The New York Times is reporting "The Federal Reserve (FED) decided to raise short-term interest rates for the first time since the financial crisis. Officials said the economy was strong enough to keep growing with a little less help from the central bank. The Fed is likely to raise rates slowly, but borrowing costs already have started to climb. The returns on some investments, like savings accounts, also are likely to increase."
With short term rates being at historic lows for the past 7 years, at near zero, rates will be raised a quarter of one point, to .25-.5%. This will impact home buyers as mortgage rates increase. With rates sill in the 4-5% range, Mortgage rates are still very low, especially when compared to interest rates of the early 1980's, when mortgage rates were at 17-18%.
Affordability decreases when interest rates go up, as home-buyers have less buying power for their money. But when you compare rates over time, we are still in a really great position and its a great time for home buyers to enter the market and or move up into more luxurious homes. For months the FED has been discussing rate increases and finally took action today. In Dave's recent crystal ball report, he predicts that at this time next year with the increase we will be at 4.6% interest rates. Because it's a great seller's market (here in Las Vegas) with less than a 3 month supply of available homes, and home values have been increasing, this will also affect home buyers and overall affordability. The FED also said subsequent increases will happen gradually.
Allow The Radcliffe Group to help you get into a new or resale home here in Las Vegas. They can help you secure the best interest rates available by connecting you to their preferred lenders.
The Radcliffe Group
Out
of more than 10,000 real estate agents in the greater Las Vegas and
Clark County area, Dave Radcliffe ranks among the Top 1% of Realtors® as
number 101 during the second quarter of 2015. Dave Radcliffe ranked number 1 in 2014 as the top producing individual out of 172 Realtor-Agents in his office.
Dave has a team of top producing agents and ranks consistently as one
of the top real estate teams at Keller Williams Realty Southwest Las
Vegas because he is all about customer service and utilizing the best
resources in the real estate business. The Radcliffe Group is your Las
Vegas, Summerlin, Centennial Hills, and North Las Vegas real estate connection.
As
a retired police officer, Dave is passionate about giving back to the
service community and dedicates much of his time giving and supporting
the Las Vegas Metro Police Department, Firefighters and Military at
Nellis Air Force Base. Military, Fire and Law enforcement never pay a
full commission when they work with the Radcliffe Group. The Radcliffe Group can assist you in your Las Vegas PCS or relocation, New Home Construction purchase, Condo and Luxury Home purchase. Specializing in helping Las Vegas and North Las Vegas homeowners sell their home for the highest market value, Dave and his team will help you yield your highest profit. Call 702-379-3401 when it is time to sell your Las Vegas, Summerlin, Centennial Hills or North Las Vegas Home.
The FED, otherwise known as the Federal Reserve, the United States' central banking system, decided yesterday, in the long awaited decision to hold off on raising interest rates. Well at least for right now.
With the FED being responsible to look at maximum employment, price stability and moderating long term interest rates to maintain the stability of our financial system, the decision was based on a number of indicators and included:
For months we have been talking about it and were wondering what the crystal ball would show when the September deadline for decision rolled around. With an unstable global economy being a factor, we won't see rates rise immediately, however it is likely we will see an increase before year end, according to reports.
With
current interest rates at about 4% on a 30 year fixed mortgage and
3.35% on a 15 year mortgage, not is a great time to get into the real
estate market as a first time home buyer or move up or down buyer.
Borrowing money with rates this low, is like getting free money.
Out of more
than 10,000 real estate agents in the greater Las Vegas and Clark County area, Dave Radcliffe ranks among the Top 1% of
Realtors as number 101 during the second quarter of 2015. Dave Radcliffe ranked number 1 in 2014 as the
top producing individual out of 172 Realtor-Agents in his office. Dave has a team of top producing agents and
ranks consistently as one of the top real estate teams at Keller Williams
Realty Southwest Las Vegas because he is all about customer service and
utilizing the best resources in the real estate business. The Radcliffe Group
is your Las Vegas, Summerlin, Centennial Hills, and North Las Vegas real estate connection.
As a retired
police officer, Dave is passionate about giving back to the service community
and dedicates much of his time giving and supporting the Las Vegas Metro Police Department,
Firefighters and Military at Nellis Air Force Base. Military, Fire and Law enforcement never
pay a full commission when they work with the Radcliffe Group. The
Radcliffe Group can assist
you in your Las Vegas PCS or relocation, New Home Construction purchase, Condo
and Luxury Home purchase. Specializing in helping Las Vegas and North
Las Vegas homeowners sell their home for the highest
market value, Dave and
his team will help you yield your highest profit. Call 702-379-3401 when it is
time to sell your Las Vegas, Summerlin, Centennial Hills or North Las Vegas Home.
Looking to purchase a home after a Foreclosure? Bankruptcy? Or Short Sale? Keep
reading!
In April 2015, the National Association of Realtors "analyzed the nearly 9.3 million
homeowners that underwent a foreclosure, received a deed-in-lieu of foreclosure, or
short sold between 2006 and 2014 to estimate the amount of creditworthy borrowers
expected to re-enter the housing market as a return buyer in upcoming years." The
findings reveal nearly a million of these former owners have likely already purchased
a home again, and an additional 1.5 million are likely to become eligible and purchase
over the next five years, representing an additional source of buyer demand for the
housing market." Source: NAR Study
Have you heard the latest term Boomerang Buyer and wonder what it means?
