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Real Estate News

Understanding The Difference Between the Federal and Mortgage Interest Rates

On Sunday, March 15, 2020, the federal government cut the federal interest rates down to zero percent. This is the second federal rate cut in response to the Coronavirus crisis. Mortgage rates are not directly tied to the federal interest rates. However, the mortgage interest rates will be affected by moves that investors make and other factors.

Federal Rates Cuts and Other Economic Stimulation Activity

The government is fearful that the economy will fall into a deep recession if they don't make moves to stimulate it. That's why they lowered the federal interest rates to zero. There is more economic stimulation legislation that should help during this COVID-19 crisis, as well.

Bonds and Other Safe Assets

Many investors have been buying bonds and other safe assets as a result of the federal interest rates cut. The 10-year Treasury note has been pushed to new lows. 

Quantitative Easing Program

The government has also initiated a $700 billion program to help ease some of the economic hardship that Americans are facing. Part of this program, the federal government's Coronavirus Aid, Relief and Economic Security (CARES) Act, states that all adults will receive $1,200 and an additional $500 for each child. They are currently finalizing the details on how to distribute this money to the American people. 

Emergency Lending

They have also cut emergency lending rates to .25 and have extended loan terms to 90 days. This will help in an emergency.

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Real Estate 2018: What to Expect

Real Estate 2018: What to Expect

 

As we head into a new year, the most common question we receive is, “What’s the outlook for real estate in 2018?”

 

It’s not just potential buyers and sellers who are curious; homeowners also want reassurance their home’s value is going up. The good news is that a strong U.S. economy, coupled with low unemployment rates, is expected to drive continued real estate growth in 2018. However, changes on the horizon could significantly impact you if you plan to buy, sell or refinance this year.

 

HOME VALUES WILL CONTINUE TO RISE

 HOME VALUES WILL CONTINUE TO RISE:

Get ready for another strong year! U.S. home values and sales volume will continue to rise in 2018.

 

Experts agree that home prices will increase in 2018, but predict a slower rate of appreciation than 2017, which clocked in at nearly 7 percent nationwide. National Association of Realtors (NAR) Chief Economist Lawrence Yun predicts a growth rate this year of 5.5 percent,1 while Freddie Mac’s September Outlook Report forecasts a rate of 4.9 percent. Either way, all indicators point towards continued growth in 2018.2

 

What does it mean for you? If you’re a current homeowner, congratulations! Real estate proves once again to be a solid investment over the long term. And if you’re considering selling this year, there’s never been a better time. Contact us to request a free...