Annual Home Price Growth Strong
The widely-followed S&P Case-Shiller Home Price Index indicated that October sales were 1% higher month-over-month, and a significant 13.6% increase year-over-year. Home prices have posted an annual gain for 17 consecutive months.
Higher Mortgage Rates for New Home Buyers
In 2013, mortgage rates climbed a full percentage point. When applied to a fixed loan of $250,000 for 30 years, this raises the cost to the buyer by around $60,000 over the life of the loan. Freddie Mac is reporting that both 15 and 30 year fixed rates are on the rise.
Price Growth Slowing
Zillow.com reports that the rate of growth of home prices was already slowing at the end of the year. Analysts are predicting that 2014 will see a continuation of this trend as investors run out of either cash, desire for more rental properties, or inventory for purchase. Another report states that the rise in prices at foreclosure auctions has been outpacing the rise in rents for several months.
Annual Home Price Growth Strong
The widely-followed S&P Case-Shiller Home Price Index indicated that October sales were 1% higher month-over-month, and a significant 13.6% increase year-over-year. Home prices have posted an annual gain for 17 consecutive months.
Higher Mortgage Rates for New Home Buyers
In 2013, mortgage rates climbed a full percentage point. When applied to a fixed loan of $250,000 for 30 years, this raises the cost to the buyer by around $60,000 over the life of the loan. Freddie Mac is reporting that both 15 and 30 year fixed rates are on the rise.
Price Growth Slowing
Zillow.com reports that the rate of growth of home prices was already slowing at the end of the year. Analysts are predicting that 2014 will see a continuation of this trend as investors run out of either cash, desire for more rental properties, or inventory for purchase. Another report states that the rise in prices at foreclosure auctions has been outpacing the rise in rents for several months.