Americus:
A small town with historical charm and educational institutions, offering affordable homes at around $112K.
Macon:
A city in central Georgia with outdoor activities and job opportunities, featuring median home values of $127.4K.
Cordele:
A charming agricultural community known for affordability, with a median home price of approximately $141.7K.
↑ Demand for single-family rentals, in part due to remote work and migration to Atlanta and the Southeast.
Young renters opt for shared costs, while rising interest rates delay homebuyers.
Population growth and housing shortages attract investors to the Southeast's housing market.
A 15-year mortgage can offer lower interest rates compared to a 30-year loan, potentially saving significant money over time. However, this requires higher monthly payments. The wealthiest 10% have savings 124 times higher than the bottom 20%. Online banks can offer higher interest rates and lower fees, helping to grow savings. Emergency funds should be easily accessible, making CDs a risky choice. Lastly, switching from Bank of America to CIT could result in significantly higher earnings from savings accounts.
Median Sales Price ↑ 4% to $353,440.
New Listings ↓ 8% to 14,781 while Pending Sales ↓ 11% to 9,280.
Inventory levels ↓ 3% to 28,970 units.
At the Mortgage Bankers Association Annual meeting, the Fed announced no increase in interest rates, setting the tone for discussions on the struggling mortgage industry. Key topics included the need for affordable homeownership, the impact of Basel III regulations, and the role of Independent Mortgage Bankers. The meeting also featured discussions on the resilience of the economy, housing supply issues, and the future of appraisals in the face of technological advancements.
1. Reduce debt:
– Pay bills on time.
– Bring past-due accounts current.
– Reduce revolving debt balances.
– Consider a debt consolidation loan.
2. Increase credit limit:
– Request higher credit limits.
– Transfer balances.
– Become an authorized user.
3. Additional ways to improve credit score:
– Don’t close old credit accounts.
– Refrain from applying for new credit.
Tailoring your home’s location with personal preferences and needs is crucial for adapting in into your lifestyle.
Top urban picks that are expected to experience significant growth in economic condition:
Dallas
Las Vegas
Nashville
Family-friendly destinations with great outdoor amenities:
Watauga, TX
Somerville, MA
Virginia
NJ
Mortgage delinquencies decreased by 75% during the COVID-19 pandemic, thanks to financial assistance programs. This positive trend occurred between 2020 and 2021.
Savannah: Rich history, vibrant downtown, and affordable median home value.
Milton: Excellent schools, family-friendly communities, and golf/equestrian neighborhoods.
Athens: Southern charm, accessible housing market, and college town vibe.
In November 2023, the U.S housing market is becoming increasingly challenging for buyers due to high mortgage rates, steep home prices, and low levels of inventory. This situation is expected to remain the same in 2024, however, a drop in mortgage rates could spur the market for both buyers and sellers. Home prices, mortgage rates, and inventory levels will all shape housing affordability in the coming year.
TD Bank and Navy Federal Credit Union offer home equity loans with APRs lower than the national average of 89.99%. TD Bank's loan terms range from five to 30 years with a minimum amount of $10,000, while Navy Federal Credit Union allows borrowers to tap up to 100% of their home's equity after current debt is deducted. Both lenders require a high credit score to qualify, and Navy Federal Credit Union also has eligibility requirements as members must be active members of the armed forces, a veteran, an employee of the Department of Defense or a family member of someone in one of those categories.
Closing occurs in about 30–45 days post accepted offer.
Richmond County's median price: ↑3.9% MoM to $209K
Median home size: 1,600 sq ft
Price/ sq ft: ↓1.8% yearly to $128Median listings time: 45 days
New listings: ↓10.8% to ~232
Georgia offers strong economic growth and job opportunities, along with tax-friendly laws.
It is among the best states to purchase property in the next 10-yr.
Property prices have consistently appreciated, making it a good choice for investment properties.
Reverse mortgages are becoming a popular option for seniors on fixed incomes, allowing them to access their home equity without having to make monthly payments. A Reverse Mortgage for Purchase program also allows seniors aged 62 or older to purchase a home without a mortgage payment. To qualify, borrowers must have their required investment and pay property taxes, insurance, HOA fees, and utilities.
