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Category Archives: First Time Homebuyers
Making a first time home purchase in NY? Here you will find helpful information for New York State first time home buyers, including what to expect during the homebuying process, NY first time homebuyer mortgage programs, tips for buying your first home in NY and more.
Barbara Corcoran Says Housing Prices ‘Are Going To Go Through The Roof’: Here’s When
If you’re a prospective homebuyer, you’re likely in a tough spot. While you may be tempted to wait for interest rates to drop, if you wait too long, you could be dealing with a surge in home prices.
In a recent Fox Business interview, real estate entrepreneur and “Shark Tank” star Barbara Corcoran shared her prediction for when home prices will rise, how much she expects them to increase and more.
Lower Interest Rates Will Mean Higher Home Prices
We’re currently experiencing a “bottleneck” in the real estate market, Corcoran said, but this won’t last forever.
“Sellers don’t want to move from their apartment or their home because they don’t want to take on higher interest rates,” she said, “and buyers are too afraid [to buy] because they are getting less house [for the price]. So you’ve got a standoff going on. But things are changing.”
Corcoran believes there will be a major swing in the real estate market as soon as interest rates drop.
“The minute those interest rates come down, all hell’s going to break loose and the prices are going to go through the roof,” she said. “[Right now sellers are] staying put. But they’re not going to stay put if interest rates go down by two points.
“It’s going to be a signal for everybody to come back out and buy like crazy, and the house prices [will likely] go up by 20%,” she said. “We could have COVID [market] all over again.”
Home Prices and Market Trends Will Continue To Vary Greatly Geographically
Although a recent report found that home prices experienced their first annual decline in 11 years, Corcoran noted that has not been the case everywhere in the U.S.
“In the coastal areas, prices are going down because houses are just so not affordable,” she said. “But if you look in the Southwest, prices are going up. You have some cities where prices are rebounding by 20% in six months.”
Another area where prices will continue to rise is South Florida.
“[Home prices in South Florida] are still going up, and it’s one of the hottest markets,” Corcoran said. “People love Florida, and people are paying anything. I don’t get it — it’s not my cup of tea — but it’s doing very, very well.”
Don’t Expect a Major Housing Market Crash
Although we are facing a precarious real estate market, Corcoran said we won’t see a catastrophic housing market collapse like the one that occurred in 2008, due in large part to the subprime mortgage crisis.
“People [have] their hard-earned cash in the market — people aren’t overleveraged,” she said. “There’s really no comparison to now compared to what came before.”
The Commercial Real Estate Market Will Be Very Slow To Recover (If It Ever Does)
Corcoran views the residential and commercial real estate markets as separate entities, and so a recovery of one does not mean there will be a recovery in the other. She believes it could be a long time before commercial real estate rebounds.
“No one has the confidence to buy [commercial real estate] now,” Corcoran said. “No one really believes it’s going to turn the corner. People are staying home. Our best offices in midtown Manhattan are 50% occupied, and in most major cities, and even secondary cities, we have a 20% vacancy rate. No one wants to take that chance. I don’t see that turning around. I think it’s going to be a bit of a bloodbath before it gets better.”
*Author:
The best way to find out if refinancing is right for you is to talk with a mortgage expert today!
John Sauro, Loan Officer
Phone: 1-877-794-5363
Direct Line: 914-764-3261
Email: john@northatlanticmortgage.com
Doctors, Professionals, Right Now Rates Are At An All Time Low!
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Since 1996 North Atlantic Mortgage Corp. has been guiding individuals through the complexities of finance. With proven strategies using unique financing solutions, we can provide the best competitive rates.
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John Anthony Sauro
john@northatlanticmortgage.com
Office: 1-877-794-5363
Direct Line: 1-914-764-3261
✔️ Mortgage Refinance or Purchase
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Home Price Growth Continue at a Double Digit Pace.
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Listings, Home Price Growth Continue at Double-Digit Pace
To read the full report, including charts and methodology, click here.
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Refinances, Renovations Expected to Increase in 2022
About 40% of Americans are considering a move in 2022, as consumers are seeking more space to accommodate the realities of remote work as the global pandemic continues into another year. continue reading….
Give me a call or send me a message and I will gladly help you to determine what fits your needs.
John Anthony Sauro,
North Atlantic Mortgage Corp.
Residential Home Loans & Commercial Real Estate Lending
Direct Line: 1-914-764-3261
Falling Rates Spark Run On Refinances
According to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA), overall mortgage application volume rose 2% week-over-week for the week ending December 3, 2021. The MBA’s Refinance Index increased 9% over the previous week, and was 37% lower than the same week just one year ago. The seasonally adjusted Purchase Index fell 5% week-over-week. The unadjusted Purchase Index increased 28% over last week, and was 8% lower than this same time one year ago.
