Category: Market Economics

Mortgages and the Fed’s Interest Rate Announcement

Interest rates in the U.S. have been at a record low for a long time—nearly a decade, in fact. Many have expected 2015 to bring the first increase in rates.

This month, the Fed announced that it would not be raising interest rates just yet, as had been widely assumed for much of the year. The benchmark interest rate for short-term loans remains at a target level of 0 to .25 percent. Discover what this means for mortgages in both the short- and long-term.

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Fall Housing Market Update

You’ve likely heard some scary news about the recent dips on Wall Street. But take comfort in this sign of a thriving economy: the housing market is getting increasingly stronger and is recovering from huge dips in 2008 and 2009.

Even though recent gains may not totally make up losses from the housing crisis, several key indicators show significant housing market growth. Read about the good signs analysts are seeing now. Continue reading “Fall Housing Market Update”

Why Finding a Rental is Awful Right Now

Have you tried to move into a new rental recently? If so, you may have had a harder time finding what you want than you’ve had in the past. That’s because the U.S. rental market is booming (and also changing).

Rental vacancies are few and far between. If you are able to find something that fits your needs, the rent is likely sky high and will probably rise even more in the coming months. Here are some reasons why. Continue reading “Why Finding a Rental is Awful Right Now”

Housing Market Trends: Or, Why I Stopped Renting and Bought a Home

Write the check, put it in the envelope, lick it, stamp it, and send your hard earned money away…month after month. This is the relentless cycle of renting: never ending; always draining. Sure there are some upsides to renting. There are fewer responsibilities, for instance. It’s good at a certain point in your life when you want to get up and leave and you aren’t sure where your life is headed. However, a recent poll shows that around 74% of Americans believe that home ownership is an integral part of achieving their dreams—and even among the younger crowd home ownership dreams are high. In fact, 42% of millennials say that they hope to buy a home in the next 1 to 5 years.

Given the excitement surrounding home buying, 2015 might just be the right year for you to achieve your home owning dream. Looking at the housing forecast as we move into the heightened spring buying season might help you put into perspective why purchasing a home right now makes a lot of sense. Continue reading “Housing Market Trends: Or, Why I Stopped Renting and Bought a Home”

What Does Inflation Mean for Your Interest Rate?

You know how that gallon of milk your spouse chugs out of the jug every morning costs more this year than it did last? That rise in the price of goods is called inflation. You’ve heard the term. You know it happens. You might think that it is a horrible thing. The truth is that inflation is a natural part of a healthy, growing economy, as long as it’s not out of control. But what does inflation mean for interest rates?

The relationship between inflation and interest rates can be tricky, but it’s important for you to understand to make sound investment decisions as well as to comprehend how the market works. Read on to see what inflation means for your interest rates. Continue reading “What Does Inflation Mean for Your Interest Rate?”

Don’t be Schooled: How Home Prices are Affected by Public School Districts

Fall is in the air and with everyone back into a school-day routine, it’s worth assessing how public schools affect more than just your kids’ educational future. In fact, whether you have children or not, school districts should be on your radar when considering the housing market.

The school district in which a home is located has at least some bearing on that home’s value. Homes in top tier districts tend to be more expensive, while those in less competitive districts are cheaper. Following are a few ways home prices are affected by schools, and why it matters to you.

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Ever Wondered What it Costs to Buy a House? Find Out in These 27 US Cities

There are lots of things to consider when you’re thinking about making your dreams of homeownership a reality. Of course, what tops that list is whether or not you can actually afford to do it.

But, HSH.com, which is touted as the nation’s largest publisher of mortgage and consumer loan information, has made that question a bit easier to answer—at least in the 27 cities that it calculated the base salary needed to make the mortgage payments on average homes in the area. Continue reading “Ever Wondered What it Costs to Buy a House? Find Out in These 27 US Cities”

Mortgage Applications Down, Home Sales Up… What’s Going on Here?

There’s a bit of strangeness afoot in all of the news that’s making its way to our feeds. On one hand, we’re told increasing mortgage rates are pushing mortgage applications down, and on the other we’re told the housing market is improving. So what’s going on?

As with most things, we’re going to have to take a look at the bigger picture to get a good idea of where the current market really is. Continue reading “Mortgage Applications Down, Home Sales Up… What’s Going on Here?”

2014 Housing Market Predictions

Housing, in particular, is full of much tracked data, data which is often forecasted four to six quarters into the future. Things like housing starts–the number of homes that have begun to be built in a certain timeframe, new home sales–the number of never-before-occupied homes that have sold, existing home sales–the number of re-sold homes, and mortgage rates are analyzed and based on past and potential future performance then shown to the world. Here’s a quick roundup of the most popular 2014 housing market predictions.

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