In November 2023, buying a home is a difficult process with high mortgage rates and a low housing supply. However, following certain steps in 2024 could make it easier for homebuyers. Tips to consider include waiting until the second half of the year when there is potential for interest rate cuts, shopping for a mortgage online, and buying when ready instead of trying to time the rate market.
TD Bank US Holding Company is not responsible for the accuracy of third-party sites linked from its page. Visitors should be aware of the privacy and security policies of third-party websites before providing personal or confidential information, as these may differ from those of TD Bank US Holding Company.
The Federal Home Loan Bank of Atlanta is making $8 million available in grant funding for a new program to help close funding gaps for affordable multifamily rental housing projects. The Multifamily Housing Bridge Fund (Bridge Fund) will offer up to $500,000 per project to member financial institutions and their community housing partners, with applications opening on November 8, 2023 and a deadline of 11:59 p.m. EST on November 22, 2023. Eligible projects must be at least fifty percent complete and targeted to households earning up to 120 percent of the area median income, located in the Bank's district (Alabama, Florida
Complete Realty Team, based in Mariette, GA, has published new materials that explore the connection between rates and inflation in the real estate industry. In addition to a comprehensive blog post on the subject, the team has also shared a video (part of a larger series) that illustrates what signs homebuyers should be looking out for and what actions they may take today.
Those who are interested in purchasing a home in the near future are likely to be watching mortgage rates as this will have a direct impact on their budget. The article notes that home buyers are justifiably concerned with what they can afford, and this in turn means they will be looking for the best ways to track — or even predict — how mortgage rates will fluctuate over the course of the coming year. The best way to make use of this information is to consult with an expert, but the company says there are still ways for the average home buyer to help themselves.
According to Complete Realty Team, it can be helpful to keep certain factors in mind, such as the path mortgage rates have historically taken. Similarly, given the influence inflation has on mortgage rates, tracking this variable can also provide insight on where mortgage rates may be in the future.
As Ken Mandich of Complete Realty Team notes in ‘How Inflation Impacts Mortgage Rates,’ a video that was posted to accompany the article, home buyers essentially want to know when rates will come back down to appreciable levels. “Now, I found something that might give us a little bit of hope that rates might come down sometime in the future,” he says,” as well as what I think is going to happen in the next year, as far as mortgage rates go. Historically, there’s been a tie between inflation and 30-year fixed rate mortgages.”
However, home buyers should note that this is not expected to happen immediately. In fact, mortgage rates may get worse before they start to show improvement again. “Honestly, I don’t think they’re done rising yet,” says Mandich. “Rates could get to 8% or maybe even higher by the end of the year, and I really don’t expect to see any relief until, hopefully, by the first of next year.”
Mandich notes that inflation itself is affected by numerous other factors. While it is generally impossible for most people to track all of these variables, some are sizable enough that changes in the relevant markets can be expected to impact inflation almost instantaneously. One of these factors is the price of crude oil, which has been rising in recent times. Should it continue on this trend, Mandich says inflation is likely to continue as well.
Crucially, Mandich’s advice is for home buyers to avoid trying to ‘time the market.’ While it is possible to theorize on the future state of the market, he points out that no one is actually able to make predictions with reliable accuracy. However, based on his own experience, he expects home prices to rise for now, and rates are likely to do the same. This means that buyers who delay a purchase may find themselves dealing with higher expenses down the road — or even be priced out of the market entirely.
“If you lock in a rate now, you can always refi when, and if, rates do come down,” he remarks, advising home buyers not to wait if they have found their perfect home. The longer they wait, the higher their risk of missing out on certain opportunities, even if the market will indeed be more favorable in the future. However, should they take the leap today, they can make sure they have the home they want, avoid the pitfalls of a potentially more unpalatable market and still refinance to take advantage of improvements that do appear.
https://www.youtube.com/watch?v=pUIUZPvgQqQ
More information for homebuyers can be found in the full video as well as Complete Realty Team’s in-depth article. Home buyers may also wish to take a look at the other videos in the Info For Buyers video series, which is available for free. On the other hand, those who would like to utilize the comprehensive assistance of an expert in the field are welcome to contact Complete Realty Team to discuss their home ownership goals.
