Buying a Home in 2017? Prepare for These New Changes to the Housing Market
Potential home buyers, be prepared. 2017 is shaping up to present a whole new experience for those looking to purchase a house, especially for the one-third who are first-time home buyers.
First off, their mortgage rates will likely be higher than usual, thanks to president-elect Donald Trump. Just this week, mortgage agency Freddie Mac reported that 30-year nationwide mortgage rates are at a 32-month high.
These conventional mortgage rates offer a 30-year contract for home owners, but within the past week they grew 14%, and the nationwide average rose 4.30%.
So what does this mean? Simple: homeowners cannot afford the houses they had their eyes on just 60 days ago.
Every week, Freddie Mac takes a survey of 125 mortgage lenders in order to provide a summary of the current mortgage interest rates nationwide. The standard of comparison is straightforward; Freddie Mac asks banks, credit unions, and mortgage companies their current rate for any well-qualified borrower who plans on putting down a 20% deposit. These numbers are then averaged out. While the findings are not an exact indicator of every American’s interest rate, they do give a comprehensive look into exactly where the housing market is headed.
Because of this trend, more and more home buyers are looking to sign up for a 15-year fixed loan, so they can avoid he high interest rates. The problem is that payments on these loans are much more expensive and first-time home buyers rarely get approved.
But that is where a real estate brokerage firm comes in. While there were 86,004 real estate brokerage firms across the U.S. back in 2012, these firms have been slowly but surely changing their offerings.
Instead of getting you to your dream home and letting you handle all the expensive repairs and maintenance that undoubtedly comes with a new house, some real estate companies are looking to be a one-stop shop. Think of it as renovation architect meets real estate agent. With this wealth of experience and expertise, it’s easier for home buyers to choose a property that will suit them, with no hidden complications or surprises down the line.
This multidisciplinary approach to home buying is targeted primarily to new home buyers who don’t understand the dozens of maintenance projects a new house requires. From installing cabinetry and new appliances to updating fencing and remodeling the kitchen, these architects will not only ensure the best deal on a house, but will also make sure it fits the buyer’s needs. They will explain the blueprints of the home, communicate with contractors, and help close on the home without batting an eye.
So why not kill two birds with one stone when looking into a new home? New homeowners have a lot to worry about, and the last thing they need to determine is what color tile works best in their bathrooms.
Ron Ginsburg explains to the Washington Post about how working with just one property is better in the long run. He says, “What we’re really talking about is creating a home, not just a place to store your stuff. This means many details, great and small, have to come together. Why not start with professionals who understand your aesthetics, have multiple skills and can help you reach your goals?”
Oh, and they’ll help you with those pesky interest rates as well.