This hidden residence at the end of Georgian Place maintains the perfect balance between privacy and urban accessibility. From the incredible view, to the proximity to hiking trails, Council Crest Park, and the city, this home has it all.
By Clare Trapasso | June 11, 2020
Anyone who's planning to buy a home, or thinking about refinancing the loan on their current abode, has probably been giving mortgage interest rates a lot of attention—and getting frustrated as they fluctuate up and down.
The average interest rate for the most common type of loan hit a new all-time low of 2.94% on Thursday, according to Mortgage News Daily. That's for a fixed-rate 30-year loan. While that's great news for borrowers, who can potentially save hundreds of dollars a month as a result, rates may not stay below 3% for long.
Mortgage rates have been all over the place, falling after the coronavirus pandemic threw the nation's economy into turmoil, then rising temporarily as lenders were deluged by a tsunami of refinance applications. Last week, they were on the upswing again, climbing to 3.24% on Friday, after May's unemployment report showed the economy was recovering.The most recent plunge comes thanks to the U.S. Federal Reserve making an announcement on Wednesday that drove investors back into mortgage bonds, which drove rates back down.
"Rates have changed rapidly over the past [few] days," says Matthew Graham, chief operating officer of Mortgage News Daily. "For the first time ever, the average best-case-scenario rate on a conventional, 30-year fixed-rate [loan] is under 3%. Most lenders are able to quote 2.875%."
But he cautions that these ultralow rates are reserved for borrowers with "flawless credit, more than 20% equity, and no other additional risk factors."
Folks don't quite need a finance degree to understand what's going on—but it sure wouldn't hurt.
Lenders typically don't like to hold on to the mortgages they make, as it ties up cash that could be used to make new loans. So they sell the loans, which are bundled into a collection of mortgage-backed securities (aka mortgage bonds), in the secondary mortgage market. These securities are similar to U.S. Treasury bonds—they're viewed as safer, yet less lucrative, investments than the stock market.
When the economy is strong, investors often prefer to sink their money into stocks, where they hope to get better returns, and when it's weaker, they'll often turn to bonds. When the unemployment numbers came out, investors were encouraged by the better-than-expected unemployment rate. Many moved money out of Treasury and mortgage bonds and into the stock market.
Since mortgage rates move in the opposite direction of bond prices, when bond prices fall, mortgage rates go up—and vice versa. That's what happened on Friday.
However, on Monday the National Bureau of Economic Research declared the U.S. had officially entered a recession in February. That spooked investors, who suddenly rediscovered the appeal of boring but stable bonds.
Then the Fed announced it would continue to purchase mortgage bonds in the secondary market. The move was designed to keep the market strong—and brought investors back to mortgage bonds. When demand rises, so do bond prices. Hence, mortgage rates fell.
Whether mortgage rates will stay below 3% is anyone's guess. It will likely depend on the strength of the economy, how quickly a coronavirus vaccine becomes available, and a whole host of still unknown factors.
“Mortgage rates move up and down all the time," says realtor.com Senior Economist George Ratiu. "I expect for the rest of the year that they’ll bounce around the 3% to 3.5% range.”
THE MJ STEEN TEAM WOULD LIKE TO INTRODUCE OUR NEW TEAM MEMBER AT THE OREGON COAST: KATE MERRELL. KATE BRINGS OVER 13 YEARS OF EXPERIENCE AS A BROKER TO OUR TEAM.
As a full time real estate principal broker for 28 years, I have been through many market changes. The downturn of 1987, the shock of 9/11, the housing boom of the 2000’s, the Economic Recession of 2008, as well as the fast paced market of the last five years. Home ownership is an essential need for most people. I don’t have a crystal ball but I do know that this “particular moment in time” will pass and we will be back to our normal, healthy real estate market in the Portland area soon.
Take care.
Mj
We all have wonderful spaces to enjoy while we stay in place. During this time think of those who are without homes. Please remember to donate money, food or simple lunches to the homeless through your favorite food bank or charity.
Blanchet House
Oregon Food Bank
Rose Haven
St. Vincent De Paul
Catholic Charities
PPS
By Will Parker | January 28, 2020
Home-price growth accelerated in November, in the latest sign the home-sales market is picking up steam after a slow start to 2019.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 3.5% in the 12 months to November, up from a 3.2% annual pace the prior month.
After a long period of price deceleration, if the current pace of price growth continues, it could offset some of the decreased costs home buyers are otherwise seeing with low mortgage-interest rates.
For more information on the current real estate market click here.
By Caroline Alkire, HGTV
Chipper Hatter
The news is in! Pantone’s 2020 Color of the Year is Classic Blue (19-4052) — a rich, dreamy, dark, beautiful shade of azure — and we’re just basking in the wonderful simplicity of it all.
In case you didn’t know, Pantone Color Institute is the go-to source when it comes to color. Pantone experts study global culture and societal trends looking for color influences that will affect home design, fashion, textures and more. To read the full article click here >>> https://bit.ly/2RxZaeE