Happy Monday!
How is it that we are already halfway through September? While time seems like it is moving along way to fast - we are excited for fall weather, bonfires, and lots of football! And we live in Florida, so when we say fall weather, we mean high 70's and a little less humidity. We'll take what we can get.
A new week is here, and with that comes a new real estate market and new interest rates, and we're here to talk about it. In the last 12 months, consumer index prices have risen by 8.3%. This is the largest rate increase we have seen since 2008. While interest rates are giving some of use very uneasy flashbacks, the market here in North Florida is still holding steady. This last week alone, 9/12 - 9/19, we have had 75 new residential listings, 63 homes have been put under contract, and 60 homes have closed.
Mortgage rates are also up, but the rise is slow.
As of today, September 19th, average fixed rates look like:
A 30-year mortgage is up 25 basis points to 6.213%
A 30-year FHA mortgage is 5.458%
A 30-year VA mortgage is 5.463%
A 15-year mortgage is up 4 basis points to 5.395%
A 5-year mortgage remains steady at 5.340%
If you're looking to buy a home, these rates are still great! If rising interest rates scare you, consider locking in a rate now and starting your home search before they get to much higher. Florida has no limit on how much landlords can raise rent, so rather then getting your rent doubled, a mortgage will offer you a set monthly payment for the next couple years.
How to make sure you are getting the best mortgage rate:
• Talk to multiple lenders. It is recommended that you talk to 3 lenders before choosing the one you decide to go with. If you talk to multiple lenders, typically they'll each do a credit check. Rather than having multiple hits, credit checks made with lenders will only count on your credit as one hit - as long as they're done within the same 14 to 45 days.
• Look at your finances. If you have a good credit score, you'll get a better rate than if you have a low credit score. Looking for ways to boost your credit score, or saving extra cash to put down could change the terms of your loan for the better.
• Lower your debt-to-income ratio. Try cancelling those extra subscriptions you don't use as much, and cut back on extra expenses. According to lenders, a good rule of thumb is to keep your monthly expenses under 36% of your monthly income.
Thanks for reading, and have a great week!
This information has come from multiple sources and is deemed reliable but not guaranteed.
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https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/
https://www.zillow.com/mortgage-rates/
https://www.nerdwallet.com/mortgages/mortgage-rates
https://themortgagereports.com/22895/multiple-credit-inquiries-mortgage-rate-shopping
https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-monday-september-19-2022-9
https://www.freddiemac.com/pmms
https://www.floridarealtors.org/news-media/news-articles/2022/09/arms-are-rise-interest-rates-soar
