Luxe Austin Homes - interest

"The Pros and Cons of a Mortgage Buy-Down for Homebuyers, According to Loan Experts"

Realtor.com writes, "tough financial times call for creative financing. Historically high mortgage rates and a cooling housing market have caused buyers and sellers to look for novel ways to stretch their dollar and seal a deal.

Buyers, scared by lofty mortgage rates that threaten to add hundreds of dollars to their monthly housing bill, are seeking out mortgage buy-downs as a way to trim some of that excess. Sellers, desperate to unload homes, are often willing to help out.

Simply put, a mortgage rate buy-down is upfront money, often paid by the home seller (builders and lenders can also front the cost), to “buy down” the interest rate on the buyer’s loan for a period of time. This temporarily eases a buyer’s mortgage woes.

But just how…

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"Homes in Austin metro are taking longer to sell than they have in more than a decade"

KXAN reports, "the Austin housing market has “shifted and started to rebalance,” with homes now spending an average of more than two months on the market.

The Austin Board of Realtors President Ashley Jackson made the comments in the December edition of the board’s monthly housing market report, released Wednesday.

“December tells us a lot about how the market has shifted and started to rebalance as there was a sales price drop and a staggering increase in how long homes take to sell,” Jackson said.

Homes that sold in December spent an average of 73 days on the market, almost triple the average from a year ago. The average is the highest since March 2012 — almost 11 years ago — when homes took on average 83 days to sell, according to ABoR…

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"Real Estate CEOs, Economists & Other Experts Predict a “Less Crazy” Housing Market in 2023, But Expect Any Improvements to be Gradual"

Yahoo Finance writes, "while there is no clear consensus about what will happen to mortgage rates and home sales in 2023, the real estate experts from organizations like the Mortgage Bankers Association, Zillow, Taylor Morrison, and others surveyed in Point’s 2023 Real Estate Expert Survey agree 2023 will likely bring less volatility to the real estate market. But any improvement will be slow.

Point asked experts about where mortgage rates will land this year; what will happen to existing-home sales; and what advice they would give home buyers and sellers.

Key findings include:

• About three-quarters of the respondents expect the average 30-year fixed mortgage rate to stay below 7% in June 2023. By December, every respondent believes rates…

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"Mortgage Demand Soars 28% as Rates Dip Slightly"

Realtor.com writes, "The numbers: A dip in mortgage rates prompted mortgage demand to rise a seasonally adjusted 27.9%

As mortgage rates dropped across the board, demand for both purchases and refinancing increased. That pushed the market composite index up, a measure of mortgage application volume, the Mortgage Bankers Association (MBA) said on Wednesday.

The market index rose to 238.7 for the week ending Jan. 13, up 27.9% from a week earlier. A year ago, the index stood at 593.7.

Key details: The refinance index jumped 34.2% in the past week, but was down 81% compared to a year ago.

The purchase index—which measures mortgage applications for the purchase of a home—rose by 24.7% from last week.

Mortgage rates fell across the board.

…

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"Mortgage rates drop again, creating opportunity for homebuyers: Freddie Mac"

Fox Business reports, "mortgage rates dropped back down again last week and even though it was slight, the decrease had an impact on homebuyer demand, according to Freddie Mac.

The average rate for a 30-year fixed-rate mortgage fell to 6.33% for the week ending Jan. 12, according to Freddie Mac's Primary Mortgage Market Survey. This was a decrease from the previous week when it averaged 6.48% but remains significantly higher than last year when it was 3.45%.

The average rate for a 15-year mortgage was 5.52% last week, down from 5.73% the week before and up from 2.62% last year.  

Mortgage rates have fluctuated in the 6% to 7% range since September, Freddie Mac's data shows. Even though the changes are incremental from week-to-week, the…

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"Home Price Growth Is Cooling Fast—Does It Spell a Big Break for Homebuyers This Year?"

Realtor.com writes, "December brought good tidings to homebuyers in the real estate market.

Nationally, median home list prices dropped about 11% from their peak over the summer to hit $400,000 in December, according to a recent Realtor.com® report. While prices were still up by about 8.4% year over year in December, this was the first time in a year that they rose by only single digits.

In another holiday gift for home shoppers, the number of properties for sale nationally shot up more than 50% compared with a year ago. And homes are sitting on the market for longer, giving buyers an opportunity to think about whether this is the right home for them instead of having to put in an offer on the spot.

Mortgage interest rates even dipped from…

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"Expert Economist Predictions For The Housing Market In 2023: Will Home Prices Decrease?"

Yahoo Finance reports, "the Federal Reserve was under pressure to start its roughly one-year-long journey to control inflation by raising interest rates as a result of stubbornly high costs during 2022.

The housing market has been under tremendous pressure as a result of those month-over-month rises in interest rates because mortgage rates rise in tandem with each Fed rate increase.

The Fed increased borrowing costs, which discouraged prospective homebuyers; in November, sales of new single-family homes fell to a seasonally adjusted annual rate of 640,000, down from 756,000 the year before.

It wasn’t just interest rates.

According to a quarterly study released by the National Association of Realtors (NAR), the median price of a…

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"Mortgage rates fall for the sixth week in a row"

Yahoo Finance reports, "mortgage rates dropped for the sixth straight week, but housing activity remained muted going into the holidays.

The rate for the average 30-year fixed mortgage slipped to 6.27% from 6.31% the week prior, according to  Freddie Mac . Rates have fallen more than three-quarters of a point since mid-November after the Federal Reserve signaled that it would slow its interest-rate hikes amid cooling inflation.

Still, rates remain 3 percentage points higher than they were at the start of the year, leaving many first-time buyers on the sidelines and sellers — who haven't pulled their listings — more willing to negotiate.

“Heading into the holidays, mortgage rates continued to move down,” said Sam Khater, Freddie Mac’s chief…

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"Mortgage Buydowns Are Making a Comeback"

Realtor.com writes, "Carley Chase found her dream home in Chandler, Ariz., this summer: a three-bedroom ranch, close to work, with a pool and a backyard lined with palm trees.

Soaring interest rates threatened to put it out of reach. Her lender suggested a temporary buydown that would lower her mortgage payment for the first three years.

“I don’t think I would have been able to afford it without the buydown,” Ms. Chase said.

Rising borrowing costs have dramatically increased the cost of buying a home this year, reviving interest in mortgage products like temporary buydowns that fell out of favor after the 2008 financial crisis.

Temporary buydowns offer steep but short-term savings on mortgage rates. Borrowers get a much lower rate in the…

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'Home Prices Just Hit a Turning Point After Nearly a Year, but Will Buyers Miss It Amid the Holidays?'

Realtor.com writes, "while many homebuyers might be taking a break from their house hunt to indulge in some eggnog and holiday cheer, the few stalwart home shoppers still out there right now have a fantastic opportunity on their hands.

Want proof? Home price growth fell to 9.5% for the week ending Dec. 10, down from 10.3% for the week ending Dec. 3. And that shift to single-digit growth is significant.

“This slowdown marks the first time in 49 weeks, nearly one year, that median home prices have advanced at a single-digit pace,” explains Realtor.com® Chief Economist Danielle Hale in her weekly analysis.

And it’s not just home price growth dropping as 2022 comes to a close: Mortgage interest rates also dipped for the fifth week in a row.

So…

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