The Truth About Down Payments

If you’re planning to buy your first home, saving up for all the costs involved can feel daunting, especially when it comes to the down payment. That might be because you’ve heard you need to save 20% of the home’s price to put down. Well, that isn’t necessarily the case.

Unless specified by your loan type or lender, it’s typically not required to put 20% down. That means you could be closer to your homebuying dream than you realize.

As The Mortgage Reports says:

“Although putting down 20% to avoid mortgage insurance is wise if affordable, it’s a myth that this is always necessary. In fact, most people opt for a much lower down payment.”

According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, for all homebuyers today it’s only 15%. And it’s even lower for first-time homebuyers at just 8% (see graph below):

The big takeaway? You may not need to save as much as you originally thought.

Learn About Resources That Can Help You Toward Your Goal

According to Down Payment Resource, there are also over 2,000 homebuyer assistance programs in the U.S., and many of them are intended to help with down payments.

Plus, there are loan options that can help too. For example, FHA loans offer down payments as low as 3.5%, while VA and USDA loans have no down payment requirements for qualified applicants.

With so many resources available to help with your down payment, the best way to find what you qualify for is by consulting with your loan officer or broker. They know about local grants and loan programs that may help you out.

Don’t let the misconception that you have to have 20% saved up hold you back. If you’re ready to become a homeowner, lean on the professionals to find resources that can help you make your dreams a reality. If you put your plans on hold until you’ve saved up 20%, it may actually cost you in the long run. According to U.S. Bank:

“. . . there are plenty of reasons why it might not be possible. For some, waiting to save up 20% for a down payment may “cost” too much time. While you’re saving for your down payment and paying rent, the price of your future home may go up.”

Home prices are expected to keep appreciating over the next 5 years – meaning your future home will likely go up in price the longer you wait. If you’re able to use these resources to buy now, that future price growth will help you build equity, rather than cost you more.

Bottom Line

Keep in mind that you don't always need a 20% down payment to buy a home. If you're looking to make a move this year, reach out to a trusted real estate professional to start the conversation about your homebuying goals.

For the original article visit Keeping Current Matters.

Why Today’s Housing Supply Is a Sweet Spot for Sellers

Wondering if it still makes sense to sell your house right now? The short answer is, yes. And if you look at the current number of homes for sale, you’ll see two reasons why.

An article from Calculated Risk shows there are 15.6% more homes for sale now compared to the same week last year. That tells us inventory has grown. But going back to 2019, the last normal year in the housing market, there are nearly 40% fewer homes available now:

Here’s a breakdown of how this benefits you when you sell.

1. You Have More Options for Your Move

Are you thinking about selling because your current house is too big, too small, or because your needs have changed? If so, the year-over-year growth gives you more options for your home search. That means it may be less of a challenge to find what you’re looking for.

So, if you were holding off on selling because you were worried you weren’t going to find a home you like, this may be just the good news you needed. Partnering with a local real estate professional can help you make sure you’re up to date on the homes available in your area.

2. You Still Won’t Have Much Competition When You Sell

But to put that into perspective, even though there are more homes for sale now, there still aren’t as many as there’d be in a normal year. Remember, the data from Calculated Risk shows we’re down nearly 40% compared to 2019. And that large a deficit won’t be solved overnight. As a recent article from Realtor.com explains:

“. . . the number of homes for sale and new listing activity continues to improve compared to last year. However the inventory of homes for sale still has a long journey back to pre-pandemic levels.”

For you, that means if you work with an agent to price your house right, it should still get a lot of attention from eager buyers and could sell fast.

Bottom Line

If you're a homeowner looking to sell, now's a good time. You'll have more options when buying your next home, and there's still not a ton of competition from other sellers. If you’re ready to move, talk to a local real estate agent to get the ball rolling.

For the original article visit Keeping Current Matters.

How Changing Mortgage Rates Impact You

Some Highlights

• If you’re looking to buy a home, it’s important to know how mortgage rates impact what you can afford and how much you’ll pay each month.

• That’s because even a small change in mortgage rates can have a big impact on your purchasing power. 

• The best way to navigate changing mortgage rates and make an informed buying decision is to rely on the expertise of a local real estate professional and mortgage lender.

For the original article, visit Keeping Current Matters.

