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Why You Should Buy a Home in Early 2017!

by Mary Jean Agostini

The new year is upon us! It is time to sit down and set those New Year's resolutions for 2017. If buying a new home makes it onto your list of resolutions, the time to act on it is right a way in the New Year! 


2016 saw many positive real estate trends. Consumer confidence has risen. Home values throughout much of the nation has increased. At the same time, we have seen the inventory of homes decrease and mortgage rates are higher. Both of these factors show no signs of changing in 2017. Mortgage payments are currently 3% higher than they were last year.  Although this is still manageable for most, it is expected that payments will increase an additional 9% as we progress throughout the New Year! And, although low inventory has been a factor for many years, the emergence of new buyers and an increased sense of urgency has caused the inventory to reach an all time low.

 

What does this mean for you as a home buyer in 2017? Don't despair! In order to achieve your home buying resolution, we recommend buying a home early in the year. This will allow you to lock in the lower mortgage rates before they rise. In addition, you will have less competition from other buyers since January and February are slow real estate months. Inventory of homes is also not much lower than it is in the spring, which gives you plenty of options to pick from. 

 

Start your home hunt today! If you are interested in Buying a home in Central or Shoreline Connecticut during 2017, the MJ Agostini Real Estate Team is here to help you work towards your resolution! Give us a call today or visit our website at http://www.mjagostini.com/ to get a jump start today!


Source: Realtor.com

Merry Christmas from MJ Agostini Real Estate

by Mary Jean Agostini

Jingle bells are filling the air! Christmas has finally arrived! This weekend will be filled with delicious food, festive cheer, colorful gifts, and time with family and friends! It is also time to celebrate the end of the year and reflect on all there is to be thankful for. Here at MJ Agostini Real Estate, we would love to say THANK YOU to all of our past and current clients for giving us the opportunity to help you with all your real estate needs this year!

 

Our team feels very blessed to help serve Central and Shoreline Connecticut Communities. We love our towns and helping people discover why they are such incredible communities to call home! 

 

The new year often brings about new changes. If you are interested in buying and selling your Connecticut home in 2017, our team would love to assist you along the way! Contact our team today so that we can help you reach all your real estate goals!

 

We Wish You a Very Merry Christmas and Happy New Year!
 

Why Now is Not the Time to Rent!

by Mary Jean Agostini

Have you been wondering whether or not to renew your lease or make the plunge to buy a new home? Well, it is important to know that now is NOT a good time to rent! According to the third quarter median rent numbers released by the Census Bureau, rent has been increasing since 1988 and does not show any signs of going down in the future.

 

When Is a Good Time to Rent? Not Now! | Simplifying The Market

It is the time to consider buying your own home and having regular monthly payments towards a mortgage as opposed to being faced with increasing rent costs! If you are interested in seeing if you can afford your own home, contact me today! I am happy to help you find your dream home!

 

Source: Keeping Current Matters

 

 

Why Are Mortgage Interest Rates Increasing?

by Mary Jean Agostini

According to Freddie Mac’s latest Primary Mortgage Market Survey, the 30-year fixed rate mortgage interest rate jumped up to 3.94% last week. Interest rates had been hovering around 3.5% since June, and many are wondering why there has been such a significant increase so quickly.

 

Why did rates go up?

 

Whenever there is a presidential election, there is uncertainty in the markets as to who will win. One way that this is noticeable is through the actions of investors. As we get closer to the first Tuesday of November, many investors pull their funds from the more volatile and less predictive stock market and instead, choose to invest in Treasury Bonds.

 

When this happens, the interest rate on Treasury Bonds does not have to be as high to entice investors to buy them, so interest rates go down.  Once the elections are over and a President has been elected, investors return to the stock market and other investments, leaving the Treasury to raise rates to make bonds more attractive again.

 

Simply put, the better the economy, the higher interest rates will go. For a more detailed explanation of the many factors that contribute to whether interest rates go up or down, you can follow this link to Investopedia.

 

The Good News

 

Even though rates are closer to 4% than they have been in nearly 6 months, they are still slightly below where we started 2016, at 3.97%.

 

The great news is that even at 4%, rates are still significantly lower than they have been over the last 4 decades, as you can see in the chart below.

Why Are Mortgage Interest Rates Increasing? | MyKCM

Any increase in interest rate will impact your monthly housing costs when you secure a mortgage to buy your home. A recent Wall Street Journal article points out that, “While still only roughly half the average over the past 45 years, according to Freddie Mac, the quick rise has lenders worried that home loans could become more expensive far sooner than anticipated.”

 

Tom Simons, a Senior Economist at Jefferies LLC, touched on another possible outcome for higher rates:

 

“First-time buyers look at the monthly total, at what they can afford, so if the mortgage is eaten up by a higher interest expense then there’s less left over for price, for the principal. Buyers will be shopping in a lower price bracket; thus demand could shift a bit.”

 

Bottom Line

 

Interest rates are impacted by many factors, and even though they have increased recently, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

 
 

Source: Keeping Current Matters

 

 

Displaying blog entries 1-4 of 4