How’s The (Local) Real Estate Market
Real Estate Is Local, Ignore The National
Okay. There’s this popular and well-cited housing market study published monthly.
It’s called the S&P CoreLogic Case-Shiller Home Price Index.
That’s its name.
The S&P CoreLogic Case-Shiller Home Price Index.
It’s a long name but even all those words can’t make the index relevant or even helpful to buyers and sellers of homes. The Case-Shiller Index is not meant for you.
Yes, actually you. Because real estate is local and the Case-Shiller Index most definitely is not.
It sources its data from just twenty U.S. cities to determine some national housing value, but those twenty cities aren’t even the 20 most populous ones where the most real estate is bought and sold each week.
Case-Shiller sees fit to include Minneapolis, which ranks 46th in terms of population but Philadelphia, home of your Super Bowl champion Philadelphia Eagles, is the 6th most populous city and Case-Shiller specifically leaves it out.
Case-Shiller is good for economists and policy makers who study long-term trends.
But that’s not you. You’re short term.
Ignore the national. Go local with your real estate data instead.
Today’s Mortgage Rates
- 30-year rates for conforming loans are 4.375
- FHA mortgage rates are near 4.25 percent
- VA and USDA mortgages are also near 4.25 percent
Your rates may be slightly higher or lower depending on where you live, how much you borrow, and what your credit scores look like.
You might also want your lender’s zero closing cost option, which tends to raise your rate by just a tad.
There’s no best way to structure your loan so be sure to ask a lender what might work best for you.
Jumbo Loans For Smaller Loan Sizes
So, here’s a thing: you don’t have to have a jumbo loan size to use a jumbo mortgage.
Did you know that?
I’m guessing you didn’t because it’s a weird semantics thing with the lenders.
Jumbo is generally thought to mean loans over the 2018 conforming mortgage loan limit of $453,100 dollars, but jumbo loan is sometimes used interchangeably with the term portfolio loan, which is a loan that a lender keeps on its own books for its own portfolio of investments.
Some of the more popular types of portfolio loans include 100% mortgages for doctors getting started in their careers; loans for homes with high acreage; and, other nichy-type loans like first-one-in-the-building condo loans and loans for purchase in an LLC.
Jumbo loans work at all sizes.
Click the link in the description to read up on what you can do.
Get A Mortgage Rate Quote Now