September 2017 - Realty Solutions Group

Mortgage Rates Friday: Down at End of Month

Average mortgage rates on the 30-year fixed and 15-year fixed fell three basis points, and the 5/1 ARM declined one basis point, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday morning.

The 30-year fixed is one basis point higher than a week ago, and 41 basis points higher than it was one year ago. In September, the 30-year fixed averaged 3.96%.

Getting a mortgage to buy a first home? That requires saving up for a down payment. And millennial home buyers — who mostly are buying their first homes — say they’re willing to cut expenses or delay milestones to gather down payment money, according to NerdWallet’s new “Down Payment Reality Report.”

According to the survey, conducted by Harris Poll, 59% of millennials who are planning to buy a home in the next five years would forgo a vacation to save money. Almost a third (28%) of millennials would delay having children, and about a quarter (24%) would put off a honeymoon. Millennials were more likely than older generations to say they would make sacrifices to buy a home. On the other hand, more people in those other generations are already homeowners.

For more down payment myths and wisdom — and a calculator that shows you how much closer you can get to your savings goal by giving up certain items (such as canceling Netflix) — check out our “Down Payment Reality Report.”

MORTGAGE RATES TODAY, FRIDAY, SEPT. 29:

(Change from 9/28)
30-year fixed: 4.01% APR (-0.03)
15-year fixed: 3.45% APR (-0.03)
5/1 ARM: 3.90% APR (-0.01)

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NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

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The article Mortgage Rates Friday: Down at End of Month originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Mortgage Rates Thursday: Up After Trump Reveals Tax Plan

The average rate on the 30-year fixed-rate mortgage rose three basis points, the 15-year fixed went up two basis points, and the 5/1 ARM was unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Thursday morning.

The 30-year fixed is two basis points higher than a week ago, and 46 basis points higher than it was one year ago.

Mortgage rates went up following two announcements this week. First, the head of the Federal Reserve expressed her resolve to continue raising short-term interest rates, despite low inflation. Second, the Trump administration revealed its broad outline for an overhaul of tax laws.

On Tuesday, Federal Reserve Board Chair Janet Yellen gave a speech in Cleveland about inflation and the central bank’s policy on interest rates. Since December 2015, the Fed has raised short-term rates four times, which Yellen characterized as “a gradual pace of adjustments.” The Fed raises short-term rates in part to fight inflation. Yet inflation has stubbornly remained below the central bank’s target of 2%. If you think that means the Fed may delay further rate hikes until the inflation rate moves higher, Yellen wants you to think again. She said, “it would be imprudent to keep monetary policy on hold until inflation is back to 2%.”

That statement has been interpreted as a hint that the Fed will raise short-term rates in December, for the fifth time in two years. After the speech, bond yields moved higher, carrying mortgage rates with them.

Then on Wednesday, President Trump announced a plan to cut the corporate tax rate and scale back personal tax deductions. In a speech in Indianapolis, he compared his plan to the Reagan administration’s 1986 tax overhaul, which Trump said created an economic boom in which “our economy took off, the middle class thrived.” Bond yields and mortgage rates went up following this bullish speech.

MORTGAGE RATES TODAY, THURSDAY, SEPT. 28:

(Change from 9/27)
30-year fixed: 4.04% APR (+0.03)
15-year fixed: 3.48% APR (+0.02)
5/1 ARM: 3.91% APR (NC)

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The article Mortgage Rates Thursday: Up After Trump Reveals Tax Plan originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Mortgage Rates Wednesday: Up Across the Board

Average rates on the 30-year fixed, 15-year fixed and 5/1 ARM all rose by two basis points, according to a NerdWallet survey of daily mortgage rates published by national lenders Wednesday morning.

The 30-year fixed is the same as it was a week ago, and 44 basis points higher than it was one year ago.

The 30-year fixed has hovered around 4% all summer, and low mortgage rates provide a boost to home affordability. According to the Urban Institute’s Housing Finance Policy Center, the most affordable major metro area is Cleveland, followed by Cincinnati and Newark, New Jersey. To compile the ranking, the Urban Institute takes into account house prices and median family incomes. It assumes a 20% down payment and monthly payments that are 28% of median family income.

The least affordable metro areas on the list are all in California: San Francisco, followed by San Jose and Los Angeles.

MORTGAGE RATES TODAY, WEDNESDAY, SEPT. 27:

(Change from 9/26)
30-year fixed: 4.01% APR (+0.02)
15-year fixed: 3.46% APR (+0.02)
5/1 ARM: 3.91% APR (+0.02)

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The article Mortgage Rates Wednesday: Up Across the Board originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Mortgage Rates Tuesday: Fixed Loans Unchanged as Home Sales Fall

Average rates on the 30-year fixed and 15-year fixed were unchanged, and the 5/1 ARM fell by one basis point, according to a NerdWallet survey of daily mortgage rates published by national lenders Tuesday morning.

