Listing Courtesy of KELLER WILLIAMS REALTY
It’s really as simple as this: when Lewes mortgage interest rates are low, good things happen in Lewes real estate. And last week, when The Washington Post commented on the news coming out of Washington, it indicated exactly that. “Mortgage rates fall for the third week in a row” was the headline summarizing the latest data from Freddie Mac. It was good news—but there were also new grounds to wonder how long it was going to last.
One of the key reasons for the strength of Lewes’s residential market has been shown in the ‘affordability’ index, which gives a numerical answer to the question every prospective local home buyer understands: can I afford it? The index uses a number of economic factors to come up with the answer to whether typical families can afford the monthly cost of a typical home. Of course, it all revolves around what that monthly cost actually is. For local buyers, that cost rises and falls along with Lewes interest rates.
So the latest figures once again signaled smooth sailing. Nationally, Freddie Mac reported that the 30-year fixed-rate average had ‘slipped’ to 3.93%. Anything less than 4% is, in historical terms, really low. As homeowners who were around at the start of the 1980s will tell you, when mortgage interest rates climb into double digits, the monthly payment amounts grow so steep the whole market is hamstrung (in 1981 and 1982, mortgage interest rates averaged north of 16%!)
That’s the reason why anyone who is even beginning to lay plans to buy or sell knows their budget will be affected by the direction Lewes interest rates head. Consulting expert opinion hasn’t helped much over past few years, either. Most seers have been predicting a rise in rates for quite a while. They’ve been consistent (in being wrong).
Nevertheless, at the end of last week it looked increasingly likely that their expectations might finally be met—and soon. Federal Reserve’s Chairman Yellin has been issuing statements that indicate a bias toward raising Fed rates, if the economy can sustain them. On Friday, the latest labor reports were widely hailed as indicating the kind of strength that she had been talking about. The year’s final Fed meeting will take place on December 15-16. If they do raise the benchmark federal funds rate, Lewes mortgage interest rates will certainly follow. The real question on both fronts was how much…
When you decide to buy or sell a home, Lewes mortgage factors are important, yes—but they are only some of many considerations. One factor that won’t change is that I will be standing by, ready to help on all fronts! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
Along with all of last week’s New Year’s Day festivities came what you could call the New Year’s Frame of Mind: the familiar, this-time-of-year special consciousness of the passage of time. For most Lewes residents, all the other seasons come and go with everyone too busy tending to everyday affairs to pay much attention to the big picture: the progress (or lack of it) toward the major goals most everybody hopes to achieve.
It’s that New Year’s Frame of Mind that’s behind the impulse to make New Year’s resolutions. After all, there’s no such thing as ‘Fourth of July resolutions,’ or ‘Labor Day resolutions,’ even though a quick check of the calendar confirms they come once every year, too. Nope; it is the moment when the crystal globe slides down to the Times Square throng and old Father Time greets Baby 2016 that’s most likely to trigger thoughts of how preposterous it is that another whole yearhas gone by.
Whether or not that feels terrific is partly due to how well we’ve advanced in our individual Grand Scheme of Things…be it a self-improvement incentive (that’s why they run all those ‘learn a foreign language’ commercials in December) or long-term career growth.
For most Lewes residents, progress toward financial security is one of the larger issues that the New Year’s Frame of Mind can trigger. Right on cue, many of last week’s end-of-year broadcasts included a sobering study about the average American’s savings picture…actually, ‘sobering’ is too mild a word. As one credit guru put it, the statistics were ‘dizzying.’
The survey was credited to an outfit called GOBankingRates. They had released it months ago, but it drew considerably more attention as the calendar neared January 1 (getting the New Year’s Frame of Mind treatment). Their pronouncement wasn’t so much ‘dizzying’ as it was frightening: the lead finding was that 62% of Americans have less than $1,000 in savings!
Reassuring information was readily available, though, for anyone who did more than a quick scan of the survey. It turns out that they had asked about savings accounts only—so the headline-grabbing number left out retirement accounts and the like. As it relates to Lewes real estate investors (if you own a Lewes home, you are certainly an Lewes real estate investor), they also hadn’t included real estate equity in the ‘savings’ total. That certainly makes their scare headline less than dizzying. As the first commenter on their own website noted, ‘why keep money in a 1% savings account?’
But GOBankingRates wasn’t exclusively a source for misleadingly bad news. As compensation, they also supplied surveys of the 10 Best Tax Havens in the World (Luxembourg is #1) and 2016’s Top Resolution (it is “enjoying life to the fullest”).
Here’s hoping that our town’s 2016 proves to be a remarkably healthy, happy, and prosperous one for you and your family. And if ‘enjoying life to the fullest’ this year involves buying or selling a Lewes home, I hope you’ll give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.