Rapid City Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.ascendrealty.net/blog/Copyright AscendRealty.net2023-02-15T11:52:17-07:00tag:ascendrealty.net,2012-09-20:24601Why It’s Easy To Fall in Love with HomeownershipWhy It’s Easy To Fall in Love with Homeownership
<img width="750" height="410" src="https://files.mykcm.com/2023/02/13103950/why-its-easy-to-fall-in-love-with-homeownership-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Why It’s Easy To Fall in Love with Homeownership | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/13103950/why-its-easy-to-fall-in-love-with-homeownership-KCM.jpg 750w, https://files.mykcm.com/2023/02/13103950/why-its-easy-to-fall-in-love-with-homeownership-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/13103950/why-its-easy-to-fall-in-love-with-homeownership-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
No matter how the housing market changes, there are some things about <a href="https://www.simplifyingthemarket.com/2023/01/24/the-3-factors-that-affect-home-affordability/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="owning a home" target="_blank" rel="noopener noreferrer">owning a home</a> that never change—like the personal benefits it can provide. When you own your home, you likely feel a sense of attachment because of the comfort it gives and also because it’s a space that’s truly yours.
Over the last few years, we’ve fully embraced the meaning of our homes as we spent more time than ever in them. As a result, the emotional benefits our homes provide have become even more important to us.
As the most recent <a href="https://contentimages.o-prod.unison.com/images/press/2021-Unison-SOTAH-Report.pdf" title="State of the American Homeowner" target="_blank" rel="noopener noreferrer">State of the American Homeowner</a> from Unison puts it:
“. . . one thing has stayed the same: the home continues to be of the utmost importance and a place of security and comfort.”
The same study from Unison notes:
91% of homeowners say they feel secure, stable, or successful owning a home
64% of American homeowners say living through a pandemic has made their home more important to them than ever
It’s no surprise this study also reveals that homeowners now love their homes even more as our attachments to them have grown:
<a href="https://files.mykcm.com/2023/02/13103952/more-homeowners-are-falling-in-love-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107429" src="https://files.mykcm.com/2023/02/13103952/more-homeowners-are-falling-in-love-MEM.png" /></a>
The National Association of Realtors (NAR) also <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-04-26-2022.pdf" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“In addition to tangible financial benefits, homeownership brings substantial social benefits for [households], communities, and the country as a whole.”
In other words, not only does owning a home build your <a href="https://www.simplifyingthemarket.com/2023/01/27/homeownership-builds-your-wealth-over-time-infographic/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="net worth" target="_blank" rel="noopener noreferrer">net worth</a> over time, but it also gives you and your loved ones a place to <a href="https://www.simplifyingthemarket.com/2023/02/07/how-experts-can-help-close-the-gap-in-todays-homeownership-rate/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="thrive" target="_blank" rel="noopener noreferrer">thrive</a>. And by living near people with shared experiences, homeownership helps you connect with your community and contribute meaningfully.
Bottom Line
Whether you’re thinking of buying your first home, moving up to your dream home, or downsizing to something that better fits your changing lifestyle, let me be the key to unlocking a home you can truly fall in love with.
2023-02-15T11:28:22-07:002023-02-15T11:52:17-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:24246The 3 Factors That Affect Home AffordabilityThe 3 Factors That Affect Home Affordability
<img width="750" height="410" src="https://files.mykcm.com/2023/01/23111137/the-3-factors-that-affect-home-affordability-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="The 3 Factors That Affect Home Affordability | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/23111137/the-3-factors-that-affect-home-affordability-KCM.jpg 750w, https://files.mykcm.com/2023/01/23111137/the-3-factors-that-affect-home-affordability-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/23111137/the-3-factors-that-affect-home-affordability-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’ve been following the housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But according to <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="experts" target="_blank" rel="noopener noreferrer">experts</a>, the key factors that determine housing affordability are projected to improve this year. Selma Hepp, Executive, Deputy Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights-january-2023/" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“. . . with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.”
The three measures used to establish home affordability are home prices, mortgage rates, and wages. Here’s a closer look at each one.
1. Mortgage Rates
<a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="Mortgage rates" target="_blank" rel="noopener noreferrer">Mortgage rates</a> shot up to over 7% last year, causing many <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> to put their plans on hold. But things are looking different today as rates are starting to come down. George Ratiu, Senior Economist at realtor.com, <a href="https://www.realtor.com/news/trends/mortgage-rates-are-sliding-could-they-fall-below-6-soon/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Let’s celebrate some good news. . . . mortgage rates are down. With inflation showing a tangible slowdown, I do expect mortgage rates to follow suit in the months ahead.”