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*15 Year Fixed
2.25% APR 2.313%
**30 Year Fixed
3.25% APR 3.28%
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*The Annual Percentage Rate is based on a single family owner occupied purchase or rate & term home loan with a maximum loan amount of $647,200, a 2.25 % interest rate, $320.00 in points, a 30 day rate lock, Fixed Rate for 15 Years with 180 monthly payments of $3,391.77, a 80% Loan to Value, and a minimum credit score of 700.**The Annual Percentage Rate is based on a single family owner occupied purchase or rate & term refinance home loan with a maximum loan, amount of $647,200 a 3.25% interest rate, $650.33 in points, 30 day rate lock, Fixed Rate for 30 Years with 360 monthly payments of $2,816.66 a 80% Loan to Value, and a minimum credit score of 700 . **** The rates and annual percentage rate (APR) will vary depending upon the actual down payment percentages, points and fees for your transaction. The rates quoted are for home purchase or Rate & Term Refinance loans. Refinance cash out loans may have a higher rate. The rates may change or not be available at commitment or closing or may be subject to product restrictions. Offer subject to credit approval. Rates advertised are as of December 9, 2021. Rates are subject to change without notice. 178 Trinity Pass, Pound Ridge NY 10576. CT Mortgage Broker CT Department of Finance. MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER NMLS #1375 & 42481. Registered Mortgage Broker NYS Department of Finance, This Website is Not Authorized by the NYDFS. NY Clients please call 877-794 5363 as no NY applications can be taken from this site. Registered Mortgage Broker Florida Office of Financial Regulation. Loans arranged through third party providers. Verify our licensing information at www.nmlsconsumeraccess.org
Mortgage Rates Down for the Second Consecutive Week
The Mortgage Rate Rollercoaster
The great mortgage rollercoaster rate ride continues this week, as Freddie Mac reports the 30-year fixed-rate mortgage (FRM) averaging 2.98%, down 0.11% from last week’s reading of 3.09%.
Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week…continue reading
*Author: Eric C. Peck In Daily Dose, Data, Featured, News
The best way to find out if refinancing is right for you is to talk with a mortgage expert today!
John Sauro, Loan Officer
Phone: 1-877-794-5363
Direct Line: 914-764-3261
Email: john@northatlanticmortgage.com
Fast Sales Increasingly Common This Fall
Fast Sales Increasingly Common This Fall – according to Redfin
Homebuyer demand outstrips supply as mortgage rates creep up: demand has grown 15X faster than supply since 2019.
Forty-four percent more homes are pending sale than at this time in 2019, but only 3% more homes recently hit the market—down from 12% growth over 2019 just 7 weeks prior. As a result of the severe imbalance between the number of homes for sale and the number of buyers, the pace of the market is picking up at a time when it typically slows. A third of homes are finding buyers within a week of hitting the market, up from 30.8% at the end of the summer. This week, we’re comparing today’s market with the pre-pandemic fall market of 2019 to highlight how hot the market remains, even as most measures are settling into typical seasonal patterns.
“Comparing today’s sales and new listings numbers to the 2019 levels helps to reveal the stark shortage of supply we are facing,” said Redfin Deputy Chief Economist Taylor Marr. “The boost of housing supply that came on the market during the summer has already faded away, even as demand tapers off as we expected it to in the fall. Relative to the last ‘typical’ fall of 2019, demand remains steady and strong thanks to the increased urgency many buyers have as mortgage rates inch up. Rising rates also make buyers more price sensitive, so homes that are priced right are increasingly likely to receive offers right away.”
Key housing market takeaways for 400+ U.S. metro areas:
Unless otherwise noted, the data in this report covers the four-week period ending October 17. Redfin’s housing market data goes back through 2012. Except where indicated otherwise, the housing market is generally experiencing seasonal cooling trends, similar to what was seen during this same period in 2019.
Data based on homes listed and/or sold during the period:
- The median home-sale price increased 13% year over year to $355,875. This was up 29% from the same period in 2019.
- Asking prices of newly listed homes were up 12% from the same time a year ago and up 26% from 2019 to a median of $362,335, down 1% from the all-time high set during the four-week period ending October 3. Asking prices typically increase in September and then begin to decline in October through the end of the year.
