MBA’s chief economist, said in a statement. “After adjusting for the Memorial Day holiday, both purchase and refinance application volumes were down, with purchase activity specifically 13% below last year’s level.” Fratantoni noted that government purchase volume was down less, aided by growth in U.S. Department of Veterans Affairs (VA) loan applications. “The market is relying on first-time homebuyer demand, and many first-time buyers do use government lending programs,” he said. The refinance share of mortgage activity decreased to 31.1% of total applications, down from 31.3% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.7% of total applications. The Federal Housing Administration (FHA) share of total applications increased to 13.2%, up from 12.7% the week prior. And the VA share of total applications increased from 12% to 12.1% during the week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased from 7.05% to 7.07%, with points increasing from 0.63 to 0.65 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.  Even at the highest demand levels in 2024, purchase mortgage applications are about 45% lower compared to the same weeks in 2018 and 2019. via HousingWire https://ift.tt/Yq74Lc8 June 05, 2024 at 07:58AM

The average rate on 30-year mortgages, the most popular home loan in the United States, dropped to 6.2 percent this week, Freddie Mac reported on Thursday. The decline, from 6.35 percent a week earlier, left rates more than half a percentage point lower than six weeks ago. Here’s what else to know about the decline in mortgage rates: This week’s dip extends a downward trend that started in April and intensified in early August, when mortgage rates saw their biggest weekly drop of the year. But mortgage costs are still twice as high as they were three years ago, when the average 30-year rate stood at around 3 percent. Many potential sellers remain reluctant to put their homes on the market, unwilling to part with lower rates on their existing mortgages. Mortgage rates are influenced by a range of factors, including moves by the Federal Reserve and the market-based yields on government bonds. U.S. Treasury yields have drifted lower in recent months, responding to economic data showing a slowing economy, with inflation cooling and the job market shifting to a lower gear. Next week, the Fed is expected to start cutting interest rates for the first time since early 2020. There are signs that lower borrowing costs have started to spur more activity among home buyers and sellers. But significant movement in the market is likely to take more time. “Despite the improving mortgage rate environment, prospective buyers remain on the sidelines, as they negotiate a combination of high house prices and persistent supply shortages,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

What's your mortgage rate? More than three-quarters of homeowners — 78.7 percent — have a mortgage rate below 5 percent, while nearly 6 in 10 — 59.4 percent — have a mortgage below 4 percent. Would you give up a 3.5% mortgage for a 6.5% mortgage? This is keeping a lid on the housing market, at least for now. #realestate #mortgage #housing

In this current housing environment, its more important than ever for buyers to know their costs and have a strategy in place. According to Optimal Blue, an analytics company that tracks mortgage rates, the current average rate for 30 year fixed mortgage is just under 7% Takeaways? -Good lender relationships are at a premium! It's important to get multiple quotes and work with a mortgage lender who will make sure you are getting the best deal (.5% difference on a $300k loan equals $100/month) -Home prices still rising, due to pent up demand and an undersupply of available homes, despite rates increasing 400 basis points (4%) from historic lows -Timing the market is impossible. Making a payment you can afford is the key! Whether your rate is 2%, 7% or 17%, if you can't afford the house, you'll end up under water Working with the right realtor can make all the difference! Contact me today to discuss how to implement a strategy that helps you accomplish your homeownership goals Jack Skehan Lusk & Associates Sotheby's International Realty O: 717-291-9101 C: 717-598-8062 --- https://loom.ly/0T1h3wo

Some Mortgage Math: We have seen a substantial drop in rates since the peak of late 2023. In addition, as of this week we have new rules on insured mortgages allowing many to extend to 30 year amortizations, where they used to be capped to 25 years. So, what does this mean for borrowers? Below is a sample client profile with a breakdown on how these rate drops & extended amortizations impact approval amounts. The Clients: Mr. & Mrs Borrower are first time buyers, they have a combined annual income of $150,000, have good credit, savings for a 10% down payment and have a car payment of $600/month. The property they are looking at is a townhome with property taxes of $3600/year and a monthly condo/strata fee of $250. In the peak rates of late 2023, a competitive insured rate was around 5.79%. At these rates, the Borrowers would qualify for a maximum purchase price of $625,000 for this townhome. Fast forward to today, where rates are starting in the low 4s, lets use 4.14% for this calculation. The max approval amount at today’s rates jumps up to $722,000 for that same townhome. Now if you take these lower rates and combine the ability to qualify over a 30 year amortization that approval amount jumps again to $775,000. The reduction of rates alone boosts the Borrower’s qualifying amount by 15.5% when compared to the fall of 2023. Add the 30 year amortization and we get a 24% increase in mortgage approval amount, a $150,000 increase in this example. As we see rates continue to ease into 2025 a client’s borrowing power will continue to increase. We could quite easily see borrowers in the spring/summer of 2025 have upwards of 30% more borrowing power then they did just over a year earlier. What do you think this means for real estate activity and pricing as we approach the spring market of 2025? Mortgage questions? As always feel free to reach out.