Even a small change in rates can impact your purchasing power. Nadia Evangelou, Director of Forecasting for the National Association of Realtors (NAR), gives this <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-january-12-2023" title="context" target="_blank" rel="noopener noreferrer">context</a>:
“With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners.”
If 7% rates paused your homebuying plans last year, this could be the <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="opportunity" target="_blank" rel="noopener noreferrer">opportunity</a> you need to get back in the game. Be sure to work with a team of experts who know the latest on mortgage rates and can give you the best advice for the current market.
2. Home Prices
The second factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. When discussing home prices in 2023, Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”
So, while prices will likely be flat this year in some markets, others could see small gains or slight declines. It all depends on your local area. For insight into what’s happening in your market and how prices are impacting affordability, reach out to a trusted real estate professional.
3. Wages
The final component in the affordability equation is wages. The graph below uses <a href="https://www.bls.gov/charts/usual-weekly-earnings/usual-weekly-earnings-over-time-total-men-women.htm#%E2%80%8B" title="data" target="_blank" rel="noopener noreferrer">data</a> from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:
<a href="https://files.mykcm.com/2023/01/23134805/american-wage-growth-since-2000-MEM-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107030" src="https://files.mykcm.com/2023/01/23134805/american-wage-growth-since-2000-MEM-1.png" alt="The 3 Factors That Affect Home Affordability | MyKCM" width="600" height="450" /></a>
When you think about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many <a href="https://www.simplifyingthemarket.com/2023/01/04/avoid-the-rental-trap-in-2023/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> have renewed opportunity in the market.
While affordability hurdles are not completely going away this year, based on current trends and projections, 2023 should bring some sense of relief to homebuyers who have faced growing challenges. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), <a href="https://finance.yahoo.com/news/real-estate-ceos-economists-other-113600300.html" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Rates are expected to move lower for the year, and home price growth is expected to cool, both of which will help affordability challenges.”
Bottom Line
If you have questions, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your financing options. You may be closer to <a href="https://www.simplifyingthemarket.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="owning a home" target="_blank" rel="noopener noreferrer">owning a home</a> than you think.
2023-01-27T09:20:01-07:002023-01-27T15:04:08-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:23516Mortgage Rates Are Dropping. What Does That Mean for You?Mortgage Rates Are Dropping. What Does That Mean for You?
<img width="750" height="410" src="https://files.mykcm.com/2022/12/16162719/mortgage-rates-are-dropping-what-does-that-mean-for-you-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Mortgage Rates Are Dropping. What Does That Mean for You? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/16162719/mortgage-rates-are-dropping-what-does-that-mean-for-you-KCM.jpg 750w, https://files.mykcm.com/2022/12/16162719/mortgage-rates-are-dropping-what-does-that-mean-for-you-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/16162719/mortgage-rates-are-dropping-what-does-that-mean-for-you-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Mortgage rates have been a hot topic in the housing market over the past 12 months. Compared to the beginning of 2022, rates have <a href="https://www.freddiemac.com/pmms/archive" title="risen dramatically" target="_blank" rel="noopener noreferrer">risen dramatically</a>. Now they’re dropping, and that has to do with everything happening in the economy.
Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), explains it well by <a href="https://twitter.com/NAR_Research/status/1603455050390577152" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“Mortgage rates dropped even further this week as two main factors affecting today's mortgage market became more favorable. Inflation continued to ease while the Federal Reserve switched to a smaller interest rate hike. As a result, according to Freddie Mac, the 30-year fixed mortgage rate fell to 6.31% from 6.33% the previous week.”
So, what does that mean for your homeownership plans? As mortgage rates fluctuate, they impact your purchasing power by influencing the cost of buying a home. Even a small dip can help boost your purchasing power. Here’s how it works.
The median-priced home according to the National Association of Realtors (NAR) is <a href="https://www.nar.realtor/newsroom/existing-home-sales-slumped-5-9-in-october" title="$379,100" target="_blank" rel="noopener noreferrer">$379,100</a>. So, let’s assume you want to buy a $400,000 home. If you’re trying to shop at that price point and keep your monthly payment about $2,500-2,600 or below, here’s how your purchasing power can change as mortgage rates move up or down (see chart below). The red shows payments above that threshold and the green indicates a payment within your target range.
