The Fed recently announced they would continue their current pace of purchasing bonds until the economy was stronger. This bond purchasing program is the reason that mortgage interest rates are at historic lows. Rates began to increase over the last several months just on the anticipation that the Fed would announce that they would be reducing the level of bond purchases last month. When that didn’t happen, rates actually decreased (4.50 to 4.37).
That was great news for any buyer in the process of purchasing a home. However, this window of opportunity is expected to close in the very near future as most experts expect the Fed to taper the bond purchasers in December. Even Ben Bernanke, Chairman of the Fed, suggested that the Fed could still scale back the stimulus this year. He stated:
“If the data confirms our basic outlook, then we could move later this year.”
Where will mortgage rates head in 2014?
The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors have each projected that the 30 year fixed rate mortgage will have interest rates in excess of 5% by this time next year. The average of their four projections is 5.3%. The table below shows the impact this will have on the monthly principal and interest payment on a $250,000 mortgage:
A buyer should take advantage of the current window of opportunity before it is too late.
Contact David Painter Realtor Greenville SC (864) 616-1608
Keller Williams Greenville SC
Although mortgage rates are rising, demand for a limited supply of homes appears strong, according to the SC Realtors Association.
Some buying, the trade group said in its August report, might be triggered by speculation that rates will climb further.
“The dream of homeownership is very much intact, but buyers should be prepared with competitive offers, since every measure of market health is pointing upwards,” the report by the Columbia-based association said.
Some keys to what will happen in the housing market include:
- Whether the Federal Reserve will alter its policy toward stimulus tapering.
- Tepid, but positive labor market growth.
- Consumer sentiment swayed by gas prices, stock market shifts and global economics.
Overall, new listings in the state increased 5.9% to 8,982 units compared with August 2012 levels, while pending sales rose 6.7% to 5,404. Inventory levels shrank 6.6% to 46,827 units.
The overall median sales price rose 3.3% to $155,000 compared with August 2012 numbers, while the number of days on the market dropped 13.6% to 111 days.At the end of the month, the state housing market had about a nine-month supply of available units. The strongest demand for housing was in single-family homes, where inventory shrank 5.4%.
Among the state’s major metro markets, Charleston Trident recorded a 22.4% increase in sales for August to 1,256 units. Meanwhile, the median price in Charleston climbed 9.6% to $219,000 in August compared with $199,865 for the same month in 2012, and the average number of days on the market dropped 18.7% to 72. Greater Columbia reported a year-over-year increase of 19.4% in August sales to 947 homes, while the median price slipped 1% to $143,000. The average number of days on market for Columbia dropped 19.9% to 96.
In Greater Greenville SC real estate, sales rose 18.1% to 921 homes compared with 780 for August 2012. Meanwhile, the median price rose 5.4% to $165,000 compared with $156,500 for August 2012. The average number of days on market dropped 12.9% to 84.
David Painter – Realtor Keller Williams Greenville SC
Article: Staff Report scbiznews.com
$149,500 – Thornblade Crossing Greer SC
Searching for easy, care-free, low maintenance living on the Eastside? Look no further! Impeccable 3BR / 2.5BA townhome in Greer SC nestled on a cul-de-sac lot in the gated community of Thornblade Crossing Greer SC. This wonderful neighborhood offers the security of a close-knit community but also appreciates the need for privacy. It is ideally situated near Pelham Road/I-85/I-385 which makes it convenient to shopping, restaurants, GSP and downtown Greenville.
Another added bonus, it is located in one of Greenville’s top school districts. If the lure of a fantastic location and practical townhome living isn’t enticing enough, this functionally stylish, ready to own Greer SC townhome will certainly persuade you. It features an open floor plan with gleaming hardwoods thru-out GR/DR/KIT. The KIT has solid surface counter tops, full appliance package with smooth-top stove and offers plenty of cabinet space. A raised bar top gives extra counter space and allows for another eating or gathering area next to the GR. The GR is highlighted by a gas log fireplace with exquisite marble surround, a niche above fireplace for flat screen TV and French doors which lead out onto a large patio area. The DR has a cathedral ceiling and natural light cascades within from the surrounding windows. The MBR suite boasts of a cathedral ceiling, huge walk-in closet, raised double vanities with make-up desk, separate shower and garden tub.
This cul-de-sac lot is the premier location in the neighborhood and provides more privacy/less traffic. The lawn showcases mature landscaping and is complemented by sod grass and in-ground sprinkler system. Other features include attached two car garage, upstairs laundry, intercom/entertainment system, 2” plantation style blinds, crown molding, fresh paint and new carpet. All appliances are to remain. Community amenities consists of security gate, pool and some common areas. The regime fees include lawn maintenance, termite contract, street lights, exterior/common area insurance.