Strategic Tips for Buying Your First Home

Buying your first home is a big, exciting step and a major milestone that has the power to improve your life. As a first-time homebuyer, it’s a dream you can make come true, but there are some hurdles you’ll need to overcome in today’s housing market – specifically the limited supply of homes for sale and ongoing affordability challenges.

So, if you’re ready, willing, and able to buy your first home, here are three tips to help you turn your dream into a reality.

Save Money with First-Time Homebuyer Programs                                       

Paying the initial costs of homeownership, like your down payment and closing costs, can feel a bit daunting. But there are many assistance programs for first-time homebuyers that can help you get a loan with little or no money upfront. According to Bankrate:

“. . . you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans.”

To find out more, talk to your state’s housing authority or check out websites like Down Payment Resource.

Expand Your Options by Looking at Condos and Townhomes

Right now, there aren’t enough homes for sale for everyone who wants to buy one. That’s pushing home prices up and making affordability tight for buyers. One way to deal with that issue and find a home right now is to consider condos and townhomes. Realtor.com explains:

“For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home.”

One reason why they may be more affordable is because they’re often smaller. But they still give you the chance to get your foot in the door and achieve your goal of owning a home and building equity. And that equity can help fuel your move into a larger home later on if you decide you need something bigger in the future. Hannah Jones, Senior Economic Analyst at Realtor.com, says:

“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”

Consider Pooling Your Resources To Buy a Multi-Generational Home

Another way to break into the market is by purchasing a home with friends or loved ones. That way you can split the cost of things like the mortgage and bills, to make it easier to afford a home. According to Money.com:

“Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”

Bottom Line

By exploring first-time homebuyer assistance, condos, townhomes, and multi-generational living, it can be easier to find and buy your first home. When you’re ready, connect with a local real estate agent.

For the original article, visit Keeping Current Matters

22 Genius House Cleaning Hacks for a Tidier Space in No Time

Work smarter, not harder, with these cleaning hacks!

Our clever cleaning hacks help take the work out of your chore list by saving time and energy. Use household tools meant for other tasks to get your space spotless in no time. Tuck these ideas into your bag of tricks for an immaculate and fresh home.

Remove Pet Hair with Rubber Gloves

As much as we love our four-legged friends, pet hair can accumulate quickly. Skip spending extra money on tools and special attachments and use this simple cleaning hack to pick up after your fur babies. Simply wear rubber household gloves and run them over the surface of your furniture. The rubber will cause the pet fur to gather into a ball that can be easily thrown away.

The 5 Best Ways to Remove Pet Hair from a Couch

Steam-Clean Your Microwave

Place a bowl of lemon juice in your microwave and set the microwave for 2 minutes or until the lemon juice comes to a boil. This cleaning hack will produce steam to soften any debris stuck in the microwave. You'll be able to clean out the appliance with just the swipe of a cloth, plus you'll be left with a citrusy fresh scent.

How to Clean a Microwave

Remove Wine Stains from Carpet

Wine is known to be one of the toughest stains to remove. Luckily, club soda can be a saving grace. Start by spritzing the stain with club soda. Next, blot the wine, juice, or colored drink stain with a microfiber cloth. Repeat until the stain is gone.

Clean Cabinets with a Vacuum

Your vacuum can be a helpful tool for cleaning hard-to-reach cabinet areas. Use your vacuum's brush attachment to pick up dust and crumbs inside. Debra Johnson from Merry Maids suggests this cleaning hack for the outside of the cabinets: wipe the area around the hardware with a cloth dampened with warm water and Murphy Oil Soap ($4, Walmart).

How to Degrease Kitchen Cabinets

Use Your Dishwasher to Clean Light Fixtures

Did you know some light fixture pieces are dishwasher-safe? Amanda Thomas of Moxie Girl suggests running removable glass pieces, such as domes, through the dishwasher for this cleaning hack. Run a drying cycle to reduce spots on your light fixtures.

Correct Common Cleaning Mistakes

Believe it or not, there is a wrong way to clean. But, by doing things the right way, you could save time—and the hassle of re-cleaning. Check out these house cleaning hacks to perfect your technique and shave minutes off your cleaning routine.

Use a Pillowcase to Clean a Ceiling Fan

Leslie Reichert of Green Cleaning Coach shares one of her favorite cleaning hacks for dusting a ceiling fan quickly and efficiently. Slip a pillowcase over ceiling fan blades, one at a time, then wipe. This way, dust falls into the pillowcase, not on your furniture and floors.

