Interest Rates Increasing, Massachusetts Home Sales Dropped and More:
April 5, 2013
• From the KCM Blog: Interest rates are increasing. The Fed has been artificially holding down rates to stimulate the economy, but as the economy grows stronger, rates will rise. The Mortgage Bankers Association forecasts that the 30 year fixed will be 4.3% by year’s end, an increase of 1% since the end of 2012. A 1% increase translates to an additional monthly payment of $116 on a $200,000 mortgage.
• From Banker & Tradesman: Single family home sales in Massachusetts dropped in February, a 5% decrease from February 2012, reversing 13 straight months of rising sales volume. According to Timothy Warren, CEO of the Warren Group, “Two factors caused this modest drop in February: Low inventory and a comparison with a strong previous year of sales.”
• From Realtor Magazine: 1.5 to 2 million homes belonging to seniors (65+) will come on the market by the end of this decade. About 80% of seniors are homeowners by the time they reach 65, the highest home ownership rate among any age group.
• Also from Realtor Magazine: A study by NeighborWorks America shows that borrowers who went through a pre-purchase counseling program were nearly one third less likely than non-counseled borrowers to fall behind on their mortgage payment by 90 days or more in the first two years after closing.