Here’s a look at the latest developments in the refinance market this week.
More new construction homes may be on the way, but competition is hot
Builders are starting to feel more confident in the market, and it’s a sign more new homes could be on the way. But with prices high and sales rising, competition likely won’t be cooling down anytime soon.
Builder sentiment, tracked by the National Association of Home Builders, rose one point in September to 76—the first increase in three months. The survey set a record high of 90 last November, before dropping when the pandemic created a spike in lumber prices and a shortage in labor.
If you’re on the hunt for a newly built home, be prepared for intense competition. The median price of a new home has risen over $65,000 in the last year, hitting $390,900 last month. The actual average price is $443,200. Sales are on the rise too, with the seasonally adjusted annual rate of new home sales at 740,000 in August.
The reality is, there are about 378,000 new homes available on the market right now, but only 36,000 are ready for occupancy. That means getting your hands on one—and getting to closing on time—requires preparation, a strong offer, and a good agent by your side. Read up on the nuances of the new construction buying process, and what you can do to strengthen your offer. If you're ready to start house hunting, talk to a Better Real Estate Agent. They can help you get an edge in today's market and save you money, too.
How Stacey Foley saved on her home and invested in her family
Refinancing can help lower your monthly payment, tap into your home equity, or reset your loan terms altogether. It can also provide extra cash to help support the people who matter most. For 57-year-old homeowner Stacey Foley, that’s her family.
Last month, after living in her Stony Point, North Carolina home for two years, Stacey found out that her monthly mortgage payment of $890 would be going up to $1,010 a month. As a veteran of the banking and lending industry, she knew that refinancing could reduce the amount—and with today’s low mortgage rates, that now was a good time to make the move. “Coming from the industry, I knew it was the best time for us. We hadn’t put that much into the house to worry about,” she says.
By refinancing with Better Mortgage, Stacey cut back her monthly payment even further, to just $800. That now saves her $210 each month, and roughly $2500 a year. So far, the extra cash has helped pay off an auto loan for her boyfriend’s vintage corvette, and set up some funds for her three new grandchildren due this winter. “This whole thing was a godsend… to save all this money,” she says.
With mortgage rates close to September 2020 lows, it’s likely that most homeowners could still stand to save on a refinance. Find out how low your payments can be, or read up on how to know when it’s a good time for a new loan.
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