Interest rate

30 Year Fixed Rate Mortgage Rate Spikes 14 Basis Points


Newton, MA. top Brokers, Sotheby’s Newton, MA.

30-Year Fixed Mortgage Rates Spike 14 Basis Points, Largest Rate Hike Since November 2013; Current Rate is 4.19%, According to Zillow Mortgage Rate Ticker

 

MEANING

SEATTLE, Sept. 16, 2014 (GLOBE NEWSWIRE) — The 30-year fixed mortgage rate on Zillow® Mortgages is currently 4.19 percent, up 14 basis points from this time last week. The 30-year fixed mortgage rate rose steadily last week, peaking at 4.30 percent on Sunday before easing down to the current rate.

“Last week, rates hit a five-month high on anticipation that the Fed’s policy statement might suggest an earlier than expected hike in the federal funds rate,” said Erin Lantz, vice president of mortgages at Zillow. “This week, any significant movement in rates will stem from the Fed’s Wednesday announcement, which could reveal how quickly the federal funds rate will rise after the stimulus program ends.”

Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.

The rate for a 15-year fixed home loan is currently 3.26 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.03 percent.

Purchase Mortgage Application Activity

Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity decreased by 4 percent from the week prior. Zillow combines loan requests made on Zillow Mortgages last week with the previous week’s Mortgage Bankers Association (MBA) Weekly Application Index to predict the MBA’s Weekly Application Index for purchase loans, which will be released tomorrow. For more information about this prediction, visit http://www.zillow.com/research/mortgage-app-index-part-one-7016/.

Below are current rates for 30-year fixed mortgages by state. Additional states’ rates are available at:http://www.zillow.com/mortgage-rates.

State Current
30-Year
Fixed Rate
(09/16/14)
Last Week’s
30-Year
Fixed Rate
(09/09/14)
Change in
Basis
Points
California Mortgage Rates 4.18% 4.08% +10
Colorado Mortgage Rates 4.17% 4.07% +10
Florida Mortgage Rates 4.19% 4.07% +12
Illinois Mortgage Rates 4.20% 4.08% +12
Massachusetts Mortgage Rates 4.26% 4.10% +16
New Jersey Mortgage Rates 4.14% 4.01% +13
New York Mortgage Rates 4.28% 4.12% +16
Pennsylvania Mortgage Rates 4.19% 4.08% +11
Texas Mortgage Rates 4.18% 4.02% +16
Washington Mortgage Rates 4.15% 4.04% +11

 

Newton, MA. Real Estate by Zip Code 2011 vs. 2012


Newton, MA. Real Estate Prices.  Margaret Szerlip, newtonmasshomesfor sale.com, Top Broker Newton, MA.

Newton, MA.  Real Estate by Zip Code

Real Estate is local, very local.  The following is a break down of Newton by zip code, 2011 vs. 2012 thus far.  Please notice the price per square foot it is as important as could be in determining the price of a home.  A seller cannot get caught up in what their neighbor’s house sold for.  This price per square foot is also very indicative of condition.

Zip                  Units                         Average Sale Price               Average Price SQ FT

02458             51                                $954,000                               $310.00

02458             49                                $1086,000                            $330.00

02459             154                              $976,000                               $345.00

02459             135                              $997,000                               $335.00

02460                        25                     $694,000                              $333.00

02460                        3                        $806,000                              $326.00

02461             58                                $756,000                               $331.00

02461             37                                $683,000                              $337.00

02462             16                                $656,000                               $346.00

02462             11                                 $780,000                              $341.00

02464             14                                $534,000                               $286.00

02464             10                                $573,000                               $293.00

02465             88                               $793,000                               $329.00

02465             79                                $1,051,000                            $351.00

02467             24                                $1,262,000                            $380.00

02467             30                               $1,396,000                            $371.00

02468                        31                                $1,559,000                            $366.00

02468                        20                               $1,790,000                            $378.00

I am going to break these numbers down even further.

Chestnut Hill 02467 North of Rte.9

02467             13                                $1,703,000                            $422.00

02467             13                                $1892,000                            $430.00

Chestnut Hill South of Rte.9

02467             10                                $813,000                               $319.00

02467             17                                $1,011,000                            $315.00

It costs roughly $110.00 per square foot more to purchase a house north of Rte. 9 in the same zip code.

