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5 Percent Mortgage Rates Are Back!

by Melissa Dierks

5 Percent Mortgage Rates Are Back!

The average rate on the 30-year fixed sat just below 4 percent a year ago, after dropping below 3.5 percent in 2016. It just crossed the 5 percent mark, according to Mortgage News Daily.

The benchmark 30-year mortgage rate spiked fifteen basis points to 5.04 percent from 4.89 percent in the previous week, according to Bankrate.com’s weekly survey of the nation’s largest mortgage lenders. Meanwhile, the average 15-year fixed mortgage rate surged 15 basis points to 4.41 percent and the average rate for a 5/1 adjustable-rate mortgage rose 7 basis points to 4.42 percent.

Mortgage borrowers are taking note of soaring rates. Total mortgage applications fell 1.7 percent from the previous week, according to data from the Mortgage Bankers Association’s weekly applications survey for the week ending Oct. 5. That’s down nearly 15 percent from a year ago.

Refinances, which are more sensitive to rate changes, dipped 3 percent from a week ago, the MBA reported. Overall, refinance activity sank to 39 percent of total applications from 39.4 percent the previous week and is down about 32 percent from a year ago.

Rising home prices and tight inventories for starter homes won’t abate in the year ahead, says Joel Kan, an MBA economist. And although year-over-year growth in purchase applications is expected, the movement will be gradual, Kan says.  “With the economy doing well and job market still strong, we’re starting to see the fruits of that and opportunities will be there,” Kan says of homebuying demand.

Higher mortgage rates mean now is a good time to buy a home as higher home prices are likely to become more affordable and homebuyers will have a better chance of finding a home in their price range and more likely to have an offer accepted. Its important to note that while higher rates may drive prices down, a higher interest rate does impact your buying power. What does buying power mean? Simple put, what you can afford to buy at an interest rate of 5 percent will be less than what you can afford to buy at an interest rate of 3 percent.

So, if you’re in the market to buy a home, now is the perfect time take advantage before rates go up more, and your buying power goes down. Contact the Regal Team today for more information about the new mortgage rates and get prequalified to buy a home in Phoenix.

Melissa Dierks

The Regal Team of RE/MAX Professionals

7111 W Bell Road, Suite 101

Glendale, AZ 85308

(623) 229-0154

www.theregalteam.com

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This communication is provided to you for informational purposes only and should not be relied upon by you. RE/MAX Professionals or The Regal Team are not a mortgage lender and so you should contact a qualified mortgage broker directly to learn more about its mortgage products and your eligibility for such products.

3 Key Things to Do Before You Get Your Keys

by Melissa Dierks

3 Key Things to Do Before You Get Your Keys

After months of saving, searching, waiting, and signing paperwork you’re finally ready to unload those moving boxes and start getting settled in. But even after you close on your home, the moving frenzy can feel like an ongoing series of to-do lists to no end. And though it’s tempting to take it easy and start arranging your furniture and hanging curtains the minute you get the keys to your new home, stop and remember the 3 key things to do before you get your keys.

1.) Change the locks: Before you even so much as drop one box into your lovely new domicile, be sure to change the locks or have them rekeyed. You never know who may have a copy of the original keys and it’s better to be safe than sorry. You can pick up locksets at your local home improvement store and they are relatively easy to install yourselves.

2.) Locate the circuit breaker: Doesn’t sound super important, but locating the circuit breaker in your new home is one of the first things you should do prior to move in. There’s nothing worse than having a power outage during a move that leaves you struggling to find the breaker. Even if electrical testing during your home inspection went well, it still doesn’t hurt to know where your electric box and switches are. It’s also a good idea to label your switches clearly in case of emergency if they aren’t labeled already.

3.) Change the alarm batteries: It’s likely your fire alarm and carbon monoxide detectors were tested during the home inspection process of your home buying experience. But making sure your alarms have fresh batteries will benefit you in the long run. In the shuffle of moving in and getting settled in, it’s an easy step to forget that could save lives later.

Remember these 3 key things to do before you get your keys and you’ll have just that much less on your to-do list as you settle in to your new home. Looking to buy an Phoenix home this summer? Contact The Regal Team today, and we’ll help you navigate through each step of the process to assist you with making the best real estate investment decisions and find the perfect home for you!

Melissa Dierks

The Regal Team of RE/MAX Professionals

7111 W Bell Road, Suite 101

Glendale, AZ 85308

(623) 229-0154

www.theregalteam.com

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Top 3 Home Buying Myths Busted

by Melissa Dierks

Top 3 Home Buying Myths Busted

True or false: It’s a well-known fact that buying is better than renting. False. Renting a home versus buying a home is best determined by how long you want to live where you are, your personal goals and your finances. This is just one of many home buying myths that people have believed for years, even if they’ve purchased a home before. Because buying a home is one of the biggest emotional and financial investments you’ll ever make, it pays to know the truth from the myths. Here are the top 3 home buying myths busted.

 

MYTH #1: You don’t need a licensed real estate agent.

Managing the real estate investment process on your own is not easily accomplished and can end up costing you more if you don’t know what you’re doing. REALTORS® are experienced in a way the average homebuyer isn't when it comes to negotiations. More specifically, they can perform a comparative market analysis and set up showings, home inspections, and appraisals.

Myth #2: You always need a twenty percent down payment

Depending on your qualifying loan, your down payment can be as little as 3.5 percent, which is the rate for an FHA or even 0 percent down for a VA loan. A down payment assistance program may also be an option for Arizona home buyers.

Myth#3: A 30-year fixed mortgage is always the best deal.

If you plan to keep your home for that long then a 30-year fixed mortgage will likely be the best choice for you. However, if you only intend to keep the home for five to seven years, a fixed rate for seven years could be more appropriate. The longer you fix the rate, the higher your interest rate will be so you could be paying a higher rate for nothing if you don’t plan accordingly.

Don’t let home buying myths keep you from landing your dream home. If you would like more information about buying a home in Glendale, please contact the The Regal Team today. We will be happy to assist you with your home search and help you meet your real estate needs.

Melissa Dierks

The Regal Team of RE/MAX Professionals

7111 W Bell Road, Suite 101

Glendale, AZ 85308

(623) 229-0154

www.theregalteam.com

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Melissa Dierks
The Regal Team of RE/MAX Professionals
7111 W Bell Road, Suite 101,
Glendale AZ 85308
Direct: (623)229-0154
Office: (623)643-1092
Fax: (623)201-7562

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