Clean with What You Have

Skip buying new items for cleaning hacks using what you already have. The things you need to clean might be lying around your house. Watch and see how to tidy up using everyday items you wouldn't immediately think of as cleaning tools.

Use Socks to Clean Blinds

This cleaning hack from Melissa Maker of Clean My Space uses socks as a duster. First, put an old sock on one of your hands and spritz it with water. Then, grip each blind panel and slide your sock-covered hand from one end to the other, removing dust from both sides of the slat.

How to Clean Blinds to Remove Dust and Debris

Learn the Trick to Cleaning Faster

The key to cleaning more quickly might be cleaning more often. You'll spend less time overall when you stick to a regular schedule. Watch this video from cleaning expert Donna Smallin Kuper to learn her best tips for quicker cleaning.

Use a Paint Roller to Clean Ceilings

Ceilings, especially textured ones, can be a pain to clean. Sweeping them with a broom can knock down light fixtures if you're not careful. Roll a damp high-nap paint roller over the ceiling to pick up dust and cobwebs for a more effective cleaning hack.

Spot-Clean Fabrics with Baby Wipes

Baby wipes are surprisingly effective because they contain very little moisture, have gentle cleaning agents, and dry quickly. That's why Derek Christian from Cleaning Business Today suggests using them for spots and stains on fabrics. However, don't confuse baby wipes with cleaning wipes, which might contain bleach or other harmful chemicals.

Use Tennis Balls to Launder Comforters

Washing a bulky comforter can be a tricky business. Amanda Thomas of Moxie Girl says you can machine-wash most comforters in front-loaders, as long as the comforter fills only half the washer. Then, add tennis balls to the dryer to keep the comforter's stuffing from collecting in one corner.

Clean Window Treatments Faster

Keep window treatments on the rod to save time as you clean. Instead of taking them down, use the cleaning hack of just shaking them out to remove loose dust. Then, vacuum drapes or curtains from top to bottom using the upholstery attachment. Finally, vacuum floors after cleaning window treatments to pick up any fallen dust.

How Often Should You Vacuum? Here's What the Pros Say

Have Your Kids Clean Your Mattress

Jumping on the bed can help freshen up your mattress. Mary Findley of Go Clean suggests a fun house cleaning hack: Have your kids bounce around on the bed to bring up dust from inside. Then vacuum the mattress top. (If your vacuum has a beater bar, turn the bar off first.)

Use Lemon Oil and Vinegar for Shine

Woodwork and wood furnishings can gather dust and dirt buildup over time. Regular wipe-downs are necessary to keep wood looking shiny. For extra sheen, mix 1 part lemon oil and 1 part white vinegar for an environmentally friendly (and shiny) cleaning hack.

Must-Know Dusting Tricks

Dusting can feel like a losing battle without the proper technique. Luckily, cleaning expert Donna Smallin Kuper has the tips you need to get dust under control. Try these clever cleaning hacks that make dusting a breeze.

Do Air Purifiers Help with Dust? Here's What to Know

Clean Your Dishwasher with Baking Soda and Vinegar

Melissa Maker of Clean My Space shares her cleaning hack to banish a dishwasher's dirt and odors. First, add 1 cup baking soda to the bottom of your empty dishwasher and let it sit overnight. Then run the hottest possible cycle using vinegar instead of detergent to clean and deodorize your dishwasher. Remember to remove debris from the filter.

Remove Hard Water Stains

The house cleaning hack for removing hard water stains is simple: Soak paper towels in undiluted vinegar and place them on the buildup. Leave overnight, then scrub and rinse.

Clean Faster with These Products

• A 50-foot, 16-gauge extension cord ($15, Home Depot) lets you plug in your vacuum at a central location so you can clean a whole level without stopping to find another outlet.

• A microfiber mop ($16, Walmart) with an extension pole dusts ceilings and walls quickly and easily. Just remove the cover and toss it in the wash when you're done.

• A double-sided squeegee ($23, The Home Depot) is the best tool for cleaning windows. Dip it in your cleaning solution of choice and work in a tight S-pattern from top to bottom.

