Manny S. RizzutoMortgage Consultant NMLS#: 145229
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Mortgage rates have hit record lows over the past few months. As a result, you may be able to afford a more expensive home than you previously thought. Why are Mortgage Rates so Low? Interest rates around the globe have been dropping after this year’s events. As the global economy is slowing down due to tariffs and other factors, the interest climate has shifted downward in response. Mortgage rates also often follow yields on the U.S. treasury debt. Typically, rates on a 30-year mortgage will follow the yield on a 10-year treasury note. Because of these correlations, it’s important to note that it’s unlikely a notable decline will come in the future. With current mortgage rates around 2.99%, we’re seeing a generational low and your buying power is exceptionally favorable. How Your Buying Power Can Rise and Fall Over the summer, housing affordability went up for the first time since 2016. September brought a low of 2.875%. With this rate, you could afford a home valued at more than $400,000 while only paying around $1,600 per month- not including taxes, insurance, or any HOA fees. To put things in perspective, when rates were over 4.6% at the same time in 2019, that same monthly payment would have only gotten you a home priced less than $340,000. Lower mortgage rates typically lead to a lower monthly payment. A 2% rate drop could easily add $60,000 to your budget. Because of this, with each 0.125% change in mortgage rates, your buying power can increase or decrease. An Increase in Buying Power Rates are already well below what they were in recent ...
Millennials have been traditionally viewed as uninterested or unable to buy a home. However, Americans ranging from their mid-20s to their late-30s accounted for half of all new home loans last year, according to Realtor.com. Understanding the Millennial Housing Timeline Despite being saddled with large student loans and a high unemployment rate, many Millennials are determined to become homeowners- on their own time. According to the U.S. Census, over 4 million Millennials will turn 29 or 30 each year for the next several years, which is the average age for Millennials to enter the housing market. This is partly fueled by the generation’s trend to get married and have kids later on as well. As more time spent at home is paired with the need for space for growing families, the demand for a larger residency is exaggerated by ultralow interest rates. However, it’s important to note that many Millennials still need assistance when it comes to purchasing their first home. According to the National Association of Realtors , more than one in five Millennial homebuyers used a gift from family for their down payment in 2019. First American Financial Corp has also speculated that Millennials could be responsible for at least 15 million home sales within the next ten years. A Generational Shift in Home Buying The economic recovery over the past decade has led to a surge of home buying for Millennials. And as the generation enters the market in large numbers, they’re approaching their first real estate purchases in a different way than previous generations. Technology plays a vital role in ...
In the year ending in the second quarter of 2020, home prices nationwide rose 5.4%. The color coded map below reflects the percent change in home prices in the year ending in the second quarter of 2020 by state. The data reflect the prices of homes sold with conforming financing. Percent change in home prices, by state Growth over the last year Average annual growth over the last 10 years State % Chg Rank % Chg Rank Alabama 7.2 10 3.1 34 Alaska* 2.6 47 2.2 43 - T Arizona 9.1 2 6.9 2 Arkansas 5.4 23 2.7 38 - T California 4.2 38 6.1 8 Colorado 4.4 35 - T 6.8 3 - T Connecticut 2.8 45 - T 0.7 51 Delaware* 5.6 20 - T 1.8 48 District of Columbia* 1.4 49 6.3 6 ...
Facebook and Nextdoor offer communities a chance to gather online and share local events, businesses, and recommendations. These groups offer you a great opportunity to not only reach out to prospective clients but to also ensure that your name is familiar to your target demographic. Neighbors trust each other more than they trust an ad on the internet or a random message from a stranger, which is why any kind of business can experience rapid growth if they can start getting mentioned in local groups. Online groups on platforms such as Facebook and Nextdoor allow people to connect with their neighbors and find reliable businesses that they can trust. If someone is just beginning to look for a specific service, there’s no better place to start than with their neighbors that have already had that experience. Make sure that you’re the one that they’re recommending to start growing in a concentrated area. How to Find Local Groups on Facebook, Nextdoor, and More When you join a group that’s made up of people who match your target customer, you’ll have multiple opportunities to improve awareness of your business by being helpful. To find local groups, simply create a profile on one of these platforms and type in a keyword or topic into the search box of the home page. Once you’ve located a group to join, you’ll see that people are asking a lot of questions within these groups. Look for questions that allow you to demonstrate your expertise or highlight your specialized skills. You can choose to answer the questions outright, share helpful blog posts, or even mention your own products and ...
The way we work has long influenced where we live and the type of home we buy. With an increasing number of companies warming up to the idea of remote work, we’re spending more time in our homes than ever before and it’s changing our criteria for when we shop for a new one. According to data analyst Treh Mangertz on a Zillow blog post : “Nationwide, the typical starter home is currently valued at $131,740. But similar starter homes in 37 of the nation’s 50 largest metro areas — home to the lion’s share of the country’s jobs — are more expensive than in the country at large, often by a wide margin...As a result, owning even a modest home (and taking advantage of the wealth-building opportunities that can bring) is out of reach for many households as long as they need to be within commuting distance of a physical workplace.” But as the pandemic marches on, the possibility of remote work becomes more permanent each day. The restructuring or elimination of the daily commute has allowed renters to start contemplating other housing options. Zillow economist Jeff Tucker views remote work as a potential opportunity for a shift in the housing market. However, he also acknowledges that there are other factors outside of the commute to consider when it comes to deciding on a place of residence. In a statement for Zillow, Tucker said: “If remote work becomes a bona fide long-term option especially with the pandemic, that could reshape the U.S. housing market by opening up homeownership to people renting in expensive parts of the country. However, it's unclear how ...