VMG Nominated for Better Business Bureau Business of the Year!
We are proud to have been nominated for the 2018 BBB Torch Awards! Thank you to all of our clients and business partners that have supported our local small business in the Pacific NW. You have not only helped with putting us on the map locally, but with national recognition and we could not do what we do without our great clients!
The Fall is Beautiful in the Pacific NW!
This upcoming week is about as perfect as it gets in the fall (clear & sunny) to see the foliage in Oregon and Washington. There are very few places in the country where you have the ability to experience what we have right in our backyard. Mid-October is one of the best times to hike throughout the year during the fall climate.
REI has a great list of spots they recommend to visit HERE.
Oregon & Washington Real Estate Update
The median home value in Oregon is $334,100. Oregon home values have gone up 5.3% over the past year and Zillow predicts they will rise 3.8% within the next year. The median list price per square foot in Oregon is $213. The median price of homes currently listed in Oregon is $375,000 while the median price of homes that sold is $333,000. The median rent price in Oregon is $1,795.
Foreclosures will be a factor impacting home values in the next several years. In Oregon 3.6 homes are foreclosed (per 10,000). This is greater than the national value of 1.6
Mortgage delinquency is the first step in the foreclosure process. This is when a homeowner fails to make a mortgage payment. The percent of delinquent mortgages in Oregon is 1.2%, which is lower than the national value of 1.6%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Oregon homeowners underwater on their mortgage is 5.4%.
The median home value in Washington is $370,700. Washington home values have gone up 7.5% over the past year and Zillow predicts they will rise 6.0% within the next year. The median list price per square foot in Washington is $226. The median price of homes currently listed in Washington is $391,500 while the median price of homes that sold is $341,100. The median rent price in Washington is $2,100.
Foreclosures will be a factor impacting home values in the next several years. In Washington 2.1 homes are foreclosed (per 10,000). This is greater than the national value of 1.6
Mortgage delinquency is the first step in the foreclosure process. This is when a homeowner fails to make a mortgage payment. The percent of delinquent mortgages in Washington is 1.0%, which is lower than the national value of 1.6%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Washington homeowners underwater on their mortgage is 6.6%.
Mortgage Rate News & VMG Mortgage Rate Tracker
New York (CNN Business)Need more evidence that the economy is booming? Mortgage rates just topped 5%.
The Mortgage Bankers Association said this week the average 30-year fixed home loan rate hit 5.05% — the highest since February 2011. And federal mortgage buyer Freddie Mac said rates for a 30-year fixed mortgage are now at 4.9%, also more than a seven-year high.
Mortgage rates are climbing thanks to a healthy economy. The unemployment rate is at its lowest level in nearly half a century and wages are rising. Consumers are spending and businesses are investing.
That’s led the Federal Reserve to nudge up short-term interest rates, and longer-term bond yields that help influence mortgage rates have climbed in the process.
The rise in mortgage rates is just another part of a new markets cycle: Interest rates are rising, and stock investors are taking risk out of their portfolios.
Although those can be cautionary signs, they’re in response to strong economic factors. The Fed is raising rates to ensure the economy doesn’t overheat.
But now that mortgages have breached the 5% level, will that scare away prospective buyers?
Rates are still relatively low. The average 30-year mortgage rate was hovering around 6.5% in 2007 — before the epic housing market collapse that helped lead to the Great Recession.
But housing prices are starting to cool off in many markets around the country. Prices aren’t rising as quickly in New York, Chicago and Washington.
And according to a recent report from Zillow, prospective sellers have even been forced to cut prices in some markets that were once red hot, such as San Diego, Portland and Dallas.
Buyers seem wary of paying too much, especially now that a mortgage will cost them more.
Freddie Mac added last month that “the housing market has essentially stalled.”
And it may not improve anytime soon. Freddie Mac said that it now expects overall home sales (both new and existing) to fall nearly 1% this year, mainly due to a lack of affordable houses on the market and higher mortgage rates.
There has never been a more important time for consumers to use a local Mortgage Broker. While interest rates are certainly important for budgeting and payments, we have to also consider the amortization, tax, appreciation, and many other benefits homeownership offers.
If you would like to be added to our VMG Weekly Rate Tracker, email us to request at firstname.lastname@example.org
If you know of anyone buying a home now or in the near future, please share VMG with them.
Get Out of Debt!
We have always been a big advocate for living a debt-free and liquid lifestyle. While one can see the benefits of collateral-based debt for tax incentives such as real estate, non-secured ‘bad’ debts are certainly a concern for many to pay off as soon as possible.
Americans have paid banks so far in 2018 $104 BILLION in credit card interest and fees. This is up 11% from 2017 and up 35% over the last 5 years. The Fed continues to increase interest rates which directly impact the fully indexed rate tied to these margins on credit card accounts. This results in additional allocation of interest, higher monthly minimum payments, and balances that are harder to control if only the minimum payments are made each month.
The average APR on credit card accounts is over 15.5% and it’s expected that interest paid will increase another 10% in 2019 on consumer credit cards. The graph below is not a trend anyone likes to see.
So how can you get out of negative debt? Here are a few ideas:
– First, save money for an emergency fund that will cover at least 6 months living expenses
– Second, start putting as much $ as possible toward credit card balances. The ‘snow ball’ option would be to target smaller accounts first and pay them off in full, then moving on to the next account. This motivates accomplishment and a feeling of success to continue, even if the smallest balance has a lower interest rate.
– Sell things you don’t need and apply toward balances
– Pick up extra work/income and apply toward balances
– Try to negotiate lower rates with the card holder
– Set a budget and drop expensive habits
The freedom of being debt free with an emergency fund is well worth the sacrifice.
Come Visit Us!
16325 SW Boones Ferry Rd. Suite 100 Lake Oswego, OR 97035