Must-Try Homemade Cleaners

Homemade cleaning solutions can be just as effective as store-bought cleaners. Go all-natural with these cleaning hacks that use items you already have around your home. Get a squeaky clean space with these must-try homemade cleaners.

Secret Weapons for Cleaning Hacks

Add these cleaning essentials to your caddy to make chore day a breeze:

• Zep Heavy Duty Citrus Cleanser and Degreaser ($22, Walmart) cleans cooking oil from cabinets near the stove. Look for it in the paint section at your home center.

• Bar Keepers Friend Cleanser ($2, Walmart) has a combo of mild abrasives and oxalic acid that removes baked-on food, tea and coffee stains, and rust.

• Mr. Clean Magic Erasers ($3, Target) make short work of soap scum, scuff marks, wayward crayon scribbles, and lots more.

How to Clean Your Cleaning Tools and Appliances

There's no point in cleaning with dirty tools and products. Clean your robot vacuum for the best results when you send it through your house for easy vacuuming. Keep your clothes in good shape by ensuring your washing machine gets a good cleaning periodically. Your range hood filter probably needs a good cleaning, and you may not realize it. Give it a good scrub so it can vent cooking odors properly. And if you don't scrape your dishes before putting them in the dishwasher—which isn't recommended for newer models—your dishwasher filter must be cleaned out at least once a month.

For the original article By Emerson Latham and Jessica Bennett visit Better Homes and Gardens.

Economist: ‘Timing’ the Market May Not Work for Buyers

Mortgage rates edged up this week, prompting a pause among some would-be house hunters. But here’s why they may not want to wait.

Home shoppers are sensitive to mortgage rates, which was made clear this week with an increase in the average for the 30-year fixed-rate mortgage. The rate rose to 6.77%, and mortgage applications for home purchases fell 3%, according to the Mortgage Bankers Association.

© David Gyung - iStock/Getty Images Plus

Every notch up and down in rates can impact home buyers’ purchasing power, but borrowing costs have largely stabilized. “While mortgage interest rates edged up weekly, the overall trajectory from fall 2023 is down and is now a full percentage point below the recent high” when rates neared 8%, says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “While mortgage interest rates may come down to the low 6% range in the middle to later part of the year, buyers must weigh what makes the most sense for them. Timing the real estate market based purely on mortgage interest rates—especially marginal changes—rarely works when new babies, marriages and jobs are the real decision-makers.”

Buyers may not save much by waiting, either. Home buyers purchasing the typical home at $400,000, with a 20% down payment, would likely have a monthly mortgage payment of about $2,080 at this week’s rate average, Lautz says. Last week, when rates averaged 6.64%, home buyers could have paid about $70 less per month—but that was based on a median home price of $391,700.

Home prices are rising quickly. The median price of an existing home surged to an all-time high in December, according to NAR, and prices are expected to continue to climb. The annual median home price is predicted to increase by 1.4% this year, and by another 2.6% in 2025, to $405,200, NAR’s forecast shows. Plus, housing inventory remains at historical lows and remain a major obstacle for would-be home buyers. That will keep pressure on home prices, economists say.

Freddie Mac reports the following national averages for mortgage rates for the week ending Feb. 15:

• 30-year fixed-rate mortgages: averaged 6.77%, rising from last week’s 6.64% average. Last year at this time, 30-year rate averaged 6.32%.

• 15-year fixed-rate mortgages: averaged 6.12%, up from last week’s 5.90% average. A year ago, 15-year rates averaged 5.51%.

For the original article by Melissa Dittmann Tracey visit National Association of Realtors

Why So Many People Fall in Love with Homeownership

Chances are at some point in your life you’ve heard the phrase, home is where the heart is. There’s a reason that’s said so often. Becoming a homeowner is emotional.

So, if you’re trying to decide if you want to keep on renting or if you’re ready to buy a home this year, here’s why it’s so easy to fall in love with homeownership.

Customizing to Your Heart’s Desire

Your house should be a space that’s uniquely you. And, if you’re a renter, that can be hard to achieve. When you rent, the paint colors are usually the standard shade of white, you don’t have much control over the upgrades, and you’ve got to be careful how many holes you put in the walls. But when you’re a homeowner, you have a lot more freedom. As the National Association of Realtors (NAR) says:

“The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.”

