Before I get into today’s interest rates and housing news, I wanted to address something I’m seeing a lot of.
BUYER’S FATIGUE
Many buyers are getting frustrated by the competition and leaving the market.
We have an awesome tool you can use to show real numbers on buying verse renting in a specific area.
If potential clients can see the huge benefits of buying, you may be able to hold them from entering into a new long term lease.
Below is something I can create and cobrand to you.
BUY VS RENT GRAPHIC
The below example is buying a home for $500,000 in zip code 85258 putting 10% down
Versus renting in the same area based upon average rental rates.
The home payment is cheaper in year 1 and with rent rates increasing, it continues to be cheaper.
Over 10 years, your client:
Would save $66,748 just in lower payments.
Gain $211,213 in appreciation based on a 3.99% Appreciation rate
And gain $92,651 in equity by paying down the loan.
If they sold in 10 years, they would gain $317,940 after all costs.
I love this tool and I would be happy to create this for you.
TODAY’S INTEREST RATES
Below are Today’s Interest Rates.
Interest rates have remained relatively stable and are very similar to the prior week.
CONSTRUCTION OF NEW HOMES DOWN DUE TO SUPPLY COSTS
In April, residential home starts went down 9.5% for all housing and 13% in Single Family residences
Primarily due to construction delays based on increases in lumber costs and other building supplies.
This is a tough hit with inventory levels already so low.
OVER 1 MILLION LOAN FORBEARANCES SCHEDULED TO EXPIRE BY JUNE 2021
Over 2.16 million households are in a forbearance plan, which is a modified or suspension of a mortgage payment.
Over 1 million of these forbearance plans are scheduled to expire in May and June of 2021, which could create some additional listing opportunities for agents.
Homeowners that utilized a forbearance plan and can not go back into making regular mortgage payments could provide much needed inventory to the market.
They will have equity in their home and should be able to sell their home at all time highs.
