Mortgage Rates Go Down for the Second Consecutive Week

Decorative wall
Decorative wall

Freddie Mac just released it’s weekly Primary Mortgage Market Survey. It shows U.S weekly average mortgage rates as of  June 7th, 2018.

Freddie Mac 6_7_2018. Primary Mortgage Market Survey. US weekly mortgage averages
Freddie Mac. Primary Mortgage Market Survey. US weekly mortgage averages as of 6/7/2018

This survey shows how U.S weekly average mortgage rates change during the week.

This week’s, June 7th, 2018, survey shows, that 30-year fixed rate mortage went down by 2 points since the last week’s survey.  Mortgage rates went down to 4.54 percent, since the last week survey when it was 4.56 percent.

The 30-year fixed rate mortgage increased by 65 points in a year. For the week of June 8th 2017, when rate average was 3.89%.

The 15-year fixed-rate mortgage went down by 5 points in one week. It is at 4.01 percent now, when last week was 4.06 percent.

The 15-year fixed rate mortgage for the year increased by 85 points. It was 3.16 percent on June 8th, 2017

 

Freddie Mac. US weekly average mortgage os af 6_7_2018
Freddie Mac. US weekly average mortgage as of 6/7/2018

Since April 1971, Freddie Mac has surveyed lenders across the U.S. weekly to determine the average 30-year fixed-rate mortgage rate

What Is a Title Search in Real Estate?

House in east Fort Lauderdale, FL
House in east Fort Lauderdale, FL

A title search in real estate is a process of researching of a real property history. It is done when a real property  is being sold and getting a new owner.

The property buyer wants to investigate the history of a particular property by looking into legal records for any changes done, inconsitency and irregularities with the legal documents of the property. All the legal documents show events in the history of real estate.

All recorded documents regarding a specific real estate property are looked into to decide on the current condition of real estate title.

 

When buying a real property, a title search is done to answer three main questions regarding a real property :

  1. Does the seller have a saleable and marketable claim in the property?
  2. What kind of restrictions or allowances come with the use of the land? ( example: real covenants, easements and others)
  3. Do any liens exist on the property which need to be paid off at closing? ( example: mortgages, back taxes, mechanic’s liens, and others)

 

 

 

Broward County, FL Real Estate Market Update: Homes for Sale – May 2018

Palm in front of the house in Davie, FL
Palm in front of the house in Davie, FL

It is the end of another month, May, so we can review the real estate market in Broward County, FL during this month.

Lets look at the info table I made using the information I got from MLS REALTORS® of the Palm Beaches and Greater Fort Lauderdale. Here is the current information about homes for sale in Broward County, Fl during the month of May 2018:

Market Update_Broward County, FL homes for sale-May 2018
Market Update: Broward County, FL homes for sale-May 2018

There are 4578 single family houses available for sale in Broward County, FL and 1267 new active listings during month of May.

Houses listed at the price of $251,000-$500,000 are selling the fastest, which is 39 days. This price range also has the biggest number of active single family homes- 2056, with new homes for sale 878.

The next very popular price range group is houses listed between $501,000-$750,000. There are 971 homes for sale in this price group, and 322 of those a new listings.

Median days on the market for the houses under a million dollars are about 65 days, and median  days on the market for the houses over a million is is around 140 days.

The data used to make the chart from the MLS REALTORS® of The Palm Beaches and Greater Fort Lauderdale, which has data that is deemed reliable but not guaranteed and has the most accurate and up-to-date information about local home sales.

If you want more information about local market, please look into Local Market Conditions and Home Prices category or Market Update category.

If you are looking for a house to buy or sell, please let me know. I would like to help!

What Are Comparable Sales in Real Estate?

Comparable Sales
Townhomes in Holywood, FL

Comparable sales is a term used in real estate when analyzing homes located in the same area, Those homes are very similar in size, condition and features as the comparable home. The term “comps” is also used.

Home – buyers should look at comparable sales when deciding what price to offer for a home they want to buy. Homeowners should use comps inorder to decide on a best price for home to sell.

There are 3 main things that are important in deciding on comparabes:

1. Location.

2. Timeframe.

3. Features.

 

Lets look at these in more details.

1. Location 

Location is the most important when analyzing homes and trying to decide on a home value. There is even saying “3 most important things about the house are : location, location, location“. I have wrote about the importance of location in my blog before. The real estate market is based on property location. The most effective way to analyze the property is to keep as close to the subject property as possible. It is the best to keep the comaprables and the subject properties within the same neighborhood .

If there are not enough comps near the subject home , it’s ok to look futher and expand out. But do not foeret to watch other boundaries, like a school district, and stay within it.

2. Time frame

When looking at the comps that were recently sold, the best comparable sales are in the past three (3) months. Do not go back for more than six months, because it is older data is not reflective of the current market.

The best comparables are homes that are currently “pending.”. A pending home means that a buyer and seller made a deal. Just the final sale price is not known,because the home is not sold yet.

3. Home Features:

After finding the comparable homes in a particular location and getting comps from a recent timeframe, the most important is to look for homes with similar features as a subject home. It is important to look at the prices that homes were sold.

If comparing price per square feet, it will not consider other factors,like lake or golf views, a new designer kitchen, updated new bathrooms.

When comparing home features, it is very important to look for similarities. Let say, the subject home has all four bedrooms on the top floor, look for something similar. Its is very important number of bedrooms, number of bathrooms and totl square footage of the whole house. Also, the size of the lot is very important too. Check if the basement finnished or unfinished. It is possible to make adjustments in price for diffrences , when comparing homes.

 

Mortgage Rates Just Keep Going Up

Abandoned building in downtown Hollywood, FL
Abandoned building in downtown Hollywood, FL

Freddie Mac released its’ weekly Primary Mortgage Market Survey on May 24th, 2018:

Freddie Mac. 5_24_2018.Primary Mortage Market Survey. US weekly averages mortgage rates.
Freddie Mac. Primary Mortage Market Survey on 5/24/2018. US weekly averages mortgage rates.

This survey shows U.S weekly average mortgage rates and the changes in the rates for the week.

This week’s, May 24th, 2018, survey shows, that 30-year fixed rate mortage went up by 5 points since the last week’s survey.  Mortgage rates moved up over the past week to 4.66 percent.

The 30-year fixed rate mortgage increased by 71 points in a year. For the week of May 25th, 2017, when rate average was 3.95%.

At 4.66% the average mortgage rate is at the highest level since May 5, 2011, when it was 4.71 percent.

Mortgage rates so far in 2018 have risen in 15 out of the first 21 weeks (71 percent). It is the highest share since Freddie Mac began tracking this data for a full year in 1972.

The 15-year fixed-rate mortgage went up by 7 points. It is at 4.15 percent now, when last week was 4.08 percent.

The 15-year fixed rate mortgage for the year increased by 96 points. It was 3.19 percent on May 25th, 2017

Freddie Mac 5_24_2018. US weekly average mortgage rates.
Freddie Mac. US weekly average mortgage rates as of 5/24/2018

If more homeowners decide not to sell their home, because they do not want to get a new mortgage with a higher rate, then available homes shortage can be worse. There would be less homes for buyers to choose from.