Seattle Market Update There is a clear lack of consumer confidence evident in the real estate market. January is always a little slow but we saw slower activity in the market than usual last month. Seattle Area home prices are still dropping but for most Seattleites that still means homes are out of reach.Continue reading “Brooks & Heinze Seattle Real Estate Team – February 2019 Newsletter”
Category Archives: mortgage rates
Has the Seattle Housing Market Gone Nuts? Yes! But why?
The market sure has heated up. Prices are going up and multiple buyers are competing for the few houses available.
So what’s going on?
– Seattle Unemployment is Low:
In February the Seattle area’s unemployment rate hit its lowest level since September 2008 at 5.1%.
– Consumer Confidence is High:
Confidence is now at a new post-Financial Crisis high.
– Mortgage Rates are Still Attractive:
Current interest rates are roughly on par with where they were in August 2011 and still two points below the 6.41% average rate during the height of the housing bubble through 2006
– Limited Supply of Homes Available for Sale:
There is about a 1.8 month supply of homes for sale in King County. A 4-6 month supply is needed for a balanced market between home buyers and sellers. We are NOT in a balanced market – we have a strong seller’s market.
Jumbo Mortgage Loans – Don’t Let the Downpayment Fool You!
This is a guest blog entry by Jeff McGinnis: Jumbo mortgage loans are back, but don’t let the down payment requirement fool you. They still have reserve requirements and other fun surprises that can create issues. Learn what they are and how to avoid them. As a professional mortgage banker since 1997 in the SeattleContinue reading “Jumbo Mortgage Loans – Don’t Let the Downpayment Fool You!”
Mortgage Interest Rate Myths
The following blog entry is a guest contribution by Virginia Lawson of Cobalt Mortgage in Kirkland, WA. This may come as a shock to many borrowers, but it’s absolutely true. Mortgage interest rates are not set by the Federal Reserve and, contrary to popular belief, mortgage rates are not directly tied to the yields ofContinue reading “Mortgage Interest Rate Myths”
Smart Homebuyers are focusing on taking advantage of favorable rates along with the Tax Credit
Smart home buyers are focusing on taking advantage of the present, very favorable rate situation along with the still available tax credit. Rates are likely to go up: Please note that the main reason interest rates are so low is because the government is buying mortgage backed securities, or you may have heard the termContinue reading “Smart Homebuyers are focusing on taking advantage of favorable rates along with the Tax Credit”
Know how interest rates affect your buying power and payments
Know how interest rates affect your payment. The interest rate on a loan is used to calculate your monthly payment. The higher the interest rate, the higher your monthly payment. The lower the interest rate, the lower your monthly payment. Simple? Yes, but abstract until you see it applied to your loan. When interest ratesContinue reading “Know how interest rates affect your buying power and payments”
Rising Mortgage Interest Rates and Buying Power
When interest rates rise, it lessens the buying power of potential buyers because it increases monthly payments which are used to decide how much money the lender will let the buyer borrow. Following is an example to illustrate how your buying power is reduced or how your monthly payments are affected: At a 6% fixedContinue reading “Rising Mortgage Interest Rates and Buying Power”
Kerstin G. Brooks, Broker 