The 30-year fixed is two basis points lower than it was a week ago, and 38 basis points higher than it was one year ago.

While mortgage rates have been relatively steady since the middle of the summer, new home sales have been trending lower.

New home sales fell 3.4% from July to August, to a seasonally adjusted annual rate of 560,000 dwellings, according to the U.S. Census Bureau. That is the slowest pace of home sales since December. The bureau said new home sales fell 1.2% compared with August 2016. The bureau did not estimate the impact of Hurricane Harvey on home sales in the Houston area because it does not compile data at the state or local levels.

New homes were slightly more affordable in August. For the first time since February, half of new homes sold for less than $300,000. From March through July, the majority of new homes had sold for $300,000 or more.

MORTGAGE RATES TODAY, TUESDAY, SEPT. 26:

(Change from 9/25)
30-year fixed: 3.99% APR (NC)
15-year fixed: 3.44% APR (NC)
5/1 ARM: 3.89% APR (-0.01)

Get personalized mortgage rates

More from NerdWallet

The article Mortgage Rates Tuesday: Fixed Loans Unchanged as Home Sales Fall originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Mortgage Rates Monday: Prices Rising Faster Than Rates

Average rates on the 30-year fixed and 15-year fixed fell one basis point, and the 5/1 ARM was unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Monday morning.

While there has been little movement in mortgage rates in recent weeks, home prices are another matter. Home prices went up 0.5% nationally from June to July, according to Black Knight Financial Services. Prices rose 6.2% year-over-year. The average house nationwide was worth $281,000 in July, according to Black Knight. That compares to a typical home value of $265,000 a year earlier.

Average home prices rose from June to July in most metro areas, but there were exceptions. They went down 0.2% in Los Angeles and fell 0.1% in Washington, D.C. Among the 10 largest metros, prices rose fastest in July in New York City (1.5%), Atlanta (0.8%) and Chicago (0.7%).

MORTGAGE RATES TODAY, MONDAY, SEPT. 25:

(Change from 9/22)
30-year fixed: 3.99% APR (-0.01)
15-year fixed: 3.44% APR (-0.01)
5/1 ARM: 3.90% APR (NC)

Get personalized mortgage rates

More from NerdWallet

The article Mortgage Rates Monday: Prices Rising Faster Than Rates originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Mortgage Rates Friday: 30-Year Falls, Fewer Homes Upside Down in Value

The average rate on the 30-year fixed-rate mortgage dropped two basis points, while the 15-year fixed and 5/1 ARM were unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday morning.

The 30-year fixed has risen three basis points in the last week. It’s up 37 basis points compared with one year ago.

Just as mortgage rates have risen in the last year, home values have gone up, too. But some homes still haven’t regained the value they once had. About a decade after the bursting of the housing bubble, millions of homeowners still owe more on their mortgages than their homes are worth — a phenomenon that’s known as being “upside down.” In the second quarter of this year, 2.8 million homes were upside down, according to the CoreLogic Homeowner Equity Insights Report.

The quarterly report found that 5.4% of mortgaged homes were upside down nationwide. Drilling down to individual states, there’s a lot of variation. Nevada had the highest percentage of mortgaged homes that were upside down: 10.6%. Florida was next, at 10%. On the other end of the spectrum, Texas had the lowest percentage of upside-down homes, at 1.5%, followed by Washington state, at 1.7%.

But 2.8 million upside-down homes represents an improvement over the 3.6 million that were upside down a year ago, according to CoreLogic. That means 800,000 homeowners regained positive equity in one year. This could potentially help relieve the problem of there not being enough houses for sale, because now some of these homeowners could afford to sell without incurring a loss.

MORTGAGE RATES TODAY, FRIDAY, SEPT. 22:

(Change from 9/21)
30-year fixed: 4.00% APR (-0.02)
15-year fixed: 3.45% APR (NC)
5/1 ARM: 3.90% APR (NC)

Get personalized mortgage rates

More from NerdWallet

The article Mortgage Rates Friday: 30-Year Falls, Fewer Homes Upside Down in Value originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Ins, Outs, Pros and Cons of Zero Down Payment Mortgages

A mortgage with no down payment seems a little bit like scoring a buy-a-home lottery ticket. You get a home loan and keep more money in your pocket. What could be wrong with that?

Well, there are some downsides. And zero down home loans come and go — except for two perennial government programs.

