Expand Your Education with These Courses from
Time Management: Skills for Sales Success: Part Two.
The Psychology of Consultative Selling: Skills for Sales Success: Part Four.
Expand your education through NAR's REALTOR® University: A Consumer Advocate Approach to Mortgages: Course 2.
BPOs: The Agent's Role in the Valuation Process.
Bundle 1: CIPS Core Course (US Version).

Experts: Say So Long To Mortgage Rates In The 3′s For Now

Have a comment on this article? Share on Facebook!

By Kenneth R. Gosselin

In May, sales of single-family houses and the corresponding median sale price — where half the sales are above and half below — both rose for the first time since January. The sales were the highest recorded for the month since 2010, especially notable because sales in 2010 were boosted by a federal home buyer tax credit.

The sudden jump could temporarily stall recovery, mortgage lenders say, as borrowers wrestle with the implications of higher rates.

“When something goes up that much, it is too much, too soon,” said Michael Menatian, president of Sanborn Mortgage in West Hartford. “It’s like sticker shock.”

The difference between 3.6 percent and 4.8 percent on a $200,000 mortgage amounts to $140 a month, an increase from $909 to $1,049. (The payment represents principal and interest but doesn’t include escrow for real estate taxes or homeowner insurance.)

Higher rates have already cut into refinancing, and borrowers with adjustable-rate mortgages also will feel the pinch, experts say.

Home builders in Connecticut say they are watching the rate increases closely, as new home construction in the state begins to reverse a multiyear slump. Permits for new single-family houses, condominiums and apartment units are up 14 percent through the first five months of this year, compared with the same period last year.

“It’s always a concern when rates go up,” said Joanne Carroll, a spokeswoman for the Home Builders Association of Connecticut. “For every percentage point or part of a percentage point, you have the possibility of disqualifying people who are on the edge, like first-time home buyers.”

Continue Reading 1 2 3 4

Have a comment on this article? Share on Facebook!

Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Copyright© 2016 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>