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Open House Event, March 10th!

by Nate Martinez

 Open House Event, March 10th!

Happening this Saturday, March 10th from 2:00-6:00pm in Blackstone Country Club at Vistancia. We will have these four amazing homes open for your to tour. If you are curious what country club living is like in this highly sought after community, this is your opportunity to take a peek. Join us on Saturday!!!

Nate Martinez, RE/MAX Professionals
www.NatesHomes.com
www.NatesLuxuryHomes.com
602-430-5226
Nate@NatesHomes.com

Home Buyers Not Deterred by Rising Interest Rates

by By Satinder Haer

Home Buyers Not Deterred by Rising Interest Rates 

For over 6 years, Americans enjoyed a period of historically low interest rates, making homeownership more affordable than ever before. Right before the turn of the year, the Federal Reserve Board’s Open Market Committee decided to raise benchmark interest rates and, in effect, mortgage rates. Many experts predicted that rising interest rates would impact the plans of many potential and active home shoppers. However, recent data indicates that while home shoppers are taking into account rising interest rates, most are altering, not cancelling their homeownership plans.  

Check out how various demographics believe rising interest rates will impact their home search and how they’d adjust their plans.  

Overall Home Buyer Response

Increasing interest rates will have minimal impact on overall home buyer behavior according to Zillow’s survey results. Seventy percent of the respondents who are actively searching for a home or plan to within the next year said their plans to buy a home would remain intact, even if mortgage rates rose to 4.5 percent. Furthermore, less than half of current home shoppers said they would look for a smaller home or search in a less expensive area in order to factor a higher interest rate into their purchase. Only 30 percent of home shoppers felt their plans would be derailed or significantly impacted by rates rising to 4.5 percent. These responses indicate that the majority of active home shoppers felt their plans would be unaffected or insignificantly altered by the Federal Reserve’s interest rate hike.  

Minority and Young Adult Response

Certain groups of home buyers revealed a much higher likelihood of adjusting their homeownership plans due to rising interest rates. Asian and Hispanic respondents were more likely to rethink their plan to purchase than their white or black counterparts. Out of the Asian and Hispanic respondents who indicated they plan to buy a home within the next year, 63 percent said they would delay their home purchase, adjust the type of home they are looking for, or search in different neighborhoods if interest rates were 4.5 percent. Comparatively, only 40 percent of black and 41 percent of white respondents said they would rethink their plans.

Similarly, young adults indicated a greater likelihood of rethinking their home buying plans in response to rising interest rates. Fifty-three percent of adults between the ages of 23 and 34 indicated they would reconsider their options if mortgage interest rates were 4.5 percent. In the 35- to 54-year-old bracket, only 39 percent of respondents indicated they’d reconsider. And of those 55 years and older, only 36 percent would reconsider. Older buyers were less concerned by the impact that a hike in interest rates would have on their homeownership plans; this may be explained by the fact that younger buyers are struggling to break into homeownership and even a 1 percent interest increase could put ownership out of reach for them.

Bigger Home Buyer Concerns

Rising interest rates ranked low among the concerns that home buyers reported feeling. The number one concern among respondents was being able to find an affordable home; in other words, concerns regarding the inventory and pricing of homes on the market. Following affordability were concerns about saving for a down payment and qualifying for a loan. Rising interest rates were cited as the 4th most pressing concern, out of the six options presented to the respondents. While rising interest rates might have an indirect effect on some of the other concerns that home buyers have about buying a home within the next year, interest rates themselves are a relatively low-ranking concern.

Despite the recent speculation about the potential effect rising interest rates may have on current and near-future home buyers, home buyers do not appear to be too concerned. Many of them are likely ready to escape the rental crisis they have experienced in the last few years and buying a home is more affordable than it has been in the past, even with higher interest rates. The era of low interest money might nearing an end, but home shoppers are not deterred quiet yet. 

Nate Martinez, RE/MAX Professionals
www.NatesHomes.com
www.NatesLuxuryHomes.com
602-430-5226
Nate@NatesHomes.com

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Fannie Mae Change: How Does This Impact You?

by Nate Martinez

Fannie Mae Change: How Does This Impact You? 

Recently Fannie Mae made a big change that could impact a lot of would-be home buyers. If you are in the market to buy a home, you may want to consider making your purchase before August 16th otherwise, you may have to wait another two years.

Fannie Mae announced that they have changed the required waiting period for borrowers who have had a previous deed-in-lieu of a foreclosure or short sale transaction. Currently, buyers with a short sale two or more years ago, are eligible for Conventional financing with 20 percent down. With these changes to the Fannie Mae guideline, buyers will now have to wait four years before qualifying for a new Conventional loan.

The updated Fannie Mae guideline is scheduled to go into effect on August 16, 2014. Buyers who are under contract by August 16, 2014 will qualify under the current guidelines, however after this date, borrowers will fall under the new four year waiting period.

For more information on available loan programs or to get qualified for a home mortgage, please contact Nate today.

www.NatesHomes.com
602-942-7000

Information provided to you for informational purposes only and should not be relied upon by you. RE/MAX Professionals and/or Nate Martinez are not a mortgage lender. You should contact Cobalt Mortgage directly to learn more about its mortgage products and your eligibility. *There are extenuating circumstances that may apply to borrowers in regards to the new Fannie Mae waiting period.

Become a Homeowner - Top 5 Tips

by Nate Martinez

Become a Homeowner - Top 5 Tips

In this short video, learn the top 5 tips to becoming a homeowner. Get the answers to questions like, how much can you afford? What kind of home do you want to buy? Where do you want to live? How much money will I need for a down payment?

If you or someone you know is considering a home purchase, please give me a call today. There has never been a more affordable time to be a become a homeowner. Call me today! 602-942-7000

It’s Time for a New Start

by Nate Martinez

It’s Time for a New Start

If you or someone you know has recently been through a short sale and would like to own a home again, I have great news! It used to be that a short sale meant you couldn’t buy a home again for several years, unless of course you had enough cash to buy it without a mortgage note.

I recently heard about a local credit union that is now offering a “New Start Program” for potential home buyers who have had a short sale in the last year. This is excellent news as it gives you an opportunity to not only own a home again, but to take advantage of the low prices and attractive interest rates. There are several qualifying factors:

1.)    The short sale must have happened six or more months ago

2.)    You must occupy the property as your primary residence

3.)    Purchase price must be between $75,000 and $800,000

4.)    80 percent maximum loan amount however 5 percent of your down payment can be gifted funds

If you are interested in qualifying for the “New Start Program” please contact me today. Don’t let your dream of homeownership be squashed by the past – it’s time for a new start.

In the market to buy a home? Don't let this happen to you!

by Nate Martinez

In the market to buy a home? Don't let this happen to you!

If you are in the market to buy a home, don't let this happen to you. There is a reason RE/MAX agents out-produce the competition - check out this quick video and then give me a call. Let's get you moving!

 

Displaying blog entries 1-6 of 6

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Nate Martinez
RE/MAX Professionals
20241 North 67th Avenue, Suite A1
Glendale AZ 85308
623-643-1010
602-430-5226
Fax: 602-532-7352

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