8 Common Ways To Hold Title

Why Are Mortgage Interest Rates Increasing?

Why Are Mortgage Interest Rates Increasing?

According to Freddie Mac's latest Primary Mortgage Market Survey, the 30-year fixed rate mortgage interest rate jumped up to 3.94% last week. Interest rates had been hovering around 3.5% since June, and many are wondering why there has been such a significant increase so quickly.

Why did rates go up?

Whenever there is a presidential election, there is uncertainty in the markets as to who will win. One way that this is noticeable is through the actions of investors. As we get closer to the first Tuesday of November, many investors pull their funds from the more volatile and less predictive stock market and instead, choose to invest in Treasury Bonds. When this happens, the interest rate on Treasury Bonds does not have to be as high to entice investors to buy them, so interest rates go down. Once the elections are over and a President has been elected, investors return to the stock market and other investments, leaving the Treasury to raise rates to make bonds more attractive again. Simply put, the better the economy, the higher interest rates will go. For a more detailed explanation of the many factors that contribute to whether interest rates go up or down, you can follow this link to Investopedia.

The Good News

Even though rates are closer to 4% than they have been in nearly 6 months, they are still slightly below where we started 2016, at 3.97%. The great news is that even at 4%, rates are still significantly lower than they have been over the last 4 decades, as you can see in the chart below. Any increase in interest rate will impact your monthly housing costs when you secure a mortgage to buy your home. A recent Wall Street Journal article points out that, "While still only roughly half the average over the past 45 years, according to Freddie Mac, the quick rise has lenders worried that home loans could become more expensive far sooner than anticipated." Tom Simons, a Senior Economist at Jefferies LLC, touched on another possible outcome for higher rates: "First-time buyers look at the monthly total, at what they can afford, so if the mortgage is eaten up by a higher interest expense then there's less left over for price, for the principal. Buyers will be shopping in a lower price bracket; thus demand could shift a bit."

Mortgage Interest Rates Just Went Up... Should I Wait to Buy?

Mortgage Interest Rates Just Went Up... Should I Wait to Buy?

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Along with Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors are all calling for mortgage rates to continue to rise over the next four quarters. This has caused some purchasers to lament the fact they may no longer be able to get a rate less than 4%. However, we must realize that current rates are still at historic lows. Here is a chart showing the average mortgage interest rate over the last several decades.

Bottom Line

Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago; a lower rate than your parents did twenty years ago and a better rate than your grandparents did forty years ago.

Don't Be Fooled

November Happenings & Events

Happenings & Events

Veterans Day Third Annual ‘Concert For Heroes’ | November 11^th
2:00pm – 10:00pm | Galway Downs, 38801 Los Corralitos Rd, Temecula, CA 92592
The Manzanita Ranch, Inc. is a nonprofit human service agency dedicated to serving the needs of veterans by using horses for therapy. Featuring The Phoenix Patriot Band, Slow Traffic, Michael Thomas and Friends, Tim Walsh, JD Priest, Noizee Neighborz, Shoot 4 Tuezday, The Great Tim Moyer, Neil Young Recording Artist Tom Bray, Lifetime Rockers, The Barnyard Boyz, Jen Householder, Joe Lawing, Off the Vine, Joe Fillaspie, OS Roxx & more!
For more information visit: www.galwaydowns.wpengine.com Murrieta Field of Honor | November 8^th – 14^th
9:00am - Dusk | Town Square Park, Murrieta, CA
More than 2,000 full-sized American flags will be set up in perfect rows and columns for the week-long event that also features a number of other activities. It’s a week to pay honor and express thanks. And it’s also a time to educate — visitors to the Field gain knowledge about American history. We learn about our country’s flags, its highest military honor, its war dead.
For more information visit: www.murrietafieldofhonor.com

Wine Appreciation Class | November 19th
10:00am –12:30pm | Falkner Winery, 40620 Calle Contento Temecula, CA
This class is designed for all ages and all levels of wine knowledge. Individuals can expect learn about wine tasting, wine production, wine & food pairing, and wine quality determination.
For more information visit: www.temeculaca.gov

