Our current real estate market (INCREASE IN APR AND PMI)

As many are probably already aware what truly determines our typical interest rates is the app. value of our US Saving Bonds. Many Lender, Mortgage Comp., Banks, etc. are predicting rates to begin climbing back up after taxes.

How does this effect SELLERS

1. Less buyers: this is due to their inability to become preapproved and find financing.
2. Property Values are expected to shortly rise back up due to supply and demand.
3. Property value probably wont hold long due to SELLERS having to price aggressively in order to capture available buyers

How does this effect BUYERS

1. It will only get harder to find rates as low as 3.5%
2. FHA Regulation are expected to change drastically  Note: Our typical PMI will no longer be a 5 year term. However, change back to following the mortgage for the life of the loan. Example: rather than paying mortgage insurance for 5 years you WILL have to pay it for a 15-30yr period.
3. Of course the days of the deal are falling farther apart with every passing day.

Overall: For many first time home buyers special bonds are being offered to help assist with their down payment plans. Interest rates are still being seen extremely low and in todays market deals are still abundant for the time being. Many ask is it cheaper to own v. rent. Honestly, YES! Rarely will I see a leased property lower than what it would cost to purchase. Example: As a landlord would you make monthly payments on an estate only to lose money and charge less than what your monthly payments are?

I hope everyone is striving to reach their own financial independence. Purchasing a house is the biggest decision you will ever have to make and one of the best investments.

Keller Williams Realty
Real Estate Consultant
3x US Army Veteran
Joseph Fernandez
Cell: 817-975-7258
Blog:    blissfulestates84.blogspot.com
Email:  blissfulestates84@gmail.com
Trulia:  http://www.trulia.com/profile/josephfernandez/
Zillow: http://www.zillow.com/profile/JosephFernandez/
Web:  www.blissful-estates.com
Facebook:  https://www.facebook.com/joseph.fernandez.5876
Linkedin: www.linkedin.com/pub/josephfernandez/63/423/96b/