Looking at the second half of the year, The balance of 2018 looked like a mixed bag. “The triple 
problems of limited inventory, home price appreciation, and rising rates are likely to keep existing home sales from being as strong as they should be,” he said.
“Prices are going to continue to rise as are interest rates.”
Carrington projected the 30-year fixed-rate loan rates to end 2018 at 5 percent and home prices to rise 5-6 percent by the end of the year. While the forecast projected existing home sales to end the year at around 5.5 million, it said that new home sales would end at around 650,000.
Looking at the foreclosure market, the remnants of the foreclosure crisis were concentrated in a few states and fewer foreclosures were going to REO. Looking at the rest of the year, the market could end the year with historically low levels of mortgage delinquencies.
“However we need to make sure that lenders don’t get out over their schemes again as it becomes more and more challenging to write loans in a relatively low refi market,” he cautioned. “It’s worth keeping an eye on the FHA portfolio also as their delinquency rates have gone up a bit even though they are at the low end of their historic rates.”
And even though market indicators did show signs of heating up, looking at all indicators as a whole, a bubble doesn’t seem to be a possibility. Affordability too was better than it looked, though it was weakened.
Here's a Snapshot of Mortgage Rate Performance as well, Mortgage rates saw a steady rise in May according to the latest monthly mortgage data published by the Federal Housing Finance Agency
It also provides information on 15-year and 30-year fixed-rate loans as well as Adjustable Rate Mortgages (ARMs). Additionally, the survey provides quarterly information on conventional loans by major metropolitan area and by Federal Home Loan Bank district.
The data indicated that nationally, interest rates on conventional purchase-money mortgages increased from April to May, led by the national average contract mortgage rate for the purchase of previously occupied homes by combined lender index closing six basis points up to 4.57 percent for loans closed in May, from 4.51 percent in April.
For conventional loans with 30-year fixed-rate mortgages of $453,100 or less, the average interest rates rose seven basis points to 4.71 percent from 4.64 percent in April, while the effective interest rate on all mortgage loans was 4.66 percent in May up three basis points from 4.63 percent in April. According to the FHFA, the effective interest rate accounts for the addition if initial fees and charges over the life of the mortgage.
The effect of rising home prices was evident in the loan amounts taken in May. According to the FHFA, the average loan amount for all loans was $322,100, up $9,200 from $312,900 in April 2018
We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.
#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRate
problems of limited inventory, home price appreciation, and rising rates are likely to keep existing home sales from being as strong as they should be,” he said. “Prices are going to continue to rise as are interest rates.”
Carrington projected the 30-year fixed-rate loan rates to end 2018 at 5 percent and home prices to rise 5-6 percent by the end of the year. While the forecast projected existing home sales to end the year at around 5.5 million, it said that new home sales would end at around 650,000.
Looking at the foreclosure market, the remnants of the foreclosure crisis were concentrated in a few states and fewer foreclosures were going to REO. Looking at the rest of the year, the market could end the year with historically low levels of mortgage delinquencies.
“However we need to make sure that lenders don’t get out over their schemes again as it becomes more and more challenging to write loans in a relatively low refi market,” he cautioned. “It’s worth keeping an eye on the FHA portfolio also as their delinquency rates have gone up a bit even though they are at the low end of their historic rates.”
And even though market indicators did show signs of heating up, looking at all indicators as a whole, a bubble doesn’t seem to be a possibility. Affordability too was better than it looked, though it was weakened.
Here's a Snapshot of Mortgage Rate Performance as well, Mortgage rates saw a steady rise in May according to the latest monthly mortgage data published by the Federal Housing Finance Agency It also provides information on 15-year and 30-year fixed-rate loans as well as Adjustable Rate Mortgages (ARMs). Additionally, the survey provides quarterly information on conventional loans by major metropolitan area and by Federal Home Loan Bank district.
The data indicated that nationally, interest rates on conventional purchase-money mortgages increased from April to May, led by the national average contract mortgage rate for the purchase of previously occupied homes by combined lender index closing six basis points up to 4.57 percent for loans closed in May, from 4.51 percent in April.
For conventional loans with 30-year fixed-rate mortgages of $453,100 or less, the average interest rates rose seven basis points to 4.71 percent from 4.64 percent in April, while the effective interest rate on all mortgage loans was 4.66 percent in May up three basis points from 4.63 percent in April. According to the FHFA, the effective interest rate accounts for the addition if initial fees and charges over the life of the mortgage.
The effect of rising home prices was evident in the loan amounts taken in May. According to the FHFA, the average loan amount for all loans was $322,100, up $9,200 from $312,900 in April 2018
We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.
#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRate
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