- Pending home sales were up 3% year over year, and up 47% compared to the same period in 2019, which was a more typical year in terms of seasonality for sales and listings.
- New listings of homes for sale were down 8% from a year earlier. New listings remained positive compared to 2019, up 5%.
- Active listings (the number of homes listed for sale at any point during the period) fell 22% from 2020, and were down 40% from 2019.
- 46% of homes that went under contract had an accepted offer within the first two weeks on the market, above the 42% rate of a year earlier and the 31% rate in 2019.
- 33% of homes that went under contract had an accepted offer within one week of hitting the market, up from 30% during the same period a year earlier and 20% in 2019.
- Homes that sold were on the market for a median of 22 days, a full week longer than the all-time low of 15 days seen in late June and July, down from 32 days a year earlier and 44 days in 2019.
- 45% of homes sold above list price, up from 34% a year earlier and 22% in 2019, but the smallest share since April.
- On average, 5% of homes for sale each week had a price drop, up 1.3 percentage points from the same time in 2020, up 0.1 points from 2019, and the highest level since the four-week period ending October 13, 2019.
- The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, decreased to 100.7%, the lowest level since April. In other words, the average home sold for 0.7% above its asking price.
Other leading indicators of homebuying activity:
- Mortgage purchase applications decreased 5% week over week (seasonally adjusted) during the week ending October 15. For the week ending October 14, 30-year mortgage rates rose to 3.05%, the highest level since early April.
- From January 1 to October 17, home tours were up 7%, compared to a 25% increase over the same period last year, but higher than the 6% rate in 2019, according to home tour technology company ShowingTime.
- The Redfin Homebuyer Demand Index rose 3 points during the week ending October 17, and was up 8% from a year earlier. The seasonally adjusted Redfin Homebuyer Demand Index is a measure of requests for home tours and other home-buying services from Redfin agents.
Refer to our metrics definition page for explanations of all the metrics used in this report.
Home Sales Show Strength
Lowest Rates in 50 Years
2.205% APR 15 Year Fixed
2.938% APR 30 Year Fixed
Home Purchases are showing quite a bit of strength with inventory levels down 12% from last year. Refinances were up 7% last week and are now down 5% on a year over year basis, also being compared to some high figures from last year. The refinance share of applications increased slightly to 66% of total volume. Interest rates were nearly the same as they were this time last year.
The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices rose 2.2% in June and 18.6% year over year, which is a record and up almost 2% from the annual price gains seen in the previous report and is a record high
Bottom line – We are still seeing strong levels of demand purchases, which has accelerated over the last two weeks.
The Fed will of course leave rates unchanged, but the focus will be on tapering clues. We believe the Fed will leave most of their statement unchanged and will want to wait until the November 3 Meeting before announcing tapering. They will likely want to wait to see how back to school goes as well as the impact of the delta variant. Additionally, the August Jobs Report was weak and inflation moved modestly lower. As we have mentioned, we think that inflation will start to rise again as the previous reading was removing some high figures from last year, skewing the year over year figures. In the coming months the inflation reports will be replacing lower figures.
*The Annual Percentage Rate is based on a single family owner occupied purchase or rate & term home loan with a maximum loan amount of $548,250, a 2.00 % interest rate, $506.00 in points, a 30 day rate lock, Fixed Rate for 15 Years with 180 monthly payments of $3,529.00, a 80% Loan to Value, and a minimum credit score of 700.**The Annual Percentage Rate is based on a single family owner occupied purchase or rate & term refinance home loan with a maximum loan, amount of 548,250 a 2.875% interest rate, $2,151 in points, 30day rate lock, Fixed Rate for 30 Years with 360 monthly payments of $2,275 a 80% Loan to Value, and a minimum credit score of 700 . **** The rates and annual percentage rate (APR) will vary depending upon the actual down payment percentages, points and fees for your transaction. The rates quoted are for home purchase or Rate & Term Refinance loans. Refinance cash out loans may have a higher rate. The rates may change or not be available at commitment or closing or may be subject to product restrictions. Offer subject to credit approval. Rates advertised are as of Sept 13, 2021. Rates are subject to change without notice. 178 Trinity Pass, Pound Ridge NY 10576. CT Mortgage Broker CT Department of Finance. MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER NMLS #1375 & 42481. Registered Mortgage Broker NYS Department of Finance, This Website is Not Authorized by the NYDFS. NY Clients please call 877-794 5363 as no NY applications can be taken from this site. Registered Mortgage Broker Florida Office of Financial Regulation. Loans arranged through third party providers. Verify our licensing information at www.nmlsconsumeraccess.org