In this brief real estate market update there are some big questions...
Is good credit being penalized on new mortgages? (sort of)
Is there a 40 year mortgage option? (not really)
Can you save lives by golfing? (surprise here)
And, what is happening in the real estate market? (it is up first in the video).
1. Market Update, the numbers that tell us what is happening in central AZ real estate:
Homes for Sale Now = 12,600
Homes Under Contract = 10,439
Closed last 30 days = 6,700
What that means is that across the Valley homes are selling in an AVERAGE of 60-90 days, however it does vary by area, town and neighborhood. As an example, in the San Tan area it is more towards the 90 day average. Across the valley it is stable and we are still running low on inventory of homes for sale as compared to the last decade. The volatility in interest rates have slowed some buyers which is why we remain in a fairly neutral position. In other words neither the buyer nor the seller really has a significant advantage in this market. For information about YOUR neighborhood please contact us so we can get you specific data!
2. Is there now a penalty for good credit on new mortgages?
The more accurate way to view the changes that will be taking effect in home mortgages come May 1st is this: The benefit to those with the best credit scores has been reduced while the penalty to those with lesser scores has been reduced BUT it is still an advantage to have better credit. From an article in USA Today:
"Starting May 1, upfront fees for loans backed by Fannie Mae and Freddie Mac will be adjusted because of changes in the Loan Level Price Adjustments (LLPAs), the fees that vary from borrower to borrower based on their credit scores, down paymenets, types of home, and more. The changes relate to credit scores and down payment sizes.
For example, if you have a score of 659 and are borrowing 75% of the home's value, you'll pay a fee equal to 1.5% of the loan balance. Before these changes, you would have paid a 2.75% fee. On a hypothetical $300,000 loan, that's a difference of $3,750 in closing costs. (savings)
On the other end, if you have a credit score of 740 or higher, you would have paid a 0.25% fee on a loan for 75% of your home value before May 1. After that date, you could pay as much as 0.375%.
See the full article here.
Have specific questions regarding these changes? Let's connect so we can get you answers!
3. Is there a 40 Year Mortgage now available?
Sort of... if you are making a home purchase there is no option for a 40 year loan. However, for those that find themselves in a changing situation where they can no longer pay their mortgage there is now now possibility with FHA loans to do something similar to a loan modification. The intent of keeping people in their home. For a new purchase there is no 40 year option.
4. Can you Save Lives by Playing Golf?
Absolutely, when doing so supports organizations like Phoenix Children's Hospital and The Veterans Club at Encanterra!
Once again this year we have the privilege of being banner sponsors at Jaxton's Heart Warrior golf tournament. This tournament was founded by our amazing past clients who have a son with heart issues who has been treated by Phoenix Children's Hospital. Today the Hansens and their friends are paying forward the opportunity for other children to receive the outstanding care that was given to their son Jaxton! They do this thru a yearly fund raising golf tournament! See more at Jaxton's Hear Warrior Inc.
We will be updating you on Jaxton's Heart Warrior tournament and The Veteran's Club tournament next month!
If you have any questions about the market update, mortgage changes or the ways we give back in the community please reach out so we can help reach your goals!
The Drew Team's Robin & Steven Drew, Robin McAvoy, Casey Hurlburt, Tom Walton and our amazing admin Nancy Horn are always ready to serve you!
