Mortgage rates are on the   rise   this year states Mike Eastwood Author & Chief Executive Officer of West USA Realty of Prescott, but they’re still incredibly low compared to the historic   average . However, anytime there’s a change in the mortgage rate, it affects what you can afford to borrow when you’re buying a home. As Sam Khater,   Chief Economist   at   Freddie Mac ,   shares : “ Since January, mortgage rates have increased half a percentage point  from historic lows and home prices have risen, leaving potential homebuyers with less purchasing power.” (See graph below): When buying a home, it’s important to determine a monthly budget so you can plan for and understand what you can  afford . However, when you need to stick to your budget, even a small increase in the mortgage rate can make a big difference. According to the  National Association of Realtors  (NAR), today, the median existing-home price is  $3...

  If you’ve given even a casual thought to   selling   your house in the near future states Mike Eastwood Chief Executive Officer of West USA Realty of Prescott, this is the time to really think seriously about making a move. Here’s why this season is the ultimate   sellers’ market   and the optimal time to make sure your house is   available   for buyers who are looking for homes to purchase. The latest  Existing Home Sales Report  from  The National Association of Realtors  (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a  2-month supply  at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal or ‘neutral’ market in which there are enough homes available for active buyers  (See graph below) : When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purch...

  Right now, the housing market is full of outstanding opportunities for both buyers  and  sellers states Mike Eastwood Chief Executive Officer of West USA Realty of Prescott. Whether you’re thinking of buying your first home, moving up to a bigger one, or selling so you can downsize this spring, there are perks today that are powering big moves for people across the country. Here are the top two to keep on the radar this season. The Biggest Perk for Buyers: Low Mortgage Rates   Today’s most compelling buyer incentive is low mortgage interest rates. The 30-year fixed-rate is now averaging just over  3% . While that’s slightly higher than the record-lows from 2020 and earlier this year, it’s still way lower than historic norms, making purchasing a home an ongoing perk for hopeful buyers  (See graph below) : This is a huge advantage for buyers and helps to make owning a home attainable for more households – and there’s good reason to strive for homeownership....

   For generations states Mike Eastwood Chief Executive Officer of West USA Realty of Prescott, the homebuying process never really changed. The seller would try to estimate the market value of the home and tack on a little extra to give themselves some negotiating room. That figure would become the listing price of the house.   Buyers   would then try to determine how much less than the full price they could offer and still get the home. The asking price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than the list price. It was unthinkable to pay more than what the seller was asking. Today is different. The record-low  supply  of homes for sale coupled with very strong buyer demand is leading to a rise in  bidding wars  on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more. According to the  Home Buyers and Selle...

  According to data from the most recent   Origination Insight Report   by   Ellie Mae , the average FICO® score on closed loans reached 753 in February states Mike Eastwood Chief Executive Officer of West USA Realty of Prescott. As lending standards have   tightened   recently, many are concerned over whether or not their credit score is strong enough to qualify for a mortgage. While stricter lending standards could be a challenge for some, many buyers may be surprised by the options that are still available for borrowers with lower credit scores. The fact that the average American has seen their credit score go up in recent years is a great sign of financial health. As someone’s score rises, they’re building toward a stronger financial future. As more Americans with strong credit enter the housing market, we see a natural increase in the FICO® score distribution of closed loans, as shown in the graph below: If your credit score is below 750, it’...

  When thinking about selling, homeowners often feel they need to get their house ready with some remodeling to make it more appealing to buyers states Mike Eastwood Chief Executive Officer of West USA Realty of Prescott. However, with so many   buyers   competing for available homes right now, renovations may not be as vital as they would be in a more normal market. Here are two things to keep in mind if you’re thinking of selling this season. 1. There aren’t enough homes for sale right now. A normal market has a 6-month supply of houses for sale, but today’s housing inventory sits far below that benchmark. According to the  National Association of Realtors  (NAR), there’s only a  1.9-month  supply of homes available today. As a result, buyer competition is high and homes are only on the market for about  21 days , during which time many receive multiple offers from hopeful buyers. In a competitive market that’s moving so quickly, it makes sense ...