Whether you want to paint the walls a cheery bright color or go for a dark moody tone, you can match your interior to your vibe. Imagine how it would feel to come home at the end of the day and walk into a space that feels like you.

Greater Stability for the Ones You Love Most

One of the hardest things about renting is the uncertainty of what happens at the end of your lease. Does your payment go up so much that you have to move? What if your landlord decides to sell the property? It’s like you’re always waiting for the other shoe to drop. Jeff Ostrowski, a business journalist covering real estate and the economy, explains how homeownership can give you more peace of mind in a Money Geek article:

“Homeownership means you are the boss and have the biggest say in your lifestyle and family decisions. Suppose your kids are in public school and you don’t want to risk having them change schools because your landlord doesn’t renew your lease. Owning a home would remove much of the risk of having to move.”

A Feeling of Belonging

You may also find you feel much more at home in the community once you own a house. That’s because, when you buy a home, you’re staking a claim and saying, I’m a part of this community. You’ll have neighbors, block parties, and more. And that’ll give you the feeling of being a part of something bigger. As the International Housing Association explains:

“. . . homeowning households are more socially involved in community affairs than their renting counterparts. This is due to both the fact that homeowners expect to remain in the community for a longer period of time and that homeowners have an ownership stake in the neighborhood.”

The Emotional High of Achieving Your Dream

Becoming a homeowner is a journey – and it may have been a long road to get to the point where you’re ready to take the plunge. If you’re seriously considering leaving behind your rental and making this commitment, you should know the emotions that come with this owning a home are powerful. You’ll be able to walk up to your front door every day and have that sense of accomplishment welcome you home. 

Bottom Line

A home is a place that reflects who you are, a safe space for the ones you love the most, and a reflection of all you’ve accomplished. Connect with a local real estate professional if you’re ready to break up with your rental and buy a home.

For the original article, visit Keeping Current Matters.

The Age of the U.S. Housing Stock

The median age of owner-occupied homes is 40 years old, according to the latest data from the 2022 American Community Survey[1]. The U.S. owner-occupied housing stock is aging rapidly especially after the Great Recession, as the residential construction continues to fall behind in the number of new homes built. New home construction faces headwinds such as rising material costs, labor shortage, and elevated interest rates nowadays.

With a lack of sufficient supply of new construction, the aging housing stock signals a growing remodeling market, as old structures need to add new amenities or repair/replace old components. Rising home prices also encourage homeowners to spend more on home improvement. Over the long run, the aging of the housing stock implies that remodeling may grow faster than new construction.

 New construction added nearly 1.7 million units to the national stock from 2020  to 2022, accounting for only 2% of owner-occupied housing stock in 2022. Relatively newer owner-occupied homes built between 2010 and 2019 took up around 9%.  Owner-occupied homes constructed between 2000 and 2009 make up 15% of the housing stock. The majority, or around 60%, of the owner-occupied homes were built before 1980, with around 35% built before 1970.

Due to modest supply of housing construction, the share of new construction built within the past 12 years declined greatly, from 17% in 2012 to only 11% in 2022. Meanwhile, the share of housing stock that is at least 53 years old experienced a significant increase over the 10 years ago. The share in 2022 was 35% compared to 29% in 2012.

[1] : Census Bureau did not release the standard 2020 1-year American Community Survey (ACS) due to the data collection disruptions experienced during the COVID-19 pandemic. The data quality issues for some topics remain in the experimental estimates of the 2020 data. To be cautious, the 2020 experimental data is not included in the analysis.

For the original article, BY NA ZHAO published 2/12/24 visit EyeOnHousing.org.

U.S. Owners Stay in Their Homes on Average 12 Years Now

Twice As Long As 2005, Driven By Older Americans Aging In Place

Based on Redfin's latest market data, the typical U.S. homeowner has spent 11.9 years in their home, up from 6.5 years two decades ago. Homeowner tenure peaked at 13.4 years in 2020, just when the pandemic set off a moving frenzy, and has declined since then.

Baby boomers are aging in place, driving homeowner tenure up

Older Americans staying in their homes is the driving force behind longer homeowner tenure. Nearly 40% of baby boomers have lived in the home they currently own for at least 20 years, and another 16% for 10-19 years. For Gen Xers, more than one-third (35%) have lived in the home they currently own for at least 10 years.