A Boomerang Buyer is considered a home buyer who has gone through a foreclosure
(deeds-in-Lieu of Foreclosure) or short sale of their home during the recent housing
market crash or has had a bankruptcy in the past few years and is now looking to
purchase again. Many boomerang buyers have been repairing their credit and saving up
down payments, so that the dream of home ownership can become a reality again.
Statistically Speaking
Although Vegas seemed to be one of the hardest hit foreclosure markets in the country,
it is not one of the top 5 seeing a comeback from boomerang buyers. Back in July 2013,
Realtor Magazine reported Boomerang Buyers are "expected to flood markets in some of
the hardest hit areas for short sales and foreclosures in the coming years. For
example, boomerang buyers are predicted to account for nearly one in every five home
sales in the metro Phoenix area this year—double the projected U.S. rate." The article
went on to report the top markets with the highest rates of boomerang buyers
(according to research by John Burns Real Estate Consulting July 2013) The results
came in as follows, and unfortunately newer percentage statistics were not available
at the time of this report (September 2015).
4.10% Riverside-San Bernardino, California
3.70% Los Angeles, California
3.60% Phoenix, Arizona
2.50% Chicago, Illinois
2.40% Atlanta, Georgia
2.12% Las Vegas, Nevada
2.10% Washington, D.C.
April 2015 statistics show that there were 319,000 Total Foreclosed Sales, Deeds-in-
Lieu of Foreclosure, and Short Sales in the state of Nevada during the years 2006 to
2014.50,000 Boomerang buyers purchased again in 2006-2014 in Nevada. And an additional
60,000 boomerang buyers are expected to purchase again in 2014-2023 in our state. Source NAR Study
So I'm Called A Boomerang Buyer, Now What?
So how does one boomerang back into the market? It's a complicated answer depending on your situation, we can help you determine based on your unique situation and the below information may be helpful.
Purchase After Bankruptcy
After a
bankruptcy buyers will have to wait typically 2 years before they can purchase
again. However, some buyers can qualify to purchase in 1 year but could have to
wait up to 4 years depending on the loan type and bankruptcy differing between
chapter 7 and 13 discharges.
Purchase After Foreclosure
After a
foreclosure (or Deeds-in-Lieu of Foreclosure) a home buyer may be able to
purchase again as soon as 2 years from the completion date if under a VA Loan. The
most common seasoning periods are 3 years for FHA or 7 years for Conventional
Loans. Keep in mind it’s all dependent on the loan type and extenuating
circumstances of the foreclosure.
Purchase After Short Sale
After a
Short Sale there are no time restrictions for a buyer to wait on FHA and VA
loan types if the mortgage was current at the time of short sale. If the
mortgage was in default, the waiting period varies 2 years for VA and 3 years
for FHA; while Conventional loan types are dependent on a seasoning period of 4
years.
What next?
Understanding how Foreclosure, Bankruptcy or a history of Short Sale can affect your purchase-ability is very confusing. Fortunately for you, you have Dave and The
Radcliffe Group and his team of professionals that can help you understand your
situation and options. Dave has over 25 years experience selling Las Vegas area real
estate and has developed some of the best relationships with the most respected
professionals in the business. Gina Baker (featured in the video above) is a great resource.
Give Dave a call and lets see how quickly you are able
to get back into home ownership. After-all, its about making a comeback. Boomerang
Buyers are Welcome Here!
Thinking About Selling? Demand for Homes is High!
What does this mean for homeowners looking to sell their Las Vegas, Summerlin, or
Centennial Hills homes? It means there are additional buyers who want to purchase your
home. With less than 3 months of inventory and only 6-7 weeks in some areas of town,
demand for homes is high. When demand is high, houses sell quickly and for top dollar.
With interest rates at historically low rates, it makes affordability easier for home
buyers. If you are considering selling your Las Vegas area home, give us a call, we
would be happy to help you create a marketing plan to yield you the highest return
possible and get you into a new home, benefiting from the low rates yourself.
About Dave and The Radcliffe Group
Out of more
than 10,000 real estate agents in the greater Las Vegas and Clark County
area, Dave Radcliffe ranks among the
Top 1% of Realtors as number 101 during the second quarter of 2015. Dave Radcliffe ranked number 1 in 2014 as the
top producing individual out of 172 Realtor-Agents in his office. Dave has a team of top producing agents and
ranks consistently as one of the top real estate teams at Keller Williams
Realty Southwest Las Vegas because he is all about customer service and
utilizing the best resources in the real estate business. The Radcliffe Group
is your Las Vegas, Summerlin, Centennial Hills, and North Las Vegas real estate connection.
As a retired
police officer, Dave is passionate about giving back to the service community
and dedicates much of his time giving and supporting the Las Vegas Metro Police Department,
Firefighters and Military at Nellis Air Force Base. Military, Fire and Law enforcement never
pay a full commission when they work with the Radcliffe Group. The
Radcliffe Group can assist
you in your Las Vegas PCS or relocation, New Home Construction purchase, Condo
and Luxury Home purchase. Specializing in helping Las Vegas and North
Las Vegas homeowners sell their home for the highest
market value, Dave and
his team will help you yield your highest profit. Call 702-379-3401 when it is
time to sell your Las Vegas, Summerlin, Centennial Hills or North Las Vegas Home.
With short term rates being at historic lows for the past 7 years, at near zero, rates will be raised a quarter of one point, to .25-.5%. This will impact home buyers as mortgage rates increase. With rates sill in the 4-5% range, Mortgage rates are still very low, especially when compared to interest rates of the early 1980's, when mortgage rates were at 17-18%.
