So let’s talk about interest rates. There has been a lot of stories on the news about interest rates increasing but what does that mean. That is why our team at Williams & Associates wants to talk about the current interest rates and what it means. We also want to talk about the current local Market Conditions in Harrisonburg and Rockingham County and compare it to the previous year.
To see examples of current rates in the area check out the attached rate sheet below from Michael Sabarre with Integrity Mortgage and a rate sheet from Robert and David Bates from Primary Residential Mortgage, Inc.
As you can see from the chart above a 30-year fixed conventional loan A point, if you don’t know what that is, is a percentage of the loan that you pay upfront at closing. So, a $100,000 loan with .5% point would mean you would pay $500 at closing. It is called buying the rate down. An FHA Loan 30 year fixed is 4.375% with no points at closing based off of the chart above.
If you take a look at the chart from the chart above a 30-year fixed conventional loan rate is 4.625% with no points. If you pay a half a point (0.500%) the rate changes to 4.500%. An FHA 30-year fixed is 4.500%. If you have any questions about mortgage rates and loans feel free to contact Michael Sabarre at (540)217-2284 or Robert and David Bates at (540)433-6611.
If we are comparing rates within the last 30 years these rates are still at an all-time low. The Rates on a home are still very low especially when you compare them to a credit card.
“My mortgage back in 2005 when I bought my home was 5.0%”
-Rodney Williams (Broker/Owner of Williams & Associates)
The average APR for credit cards in March 2018 is 16.41%. (from CreditCards.com) Which is more than 4 times that of a home purchase. Some credit cards are even up to 24%. However, a home is Real property, an asset and should increase in value if maintained which is called “Equity” and we all know owning a home is a better debt than credit card debt or vehicle debt, which has little to no value or like a vehicle, it is decreasing in value.
Market Condition in Harrisonburg and Rockingham County
75 Homes Closed
The average days on the market for the month of January was 161 days.
The average list price was $212,776.
The average sold price was $207,746.
The average sales price was $213,791
The average sold price was $206,667, which is a .50% increase, from last year.
The average days on market was 94 days that means that homes sold 41.61% quicker in February then in January.
The average listing price for a home was $238,156
The average sold price was $231,404.
The average days a home was on market was 124 days, which is 24.19% faster.
The average listing price for a home in February 2017 was $236,547
The average sold price was $228,767. That means that homes are listed higher and sold for more than what they were last year.