February 24th, 2022

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How Much Is Your Fenton Area Home Really Worth!

Mortgage Rates Nearing 4%

Borrowing costs are climbing: The 30-year fixed-rate mortgage rose to a 3.92% average this week, Freddie Mac reports.

“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” says Sam Khater, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential home buyers, especially as inflation threatens to place a strain on consumer budgets.”

As of now, however, the rising rates are sparking an urgency rather than a pause among house hunters, Nadia Evangelou, National Association of REALTORS®’ senior economist and director of forecasting, writes on the association’s blog. “Buyers are rushing to lock in lower rates as the outlook is for even higher mortgage rates in the following months,” she notes. Mortgage rates are still low by historical standards.

Freddie Mac reports the following national averages for mortgage rates for the week ending Feb. 17:

30-year fixed-rate mortgages: averaged 3.92, with an average 0.8 point, rising from last week’s 3.69% average. Last year at this time, 30-year rates averaged 2.81%.15-year fixed-rate mortgages: averaged 3.15%, with an average 0.8 point, increasing from last week’s 2.93% average. A year ago, 15-year rates averaged 2.21%.5-year hybrid adjustable-rate mortgages: averaged 2.98%, with an average 0.3 point, increasing from last week’s 2.80% average. A year ago, 5-year ARMs averaged 2.77%.

Freddie Mac reports average commitment rates along with points to better reflect the total upfront cost of obtaining a mortgage.

Starter Homes More Affordable Than Renting

Home prices are rapidly rising, but rental prices are as well, and at a faster pace. In more than half of the nation’s largest U.S. metros, Americans likely will find buying a starter home more affordable than renting, according to a newly released report from realtor.com®.

Median rental prices rose 19.8% year over year in January. That has outpaced monthly starter homeownership costs, despite a very competitive housing market, researchers say. For comparison, the monthly costs of buying a home with up to two bedrooms have seen an 11% year-over-year jump, according to realtor.com®. Meanwhile, apartment costs for all unit sizes continue to increase: Studios are up 21% annually, and one-bedroom and two-bedroom units are both up by 19.2%.

In January, the monthly cost of buying a starter home was more affordable than renting a similar-sized apartment in 26 of the 50 largest metros realtor.com® tracks.

“U.S. rental markets are more than making up for lost time, with January data showing national rents continued to surge by double digits over the last year and at a faster pace than for-sale home prices,” says Danielle Hale, realtor.com®’s chief economist. “So much faster, in fact, that even as monthly starter home costs increased in many of the markets that favored buying, rents for a similar-sized unit were 20% higher.”

Rental and homebuying costs are both climbing. But several factors may tip affordability in favor of first-time buying, Hale says. Rents are forecasted to outpace listing price growth in 2022. Also, the majority of property owners recently surveyed say they plan to raise rental asking prices this year.

However, “the buy-versus-rent decision ultimately depends on personal circumstances like where you live, your financial situation, and how long you want to live in your next home,” Hale says. “As Mortgage Rates Continue Climbing, those looking to buy their first home in 2022 are more likely to find lower costs now than later in the year, but home selection is expected to improve as we move toward spring when many homeowners target listing their home for sale."

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Dear Homeowner,

There is a good chance you've been hearing about how hot the real estate market is. Like many homeowners, you might be considering a move but you've been waiting for the right time.

As a real estate professional, I'm thrilled to report a positive outlook for those who are thinking about selling.

Below are statistics that indicate it is definitely a seller's market.

- According to the National Association of Realtors, the national inventory of active listings declined by 26.0% over last year, while the total inventory of unsold homes, including pending listings, declined by 16.2%. The inventory of active listings is down 55.5% compared to 2019.

- In November, newly listed homes decreased by 0.7% on a year-over-year basis and sellers were still listing at rates 13.3% lower than typical of 2017 to 2019 levels. This marks the third straight month of lower new seller activity than last year which has contributed to lower inventory

- Additionally, Just in the second quarter of 2021, the median price of a single-family home climbed 22.9 percent, to $357,900, the biggest such jump since the National Association of Realtors began keeping records in 1968.

I am sharing this information with you because inventory in the city of Fenton, Linden and all surrounding areas is extremely low. I am currently working several Buyer's that just can't find what they are looking for. So if you've thought about selling you can expect your home to sell quite quick, so please give me a call. I'd love to visit with you for a no obligation and no pressure consultation.

Sincerely,

Van Braun