Posts Tagged ‘interest rates’

Buying a Home in Burlington: Quelling the Top 5 Fears

While we’re still in Halloween Scary Things mode, we might as well address the fear factor when it comes to buying Burlington homes. First-time Burlington home buyers aren’t the only ones who experience at least some degree of trepidation as they go about such a major purchase. The prospect of buying a home can be so intimidating that putting it off seems the easiest course of action (actually, inaction). The problem is that if that delay happens to fall during a period of rising home prices or mortgage rates­, it’s going to seem self-defeating in retrospect.

But unlike the scary Halloween decorations that are being crated up until next year, the fears that accompany home buying are reality-based. When you look up “home buying top fears” you come up with a remarkably consistent million and a half commentaries.

Here are 5 hobgoblins that contend for the honor of being the most Universal Home-Buying Fears—issues most likely to haunt people as they go about buying a home in Burlington:

  1. Money. It’s not just the unusual number of zeros that buying a home involves, it’s also the scary thought that maybe the property is overpriced (in other words, that you are the only one who will ever be in love with the place enough to pay $xxx,xxx). The mortgage lender’s loan approval letter can shoo away this goblin.
  2. Interest rates. As home loan interest rates rise, it’s rational to fear that you won’t find a suitable home before rates drive the monthly payment number out of range. As soon as the right Burlington home is located and rates are locked, this witch flies off into the night.
  3. Condition surprises. This fear can wake anyone up in the middle of the night: what if the inspection doesn’t uncover major issues–but they show up later? This fear may be rational, but it’s seldom realized. It’s usually banished by Father Time.
  4. The neighborhood. What if the neighbors turn out to be an unfriendly lot—or are just plain weirdos? The cure for this is as simple as chatting with some folks on the block, making some shopping forays at local Burlington stores. Most of us have our own reliable built-in antennas that alert us to places that make us uncomfortable.
  5. It’s safer to rent. Especially for first-timers, this scary gremlin may be the most persistent of the five because it’s self-inflicted. In fact, it’s just another cloak that Fear of the Unknown wears­—so it’s particularly difficult to throw off. The best cure is to remember that everyone who has ever bought a home in Burlington has eventually reached the opposite conclusion. Ask them, and they’ll tell you it’s one they don’t regret.

Buying a home can be scary at first, but one very reassuring factor is that you don’t have to go it alone. Just give me a call!

Joan Parcewski, Realtor & Notary

LAER Realty Partners           http://www.JoanParcewski.LAERRealty.com

JParcewski@LAERRealty.com    cell 978-376-3978

 

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Events that Trigger Buyers for Homes for Sale in Bedford

What are the most common changes in circumstances that send buyers out looking for homes for sale? What are the events that trigger typical prospects to comb through the Bedford listings, contact Bedford Realtors®, set out on house tours—and ultimately make the offer that results in the move to a new home?

The answer to that question may be different for everyone, but some in-depth research has come up with interesting similarities among groups of active homebuyers. It matches a conclusion that also conforms with common sense: namely, that the motivating events (or “triggers”) sometimes vary by age group. In other words, when we humans reach similar milestones in life, we often make the same housing decisions—even though the reasons for a couple of them may be mysterious.

I came across the details buried in a report put out this past spring by economist Lawrence Guo in Realtor magazine. The top line of the piece—the part that got the most attention—dealt with the homeownership goals of active home shoppers. “Privacy” was the leading goal; “physical comfort” was second; “stability,” third. Of the styles of homes for sale, “ranch homes” were the most sought-after; the kitchen was considered the most important room, etc. None of these findings were at all mysterious or unexpected.

