Listing Courtesy of JACK LINGO REHOBOTH
For Dewey Beach home shoppers who anticipate taking advantage of today’s low mortgage interest rates, the Consumer Financial Protection Bureau has a few words of interest. The CFPB thinks it has found a way for consumers to get the best home loan deals.
The way they recommend is to shop around.
Now, it may seem as if everybody in Dewey Beach would know that without needing the Consumer Financial Protection Bureau to clue them in, but the CFPB has evidence to the contrary. The last time they looked, nearly half of mortgage borrowers hadn’t shopped around before they signed up for their loan (47% of them, to be precise). That is rather surprising, since even an eighth of a percentage point difference in the interest rate works out to a lot more than spare change. Why more home buyers don’t compare mortgage deals may be due to a number of factors.
For one thing, anyone who has spent much time on the internet has had the unfortunate experience of being promised that they can “see today’s rate” with no strings attached, only to eventually discover (after entering a lot more information than seems relevant) that they will be contacted (phone number, please) by what is likely to be a high pressure salesman. You get the feeling that you may have shared too much information to web denizens you don’t really know.
Another reason might be concern about qualifying. If you’ve had credit rejections in the past, the good news that comes with receiving any offer might make some folks accept it out of sheer relief.
Yet another reason might be especially true in today’s Dewey Beach market. Especially if you have earlier familiarity with the much higher rates from previous eras, the first mortgage rate you hear may be so low that you are delighted to accept it. There is also the fact that if you are offered several options with different loan types, terms, and point-rate tradeoffs, the act of choosing between them can satisfy the natural inclination to shop around.
The CFPB would like to encourage more aggressive consumerist behavior. To accomplish that—to make everyone “feel comfortable shopping in the mortgage market”—their web site has various educational tools. Their staff produced a number of charts. The one that shows interest rates from 1990 to 2014 slopes delightfully downward. Less informative is another chart that shows how borrowers who feel “confidence in their knowledge of available interest rates” are almost twice as likely to shop around as those who say they are “unfamiliar with available interest rates.” That doesn’t seem to be much of a revelation—it’s like saying that learning to read price tags increases your ability to comparison shop…
For those who do expend the effort to do mortgage comparisons, there is also agreement that having a professional in your corner leads to the most satisfactory results. It’s another good reason why, on the way to acquiring your Dewey Beach dream home, giving me a call is an excellent idea! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
“Give me one good reason why selling now is better than waiting until next spring,” is a perfectly legitimate request. It’s a challenge to the traditional peak of Delaware’s selling season. Why should right now, at the start of September, be the right time to sell your Delaware home?
Statistics show that more homes are sold in the spring and summer, that—plus sheer inertia—can be powerful arguments to the contrary.
So here’s the “one good reason.” In fact, it could be the best reason. It’s the textbook Economics 101 basic rule about markets and pricing.
Simply put, the supply of housing all across the nation continues to be low. Really, really low. A few weeks ago, USA Today put inventories of homes for sale at “a 20-year low.” By the start of summer, that explained why the S&P CoreLogic Case-Shiller national home price index was up 5.6% from the year before—an all-time high.
Now, it could turn out that the supply of competing homes on the market remains low throughout the fall and winter—and even throughout 2018. But it’s also possible that conditions change, and that the housing inventory slump finally reverses. In fact, the economy, jobs reports, and consumer confidence are on the rise…
But until then, it’s what those Econ 101 introductory texts lay out: a basic truth that the price of an item is a reflection of supply and demand. Unless the annual pattern does a surprise about-face, come springtime, many more competing homes can be expected to enter the market. In other words, right now an already-constricted supply is likely to thin out even further. And most homeowners will wait for the traditional peak selling season to sell their Delaware homes.
The long and short of it is that listing now isn’t just a good time—it could be the good time. If you were looking for that “one good reason,” it’s also another reason, too—to give me a call me to discuss how best to sell your Delaware home! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.