Ups and downs of zero down mortgage programs

Pros

The easy answer: You put less money down
You may be able to buy sooner rather than later
You have more cash on hand for expenses

Cons

When you borrow the full value of your property, you’re more financially at risk in a property value downturn. Without equity in your home right from the start, any loss of value from a declining real estate market can lock you into a no-move situation.
You’re perceived as a higher risk by the lender, so you’ll likely pay a higher interest rate on your loan. With “risk-based pricing,” lenders charge higher mortgage rates to borrowers with lower credit scores and meager or no down payments.
You’ll probably pay higher fees on your mortgage, too — as well as mortgage insurance premiums
Your monthly payment will be higher

Some zero down programs may be going away

In the past year or so, a number of lenders have begun offering 1% and zero down payment programs. That’s because Fannie Mae and Freddie Mac, the government-sanctioned companies that provide capital to lenders, have been allowing 3% down loans. Some lenders have offered grants to borrowers in order to bridge the down payment difference and promote zero down payment loans.

But Freddie Mac is pulling the plug on such promotions, as of Nov. 1, 2017. Lenders can make contributions to a borrower’s down payment or closing costs, but only after the borrower has contributed a minimum 3% down payment.

“To meet that 3% threshold, the borrower can still come with funds from a relative, a government agency — such as grants from a housing finance agency — or from an employer housing program. That has not changed,” says Lisa Tibbitts, a spokeswoman for Freddie Mac.

The 3% stake that the borrower contributes “is a really important factor in creating responsible, sustainable homeownership,” Tibbitts adds.

While some lenders say they’ll continue with their programs with low and zero down payment, regardless of Freddie Mac’s policy changes, there is something else going on here as well, which we’ll get to in a moment.

» MORE: Best zero and low down payment lenders

These zero down programs are here to stay

There are two tried and true loan programs that require no down payments — and they are not in danger of going away. They are:

VA loans — Mortgages insured by the Department of Veterans Affairs offer zero down payments for service members and qualified veterans. VA loans also offer interest rates that are usually lower than conventional loans.

USDA loans — Loans guaranteed or issued directly through the Rural Development Guaranteed Housing Loan Program of the U.S. Department of Agriculture are another mortgage option that requires no down payment. While mainly targeted to rural borrowers, some suburban areas also qualify.

Zero down may cost you in the long run

Now to that other consideration regarding lender-provided down payment assistance.

The Federal Housing Finance Agency, which has authority over Freddie Mac and Fannie Mae, is keeping an eye on lender-funded down payment discounts, particularly when borrowers are charged higher interest rates or additional fees in order to reimburse the lender’s participation.

“Some down payment assistance programs are offered as gifts or grants that do not have to be repaid, while others finance gifts or grants through a higher mortgage note rate that is passed on to the borrower,” FHFA spokeswoman Stefanie Johnson says. “In other words, the borrower may end up paying more over the life of the mortgage than what the lender provided in assistance.”

It’s called “premium pricing,” and it may be one reason Freddie Mac is eliminating lender down payment subsidies: to prevent its authorized lenders from running afoul of the FHFA.

So far, Fannie Mae, which also offers a 3% down program that lenders could buy down on behalf of borrowers, has not issued any new restrictions on such lender-funded down payment assistance. But Fannie Mae does prohibit premium pricing and requires that lender-assisted down payments be true grants — meaning gifts that do not require repayment.

All the more reason to shop multiple lenders, especially if you are seeking a low or no down payment loan. So that you can be sure you aren’t a victim of premium pricing.

More from NerdWallet

The article Ins, Outs, Pros and Cons of Zero Down Payment Mortgages originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Mortgage Rates Thursday: Up a Notch Following Fed Meeting

Average mortgage rates rose by one basis point for the 30-year fixed, 15-year fixed and 5/1 ARM, according to a NerdWallet survey of daily mortgage rates published by national lenders Thursday morning.

The 30-year fixed has risen six basis points in the last week. It’s up 35 basis points compared with one year ago.

Mortgage rates went up after the Federal Reserve said Wednesday that it is more optimistic about economic growth than it was just three months ago. The central bank added that it will begin selling some of the bonds it owns. And the Fed hinted that it might raise short-term interest rates in December.

At its monetary policy meeting, which concluded Wednesday, the Fed said it expects the economy to grow by 2.4% this year. That’s an upward revision from the central bank’s forecast in June, when it forecast that the economy would grow by 2.2% this year. Faster economic growth tends to push interest rates higher as consumers and businesses compete to borrow money.