<a href="https://files.mykcm.com/2022/12/16162717/buyers-purchasing-power-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106402" src="https://files.mykcm.com/2022/12/16162717/buyers-purchasing-power-MEM.png" alt="Mortgage Rates Are Dropping. What Does That Mean for You? | MyKCM" width="600" height="450" /></a>
This goes to show, even a small quarter-point change in mortgage rates can impact your monthly mortgage payment. That’s why it’s important to work with a trusted real estate professional who follows what the experts are projecting for mortgage rates for the days, months, and year ahead.
Bottom Line
Mortgage rates are likely to fluctuate depending on what happens with inflation moving forward, but they have dropped slightly in recent weeks. If a 7% rate was too high for you, it may be time to contact a lender to see if the current rate is more in line with your goal for a monthly housing expense.
2022-12-19T10:41:50-07:002022-12-19T10:43:04-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:23284Prioritizing Your Wants and Needs as a Homebuyer in Today’s MarketPrioritizing Your Wants and Needs as a Homebuyer in Today’s Market
<img width="750" height="410" src="https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Prioritizing Your Wants and Needs as a Homebuyer in Today’s Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM.jpg 750w, https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
There’s no denying <a href="https://www.simplifyingthemarket.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> are higher now than they were last year. And if you’re thinking about buying a home, this may be top of mind for you. That’s because those higher rates impact how much it costs to borrow money for your home loan. As you set out to make a purchase this winter, you’ll need to be strategic so you can find a home that meets your needs and <a href="https://www.simplifyingthemarket.com/2022/11/07/key-factors-affecting-home-affordability-today/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="budget" target="_blank" rel="noopener noreferrer">budget</a>.
Danielle Hale, Chief Economist at realtor.com, <a href="https://twitter.com/RDC_Economics/status/1590722818639269889" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be given the diminished purchasing power.”
In other words, it’s important to be mindful of what’s a necessity and what’s a nice-to-have when searching for a home. And the best way to understand this is to put together a list of desired features for your home search.
The first step? Get <a href="https://www.simplifyingthemarket.com/2022/09/16/a-crucial-first-step-mortgage-pre-approval-infographic/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="pre-approved" target="_blank" rel="noopener noreferrer">pre-approved</a> for a mortgage. <a href="https://www.simplifyingthemarket.com/2022/10/24/pre-approval-is-a-critical-first-step-on-your-homebuying-journey/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="Pre-approval" target="_blank" rel="noopener noreferrer">Pre-approval</a> helps you better understand what you can borrow for your home loan, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a home that’s out of reach. Once you have a good grasp of your budget, you can begin to list (and prioritize) all the features of a home you would like.
Here’s a great way to think about them before you begin:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).
Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate advisor. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your needs.
Bottom Line
Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial first step on your homebuying journey today. If you’re ready to find a home that fits your needs, let’s connect.
2022-12-05T12:43:10-07:002022-12-05T16:14:23-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:23087Are Lower Mortgage Rates Just A Matter Of Time?Mortgage Rates Will Come Down, It’s Just a Matter of Time
<img width="750" height="410" src="https://files.mykcm.com/2022/11/18113309/mortgage-rates-will-come-down-its-just-a-matter-of-time-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Mortgage Rates Will Come Down, It’s Just a Matter of Time | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/18113309/mortgage-rates-will-come-down-its-just-a-matter-of-time-KCM.jpg 750w, https://files.mykcm.com/2022/11/18113309/mortgage-rates-will-come-down-its-just-a-matter-of-time-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/18113309/mortgage-rates-will-come-down-its-just-a-matter-of-time-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
This past year, rising mortgage rates have slowed the red-hot housing market. Over the past <a href="https://www.nar.realtor/newsroom/existing-home-sales-slumped-5-9-in-october" title="nine months" target="_blank" rel="noopener noreferrer">nine months</a>, we’ve seen fewer homes sold than the previous month as home price growth has slowed. All of this is due to the fact that the average 30-year fixed mortgage rate has doubled this year, severely limiting homebuying power for consumers. And, this month, the <a href="https://www.freddiemac.com/pmms/archive" title="average rate" target="_blank" rel="noopener noreferrer">average rate</a> for financing a home briefly rose <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-rise-above-seven-percent" title="over 7%" target="_blank" rel="noopener noreferrer">over 7%</a> before coming back down into the high 6% range. But we’re starting to see a hint of what mortgage interest rates could look like next year.