But when it came to revealing the impetus for a move in the first place—the life event or changed condition that set people checking out the current crop of homes for sale—a few could definitely be tied to the age group of the prospects. Since more than 20 triggering events were identified—each broken down into five different age groups—the resulting graphic was so complicated that most readers’ eyes probably glazed over before many conclusions could be drawn. Most of the findings were unremarkable—as when youngsters weren’t as likely as oldsters to cite “considering retirement” as a triggering event, or when some events were equally named by all age groups. But some were less predictable:

  • Relocating to a new city: most common among 35-44 year-olds; least among those 55-64.
  • Favorable home prices: most cited by 25-34 year-olds; least (fewer than half of that group) among 35-44 year-olds.
  • Favorable interest rates: most pointed to by 45-54 year-olds; least among the 35-44 year-olds … and equally cited (about 1 in 10) by all the other age groups.
  • Desire to live closer to family/friends: as expected, ‘way more prominently named by the 65+ group.

It doesn’t take a rocket scientist to ferret out why home prices are most important to the youngest group, but the greater importance of interest rates to the 45-54 group but not the 35-44s? That one will take some thought. Not a surprise is the across-the-board Number One triggering factor among every age group: “tired of current home”!

If you fit in with that extremely common group, right now there are extraordinary values to be had among today’s homes for sale in Bedford. Give me a call to lay out an itinerary for visits to the ones that match up with your own specific wish list requirements!

Joan Parcewski —CRS, MRP, CSHP, SRES, CBR, LMC, Realtor & Notary
978-376-3978   JParcewski@LAERRealty.com    OR    JParcewski@gmail.com
 
Licensed MA & NH    
Introductory Video  https://youtu.be/RrM4q17cjU0
 Laer Realty Partners    Joan_Parcewski (1 of 1)

 

 

Events Solidify Burlington Mortgage Rate Speculation

Several weeks ago there was another interest rate development—though it was a slightly whipsawed kind of development. Since mortgage interest rates are so important to the bottom line in all but all-cash Burlington residential home sales, the direction rates are headed is something worth watching closely.

It was one of those days that come about twice a year. It was the occasion when the Federal Reserve Chairman is called upon to testify before Congress. The date is set as a biannual marker for revealing what’s likely to lie ahead for interest rates. If the Fed is going to decide to raise the Fed Funds rate, it’s usually the single strongest pointer to higher mortgage interest rates. All things being equal, that would eventually slow Burlington’s real estate market activity by making mortgage payments more expensive.

As the appointed hour for the testimony neared, Reuters weighed in early. At about 8:30 in the morning, they reacted to the advance copy of Chairman Yellen’s prepared remarks. Reuters reported on some key paragraphs citing the continued gathering strength of the economy—which would, therefore, “warrant gradual increases in the federal funds rate over time.”

Not great news for Burlington mortgage rate watchers—or was it? Reading more closely, there were those “gradual” and “over time” phrases. Wouldn’t that lead one to think the raises would be slow and gradual? Possibly more slow and gradual than previous Fed hints had led us to believe?

Ninety minutes later came the actual testimony, followed by questioning from the congressional committee. CNBC saw good news for Burlington mortgage applicants: “Fed stands ready to slow down rate hikes” was their takeaway. Sooooo, the Fed was going to raise the Fed funds rate (bad), but more slowly than expected (good).

The picture became clearer as the Mortgage News Daily pointed to newly released retail sales and consumer inflation reports showing “economic data that coincides with rates moving lower.” And despite anything the public hearing had produced, in MND’s opinion, “the Fed is less likely to flip the switch on those plans.”

So Burlington buyers and sellers could head into the coming days with few worries about interest rates, which remain at appetizingly low levels. If you are thinking of taking a look at some of the terrifically affordable Burlington home buys they make possible, today would be a good time give me a call!

Joan Parcewski —CRS, MRP, CSHP, SRES, CBR, LMC, Realtor & Notary
978-376-3978   JParcewski@LAERRealty.com    OR    JParcewski@gmail.com
 
Licensed MA & NH    
Introductory Video  https://youtu.be/RrM4q17cjU0
Laer Realty Partners    Joan_Parcewski (1 of 1)
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