Home Buyers Forced Think Quickly, Buy Quickly
The Typical Home Now Sells In 26 Days
Homes are selling with the fastest speed in recorded history.
According to a new report published by the National Association of REALTORS®, the typical MLS-listed home sold in 26 days in June 2018.
The data comes from the trade group’s Existing Home Sales report, which also showed more than half of all U.S. homes selling less than a month after going for sale.
The figures make real what today’s home buyers feel: act fast or lose the house. And, when you act, put your best foot forward always.
Start with a mortgage pre-approval.
Mortgage pre-approvals are signed statements from a lender saying that a borrower would be approved for a mortgage for homes within a certain price range, so long as that borrower’s income, credit score, and job history remain mostly unchanged.
Pre-approvals require validations and verifications, which is why sellers trust pre-approvals over pre-qualifications, which are based on no verifications whatsoever.
Getting pre-approved is a must when you’re shopping for homes, and given the speed at which today’s homes are selling, it’s best to pre-approved early in the process — you can’t ever be over-prepared.
Sellers know that pre-approved buyers are serious so talk to a mortgage lender about a pre-approval. You can do it by phone or online — just do it early.
Today’s Mortgage Rates & Interest Rate Trends
Today’s mortgage rates are improved.
For fixed-rate mortgages and adjustable-rate mortgages, interest rates are lower today as compared to earlier in the week.
Home buyers can afford more home at today’s rates, and refinancing households are eligible to save more money — especially homeowners looking to cancel FHA mortgage insurance by starting a new loan.
Pricing is better for all loan types.
- Conforming mortgages: Lower
- FHA mortgages: Lower
- VA mortgages: Lower
- USDA mortgages: Lower
- Jumbo mortgages: Lower
Mortgage rate quotes are individualized and based on more than a dozen traits including loan size, credit score, and loan-to-value. The state in which a home is located and its status as a single-family home, 2-unit, or 3-4 unit property affects its rate, too.
The personalized nature of mortgage rates is why borrowers should never rely on “ballpark rates”. Give full loan applications and let lenders compete equally — it’s the most certain way to get the lowest rate possible.
Talk to two or more lenders and choose the lender that gives your preferred combination of rates, fees, and service.
Get Today’s Mortgage Rates
A Slowing In Home Value Growth Rates
Home valuations are now rising more slowly.
According to the latest House Price Index, a monthly tracker of U.S. home values published by the Federal Housing Finance Agency (FHFA), the rate at which homes add new equity is slowing.
The report shows home values up 6.4 percent nationwide since a year ago, which marks a one-half percentage point decrease from earlier in the year.
However, real estate markets are not national. As data gets more local, it also gets more accurate.
From the U.S. House Price Index:
- Mountain Region values climbed 9.1 percent from last year
- Pacific Region values climbed 7.6 percent from last year
- New England values climbed 5.7 percent from last year
And, within these listed regions, valuations varied by state, and by city, and by neighborhood. What’s true for housing in the Lincoln Park area in Chicago is not what’s true for housing in the Williamsburg area of Brooklyn, New York.
As a home buyer, it’s important to remember how real estate is local.
National data like the Home Price Index from the FHFA, and other national reports, is helpful to economists and policy-makers, but not to home buyers. Home buyers buy one home, on one street, in one neighborhood, and data for that can’t be found in a national housing index.
Get with a local real estate agent. Find someone to help you with your stats, and help you buy a better home.