The jobs report this morning was good. The unemployment rate continues to drop. Today’s report put the current rate at 7%, much less than the 7.2% forecasted. What does this mean for your real estate investments? It means interest rates are very likely to continue to inch higher. In early trading, we are already seeing the yield on the 10-year Treasury testing the September highs near 3%. While we don’t expect mortgage rates to go straight up, they are less and less likely to return to the historic lows that we saw earlier this year. The signs of economic improvement are indisputable. We have already seen signs that the real estate market has stabilized and is improving in communities all over the country. While interest rates are rising, they are still at historic lows. If you have been thinking about buying a home or investing in real estate, give us a call today and let us help you capitalize on the changing economic environment.
Have you been pondering the purchase of a new home? We are thinking that the positives for buying now are stacking up…Rates on fixed rate loans are still cheaper and on a downward trend again and folks in the know are saying it is still cheaper to Buy then Rent. The requirement for a down payment on a loan are lower than you might think and the qualifications requirements seem to be easing from the peeps that loan the moo-lah!
- Rents are only going up from here. There are many pundits spouting about a 4% increase in rentals in 2014. Trulia Trends did a study in 2012 that said is it is 44% more expensive to rent in 100 major metropolitan areas so you do the math….
- Home Flippers have come to a halt. With our group of investors we have found that the flippers have flipped and want to hold on to their properties and use them as Rentals. Which makes sense since Rents are clearly on the rise.
- Loan Restrictions have eased. Less stringent rules and qualifying criteria may help some people finally get that home Loan they have been waiting for. If you have good credit and some savings available for a down payment, you might just be able to get a loan for your dream home this year.
- Home Prices and Rates still at all time lows. Folks let’s just say while home prices are indeed rising they are still historically low in comparison to the highs in the early part of this century in most cities. Over the Summer interest rates did indeed rise, but they have been trending downward and relative to what interest rates could look like, we are still very low.
Wishing you all a very good day from The Walters Group