Posts Tagged ‘mortgage rates’

Billerica Mortgage Rates: Perception and Reality

Billerica mortgage rates have been so low for such a long time that it would be surprising if area buyers didn’t begin to take them for granted. It’s only human nature. Addressing would-be home buyers who, though qualified, remain on the sidelines, government-sponsored Freddie Mac headlined the question, “If Housing Is So Affordable, Why Doesn’t It Feel That Way?

The article appeared in Freddie Mac’s Insight publication which noted that right now housing isn’t just affordable—it’s “near record” affordable! HUD’s Housing Affordability Index has been rising for over 35 years, interrupted only briefly by the housing crisis of the mid-2000s. It hasn’t quite sustained the all-time affordability peak but is holding steady well within hailing distance of that 2012 record.

Billerica mortgage rates have cooperated nicely, continuing to go with the national herd. For 30-year fixed-rate mortgages, U.S. rates averaged 3.90%—down even further from the previous week’s 3.93%. Of course, the 15-year and adjustable rate offerings were even lower.

With that kind of good news, why do the media report “affordability issues” (Mortgage Daily News) and even an “affordability crisis” (PBS)? The answers dwell in both perception and in some underlying realities.

There’s definitely reality in the widespread phenomenon of a shortage of housing supply. Billerica listings may show a number of properties being offered, but the national number of homes up for sale remains “very tight.” The echoes from 2009, when new housing starts hit rock bottom, are still having an effect. In that year, housing starts barely equaled a third of the previous averages. Even though current construction levels are nearly back to normal, they’ve yet to make up for that shortfall.

Less real is the public perception of how much cash is needed for a down payment. Billerica mortgage rates may be tantalizingly low, but when potential local applicants “mistakenly believe they must have a 20% down payment to obtain a mortgage,” the result is a number of otherwise-qualified buyers who don’t know that more than half of today’s borrowers make smaller down payments.

Not mentioned in the Insight article is another psychological factor that could explain two things at once. In The New York Times’ “Politics” section, a commentary sought to explain why the Federal Reserve wasn’t acting to boost interest rates. According to the author, the cause lay with inflation rates, which remain low—“and that’s a problem” for Fed rate-makers. The reason higher inflation would be a good thing (despite common sense) is that it makes consumers feel good when their paychecks go up. “A little inflation can brighten the economic mood…people enjoy the illusion.”

The upshot here may be that even though today’s extraordinarily low Billerica mortgage rates create actual affordability, some well-qualified customers may feel safer staying on the sidelines until the economy starts generating go-go economy headlines. It’s an ironic reality that by the time those headlines materialize, actual affordability might have already begun to slip away.

If you’ve been mulling the wisdom of your own Billerica home acquisition, let me show you some great properties…and some great numbers!

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 PartnersJoan_Parcewski (1 of 1)

 

 

 

Buyer’s Remorse, Billerica Mortgage Rates, and Summertime

Mortgage rates in Billerica remained mostly steady this past month, at least partially due to the predictable July-August doldrum effect. When the summertime vacation schedules of Washington and Manhattan movers and shakers presages a slowdown in activity and economic reports, there is simply less going on that might affect the rate meter—in either direction.

Summertime can also mark the beginning of a nationwide tapering off of real estate’s peak selling season. With the added factor of mortgage rates in (town) looking as if they will remain invitingly low for the near future, fear of a sudden rate rise is ebbing as well. It’s the kind of  apprehension that can spur some buyers into feeling the need to scoop up some of Billerica’s current inventory with less than due diligence, so that’s a positive development—especially if a new report from Trulia is accurate.

Trulia’s report highlighted the importance of careful deliberation for new buyers. A wide-ranging poll registered the startling fact that nearly half of Americans are willing to express some form of buyer’s remorse about their home soon after purchase.

Trulia found the top regret came in not choosing the right sized home. The lion’s share belonged to the third of homeowners who wished they’d bought a larger place. This might have been expected among those whose budgets wouldn’t accommodate a “dream home” property, yet even among Americans earning $100,000 or more, according to the study, 16% regretted having bought a home that was proving too small for their liking.

The takeaway is simple: if you are thinking of buying in the near future, allowing any outside factors (including Billerica mortgage rates) to push you into a home that isn’t right for you and your family can have an immediate downside. Buying a home is definitely a venture that rewards cool reflection…even when a potential dream home is in on the horizon.

At least for the moment, mortgage rates in (town) remain at historically affordable levels.  If you’re looking to buy this year, be sure to keep your “must have” list handy as you assess the emerging inventory. Better still, when you give me a call, I’ll be happy to turn my professional efforts to helping with the monitoring effort. I’m here all summer standing by!

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

 

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