We're betting you thought lower Vero Beach gas prices could only mean positive things for the economy, right?
If you're in the market for a home mortgage, Vero Beach gas prices could be having an effect on the rate you can get.
How Vero Beach Gas Prices Affect Mortgage Rates
Believe it or not, oil investments and Vero Beach gas prices (along with lots of other things) have an indirect effect on mortgage rates.
One of the strongest predictors of mortgage rates is the yield on a 10-year Treasury note. Basically if the yield is low, so are mortgage rates. The buying of bonds can represent relative safety for oil investors, and what oil prices mean for the world's economy.
Oil prices, as well as Vero Beach gas prices, continues to fall in large part because there is less demand. Less demand comes via weakening economies across the globe. The lower oil prices may also disproportionately affect countries like Russia, which are already suffering from instability. All of this leads to a flight to quality, and the safe haven is almost always the U.S. Bond Market.
With Vero Beach gas prices dropping and no one quite sure when or where they'll stop, U.S. bonds give investors a certain comfort that the oil market isn't currently providing. (Treasury bonds will always be paid off to prevent the government from losing the confidence of its investors and creditors at home and abroad.)
The problem for these investors is that everyone has the same idea. If everyone starts buying bonds, it drives down yields because the government doesn't have to offer such a high rate of return to get people to buy. This, in turn, drives down mortgage rates.
Some economists believe the benefit to the housing market is largely indirect in the form of more consumer spending, leading to job and income growth and ultimately making it easier for people to buy homes.
It should be noted that the 10-year Treasury note only affects the base mortgage rate. A number of factors go into the actual interest rate a homebuyer can get, including their credit score, the number of points paid on the mortgage and the down payment amount.
We'll keep you informed on Vero Beach gas prices and how the price you pay at the pump could affect your mortgage rate. In the meantime, you can get more information about factors that control Vero Beach mortgage rates in our section on Vero Beach Mortgage Info to your right under Vero Beach Real Estate Categories.
Remember, we post tips daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.
Vero Beach home improvements have seen record spending over the past three years due to the resurgence in home equity over that period of time, but spending is set to soften in coming months.
According to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, the center's index, the Leading Indicator of Remodeling Activity (LIRA), projects that annual growth in home improvement spending will decelerate from 6.3 percent in the first quarter of 2015 to 1.6 percent by the third quarter.
Chris Herbert, Managing Director of the Joint Center says, "Homeownership rates continue to slide as lending remains tight and first-time homebuyers are not yet returning to the market." Growth in Vero Beach home improvements and remodeling spending is expected to drop somewhat in 2015 due partly to weakening home sales last year.
However, the Federal Housing Administration's (FHA's) recent announcement of a decrease in their mortgage insurance premiums could spur a new wave of first-time home buying since this is the category of borrowers most affected by mortgage premiums.
Other Factors Affecting Spending on Vero Beach Home Improvements
There are other factors, of course, that contribute to LIRA's outlook for Vero Beach home improvements. Home prices, for example, are still gaining, although not as fast as in previous months. If prices slow further, more buyers could enter the market, purchasing homes that need some remodeling.
House price gains are moderating but still strong and home sales appear to be turning a corner now, all of which bodes well for continued, if more moderate, gains in Vero Beach home improvements for 2015
We have more tips and articles on Vero Beach home improvements in our Vero Beach Home Improvements section to your right under Vero Beach Real Estate Categories. And don't forget, we post daily tips on Facebook and Twitter. Be sure to check us out there as well.
The latest Gallup poll shows that the average American has a lot of problems, but owning a home is not one of the biggies any more.
Right now, more Americans are concerned about healthcare costs, low wages and a lack of jobs.
When it comes to the capital markets, they worry about the cost of college for their children.
But, the most striking result of the Gallup poll, explained in the chart below, is the shift in the attitude towards owning a home.
Owning a Home Half as Important As Three Years Ago
In just three short years, the number of Americans who cite the costs associated with homeownership and renting as one of their biggest financial worries, sliced firmly in half.
In 2012, a full 12% of Americans put this cost at the top of their financial worry. Now it's dropped all the way down to 6%.
Although when broken down by income, the results skew somewhat.
Below the $30k/year bracket, housing is the most important worry for 9% of the respondents. That lowers to 4% in the $30k to $75k range. But then, it jumps up to 6% for Americans making more than that.
Perhaps not surprisingly, lower-income Americans name "lack of money/cash flow" and "not enough money to pay debts" as their top most important money woes.
Find more news articles as they relate to owning a home in the Vero Beach Real Estate News section under Vero Beach Real Estate Categories to your right. And find us on Facebook and follow us on Twitter for daily updates we post there as well.
Last year, we got predictions from Wall Street experts and people on Main Street about what was going to happen to the stock market, oil prices, and housing prices.
So who was smarter, the experts, or people on the street. Let's see who was right…
In a move expected to bring 250,000 first-time homebuyers into the market, FHA will reduce annual Vero Beach mortgage insurance premiums by half a percentage point, to 0.85 percent. The move is expected to make homeownership more affordable for more than 2 million homeowners in the next three years.
After raising Vero Beach mortgage insurance premiums six times during the housing bust, the Obama administration is reversing course and rolling back mortgage insurance premiums charged by the Federal Housing Administration by enough to save homeowners an average of $900 a year.
Upfront Vero Beach Mortgage Insurance Premiums Will Remain Unchanged
FHA's upfront premiums of 1.75 percent will remain unchanged. So a first-time homebuyer taking out a $180,000 mortgage will pay $3,150 upfront and $1,530 a year in premiums for access to FHA mortgage programs that let them purchase a home with as little as 3.5 percent down. Today, the same homeowner pays $2,430 a year in annual premiums.
The National Association of Realtors claims that FHA premium increases priced nearly 400,000 borrowers out of the housing market in 2013, and 234,000 in 2014. In the past four years, NAR said, the share of first-time buyers using FHA-backed loans shrank from 56 percent to 39 percent.
The hope is for the premium rollback to provide greater access to homeownership for entry-level and underrepresented buyers.
We'll keep you informed on this reduction of Vero Beach mortgage insurance rates as it moves forward. In the meantime, you can get more information about Vero Beach mortgage insurance and mortgages in our section on Vero Beach Mortgage Info to your right under Vero Beach Real Estate Categories.
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