Inflation Is the Enemy of Long-Term Interest Rates
As long as inflation is high, we’ll see higher mortgage rates. Over the past couple of weeks, we’ve seen indications that inflation may be cooling, giving us a glimpse into what may happen in the future. The mortgage market is eagerly awaiting positive news on inflation. As Ali Wolf, Chief Economist at Zonda, <a href="https://www.builderonline.com/data-analysis/a-look-at-the-relationship-between-the-10-year-treasury-and-30-year-mortgage-rate_o" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The housing market is expected to face continued uncertainty heading into 2023 as consumers, financial markets, and policymakers work through their respective challenges in today’s economy. . . . we are watching for any additional stability in the MBS market, signs of cooling inflation, and/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.”
What Does This Mean for the Future of Mortgage Rates?
As we get through the inflation battle and start to see that coming down, we should expect mortgage rates to follow. We’ve seen nods of this over the past couple of weeks. As the Federal Reserve works to bring inflation down, mortgage rates will come down as well. Bill McBride from Calculated Risk <a href="https://calculatedrisk.substack.com/p/housing-and-inflation" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“My current view is inflation will ease quicker than the Fed currently expects.”
As we look toward next year, we certainly hope he’s right.
Bottom Line
Mortgage rates will come down – it’s just a matter of time. The hope is we continue to see more positive news on inflation, and that’ll bring mortgage rates down. This will give prospective homebuyers more buying power and lead to more homeowners throughout the country.
2022-11-21T12:30:27-07:002022-11-21T12:33:26-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:22965VA Loans Can Help Veterans Achieve Their Dream of HomeownershipVA Loans Can Help Veterans Achieve Their Dream of Homeownership
<img width="750" height="410" src="https://files.mykcm.com/2022/11/09083530/VA-loans-can-help-veterans-achieve-their-dream-of-homeownership-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="VA Loans Can Help Veterans Achieve Their Dream of Homeownership | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/09083530/VA-loans-can-help-veterans-achieve-their-dream-of-homeownership-KCM.jpg 750w, https://files.mykcm.com/2022/11/09083530/VA-loans-can-help-veterans-achieve-their-dream-of-homeownership-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/09083530/VA-loans-can-help-veterans-achieve-their-dream-of-homeownership-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
For over 78 years, Veterans Affairs (VA) home loans have provided millions of veterans with the opportunity to <a href="https://www.simplifyingthemarket.com/2022/11/01/3-trends-that-are-good-news-for-todays-homebuyers/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="purchase" target="_blank" rel="noopener noreferrer">purchase</a> homes of their own. If you or a loved one have served, it’s important to understand this program and its benefits.
Here are some things you should know about VA loans before you start the homebuying process.
What Are VA Loans?
VA home loans provide a pathway to homeownership for those who have served our nation. The <a href="https://www.benefits.va.gov/homeloans/index.asp" title="U.S. Department of Veterans Affairs" target="_blank" rel="noopener noreferrer">U.S. Department of Veterans Affairs</a> describes the program like this:
“VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.”
Top Benefits of the VA Home Loan Program
In addition to helping eligible buyers achieve their homeownership dreams, VA loans have several other great benefits for buyers who qualify. According to the <a href="https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/" title="Department of Veteran Affairs" target="_blank" rel="noopener noreferrer">Department of Veteran Affairs</a>:
Qualified borrowers can often purchase a home with no down payment.
Many other loans with down payments under 20% require Private Mortgage Insurance (PMI). VA Loans do not require PMI, which means veterans can save on their monthly housing costs.
VA-Backed Loans often offer competitive terms and mortgage interest rates.
A recent article from <a href="https://www.veteransunited.com/valoans/10-things-many-borrowers-dont-know-about-va-loans/" title="Veterans United" target="_blank" rel="noopener noreferrer">Veterans United</a> sums up just how impactful this loan option can be:
“For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. These flexible, $0-down payment mortgages have helped more than 24 million service members become homeowners since 1944.”
John Bell, Acting Executive Director of the Department of Veterans Affairs Loan Guaranty Service, also <a href="https://www.nar.realtor/videos/va-home-loans-part-2-reducing-barriers-for-va-borrowers" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why this program is so powerful:
“It provides early ownership for many people that would not have that opportunity to begin with. Since there’s no down payment, it allows people to hold their wealth and it gives them the ability to have long term financial security by being able to own a house and let that equity grow.”
