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Looking Back at Mortgage Rates of 2015

Looking back at the last year, we can see that 2015 was an interesting year for the mortgage market. Going into the year, nearly everybody was expecting a move towards higher rates. However, Europe’s new bond buying program and various other factors made conditions right to instead see strong, long-lasting moves downward. Later on, the market saw some more turbulent moves in anticipation of the Fed’s rate hike.

The final word is that, on average, 2015 was a stronger year for mortgage rates than 2014. However, compared to 2014, 2015 saw more of an upward trend. Part of this can be attributed to the fact that 2014 ended on the very lowest rates of the year, while 2015 ended on rates that were close to the year’s highest.

We can likely expect rates to continue to rise for a while until the economy starts to show signs of stagnating. This could very well take months, or even years. Fortunately, any upward movements should be less dramatic than they have historically been.

New Home Construction Up in April

A lack of inventory has been plaguing the housing market for some time now. Fortunately, builders are rising to the challenge of supplying demand for new homes. After a weak start to the construction season, new construction experienced a healthy rise through April. Last month, according to the Commerce Department, housing starts jumped up by 6.6%. This puts them at a seasonally adjusted annual rate of about 1.17 million houses. Applications for permits to construct new homes went up by 3.6%.

Unfortunately, the news is not as good as it could be. There is still a ways to go before the market fully compensates for the 9.4% drop in March. Meanwhile, through groundbreakings are beating last year’s rate, not much of this is going on here in the Lynnwood area. Starts were up by 22.2% in the Midwest and 14.1% in the South, but they actually declined by 10% in the West and 7.6% in the Northeast.

National builder sentiment for May has held at 58 for the fourth month in a row, telling us that we can likely expect further strong construction activity in the future.

Seattle Home Values Rise at Nation’s 2nd Fastest Rate

Looking back at March of 2015, we find that single-family homes in the Seattle area jumped up by 10.8%, according to the most recent data from S&P/Case-Shiller. The jumps in prices have been particularly strong in recent months, with a 2.4% increase from February to March. At present, the average price for a single-family home in April was $637,250 in Seattle. Such prodigious price gains can be attributed to increases in employment, low mortgage rates, and continued low inventory.

These figures place Seattle above any major American city outside of the Pacific Northwest in terms of fast-rising home prices. Within the Pacific Northwest, only Portland-area homes are beating the Seattle rate. It is here that home prices have experienced an increase of 12.3% over the past year. Nationally, the average price increase has only been 5.2%.

On top of this, March was the first time the value of Seattle-area homes rose above the peak we experienced back in the summer of 2007. This is after a 50% increase following the low point in early 2012.

Mortgage Availability Continues to Decline

According to the Mortgage Bankers Association, mortgage credit access has continued to decline in May. Their latest Mortgage Credit Availability Index (MCAI) came in at 121.4, representing a decrease of 0.8% from April’s figure. The MCAI reached a peak of 128.5 back in October of 2015 and has been moving fairly steadily downward ever since. May represents the third consecutive month of decreases in this index.

When the MCAI goes down, it means that mortgage lending standards are tightening. An increase in the MCAI indicates a loosening of credit. Though mortgage giants Fannie Mae and Freddie Mac have been rolling out their low-down payment programs to increase the availability of credit, these improvements have been offset by tightening in government loan programs designed to serve borrowers in the nation’s high-cost regions.

The Jumbo MCAI experienced the greatest decrease, at 1.3%. This is followed by the Government MCAI, which was down 1%, the Conventional MCAI, which was down 0.8%, and the Conforming MCAI, which was down 0.3%.

The Rise of Consumer House-buying Power

Good News for House-buying Consumers

The First American Real House Price Index (RHPI) measures price changes of single-family homes across the nation down to the metropolitan level. Changes are adjusted for the impact of income and interest rate changes on the house-buying power of Americans. It serves as a measure also of housing affordability. First American reported that more people now seem to better afford their dream homes.

While house prices are expected to increase by 5% in July, they’re still below what they were before the housing boom. First American noted that 86% of the metropolitan areas tracked, the real house prices declined as household incomes went up and mortgage rates decreased. This only means that majority of these metro areas are experiencing growth in house-buying power. So, when you are in the market for a house, your increased buying power will impact on the amount you are to borrow.

American home buyers are going to take advantage of this development and many will be scouring the market for new homes. This is a positive for both markets – the buyers and the sellers.

Mortgage Loans within Your Power in Lynnwood

If you’re now house-hunting in Lynnwood, consider dropping by David Haley, your mortgage company in Lynnwood. We’ve had a long and expansive experience in the intricacies of home loans, having helped many Washingtonians in their quest for new beginnings. We will familiarize you with available loan options best suited to your needs and lifestyle and breakdown everything that intimidates you about the real estate market. Be guided and be informed by one of the best in the mortgage business in Lynnwood.

Buying a House on Lower Income

Ways to Beat the Loan System

If you have a dream house in your sights, you’re probably on the look-out for a mortgage. However, it doesn’t look like your income requirements can satisfy the mortgage. There are simple ways to achieve the dream on a low budget and get the dream sooner.

