Lenders have guidelines regarding max DTI to approve a loan.
Many lendaers allow for DTI ratios up to 50%.
Still, loans with higher DTI ratios typically have worse terms.
Higher DTI may require a higher down payment to meet loan approval criteria.
U.S. mortgage rates are inching closer to 8%, a two-decade high, making homeownership increasingly out of reach for many Americans. The Federal Reserve's aggressive tightening campaign against inflation is causing upward pressure on market rates, making existing home sales slump further and potential first-time borrowers hesitant. Lawrence Yun, chief economist at the National Association of Realtors, believes mortgage rates could go higher than 8%, but also that the current high may be the peak before it retreats. In contrast, mortgage rates averaged 16.63% in the past. Perry Johnson, a Republican presidential candidate, filed a complaint with the
According to Bankrate and Freddie Mac, the current average interest rate for a 30-year-fixed mortgage is 7.58%, which is the highest it has been in over 20 years. Experts are now predicting that this could go up to 8%, if the economy continues to show signs of strength and the Federal Reserve raises interest rates again. If this happens, the housing market could go back into a deep freeze.
It turns out that sellers could win big with such low housing inventory.
Home sales in Atlanta ↓14.9% MoM, amounting to 4,896 properties sold.
Sales volume measured at $2.37B, ↓ 17.4% MoM.
Georgia home prices show significant upward trajectory, reflecting robust demand and limited inventory.
So you’ve undoubtedly seen some news concerning inflation and mortgage rates, as well as something about a Federal Reserve (the Fed) decision. You may be wondering what it all means for you, especially if you’re considering purchasing a home. Allow me to break it down for you.
The Fed is working really hard to reduce inflation. Even if the most recent figures show modest improvement, the inflation rate remains above the 2% target. One of the reasons the Fed chose to raise the Federal Rate again was because of this. According to Bankrate, the Fed has hiked interest rates for the tenth time in ten meetings to combat inflation and cool the economy, which has been growing since rebounding from the 2020 coronavirus recession.
The Fed’s activities do not directly affect mortgage rates, but they do have an impact. Their actions last year contributed to a purposeful downturn in the residential real estate market.
Everyday expenses, such as gas and groceries, are becoming more expensive as a result of high inflation. You’ve probably already observed this, especially at the Grocery store!! The Fed is attempting to reduce inflation by hiking the Federal Funds Rate. If they are successful, it may result in lower mortgage rates, making house ownership more accessible for you. This is because when inflation is high, so are mortgage rates. Experts predict that if inflation slows, mortgage rates will follow suit.
The problem is that Biden’s Administration has gone after America’s fossil fuel production. Here at Complete Realty Team we are all for having a cleaner planet, but it will take time to do so. We can’t stop our dependence on fossil fuels overnight. It takes energy to produce everything from the clothes on your back to the food on your table!
Inflation and mortgage rates will continue to have an impact on the housing market in the future. According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), mortgage rates will likely fall later this year as consumer price inflation moderates. Mortgage Bankers Association (MBA) Chief Economist Mike Fratantoni concurs, predicting that mortgage rates will fall this year as the economy slows.
Nobody knows what will happen to mortgage rates, but analysts believe they will fall this year if inflation falls as well. Connect with a reputable real estate advisor if you want to stay informed. They are aware of what is going on and can assist you in understanding what the experts are predicting and how it may affect your plans to purchase a home.
Don’t be perplexed by the recent Federal Reserve decision. What happens to mortgage rates is determined by the rate of inflation. Mortgage rates will fall if inflation cools off, but will go up if inflation continues.
Our take – rates are probably going to go up with the Fed already hinting at raising rates at least one more time this year. The last stat we saw is that inflation was at 3.2% with their target being 2%.
If you have questions, want to know your home’s value or to buy or sell a house, just visit Complete Realty Team or give us a call at (404) 410-6465. You can also go here to get more real estate news VIDEOS.
