Displaying blog entries 161-170 of 174
Another national Real Estate source affirms strengthin the DFW market
December 2014 - Core Logic Home Price Index Report
- Hvae questions about the local market? Please feel free to give me a call - Christie Cannon - Keller Williams Frisco - 469-951-9588
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Have Questions? - You can always give me a call at 469-951-9588 - Christie Cannon
Why Have Interest Rates Dropped Despite Predictions of Rising Rates?
The headlines agree mortgage interest rates have dropped substantially below initial projections. Many who are considering purchasing a home, or moving up to their dream home, might think that they should wait to buy, because rates may continue to fall.
A recent article on the Economists’ Outlook blog by the National Association of REALTORS® (NAR) provides insight into one major factor in the decline in interest rates, the crude oil price.
“As of January 5, 2015, the U.S. Energy Information Administration (EIA) reported that the price of regular gasoline was $2.20/gallon, the lowest since gas prices peaked to about $ 4/gallon in May 2011.”
You may have noticed that filling your gas tank has become substantially less expensive in recent months. A welcome change from the close to $5 a gallon that many Americans were paying this time last year. The average US household is projected to save around $550 in 2015.
NAR explains the correlation like this:
“Lower oil prices mean lower inflation rate, which pushes down mortgage rates.”
Based on Freddie Mac’s weekly mortgage survey as of January 22, 2015, the 30-year fixed rate averaged 3.63% and the 15-year fixed rate averaged 2.93%.
“The decline in oil prices is generally positive to households by way of the gas savings and lower mortgage payments. That savings will boost consumer spending in other areas. But there may be some layoffs in oil-producing states.”
No one really knows how long oil prices will continue to support low mortgage rates. In a New York Times article, the author points to the fact that “adding hundreds of billions of dollars to consumer spending” could start to have a “counter effect” on rates as the economy continues to strengthen.
“If firms start hiring again, and wages increase — that’s when the level of all interest rates in the U.S. would increase.”
The low interest rates we are currently experiencing are not going to stay around forever. The current projections from Freddie Mac, Fannie Mae, NAR and the Mortgage Bankers Association all agree that interest rates will increase to between 4.3-5.4% by the end of 2015.
NAR reports: “At the median home price of $205,300, a 0.75 percentage point drop in mortgage rates will yield savings of about $1,000 annually.”
- Looking for a Mortgage Expert to assist you? Please feel free to give me a call - 469-951-9588
Freddie Mac's chief economist looks back & reexamines their 2014 predictions! Click here to read. It is a great review of the US Housing Data from 2014.
Their 2015 predictions can also be found here!
- Christie Cannon
Have you heard what has been going on in McKinney? McKinney is growing and has been named #1 Best Place to Live in America! Check out these great videos showcasing everything McKinney has to offer.
One of the top financial ratings firms, Fitch Ratings, is blowing the whistle on Texas' hot housing market. Home sale prices in the Dallas-Fort Worth area are at record levels this year and Fitch Ratings warns that Texas home prices are about 11 percent overvalued. A lack of homes available for purchase coupled with North Texas' fast-growing economy has caused residential prices to jump by about 7 percent over the past year.
Economist Jim Gaines with the Real Estate Center at Texas A&M Unversity said he’s looked at Fitch’s new Texas housing report and doesn’t agree with the conclusions. “I’m not buying the overvalued card right now,” Gaines said. “Yes, prices have increased substantially for Texas markets – but only after being essentially flat for almost five years.
Despite its warning about the inflated prices, Fitch's report points out the overall strength of the state's economy. Texas has been leading the country in both job growth and population gains.
Texas home price gains have already cooled from late last year and early in 2014. But the year-over-year gains in residential prices in the Dallas-Fort Worth area is still running about twice the long-term average rate and are higher than nationwide increases.
During the recent recession when many metropolitan areas in California, Nevada and Florida lost 50 percent or more of their home values, Texas prices fell only slightly. And the housing markets in Dallas, Houston, Austin and San Antonio were some of the first in the country to recover. For more information on Fitch's findings click here.
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The theory that Frisco is the northernmost edge of the DFW Metroplex will soon be history. The small town of Celina is posed for some major economic develpment and by the year 2020-2030, they are expecting they type of growth that Frisco has over the past decade. Celina's future is filled with thousands of homes, corporate offices, entertainment venues and access to major highways and roads. At 78 square miles, Celina is geographically larger than Plano or Frisco. It’s about 40 miles from both the Oklahoma border and downtown Dallas and is made up of mostly rolling fields and open spaces. The theory is that Celina will soon gain some momentum in development as its swelling southern neighbors - Plano, Frisco, Richardson - are becoming massive employment centers. Toyota Motor Company is set to bring its US Headquarters to the Plano area, and with that comes many new people, more homes, and development. Sitting only 16 miles from Plano, Celina is set to be a prime location for development to occur. Celina’s story is emblematic of other small towns expecting big influxes of people over the next two decades. To the south, Prosper has its $1 billion Windsong Ranch development. To the west, Little Elm has the $600 million Union Park mixed-use project. Big things are happening up north....read the full article here.
The Frisco Economic Development Corporation has created a webpage summarizing all the announcements and new projects in what's being called "The $5 Billion Mile." The new projects in development over the next few years will make Frisco a hot spot in the DFW metroplex! Read all the details from Frisco's EDC here...
The new Dallas Cowboys World Headquarters and Training Facility, set to open in Frisco in 2016, will allow Frisco ISD football players to practice right alongside America's team.
The driving force for Jerry Jones' plan is a marriage between America's team and Texas high school football. The Frisco Independent School District will also have full run of the stadium when the Cowboys aren't in town. Read more here...
Interest in Frisco has gone international! Dubai-based, Invest Group Overseas, has announced plans for a $700 Million new development at the corner of the Dallas North Tollway and the future extension of John Hickman Parkway in Frisco. The proposed project, The Gate, will be a 40.95 acre mixed use project just north of the new Dallas Cowboys Headquarters. Full details can be found here.
Displaying blog entries 161-170 of 174