You can impress the loan officer with a history of working more than one job. Show you have the ability of tackling a regular job with a part-time job to augment income. And if you are enrolled in a public assistance program, it means you are receiving additional income as well. This works well if such assistance is shown to run for the next 3 years or so. Consider also capital gains income, long-term disability income, interest and dividends, retirement, government annuity and pension income, Social Security, unemployment benefits, among others. Each of these can help boost your income profile.

Include a co-borrower who also lives with you and which allows you to qualify for a bigger mortgage. Opt for a subprime mortgage instead of a prime mortgage. You will be able to get your house sooner, however, though, your interest rates and closing cost and fees may be higher. Try also to boost your approval chances by showing proof of your savings, no default on your credit dues, low use of debt, or that you have great prospects at your current job.

Seek Expert Advice

One of your best chances of fast-tracking a loan application, even if you feel your credit score is below par, is to see David Haley, your Lynnwood mortgage expert. We have lots of experience helping people with dreams of owning a home on a low budget or even with low income prospects. Drop by to see David some time.

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Mortgage Rates on the Decline

Is it the best time to buy?

According to the Seattle Times, mortgage companies are keeping track of the average for the 30-year fixed-rate mortgage which declined to 3.48 percent from 3.50 percent in mid September this year. Even the 15-year fixed mortgage rate eased to 2.76 percent from 2.77 percent. On the average, there is a 0.5 point difference – corresponding to fees paid to a lender equal to 1 percent of the loan amount – which translates to savings for the home buyer. As the markets calm, home loan rates are stabilizing.

While the US mortgage rates are historically low, the recent developments made impressions on both the buyer and seller markets in the single family residential real estate sector. It’s telling you that this is a good time to go house-hunting and finding yourself a trusted and sturdy mortgage company to set you along your way.

However that we are seeing the scenario of job markets improving together with low mortgage rates, it looks like the number of properties on sale does not meet the eager demands of house- hunting clients. Even so, you would need advice from those who know the ins and outs of the market.

Take your case to David Haley

You might be one of those enthusiastic home buyers having difficulty finding a property for sale. But are you really ready for the purchase? We invite you to come to see David Haley of Fairway, your mortgage company in Lynnwood.

Many would-be buyers come to David for advice in home-buying and find his expertise a great boost in the right direction. As a mortgage expert, he advises those who are still searching for their ideal property on the complexities of loan applications, the best options, and all the sources of eligibility, upgrades, savings,and others. Let David help navigate your way through stress-free home ownership.

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Home Prices on the Rise in Seattle

Eager House Buyers and Housing Shortages

Metropolitan areas where home-buying is on the rise have contributed to the spiking of prices of homes across the US. Seattle WA, together with Portland and Denver, registered gains in real estate transactions and also paved the way for increased house prices.

There are housing shortages in some markets that drove home prices still higher. The limited inventory is said to be caused by not enough new homes being built since recovery from recession, sellers (like the elderly) refusing to part with their properties and opting to stay. There are homeowners who have to shell out money to settle an old loan, hence couldn’t sell and those who couldn’t sell their old homes because they couldn’t find a new one. Also, you’d find an increasing number of people who opt to stay put where they have been living and will not want to relocate even if they’ve got new jobs in other places. These are seen in both new and existing homes, in spite of low mortgage rates and in spite of eager buyers.

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Mortgage Expertise in Lynnwood

If you are a homebuyer, prospecting for that house of your dreams and finding difficulty of locating one in Seattle, try looking not too far north and you might find one in Lynnwood. Lynnwood is a lovely mix of urban, suburban and small city to many professionals working in Seattle. Nonetheless, you need the expert assist of an experienced and trusted mortgage company that knows the intricacies of housing loans. With David Haley of Fairway Mortgage in Lynnwood, learn how acquiring the best loan options is made very easy. Many Washingtonians have come to rely on David for expert speedy resolution of loan applications.

Increase House Buying is Increase in Mortgage Debt

Prosperity on the Rise

The Seattle Times reports more Americans are buying homes during these times of high-priced houses. Indeed, recovery of the housing industry is well on its way as more and more households experience the boost in income and lifestyle. Stock portfolios, mutual funds, pension plans, and savings and checking accounts also are soaring.

In the second quarter this 2016, mortgage debt rose 2.5 percent at a seasonally adjusted annual rate. It was the biggest gain in a quarter in more than eight years. More people are taking on loans with the rush of household wealth, buying themselves homes, hence, driving up market sales which reached a nine-year high this June. Ownership equity now equals 57.1 percent of the value of Americans’ homes. It’s the highest level since 2006.

With more confidence and financial freedom, Americans were observed cashing -out on their home equities and refinancing their mortgages. The additional gains are used for more spending, like home improvements. We are actually seeing affluency on the come-back.

Thinking of Cash-out Refinancing in Lynnwood

Are you really committed to refinancing your housing loan? Certainly you would want to get more on a second loan to be able to spend more. You want savings and you want to know all your options to get the best out of an otherwise sticky situation. Come to Lynnwood and consult with one of the wizards in refinancing. David Haley has been a friend and confidant in many cases of loan refinancing. What you’ll know from David is a ton of help and that’s only with our mortgage company in Lynnwood.