Rising Rent, Rising Home Prices, Rising Rates

Rents Rates Home Prices

Rising Rental Prices

Are you a renter? Do you think home rental prices will rise in the next 12 months? According to Fannie Mae’s June National Housing Survey, the number of people who say their home rental prices will go up in the next 12 months increased by 8 percentage points from May. 56% of survey respondents feel rent will rise compared to 48% in May. 56% is the highest level since the survey’s inception. For renters faced with rising rents and lease renewals, it may be time to look into a fixed mortgage which allows you to establish a fixed monthly mortgage payment (principal and interest) for 15 or 30 years.

Rising Home Prices

Are you a renter considering a first time home purchase? It may be time to skip out of rising rents and purchase a home while home affordability is still high. Do you personally think home prices are on the rise? According to the Fannie Mae’s survey, 57% of respondents say home prices are likely to rise in the next 12 months. This is the highest percentage recorded since the survey’s inception. In addition, the number of respondents who believe that home prices will go down held steady at a survey low of 7%. While there are many factors to consider when you buy a home, the home’s purchase price is definitely a big factor.

Rising Mortgage Rates

If you pay attention to financial news, this won’t be a big surprise. The share of respondents who say mortgage rates will go up increased 11 percentage points to 57%, the highest level since the survey’s inception. According to last week’s Primary Mortgage Market Survey (published every Thursday) by Freddie Mac, average 30-year fixed rate mortgages rose to 4.51 percent. Last year at the same time average 30-year fixed rates were nearly a full percentage point lower at 3.56 percent.

In a separate survey by Trulia, the number one concern potential home buyers have is rising mortgage rates. Consumers are increasingly anxious about rates – with good reason. Higher rates raise the monthly mortgage payment for a loan. Assuming mortgage rates will steadily increase in the foreseeable future, many new home buyers understand that timing is of the utmost importance when it comes to home affordability. Waiting until rates rise to 5% or 6% will make a big difference in monthly payment and overall interest payments mortgage borrowers pay over the life of the loan.

Evaluate Your Options

We aren’t trying to scare anyone – we are just hoping you consider your options. There are a number of programs available for new home buyers – some with low or no down payment options. For more detailed information on current mortgage rates and available loan programs, consult a licensed mortgage loan officer. Use our branch locator to find a loan officer in your area.

National Housing Survey

Information in this post was taken from Fannie Mae’s Monthly National Housing Survey. The purpose of this survey is to capture attitudinal perceptions of regular Americans with regards to homeownership, renting a home, the economy, and household finances. Inlanta Mortgage does not guarantee the validity of this information and uses it solely to spark a conversation about homeownership, mortgages, etc. For more information on Fannie Mae’s Monthly National Housing Survey, visit the Fannie Mae website: www.fanniemae.com.

About Inlanta Mortgage

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage is proud to be named to the Scotsman Guide Top Mortgage Lenders 2012 list and to be among the Top 100 Mortgage Banking Companies in America in 2012

Time to Buy a Home

Now is the time to buy a house.

71% of Americans Think So

According to Fannie Mae’s National Housing Survey for April 2012, 71% of Americans believe now is a good time to buy – which most of us would probably agree is not really surprising. Historically low mortgage rates and rising rents support these survey results. In fact, Fannie Mae’s survey addresses rental price expectations and it turns out that 49% of survey respondents think that rental prices will go up. This is the highest recorded percentage in the last 12 months.

More consumers also think the U.S. economy is on the right path. The percentage of Americans who believe the economy is on the right track rose to 37 percent, a 2 point increase from the previous month and the highest level in the survey’s two-year history. To put this in perspective, in the August, September, October, and November of last year only 16% of respondents believed the economy to be on the right track.

While home prices are currently low, especially in distressed markets, 32% of respondents expect home prices to increase over the next 12 months. Americans also expect mortgage rates to rise in the next 12 months – which isn’t very surprising when you consider that the 30-year fixed rate mortgages hit a new all-time record low last week.

“Overall, consumer views of housing market conditions have become more supportive of home purchases,” said Doug Duncan, Fannie Mae chief economist.

Heard enough? Are you read to make the leap to home ownership? Contact a licensed mortgage loan professional today to take advantage of low mortgage rates and low home prices – before they both go up. Click here to find an Inlanta Mortgage professional near you.

Click here to read the Fannie Mae Monthly National Housing Survey in its entirety.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.