After between 2011 and 2012, many real estate investors started picking up rental properties with their own cash. Those who had primarily focused on purchases for quick resale leading up to 2011, began to shift focus. Once competition among “flippers” spiked in many U.S. markets, demand increased in the buy and hold category.
The average long-term mortgage rates in the US fell this week, marking the 13th consecutive week below 4 percent. These low interest rates offer incentives to potential home buyers, but what is limiting the housing sector's growth?
Not a day goes by that I don't hear some realtor or lending spouting off about how mortgage interest rates are going to rise (1st quarter 2016) and when that happens, buyers will not be able to afford as much house, so you better consider buy now.
While the current mortgage rates are still under 4%, yesterday the average 30-year mortgage rates rose to 3.82 percent. I asked my friend Park McCants from Eugine, OR, a retired Realtor and developer with 30 years experience, what the slight rise in rates means for the average American home buyers and the real estate industry in general. Here is McCants in his own words.
When do home buyers and sellers have more negotiating power? One mortgage loan broker from Phoenix, Arizona says buyers shouldn't be so worried about today's mortgage rates, but instead focus on when they have more negotiating power.
The FHA has played a major role in helping home buyers purchase home since the collapse of the mortgage industry. Over the years the FHA has increased and decreased the mortgage insurance premiums it has charged to borrowers. However, the recent decrease in mortgage insurance premiums by the FHA and FHA mortgage rates makes the FHA Streamline Refinance an attractive home loan.
Getting a mortgage in today's real estate environment takes planning, preparation and patience on the part of the home buyer. If the home buyer is working with an experienced loan officer who knows what documents to ask for up front and how to guide ones loan application through the underwriting process the mortgage process can be much easier for the home buyer.