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Murphy Realty Group's Blog

By Murphy Realty Group | Broker in 12401
  • Mortgage Payments Fall To All-Time Lows

    Posted Under: Market Conditions in Ulster County, Home Buying in Ulster County, Financing in Ulster County  |  June 19, 2012 12:00 PM  |  182 views  |  No comments

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    Mortgage payments

    It's a money-saving time to be a Woodstock home buyer. Historically, mortgage rates of all types -- conventional, FHA, VA and USDA -- have never been lower and low mortgage rates make for low monthly payments. 

    According to Freddie Mac's weekly mortgage rate survey, the average 30-year fixed rate mortgage fell to 3.67% nationwide last week for borrowers willing to pay 0.7 discount points at closing, plus a full set of closing costs. 0.7 discount points is a one-time closing cost equal to 0.7 percent of your loan size, or $700 per $100,000 borrowed.

    Today's mortgage rates are a bargain as compared to just 1 year ago.

    In early-June 2011, the average 30-year fixed rate mortgage nationwide was higher by 88 basis points, or 0.88%. If you are among the many U.S. homeowners who bought or refinanced a home around that time, refinancing to today's mortgage rates could save you 10% or more on your payment.  

    Home buyers have measurably more buying power, too.

    Here is how mortgage payments on a typical 30-year fixed rate mortgage have changed in 12 months :

    • June 2011 : $509.66 principal + interest per $100,000 borrowed
    • June 2012 : $458.59 principal + interest per $100,000 borrowed

    Setting the math to a real-life example, a homeowner whose $350,000, 30-year fixed rate mortgage dates to last June would recognize monthly savings of at least $179 per month just by refinancing into a new 30-year fixed rate mortgage at today's current levels. That's more than $2,145 in payment savings per year.

    Even after accounting for the required loan discount points and closing costs, the "break-even point" on a refinance like that can come quickly.

    Mortgage rates have been dropping but there's no promise they'll fall forever. Once rates reverse higher, they're expected to rise sharply. Therefore, if you're planning to buy a home or refinance one in New York , consider locking in a mortgage rate while mortgage rates are low.

    The market looks good for that today.

    Whether looking for a new home, a second home, weekender, country retreat..... start your search for Ulster County Real Estate here!

    Ulster County Real Estate: Catskills Real Estate, Hudson Valley Real Estate, Upstate NY Real Estate, Ulster County Homes For Sale, Ulster County Log Homes For Sale

  • Pending Home Sales Rise To 22-Month High

    Posted Under: Home Buying in Ulster County, Home Selling in Ulster County, Financing in Ulster County  |  March 7, 2012 8:06 AM  |  132 views  |  No comments

    Pending Home Sales Index 2011-2012The housing market appears headed for a strong spring season.

    After a brief setback in December, the Pending Home Sales Index resumed its climb in January, posting a 2 percent gain over the month prior.

    The data puts pressure on Woodstock home buyers. This is because a "pending home" is a home that's under contract to sell, but has not yet sold. It's tracked by the National Association of REALTORS® and, among all housing statistics, it's the only one that's "forward-looking".

    The Pending Home Sales Index is important to home buyers throughout Ulster County because 80% of homes under contract to sell close within 60 days of contract. In this way, the Pending Home Sales Index forecasts the housing market 1-2 months into the future.

    This is very different from how NAR's Existing Home Sales report works; or, how the Census Bureau's New Home Sales report works. These two metrics tell us what's already happened in housing.

    By contrast, the Pending Home Sales Index tells us what's coming next.

    January's Pending Home Sales Index reading lifts the monthly metric to its highest level since April 2010 -- the month during which the 2010 federal home buyer tax credit expired -- foreshadowing a strong housing market through March and April 2012, at least.

    This should not be news, of course. The nation's home builders have said "foot traffic" is rising and home supplies are scarce nationwide. The only wild-card for housing is the high contract cancellation rate.

    As compared to last January when just 9 percent of home purchase contracts "failed", this January saw 33 percent of contracts fail. High failure rates undermine the Pending Home Sales Index's viability as a forward-looking housing market indicator.

    Despite contract failures, though, the combination of low mortgage rates and low home prices is enticing to today's home buyers. Expect home sales to climb in the coming weeks which will lead to a strong spring season for housing.

    Visit our website for more information and to view all available Ulster County Homes For Sale

  • New Economic Stimulus

    Posted Under: Home Buying in Ulster County, Home Selling in Ulster County, Financing in Ulster County  |  January 12, 2012 6:44 AM  |  141 views  |  No comments

    Fed Minutes Suggest New Economic Stimulus Next Week

    FOMC minutesThe Federal Open Market Committee released its November 2011 meeting minutes, revealing a Fed split on whether new stimulus is needed for the U.S. economy.

    The Fed Minutes is published 8 times annually, three weeks after each scheduled Federal Open Market Committee meeting. It’s the official record of the meeting’s policy-shaping debates and dialogues.

    The Fed Minutes is the lengthier companion piece to the FOMC’s more well-known, post-meeting press release.

    As compared to press release which is concise and focused at 492 words, the Fed Minutes is comprehensive and broad, totalling 7,682 words over 11 pages, complete with charts.

    The November minutes reveal Fed opinions on a variety of economic issues :

    • On employment : Unemployment will gradually decline through 2014
    • On housing : The market remains depressed. Foreclosures are “holding back” growth.
    • On rates : The Fed Funds Rate should remain low until mid-2013

    There was also discussion about the government’s revamped HARP program, and how it should help more homeowners get access to low mortgage rates. The Fed sees this as a positive for housing, and for the economy.

    There was little in November’s Fed Minutes to surprise Wall Street, however, the Fed did discuss the possibility of new market stimulus, a topic Wall Street expects the FOMC to address next week at its last scheduled meeting of 2011.

    Should the Fed introduce new market stimulus next week, and should it arrive in the form of additional mortgage bond purchases, expect for mortgage rates to fall across Ulster County and nationwide. If the Fed declines new stimulus, mortgage rates should rise.

    The FOMC meets Tuesday, December 13, 2012

    For more information and to browse all the available listings in and around the surrounding areas, visit our website and start your search for Ulster County Real Estate

 
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