Effects of the Increase in Mortgage Rates

Mortgage interest rates are on the rise, says Lawrence Yun, chief economist of the National Association of REALTORS, who expects them to near 5 percent by mid-2014 and higher in 2015.  The increase in  interest rates will neutralize the number of home buyers with sufficient annual income able to purchase a home.  But in our economy, when one avenue closes, usually another one opens.

Mr.Yun says that one factor that can mitigate the negative effects of rising rates is a return to more normal underwriting standards which would increase the number of mortgage applicants that qualify for a loan. In fact, he says, in the last few months there is some evidence that mortgage lenders have eased up a bit resulting in 15-20% more households  that qualify for financing.  Where previously a 760-770 credit score was mandatory for conventional loans, 720 credit scores are now acceptable.  And FHA loan credit score requirements are down to 660 from previous 680-700.  As a real estate agent, it seemed to me that the super high credit scores were a little unrealistic, especially when you witnessed how minor events would significantly impact applicants' scores. While I understand the reason for it, I would be happy to see an easing to a more realistic number.

Sustained job growth in the country is another factor that will empower households and strengthen the housing market.  In addition, as Fannie Mae and Freddie Mac's performance continues to improve, it should enable them to satisfy their obligation to repay taxpayer bail-out funds and begin to reduce the loan fees put in place to help them recover their previous losses.

Yes, I Am Living My Dream!

Yes, I am living my dream!  I moved to Brunswick County, NC - Shallotte to be exact - in 2004 from Orange County, NY in the Hudson Valley.  I never thought I would leave upstate NY because, well, the state seemed to have everything to me. But when the company I was working for announced they were packing up and moving to California and offering early retirement for those 50 years or older, my plans for retirement were suddenly pushed up. 

Coincidentally, my husband and I had been to Coastal Brunswick County the week before I got the news my company was moving.  We were looking for a home that we could retire to in about 5 years or so, as the tax situation in NY would make it financially impossible to stay there.  We had checked out the area previously when we visited some friends who had already moved to Shallotte.  The area seemed similar to Orange County, but had the extra added bonus of the ocean and the beach.  I had always dreamed of living near the beach and now, it seemed, my dreams were coming true.



This tidal marsh is part of the Shallotte River and is in my backyard along with all the amazingly beautiful wildlife that goes with it.



My husband and I found a home in a quiet subdivision where each house was different from the next.  My house sat on a curve in the road,  and the back yard was on a tidal marsh on the Shallotte River.  We were sold on the way the small home sat majestically on the hill and the beautiful view in the back yard and put an offer on it.  The offer was accepted about the same time I learned I would no longer have a job, so the timing seemed right to make the move.

Since our decision to retire to Brunswick County in Coastal North Carolina, my life has been very different.  For one, I got the smile back on my face!  I have great neighbors who are there when you need them and who always look out for one another.  We have neighborhood parties for every holiday.  In someone's yard, we make a bonfire, everyone brings food and drink, we dance and sing and have just so much fun.  When the men catch fish, we have a fish fry to enjoy the fresh catch.  On weekends, we kayak or jet ski and all hang out on an island across the Waterway from the mainland, and enjoy the sights, the sand. the sun and each other. We appreciate our wonderful way of life and if it sounds like I am living my dream, I would have to say an emphatic Yes I Am!   And you should do the same.

Weekends with the neighbors on Monk Island on the Intracoastal Waterway

 

Expert Tips for Home Buyers and Sellers

The conditions and climate of the real estate market is constantly changing.  Read what real estate and financial experts are telling home buyers and sellers now.

 

Barbara Corcoran, founder of the real estate firm the Corcoran Group

http://money.cnn.com/gallery/real_estate/2013/06/24/best-advice-home.moneymag/index.html

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