Millennials typically stay in homes for shorter periods, largely because they're younger and partly because they switch jobs more than older generations. Less than 7% of millennials have lived in the home they currently own for 10 years or longer, 13% for 5-9 years, and 30% for less than five years. Nearly all Gen Zers who own a home have had it for less than five years, which stands to reason because the oldest Gen Zer was 26 in 2023.

Baby boomers and Gen Xers have an outsized impact on overall housing-market trends for a few reasons. One, the American population is aging: Roughly 17% of people in the U.S. were 65 and older as of 2020, up from 13% in 2010. Two, they're most likely to own homes: Nearly 80% of baby boomers and 72% of Gen Xers own their home, compared to 55% of millennials and 26% of Gen Zers.

There are several reasons why homeowner tenure has increased since the early aughts:

• Older Americans are hanging onto their homes because they're financially incentivized to do so. Most (54%) baby boomers who own homes own them free and clear, with no outstanding mortgage. For that group, the median monthly cost of owning a home-which includes insurance and property taxes, among other things-is just over $600.

• Nearly all boomers who do have a mortgage have a much lower rate than they would if they sold and bought a new home with today's 7%-ish rates.

• Some state tax systems have policies that make it financially beneficial for people to stay in their homes as they get older. Texas homeowners over 65 can defer property taxes until the home is sold, and in California, Proposition 13 limits property-tax increases.

• Many older Americans prefer aging in their family home rather than moving to a different house or entering an assisted-living facility: Nearly 9 in 10 Americans between 50 and 80 years old said in a recent survey it's important to stay in their homes as they get older. And with medical and tech advancements, it's increasingly possible to do so.

• It was cheap and easy to move in the early 2000s. More people than usual were able to get mortgages and buy homes because mortgage-lending standards were loose, which ultimately led to the subprime mortgage crisis.

People hanging onto their homes is contributing to the inventory shortage

Lack of homes for sale and high housing costs contributes to people staying in their homes longer, and people staying in their homes longer contributes to lack of inventory and pushes prices higher.

Long homeowner tenure, particularly among baby boomers, is an obstacle for young first-time buyers trying to break into the market. A recent Redfin analysis found that empty-nest baby boomers own twice as many three-bedroom-plus homes than millennials with kids. Some young families are turning to new construction, and others are renting homes.

Homeowner tenure has dropped 1.5 years from its 2020 peak and is expected to stay flat

Homeowner tenure has declined slightly each year since 2020 because the pandemic kicked off a moving frenzy, with remote work and record-low mortgage rates leading to more homes changing hands in 2021 than any year since 2006.

Moving forward, Redfin expects homeowner tenure to stay flat or increase slightly for the foreseeable future. Existing-home sales hit a 15-year low last year, with many homeowners locked in by low mortgage rates. While sales should pick up a bit this year, it'll be more of a trickle than a flood.

For the original article by David Barley, visit The World Property Journal.

What’s Really Happening with Mortgage Rates?

Are you feeling a bit unsure about what’s really happening with mortgage rates? That might be because you’ve heard someone say they’re coming down. But then you read somewhere else that they’re up again. And that may leave you scratching your head and wondering what’s true.

The simplest answer is: that what you read or hear will vary based on the time frame they’re looking at. Here’s some information that can help clear up the confusion.

Mortgage Rates Are Volatile by Nature

Mortgage rates don’t move in a straight line. There are too many factors at play for that to happen. Instead, rates bounce around because they’re impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what’s going on in the economy and the world as a whole.

Take a look at the graph below. It uses data from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since last October:

If you look at the graph, you’ll see a lot of peaks and valleys – some bigger than others. And when you use data like this to explain what’s happening, the story can be different based on which two points in the graph you’re comparing.

For example, if you’re only looking at the beginning of this month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the peak in October, rates have trended down. So, what’s the right way to look at it?

The Big Picture

Mortgage rates are always going to bounce around. It’s just how they work. So, you shouldn’t focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture.

When you look at the highest point (October) compared to where rates are now, you can see they’ve come down compared to last year. And if you’re looking to buy a home, this is big news. Don’t let the little blips distract you. The experts agree, overall, that the larger downward trend could continue this year. 

Bottom Line

Connect with a professional if you have any questions about what you’re reading or hearing about the housing market.

For the original article, visit Keeping Current Matters.