Same is true for West Newton, breaking out West Newton Hill

02465             24                                $1,559,000                            $420.00

02465             21                                $1,790,000                            $435.00

02465             73                                $577,000                               $305.00

02465             58                                $691,000                               $330.00

Again, it cost about $110.00 more per square foot to purchase on West Newton Hill.

I will now break down Newton Centre even further.  Newton Centre encompasses a vast area.  It stretches north slightly  beyond  Commonwealth Avenue, east to roughly  Hobart, west to Walnut Street and south, as far as Brookline Avenue. I will separate out the immediate vicinity surround Newton Centre and walkable to the T and shops.

02459             50                                $1,077,000                            $378.00

02459             104                              $918,000                               $334.00

Or roughly $44.00 more per square foot the closer to Newton Centre proper you are.

I would love to discuss this further with anyone who is interested.  617-921-6860

Mass. single-family home sales post best July in seven years


Newton, MA.  Top Agent, newtonmasshomesforsale.com, newton, ma. realtor

Warren Group: Mass. single-family home sales post best July in seven years

By Chris Reidy, Globe Staff

July sales of single-family Massachusetts homes rose 27 percent on a year-to-year basis, the best July in seven years, the Warren Group reported Wednesday morning.

A total of 4,979 single-family homes statewide sold last month, the best July for sales volume since 2005, the firm said.

The median price of single-family homes inched up about 1 percent to $318,000 from a year ago, added the Warren Group, a Boston firm that tracks real estate activity.

July condo sales in Massachusetts were up 34 percent to 1,994 units sold, and the median condo selling price was $295,000, down 0.3 percent from July 2011, the Warren Group said.

“There are a lot of good signs pointing toward a real estate recovery,” Cory S. Hopkins, editorial director of the Warren Group, said in a statement. “But we are comparing sales to a very depressed market last summer, so it’s important to step back and realign expectations.”

The Massachusetts Association of Realtors issued a separate monthly report Wednesday morning on the Massachusetts housing market. The association uses a different method to measure local real estate activity.

The association noted that July was the 13th straight month of year-to-year increases for sales of single family homes.

“While we’ve hit a ‘baker’s dozen’ with months of sales increases now at 13, prices continue to stabilize,” association president Trisha McCarthy said in a statement. “The probability that home prices will begin a more steady increase is good if the combination of higher buyer activity and lower inventory levels continue. What is needed are more sellers at all levels to insure that price increases happen at a more reasonable pace than during the bubble years.”

5 REASONS YOU SHOULD CONSIDER SELLING YOUR HOUSE NOW!


NEWTON AND BROOKLINE HAVE BELOW AVERAGE INVENTORY…..and….

If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:

1.) This is when your house will get the most exposure

The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!

2.) Foreclosures and short sales will increase in about 90 days

The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market.

As an example, LPS reported in their latest Mortgage Monitor that:

  • There are still twice as many loans going 90+ days delinquent as are starting foreclosure
  • There are almost three times the number of foreclosure starts as there are foreclosure sales
  • Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales

This means that there is a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.

3.) Interest rates have risen over the last six months

Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.

4.) Qualifying for a mortgage is about to get even more difficult

Besides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.

Morgan Stanley recently stated:

“Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.” 

This may impact any potential purchaser for your property and may also impact your next purchase.

5.) It’s time to get on with your life

Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Bottom Line

If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Sit with a real estate professional in your area today to fully understand your best option.

2011: The Year a House Becomes A Home


2011: The Year a House Again Becomes a Home

  • For almost a decade now, every time we talked about real estate we immediately discussed money. We didn’t talk about the value of a home but instead about the price of the house. We didn’t worry about a roof over our heads but instead the ceiling on our interest rate. We didn’t care as much about where we raised our family as we cared about how much we increased our family’s net worth.

That will change in 2011. KLK Sotheby’s believe very strongly that real estate will return to what it has been for the 200+ year history of this country: a place for us and our families to live comfortably. It will also prove to be a great long term investment as it always has been.

Our parents and our grandparents didn’t buy their homes as a short term financial investment. They bought it so they had a place of their own to come home to at the end of the day; a place to raise their family; a place they could feel safe.

Sure they dreamed of a ‘mortgage-burning’ party. They realized it was a form of forced savings. They were taught that, if they paid their mortgage every month, they would wind up with a little retirement account decades later.