Bottom Line
Homeownership is the <a href="https://www.simplifyingthemarket.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="American Dream" target="_blank" rel="noopener noreferrer">American Dream</a>. Our veterans sacrifice so much in service of our nation, and one way we can honor and thank them is to ensure they have the best information about the benefits of VA home loans. Thank you for your service.
2022-11-14T11:00:54-07:002022-11-14T11:03:30-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:228053 Trends That Are Good News for Today’s Homebuyers3 Trends That Are Good News for Today’s Homebuyers
<img width="750" height="410" src="https://files.mykcm.com/2022/10/31110909/3-trends-that-are-good-news-for-todays-homebuyers-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="3 Trends That Are Good News for Today’s Homebuyers | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/31110909/3-trends-that-are-good-news-for-todays-homebuyers-KCM.jpg 750w, https://files.mykcm.com/2022/10/31110909/3-trends-that-are-good-news-for-todays-homebuyers-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/10/31110909/3-trends-that-are-good-news-for-todays-homebuyers-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
While higher <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> are creating affordability challenges for <a href="https://www.simplifyingthemarket.com/2022/10/19/should-you-still-buy-a-home-with-the-latest-news-about-inflation/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="homebuyers" target="_blank" rel="noopener noreferrer">homebuyers</a> this year, there is some good news for those people still looking to buy a home.
As the market has cooled this year, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too. Here are just a few trends that may benefit you when you go to buy a home today.
1. More Homes To Choose from
During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This combination made it difficult to find a home because there just weren’t enough to meet buyer demand. According to Calculated Risk, the supply of homes for sale increased by <a href="https://www.calculatedriskblog.com/2022/10/housing-october-31st-weekly-update.html" title="39.5%" target="_blank" rel="noopener noreferrer">39.5%</a> for the week ending October 28 compared to the same week last year.
Even though it’s still a sellers’ market and supply is still lower than more normal levels, you have more to choose from in your home search. That makes finding your dream home a bit less difficult.
2. Bidding Wars Have Eased
One of the top stories in real estate over the past two years was the intensity and frequency of bidding wars. But today, things are different. With more options, you’ll likely see less competition from other buyers looking for homes. According to the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-09-realtors-confidence-index-10-20-2022.pdf" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), the average number of offers on recently sold homes has declined. This September, the average was 2.5 offers per sale. In contrast, last September, the average was 3.7 offers per sale.
If you tried to buy a house over the past two years, you probably experienced the bidding war frenzy firsthand and may have been outbid on several homes along the way. Now you have a chance to jump back into the market and enjoy searching for a home with less competition.
3. More Negotiation Power
And when you have less competition, you also have more negotiating power as a buyer. Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or <a href="https://www.simplifyingthemarket.com/2022/08/19/why-a-home-inspection-is-important-infographic/?a=960910-690ebad45a5f42275c986a19eedc6b06" title="inspection" target="_blank" rel="noopener noreferrer">inspection</a>, to try to win a bidding war. But the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-09-realtors-confidence-index-10-20-2022.pdf" title="latest data" target="_blank" rel="noopener noreferrer">latest data</a> from the National Association of Realtors (NAR) shows the percentage of buyers waiving those contingencies is going down.
As a buyer, this is good news. The appraisal and the inspection give you important information about the value and condition of the home you’re buying. And if something turns up in the inspection, you have more power today to renegotiate with the seller.
A <a href="https://www.realtor.com/research/2022-summer-sellers-survey/" title="survey" target="_blank" rel="noopener noreferrer">survey</a> from realtor.com confirms more sellers are accepting offers that include contingencies today. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.
Bottom Line
While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you were outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.
2022-11-01T09:49:39-07:002022-11-01T09:52:12-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:4106Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/1673/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2019-10-25T12:07:00-07:002019-10-25T12:08:55-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:4104Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/1673/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2019-10-25T12:07:00-07:002019-10-25T12:09:02-07:00Michael Frybargertag:ascendrealty.net,2012-09-20:4103Will Increasing Mortgage Rates Impact Home Prices?<img src="https://assets.site-static.com/userfiles/1673/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2019-10-25T12:07:00-07:002019-10-25T12:08:58-07:00Michael Frybarger