The media likes to distort info to get clicks and watch time. Don't fall for their next set of headlines about home prices!
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Plan your finances and consult an advisor before house hunting to set a budget within 30-35% of your income.
Define must-have features based on lifestyle and plans to streamline the home-searching process after budgeting.Mortgage pre-approval helps serious buyers determine affordability, compare lenders, and gain a competitive edge.
Mortgage rates have been steadily increasing for the past six weeks, causing a slight dip in home purchases and an increase in the available inventory of homes for sale. The economy is strong and the Federal Reserve is expected to keep rates high for longer, further increasing monthly payments and making home buying less affordable. Inventory is expected to peak at the end of August, with 20% fewer homes on the market than in 2022.
This article discusses the financial obligations of both homeowners and renters, and how to determine if you can afford to buy a house. Homeowners have to pay more than just their monthly mortgage payments, such as taxes, insurance, and repairs. On the other hand, renters usually only need to pay their monthly rent and a deposit when they move in, along with optional pet or cleaning deposits. It is important to consider all of the costs before deciding to become a homeowner.
Avg home price/sq-ft in Middle Georgia increased to $123 from $118, reflecting recent growth.
A 2,058 sq-ft home on Ashford Chase Court sold for $255K, indicating market activity.
Figures based on sales from July provide current trend insight.
Recent data suggests ongoing price fluctuations in Middle Georgia's housing market.
Homeowners pay $14,144 yearly, or $1,180 MoM, for bills, taxes, insurance, and maintenance on top of their mortgage.
Nationally, property taxes, homeowners insurance, and utility payments avg $7,742.
Georgia's buyers can save $30K by building instead of buying a home.
The estimated cost to build a home in Georgia is $365K.
The median home price in Georgia is $395K.
Despite earning a salary of $100,000, which is higher than the national median household income, 49% of people still find it difficult to buy a home. The 28/36 rule suggests spending no more than 28% of your income on housing expenses and no more than 36% on total debt payments. This means that on a salary of $100,000, the mortgage payment should be no more than $2,333 and other debts should be no more than $667 per month. Other variables such as savings, homeowners insurance and property taxes also need to be taken into account. A 20% down payment on a $400
Today's market is tough for many prospective homebuyers, with mortgage rates on average around 6-7%, and a shortage of homes for sale pushing up prices. However, for some buyers, now can still be a great time to buy. Plus, you can start building equity in your home and plan to refinance in the future.
Rising interest rates and economic uncertainty have created challenges for borrowers.
Mortgage brokers and agents play a crucial role in guiding clients through these challenges and providing financial advice.
It is essential for mortgage professionals to prioritize building relationships and offering advice rather than focusing solely on transactions.
When deciding whether to move or remodel a home, many factors should be considered, such as the cost of materials, the cost of hiring a contractor, the need for specific features, and the location of the home. Researching home prices and neighborhoods in the area can help determine if it is better to move or remodel.
A new analysis suggests that office buildings won't recover from pandemic-related value reductions until around 2040.
The prolonged recovery is attributed to the shift of people away from city centers and the adoption of remote work practices.
Baby boomers often fail to negotiate their mortgage rates, missing out on potential savings.
Negotiating a lower interest rate can save thousands of dollars over the life of the loan.
Strategies for negotiating a lower rate include shopping around, improving credit scores, and paying down debt.
This article provides tips for finding and working with cash home buyers as an alternative to the traditional process of selling a house. It suggests researching potential buyers, getting multiple offers, and looking for flexibility and convenience when choosing a buyer. It also advises seeking advice from a realtor or property attorney to ensure a fair and competitive offer.
Georgians would need 9.4-yr to save up for a 10% down payment on the typical home.
This would require saving 5% of the median household income every month.
To achieve a 20% down payment, homebuyers would need to save 10% of the median household income in the same time frame.
In July 2023, the avg price of a house in Georgia was $320K, ↑ 1.3% yearly.
In the Atlanta metro area, the avg home price was higher than the state avg, with $377K.