And, they realized that wouldn’t happen if they rented.

However, in the last decade, we somehow forgot that the financial aspect was the serendipity not the major reason to buy. We believe that 2011 will be the year that people return to the historic reasons families purchased a home. This is the year when we again remember that homeownership is a major part of the American Dream.

What about the challenges to a housing recovery? Let’s look at them.

The Economy

Most reports are showing that the economy is doing better than expected. This shopping season provided additional proof of this point. As the economy recovers, so will consumer confidence. This will be great news for housing.

Unemployment

There is much talk about a ‘jobless recovery’. We agree that unemployment will continue to be a challenge. However, when you talk about housing, it is not the unemployment rate that is all telling. Instead, it is the change in the rate. As unemployment skyrocketed, people started to worry about their own job. Any change creates concern. Unabated concern turns to fear. Fear causes paralysis. The spike in unemployment has plateaued. People no longer have the feeling that ‘they are next’. The fear will diminish and people will start moving on with their lives. This too will be great news for housing.

Interest Rates

It seems the bottomless pit in which rates have been falling does have a floor after all. And it seems we have found it. Those purchasers who had been waiting for the best interest rate may have already missed it.

Prices

Economists are projecting that prices will not see any appreciation in 2011. Sellers who had been waiting for 2006 to return will come to the realization that waiting any longer makes little sense. They will instead decide to get on with their lives and sell this year.

Prices probably will soften further. However, the possible savings to potential buyers will be minimized by a rise in interest rates.

Bottom Line

This is the year that normalcy returns to real estate. People will buy and sell based on the desire for a better life for themselves and their families. They will realize that is the true value of homeownership and they will be willing to pay for that value.

 

CAN RATES GO DOWN ANYMORE?


Another informative post my friends at KCM….

Can Rates Go Down Any More?

by DEAN HARTMAN on OCTOBER 21, 2010 ·

I agree with Dean that rates will go down for a time, maybe six months, but the reason is to get American products to look cheaper.  Congress is through helping the housing market, and in some ways I believe it should not be artificially propped up.  Eventually rates will rise because a sustained period of a weak dollar will not help the overall economy.

It appears they CAN and that they WILL. The buzzwords today are Quantitative Easing. It is another of the weapons the Fed has at its disposal to impact the economy, as a whole, and interest rates in particular.

Let me explain. In so far as the Fed has already lowered the rates they charge to lending institutions as much as they can, and they still see a sluggish economy with weak employment numbers and growth, the Fed appears ready to enter a second round of Quantitative Easing (QE). QE is when the Fed begins to buy Mortgage Backed Securities in earnest. They do that by paying more than the market price for MBSs; therefore, pushing interest rates lower.

But why do it? I mean rates are historically low already. Is lowering rates another quarter or half percent going to get someone to buy a house that hasn’t already gotten off the fence? Maybe, but I can’t see the number of people deciding to buy at 4% rates being that significant as compared to those looking to buy at 4.5%. There HAS to be other reasons. Maybe….

  1. The Fed realizes that lower rates will stabilize home prices. Lower rates mean borrowers can borrow more money based on their income, enabling them to pay more for a home which can slow the decline of prices, stabilize prices, and in a few areas even raise prices of homes.
  2. The Fed needs to look like they are doing SOMETHING to energize the economy or get consumer confidence turned around.
  3. The Fed has an agenda other than lower mortgage rates. Maybe the Fed is using the lowering of rates, in an effort to devalue the US Dollar abroad. By lowering the value of the dollar, our products become a better bargain to buyers overseas. So, maybe, just maybe, this is actually an attempt to kick start the economy. If we sell more products overseas, we need to produce more products, hire more employees to make, sell, and distribute those products. Can I smell job growth through QE?

Understand that a weakened dollar will eventually force rates to move up (to re- strengthen the dollar); so, there is going to be a window of even more incredible mortgage rates, but, the window will need to be carefully watched because it can’t be left open forever.

There is no history we can point to predict if QE can or will work. Nor is there any real indication of the level of aggressiveness the Fed will take in this area. (Listen to the rhetoric between now and next week’s release of the Fed’s Beige Book as hints.) It may just be another shot in the dark, but personally, I am in favor of ideas that promote job growth more than government hand outs and bail outs.