Mortgage Rates Dip, Hover Around Record Lows

Full Article from Realtor.org

DAILY REAL ESTATE NEWS | FRIDAY, MARCH 09, 2012

The 15-year fixed-rate mortgage reached a new all-time low this week, while the 30-year mortgage edged nearer to matching its record low, Freddie Mac reports in its weekly mortgage market survey.

The low mortgage rates are helping to push housing affordability to record highs. The National Association of REALTORS® reported this week that the average family has more than double the income needed to purchase a median-priced home.

Here’s a closer look at rates for the week ending March 8:

  • 30-year fixed-rate mortgages: averaged 3.88 percent — only 0.01 percentage points above its previous all-time low. A year ago, 30-year rates averaged 4.88 percent.
  • 15-year fixed-rate mortgages: averaged a new record low of 3.13 percent, with an average 0.8 point, dropping from last week’s 3.17 percent average. The previous record low for the 15-year mortgage was set in February when it reached 3.14 percent. Last year at this time, 15-year rates, a popular choice among refinancers, averaged 4.15 percent.
  • 5-year adjustable-rate mortgages: averaged 2.81 percent, with an average 0.7 point, falling from last week’s 2.83 percent average. Last year at this time, 5-year ARMs averaged 3.73 percent.
  • 1-year ARMs: averaged 2.73 percent this week, with an average 0.6 point, rising slightly from last week’s 2.72 percent average. A year ago at this time, 1-year ARMs averaged 3.21 percent.
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Pending Home Sales Rise Again in November, Highest in a Year-and-a-Half

 

 

 

 

 

 

 

 

 

 

 

 

Link to National Association of Realtors Press Release Here.

According to the NAR, “Pending Sales” of residential property have rose in the midwest by 3.3% in the past month, and are 9.5% higher than one year ago at this time.

According to a separate study entitled “Existing Home Sales Continue to Climb in November,” it has been found that “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing.”

Studies by Laurence Yun, Chief Economist of the NAR.

 

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I Could’ve Saved $38,000!

In 1998, I purchased my very first home with an interest rate just over 7% and I was thrilled. It is a 2-unit, I still have it as an investment, and I refinanced just this past week to an non-owner-occupant rate of 4.5%. Being a numbers guy, I calculated that with no re-fis, I would have paid $96,353 in interest until now. If I’d had an original rate like I received this week, my to-date interest would have been $58,377.  That’s a difference of $38 Grand!

When I think about it, it is astounding how great the buying climate is today for buyers. You’ve heard that home prices are at a long-time low, but money is also very cheap. This is a wicked combination! I’m focusing on interest rates only for this post. Here is a chart of interest rates, from when I personally started purchasing until now:

Bringing it Home

What does this mean for you, a buyer in today’s market? Here’s an example:

You qualify now for a $100,000 mortgage. All factors the same, we warp you back to 1998 with 7.1% interest rates. You are now qualified for a $77,000 purchase.

Lets modernize this. Say you qualify in Fall 2011 for a $100,000 mortgage at 4% interest. You wait awhile and interest rates go back up to 5.85%, a rate we saw a couple of years ago. You are now qualified for a purchase price of just over $85,000 with the same down payment and loan terms.

Lets flip it around:

You purchase a $100,000 home and put $3,000 down. Here’s how much interest you pay over the life of the 30 year loan:

7.1% (like 1998): $137,674
4.0% (like right now): $69,713
5.85% (like…the future): $109,007


$100k will get you this home in West Michigan, or one of many others:

A $100,000 West Michigan home, MLS# 11038124.

 

 

Buyers, I have news for you: Now is the time!

Time to make a choice!

(a) Now
(b) Later

Pete Bruinsma is an Associate Broker at Grand Rapids Realty in West Michigan. © www.PeteBruinsma.com

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ICCF Receives Grant Money to Finally Break Ground on Legendary Wealthy-Jefferson Project!

“I believe the $17 million estimate in future development (the amount stated in a May 17 press release from MEGA) is extremely conservative,” says Jonathan Bradford, CEO of ICCF. “We anticipate a minimum of 150 housing units, attractive green spaces and 55,000 to 60,000 square feet of retail space, half of which would be a grocery store developed in phase four.”

Rapid Growth Article

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Vice President of 5 Banks Paid 10 Dollars Per Hour.

Jaw drop lately? 60 Minutes explains one reason for delays behind economic recovery.

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TV’s “This Old House” names Grand Rapids’ Heritage Hill a 2011 Best Old House Neighborhood

Thanks Rapid Growth Media: ARTICLE
This Old House: FULL ARTICLE

THURSDAY, MARCH 10, 2011

Photo: Courtesy of the Heritage Hill Association

ThisOldHouse.com touts Grand Rapids’ historic Heritage Hill neighborhood as one of the top 12 “old house neighborhoods” in the country for sustaining a sense of place in a storied residential area, and the best Old-house neighborhood in Michigan.

excerpt:

Why Buy Here?
Though short sales and foreclosures haven’t hit Grand Rapids (long the center of the office-furniture industry) as they have Detroit and other automotive cities, the down market hasn’t overlooked Heritage Hill. Today, you can grab the former castle of a lumber baron or wealthy judge—and walk from home to work in the city’s center—for what amounts to pocket change in other places.

Read the complete story here.

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Buy Michigan Now

Buy Michigan Now, a site dedicated to building a strong, vibrant, and diverse Michigan economy. Individuals and organizations are invited to use this platform to take an active role in the state’s revitalization. Collectively we can make the difference if we Think Michigan First.

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