Another thing tends to happen when the economy grows faster: Inflation usually picks up. But even though the Fed upgraded its economic growth projection, it downgraded its inflation forecast. In June it projected that core inflation would hit 1.7% this year and 2% next year. Now the Fed forecasts 1.5% inflation this year and 1.9% inflation next year.

In her statement after the conclusion of the policy meeting, Federal Reserve Board Chair Janet Yellen acknowledged that economists are trying to figure out why inflation remains so stubbornly low, saying, “our understanding of the forces driving inflation is imperfect” and that the low inflation rate is unexpected.

The prospect of faster economic growth on one side and persistently low inflation on the other side tends to create a tug of war with interest rates. Economic growth tends to pull rates higher, and sluggish inflation tends to drag rates lower. With both sides tugging in opposite directions, there hasn’t been much movement in mortgage rates in recent months.

As expected, the Fed also announced that it will begin to gradually shrink its $4.5 trillion portfolio of bonds next month. Over time, the shrinking of the Fed’s bond portfolio could push mortgage rates (and other long-term interest rates) upward, because higher rates would be necessary to attract investor money.

Finally, futures markets are forecasting a higher probability that the Fed will hike the short-term federal funds rate in December. According to the CME FedWatch, investors have priced in a 70.5% chance of a rate increase in December; two days ago the odds were 56.6%.

MORTGAGE RATES TODAY, THURSDAY, SEPT. 21:

(Change from 9/20)
30-year fixed: 4.02% APR (+0.01)
15-year fixed: 3.45% APR (+0.01)
5/1 ARM: 3.90% APR (+0.01)

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The article Mortgage Rates Thursday: Up a Notch Following Fed Meeting originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Mortgage Rates Still Low Wednesday, So Why Aren’t More Homes Selling?

The average rate for a 30-year fixed-rate mortgage was unchanged, while the 15-year fixed rose two basis points and the 5/1 ARM went up one basis point, according to a NerdWallet survey of daily mortgage rates published by national lenders Wednesday morning.

The 30-year fixed has risen seven basis points in the last week. It’s up 34 basis points compared with one year ago.

However, by historical standards, today’s mortgage rates are very low. One would think that these low mortgage rates would spur home sales, but that doesn’t seem to be happening. Home resales fell 1.7% in August compared with July, according to the National Association of Realtors. The pace of home sales in August was virtually unchanged compared with August 2016. Of the homes sold in August, half had been on the market for less than one month. Compare that against the median time on market a year earlier: 36 days.

“What’s ailing the housing market and continues to weigh on overall sales is the inadequate levels of available inventory and the upward pressure it’s putting on prices in several parts of the country,” Lawrence Yun, NAR chief economist, said in a news release. “Sales have been unable to break out because there are simply not enough homes for sale.”

Yun added that the national decline in sales was partly attributable to the impact of Hurricanes Harvey and Irma. He said home sales will be affected the rest of this year and into 2018 because of damage caused by the two hurricanes.

MORTGAGE RATES TODAY, WEDNESDAY, SEPT. 20:

(Change from 9/19)
30-year fixed: 4.01% APR (NC)
15-year fixed: 3.44% APR (+0.02)
5/1 ARM: 3.89% APR (+0.01)

Get personalized mortgage rates

More from NerdWallet

The article Mortgage Rates Still Low Wednesday, So Why Aren’t More Homes Selling? originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Mortgage Rates Barely Budge Tuesday, While Building Permits Are Up

The average rate for a 30-year fixed-rate mortgage rose one basis point, the 15-year fixed fell one basis point, and the 5/1 ARM was unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Tuesday morning.

The 30-year fixed is almost unchanged from four weeks ago, but up 34 basis points compared with one year ago, when it averaged 3.67%.

Rising mortgage rates over the last year have been accompanied by a mild growth in home construction. Housing permits were up in August, according to the U.S. Census Bureau. Local governments issued permits for homes at a seasonally adjusted annual rate of 1.3 million dwellings in August, up 8.3% from August 2016 and up 5.7% compared with July 2017.

Housing starts were little changed month-over-month and year-over-year. As for housing completions, the trend is clear: They’re up. From January through August this year, builders completed 740,500 homes — a 10.7% increase over the first eight months of 2016.

MORTGAGE RATES TODAY, TUESDAY, SEPT. 19:

(Change from 9/18)
30-year fixed: 4.01% APR (+0.01)
15-year fixed: 3.42% APR (-0.01)
5/1 ARM: 3.88% APR (NC)

Get personalized mortgage rates

More from NerdWallet

The article Mortgage Rates Barely Budge Tuesday, While Building Permits Are Up originally appeared on NerdWallet.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.