Tag: Interest Rates
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“The Lending Environment Shifted Under Their Feet”: War Sidelines Mortgage Seekers
Turmoil in Iran is causing lenders to get stricter with mortgage loan applicants. Now, FICO scores that would normally pass muster are winding up in some lending companies’ rejection piles. The conflict is now widely projected to batter global economies for many months to come. An increasing number of U.S. lenders look at this situation…
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How Long Will This Economic Slump Last? Zillow Asks, and Rewrites Its 2026 Housing Forecast
Zillow® has changed its mind. Just a few months ago, the company was expecting a 4.3% rise in sales of currently existing homes through this year. But storm clouds have gathered. Suddenly, the price of fuel is sky-high. The inflation that appeared to be manageable now looks different. And Zillow’s worried that all this could…
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How Will War-Inflated Oil Prices Impact Home Sales and Mortgage Rates?
Spoiler: Mortgage rates at the 6% level may be looking awfully good a few months from now. The U.S.-Israeli war with Iran could “derail the crucial spring housing market as oil prices soar,” Realtor.com said as oil prices spiked above $100 a barrel. The website, owned by the National Association of REALTORS®, has bluntly stated:…
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Kevin Warsh as Federal Reserve Chair: What This Means for the Deed Market
Donald Trump has decided: Kevin Warsh should take the key position on the Federal Reserve’s governing board. It’s no secret that Trump wants lower interest rates. Will Warsh deliver? And will this stimulate deed transfers in a market that’s been frustrating hopeful sellers and buyers alike? Let’s check into this now.
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Financial Planning for Deed Holders: Keep the Mortgage?
Some deed holders, hoping to pay their loans down early, send extra money toward their mortgage principal each month. Why are they eager to pay down a mortgage balance faster than the loan agreement requires? Is that the best approach from a financial planning standpoint? Here, we go through some factors that prompt some deed…
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Federal Reserve Poised to Start Rate Cuts: What’s Next for Mortgages?
Mortgage rates are dipping down in advance of the Federal Reserve’s discussion of rate cuts this week. Freddie Mac shows the average rate on 30-year, fixed-rate home loans is just about 6.3% as of mid-September, down from 7% at the start of 2025. Two weak U.S. employment reports pushed the average rate down. In response,…
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Voters Tell Candidates: Act on Housing Affordability Now!
With absentee ballots already issued in Alabama, early voting has started. The Center for Popular Democracy ran a survey, and 84% of voters in swing states say housing is a big deal as they fill in their ballots, The Financial Times reports. So, does the 2024 election runup bring us hope that people will soon…
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Borrowing Against Your Equity: HELOCs, Home Equity Loans…and Interest Rates
One of the opportunities you have as a deed holder is the ability to borrow against the home equity you build over the years. But wait. How high is the interest rate you’ll have to pay? Is it worthwhile to pay that rate, in light of what the funds you borrow can do for you…
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Still on the Fence About Selling or Buying This Summer? Consider This.
On the fence about selling your home? Or maybe you’d love to be a buyer, but wonder whether to watch and see if mortgage rates drop… And why not wait for better rates, if you have time to spare? Then again, summer is a traditionally popular time to move. Did you know most deeds change…
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The Rise and Rise of Down Payments
A down payment is the portion of a home’s purchase price the mortgage borrower pays upfront. You knew that. But did you know the median down payment for U.S. homebuyers is now more than $55K+? That’s remarkable. It was less than $45K just last year. Buyers often try to put 20% of the purchase price down.…
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Can’t Wait to Move. (If Only We Could Pack Up Our Low Mortgage Rate and Take It With Us!)
Some people wish they could move, but hesitate to sell their current homes. They might be thinking: “I’d gladly sell my home right now, if only I could shift the remaining 25 years of my 4%-interest mortgage to the next house I buy! (Oh, well.)” “Giving up our 3% rate and getting a new mortgage…
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Buyers Are Back. Are Small Towns Their Best Bets?
Affordable homes for sale are still scarce. And yet a recent Realtor.com survey shows a strong hint of optimism. Four in ten hopeful first-time buyers think 2024 will be their year. “In a year of expected interest rate drops,” says Architectural Digest, “real estate could come roaring back from its beauty sleep.” Well, that’s one…
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Update! Fed Signals 2024 “Pivot” on Interest Rates. What Should Home Sellers and Seekers Know?
As we’ve all noticed, deed transfers really got stuck in a rut in 2023. Too few owners are selling their homes. Supply is down. Prices are up. A core issue? The Federal Reserve. Over the past two years, the Fed has hiked rates in order to banish inflation and to tighten up the economy. So,…
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Get in Early, Make a High Down Payment: The Case for Assertive Home Buying
Have you noticed the big home finance companies desperately touting their low-down-payment deals? You’d think no one wants to put 20% down anymore! But interest rates are high, so keeping your debt high is a pricey thing to do. Therefore, it can make sense, for those who can swing it, to: Let’s explore the case…
