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| Tuesday, March 04, 2008 |
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| Great Time to Buy? |
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A rising mortgage rate could nullify future price drops
Great Time to Buy Florida
ORLANDO, Fla. – March 3, 2008 – Too many buyers are focusing on home prices and waiting to jump into the market, afraid that a property bought today will be worth less tomorrow. But rising mortgage rates should also be a concern, and many potential buyers could find themselves out of luck if they wait much longer.
Jim Svinth, chief economist at mortgage firm Lending Tree, tells buyers to “ignore the headlines.” As the economy recovers, finance costs will rise. Waiting for the perfect time to get into the market may cost prospects, especially renters, more in the long run.
“The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher,” says Svinth. Any savings you might incur by a further drop in prices might be offset by rising financing costs.
Let’s take a home priced at $250,000. With a 20 percent downpayment and 30-year fixed-rate mortgage at 6 percent, monthly payments would be $1,199.10 (principal and interest only).
If the price of this home were to drop 10 percent one year from now to $225,000 – but mortgage rates rise to 7 percent – the monthly payment for a 30-year fixed-rate mortgage with 20 percent down would be $1,197.54 (mortgage and interest only) — a difference of $1.56 a month.
It’s almost impossible to predict the direction of long-term mortgage rates, but investors tend to pull back from long-term investments, such as those that feed fixed mortgage rates, if inflation appears to be a threat as it does now. On Friday, Federal Reserve Chairman Ben Bernanke admitted that the Fed viewed inflation as a concern; though he does not think “stagflation” – a slowing economy coupled with inflation – is an immediate problem.
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| Tuesday, March 04, 2008 |
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| Great Time to Buy? |
|
A rising mortgage rate could nullify future price drops
Great Time to Buy Florida
Want more tools and information on why it’s a great time to buy Florida real estate? Visit FAR’s Great Time to Buy Florida Web site. Click here
ORLANDO, Fla. – March 3, 2008 – Too many buyers are focusing on home prices and waiting to jump into the market, afraid that a property bought today will be worth less tomorrow. But rising mortgage rates should also be a concern, and many potential buyers could find themselves out of luck if they wait much longer.
Jim Svinth, chief economist at mortgage firm Lending Tree, tells buyers to “ignore the headlines.” As the economy recovers, finance costs will rise. Waiting for the perfect time to get into the market may cost prospects, especially renters, more in the long run.
“The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher,” says Svinth. Any savings you might incur by a further drop in prices might be offset by rising financing costs.
Let’s take a home priced at $250,000. With a 20 percent downpayment and 30-year fixed-rate mortgage at 6 percent, monthly payments would be $1,199.10 (principal and interest only).
If the price of this home were to drop 10 percent one year from now to $225,000 – but mortgage rates rise to 7 percent – the monthly payment for a 30-year fixed-rate mortgage with 20 percent down would be $1,197.54 (mortgage and interest only) — a difference of $1.56 a month.
It’s almost impossible to predict the direction of long-term mortgage rates, but investors tend to pull back from long-term investments, such as those that feed fixed mortgage rates, if inflation appears to be a threat as it does now. On Friday, Federal Reserve Chairman Ben Bernanke admitted that the Fed viewed inflation as a concern; though he does not think “stagflation” – a slowing economy coupled with inflation – is an immediate problem.
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| Wednesday, August 22, 2007 |
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| Road Construction in Destin |
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The city of Destin is working on the reconstruction of Main Street, Airport Road, and a section of Legion Drive between Main Street and Beach Drive. All three areas, according to Community Redevelopment Agency Manager Hank Woollard, will be furnished with pedestrian amenities such as wide sidewalks, improved crosswalks at intersections, landscaping and oversized, easier-to-read signage.
The work being done to both Main Street - which included a complete underground utility conversion - and to Legion Drive - which included partial underground utility conversion - is almost complete, lacking only the crosswalk markings and some landscaping. City officials said the remaining work should be completed next month.
Enhancements to the intersection of Main Street, Airport Road and Legion Drive continue as of press time. The intersection is being completely rebuilt, and pedestrian crosswalks, additional turn lanes and new traffic signals are being added. The projected timeframe for completion is by early August, city officials said.
Airport Road, from Main Street to U.S. Highway 98, is being rebuilt as well. The road will be widened from three lanes to four lanes with a median. Work on this project has been postponed so as not to interfere with the heavy summer traffic in the area, but work is scheduled to resume in September. The estimated completion date is set within Spring 2008.
(Taken from the Summer 2007 edition of "Condo Owner" magazine.) |
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