Buying a home has become increasingly unaffordable due to high mortgage interest rates and a 29% increase in the average cost of a new home in the past three years. Chase Bank suggests that people can still purchase a home by following steps such as improving credit, picking a location to help budget, and saving for a down payment. To improve credit, it is recommended to pay bills on time, pay off past bills, and not apply for new credit when getting close to closing on a house. It can take at least six months to improve credit.
Rent-to-own programs offer tenants the option to lease with the opportunity to purchase a property later, utilizing rent credits for future down paymentsEligibility criteria often involve a minimum credit score and stable income.
Monthly payments in rent-to-own programs may be slightly higher but contribute towards future homeownership.
The Mortgage Bankers Association is expecting a 19% increase in total mortgage origination volume by 2024, from 4.4 million loans in 2023. Mike Fratantoni, MBA's Chief Economist, predicts a mild recession in early 2024 due to higher interest rates, tighter credit conditions, and a depletion of pandemic-era savings. Despite the expected recession, the MBA expects the national housing prices to grow over the next three years due to tight inventory, with first-time homebuyers making up a large portion of housing demand.
Mortgage rates have risen significantly in the past year, going from around 3% to nearly 8%, causing many potential home buyers to question when rates will drop again. Factors such as the Federal Reserve, inflation, supply and demand, and Federal Reserve monetary policy have all had an effect on mortgage rate movement. As of October 11, 2023, the average 30-year fixed mortgage rate is 7.83%, the highest it has been in over two decades; however, experts anticipate that rates will be lower by the end of 2024.
Capacity:
Lenders evaluate income and expenses to ensure repayment capability.
If you want to buy a house this year, you’re probably keeping a close eye on mortgage rates. Because mortgage rates influence what you can afford when you take out a home loan – and affordability is such a big concern right now – it’s a good time to look at where mortgage rates have been historically compared to where they are currently. Aside from that, understanding their link with inflation might provide insight into where mortgage rates may go in the near future.
Since April 1971, Freddie Mac has been tracking the 30-year fixed mortgage rate. They publish the findings of their Primary Mortgage Market Survey every week, which averages mortgage application data from lenders across the country (see graph below):
Mortgage rates have risen dramatically since the beginning of last year, as shown on the right side of the graph. Even with that increase, today’s rates are still lower than the 52-year average. While that historical perspective is useful, purchasers have become accustomed to mortgage rates ranging between 3% and 5%, which has been the case for the past 15 years.
This is significant because it explains why the recent increase in rates may have you feeling sticker shock despite the fact that they are close to their long-term average. While many buyers have adjusted to higher rates over the last year, a somewhat lower mortgage rate would be appreciated amongst buyers. In order to establish whether it is a feasible prospect, inflation must be considered.
Since early 2022, the Federal Reserve has been working hard to reduce inflation. This is crucial since there has historically been a link between inflation and mortgage rates (see graph below):
This graph depicts a very consistent relationship between inflation and mortgage rates. Looking at the left side of the graph, you can see that if inflation changes significantly (shown in blue), mortgage rates follow suit quickly (shown in green).
The circled area on the graph represents the most recent surge in inflation, with mortgage rates close behind. While inflation has slowed slightly this year, mortgage rates have yet to follow suit.
That is, if history is any indicator, the market is expecting mortgage rates to follow inflation and fall. It is impossible to anticipate where mortgage rates will go with certainty, but with inflation decreasing, mortgage rates falling in the near future would fit a well-established trend.
It’s useful to look at where mortgage rates have been in the past to get a sense of where they might go in the future. There is a clear relationship between inflation and mortgage rates, and if that historical pattern remains true, the recent decrease in inflation may be excellent news for mortgage rates and your homeownership objectives in the future. If you are looking to buy or sell a home in Cobb County or the Metro Atlanta area, just get in touch! We’d be more than happy to answer any of your questions! You can reach us at (404) 410-6465 or visit Complete Realty Team and get in touch by email. Until next time!