South Coast Winery Thanksgiving Feast | November 24th 11:00am – 9:00pm | South Coast Winery, 34843 Rancho California Rd., Temecula, CA
Spend your day in gratitude and away from the kitchen. Let South Coast Winery Resort & Spa’s chefs and servers take care of your every need, while you sit back, relax and enjoy quality time with your family and friends. Make your reservations early for best selection.
For more information visit: www.southcoastwinery.com

Christmas Tree Lighting at the Pond | November 25th 5:00pm –6:30pm | Temecula Duck Pond & Veterans Memorial, 28250 Ynez Rd. Temecula, CA
Put the leftovers away and let’s kick off the holidays with the annual Christmas Tree Lighting Ceremony. Enjoy a holiday treat, a visit from Santa Claus and a holiday performance by Resonate! Vocal Group while we wait for the countdown to light the tree.
For more information visit: www.falknerwinery.com

Don’t forget to take part in this year’s Presidential election. Every vote counts!

November 8th 2016

October Happenings & Events

Happenings & Events

Hyde St Massacre Haunted Attraction | October 1^st – 2^nd 7^th – 9^th 14^th -17^th 21^st – 23^rd 27^th -31^st
7:00pm – 12:00am | Galway Downs, 38801 Los Corralitos Rd. Temecula, CA
You are in for the scare of your life! Join others and attempt to get through this frightful haunt!! Will you survive a night at Galway Downs and get through the Hyde Street Massacre Haunted House? Take the challenge, we dare you!
For more information visit: www.hydestreethaunt.com

Field of Screams | October 1^st – 2^nd 8^th – 9^th 14^th – 17^th 20^th –23^rd 27^th – 31^st 7:00pm – 12:00 am | Storm Stadium, 500 Diamond Dr. Lake Elsinore, CA
Inland Empire’s #1 Halloween attraction comes screaming back for yet another year of new mazes, new horrors, new characters and more!
For more information visit: www.hauntedstadium.com

Spooktacular Dog Walk | October 22^nd 11:00am – 2:00pm | Promenade Temecula,  40820 Winchester Rd. Temecula, CAThere will be a fundraising walk, treat bags, vendor booths, photos, a pet parade, and a costume contest. Come join in on all the fun!
For more information visit: www.business.murrietachamber.org

Halloween Carnival | October 28^th 5:30pm | Ronald Reagan Sports Park, 30875 Rancho Vista Rd. Temecula, CA
Attention Princesses, Super Heroes and Minions we need you to have fun at the annual Halloween Carnival! Games, costume contest, jumpers, candy, and prizes await! Don’t miss this treat-filled Temecula tradition.
For more information visit:www.temeculaevents.org/halloweencarnival

Murrieta’s Fall Festival | October 29^th 5:30pm – 8:00pm | Cal Oaks Sports Park, 40600 California Oaks Rd. Murrieta, CAJoin the city of Murrieta for some fun! Carnival style games, food vendors, candy and prizes! $3 wristband for unlimited games! This is an event the whole family can enjoy.
For more information visit: www.murrietaca.gov

Don’t forget about the local Pumpkin Patches!!!

Bates Nut Farm | 15954 Woods Valley Rd. Valley Center, CAwww.batesnutfarm.biz/

Hunter’s Pumpkin Patch | 40820 Winchester Rd. Temecula, CA www.temeculapumpkinpatch.com

Stu Miller’s Pumpkin Patch | 38244 Murrieta Hot Springs Rd. Murrieta CA
www.seasonaladventures.com

4 Reasons to Buy This Fall

It’s that time of year; the seasons are changing and with them come thoughts of the upcoming holidays, family get-togethers, and planning for a new year. Those who are on the fence about whether or not now is the right time to buy don’t have to look much further to find four great reasons to consider buying a home now, instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects home values to appreciate by more than 3.5% a year for the next 5 years.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Remain at Historic Lows

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained at or below 3.5% for 13 consecutive weeks. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

Any increase in rates will impact YOUR monthly mortgage payment. A year from now, the percentage of your income that you spend on housing will increase substantially if you choose to wait.

3. Either Way You Are Paying a Mortgage

Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage - either your mortgage or your landlord’s. As a paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Article published by Keeping Current Matters