GREENWAY BLOG

28 February 2023

Buying a Home When Mortgage Rates Have Risen

  It's true rising interest rates can make a big difference in your monthly mortgage payment. But interest rates are only one factor in the cost of financing a home. The market changes that typically come with rising rates can be beneficial and even help mitigate higher payments. Low-Rate Environment vs. Average Rate Environment Low-Rate Environment In a low-rate environment, buyers are likely to rush to the market. That creates stiff competition, which can lead to a frenzy of bidding wars and rapidly rising prices. Average Rate Environment In a calmer environment, you’re less likely to compete against other buyers....

READ MORE

24 February 2023

MarketMinute | Good News for First-time and Low-income Homebuyers

The New York Fed reports consumer debt hit a new record at the end of 2022, while delinquency rates rose for several types of loans. Minutes from last month's Fed meeting showed most officials supported a quarter point hike though "a few” favored a bigger half point hike. Fed officials stated the signs of slowing inflation are not enough to counter the need for more interest rate increases. Existing home sales dropped to the lowest level in more than 12 years in January. The pace of...

READ MORE

21 February 2023

Is Using A Reverse Mortgage A Good Idea?

  No need to back away from reverse mortgages! Reverse mortgages have grown up in recent years. Our clients aged 62 and older most often use them as a safe option in two instances:  They have accumulated much of their wealth in their home and would like to access equity without selling. They want to purchase a new home without making a monthly principal and interest payment or touching other investments. Plus, if clients want to pass the home down to their children, it can stay in the family. Heirs pay the amount owed or 95% of the home's appraised value, whichever is less. Click here to learn more about Reverse Mortgage and Reverse...

READ MORE

17 February 2023

MarketMinute | How will the Fed respond to good economic news?

The inflation rate dropped slightly in January but came in higher than expected. Core inflation without energy and food was up slightly. Retail sales jumped 3% in January, smashing expectations. No categories saw a decline, following a December in which sales fell 1.1%. Forecasts for future Fed rate hikes have increased on the stronger economic data, with rate hikes now expected through June. NAHB’s Homebuilder Sentiment Index improved in February by the largest amount in a decade due to an uptick...

READ MORE

10 February 2023

MarketMinute | How Are Homebuyers Dealing With Higher Rates?

Unemployment hit a 53-year low last month, with over 500k new jobs created. The labor market remains strong despite the Fed rate hikes. Mortgage rates rose as markets began anticipating 2 additional Fed rate hikes that would raise the policy rate to at least 5%. After constricting in December, the ISM service sector index came in higher than expected in January, a hopeful economic sign. Although still lower than a year ago, purchase mortgage applications rose 3% for the week. Refi apps were up 18%....

READ MORE