Lower Mortgage Rates Are Like a Valentine’s Day Gift From the World

by Jonathan Smoke

The financial market unrest this year is turning into a real boon for U.S. consumers who plan to purchase a home-—and for existing homeowners who could benefit from refinancing.

Concerns about China and the price of oil have driven global investors into the perceived safety of U.S. bonds and mortgage-backed securities.That’s why the average 30-year fixed mortgage rate has declined by nearly 50 basis points since the end of 2015. (A basis point is 0.01 percentage point.)

Mortgage rates are lower now than they were at the end of 2015, when the Fed tried to move interest rates higher. In fact, they’re trending towards record lows.

Yes, I forecasted mortgage rates would go up. And eventually, that will happen. (Honest!) But for now they’re still low, making home buying more affordable. Lower rates mean lower monthly payments, and the decline in fixed rates so far equates to nearly 6% more buying power. That’s basically the ultimate “I love you” gift to U.S. home buyers. And who’s your valentine? The world!

Existing homeowners are already responding to rates that are now at levels last seen in mid-2012. In the last week, refinancing activity jumped 16%, according to the weekly mortgage application index reported today by the Mortgage Bankers Association.

The exact path and timing for mortgage rates this year is the subject of much debate. Some market forecasters are saying that mortgage rates could set new historic lows before going up again.

The decline in the price of oil, as well as concerns about China, precipitated the financial market shift, so any signs of stability or improvement in those markets would likely lead to higher U.S. mortgage rates. And such stability would also strengthen the hand of the Fed in continuing to tighten monetary policy.

In other words, this gift horse will be galloping away before too long. If you are in a position to refinance or buy a home this spring, start your search now. Take a look at rates in your market, and investigate some mortgage options that could ease your concerns about what rates might do in the short term.

For example, a common option today is a “rate lock,” which will let you fix the quoted rate for a specified period of days, to cover the time that it takes to close on a purchase or refinance.

A “float-down” option on a rate lock will enable you to lock the rate, but also benefit from another move down if indeed rates go even lower.

These options come at a cost in terms of points or rates, but they could provide you peace of mind on getting the lowest possible rate for the life of your loan.

Talk to your Jeff Krantz and Associates at RE/MAX Lake of the Ozarks to see if these options might make financial sense for you. Follow what rates are doing by visiting realtor.com daily.

“Off-Season” Real Estate at Lake of the Ozarks

Many years ago, homeowners remember everything  shutting down in the winter, including restaurants, stores, and even the real estate market.  The thought that real estate drastically slows down or is non-existent is still prevalent in the mind of some home-buyers.  Is this true or just a myth?

From November 2014 to March 2015:

Of Waterfront Residential Homes, 23% of sales occurred during these winter months, and 25% of Offwater Residential Homes were sold during this time.

If you are selling, these can be some of the most productive months based on quality of showings and if you are looking to buy these months represent some of the best times to shop!

For more information on buying or selling real estate at Lake of the Ozarks, visit http://www.krantzproperties.com

A Lake for All Seasons

While the lake is busiest in the summer, it is a great place to live in all seasons! It features some of the mildest weather in all of the mid-west!

Of course, the lake allows boating, swimming, and fishing until ones heart is content. On the other hand, many casual waterfront restaurants now have beaches, swimming pools, and waterslides!
The Lake of the Ozarks is home to some of the country’s premier golf courses. With over a dozen courses in the area, there are lots of challenging, scenic private and public courses to suit all skill levels. Whether you are a beginner or a seasonal pro, the lake is the place to play virtually any time of the year.

The Lake of the Ozarks is home to the biggest outlet mall in the state of Missouri, with over 100 famous brand name stores. The state park is also the largest one in the state. After a day of shopping or sightseeing, there are 5 wineries, and a micro-brewery with tasting rooms, located around the lake area.
With plenty of things to do and see throughout the year, why wait any longer to start your search for lake property. Now is the best time, interest rates are still near record lows, and property prices are on the edge of increasing. Come down now and check out the new homes and condo’s on the market.

Strong support systems are in place at the Lake ready to handle the growth to come

Lake Regional Health System is the largest employer at Lake of the Ozarks. The local hospital employs over 1,100 employees, providing vital economic stimulus to the region. Whether treating full-time residents or seasonal visitors, Lake Regional offers quality medical care. Specialties include cardiology, cardio-thoracic/vascular surgery, gastroenterology, medical and radiation oncology, occupational medicine, ophthalmology, orthopedics, pulmonology and rheumatology. The health system also includes eight freestanding primary care clinics, 18 specialty clinics, two urgent care clinics, four satellite physical and cardiac rehab therapy sites, three retail pharmacies and home health services.

The two main primary and secondary school systems in the lake area are R-II and R-III accredited districts with an enrollment of approximately 6,000 students combined. Both School of the Osage and Camdenton have received numerous local, state, and national awards of distinction for the achievements of their students, and faculty. Camdenton also offers a Technical Center for high school students and adults wanting to learn certain skills or earn certifications. There are two college campuses at the lake. State Fair Community College offers various Associate degrees, and Bachelor degrees through their partnership with Central Methodist University, at the same campus. Columbia College has Associate and Bachelor degrees, as well as offers online courses.

With top notch jobs, schools, and healthcare, coupled with the beautiful lake and its multitude of recreational activities, why wait any longer to begin your search? Contact us and let us know what your priorities are in making Lake of the Ozarks your home.

Multiple Offers: A Definite Sign the Lake Market is Making a Big Comeback!

These two words create great potential for a seller – a chance to get the highest and best terms for their property! On the other hand, a missed opportunity for one of the buyers presenting an offer. From 2009 to 2012 we saw very few multiple offer situations, in 2013 that began to pick up. This year we have averaged over 6 multiple offers each month at RE/MAX Lake of the Ozarks, and expect to see a lot more as the buying season heats up. This is an indicator that a lot more buyers are getting off the sidelines and making offers, presumably while interest rates are still low and inventory is improving. As the lake market continues to improve, we see the best priced properties with the most sought out features, not spending very many days on the market before they receive an offer, or two! If you are considering purchasing property at the lake, don’t hesitate to contact us and find your perfect lake property soon before supply and demand impacts values.

The Lake’s Housing Rebound has Seen More Pocket Listings

As most buyers and sellers know, the most typical and successful place to list a property is in the local MLS (multiple listing service), a database available to agents and now these services syndicate listings to popular online web sites such as Trulia and Zillow. This gives anyone in the world a chance to browse photos of homes before they view them in person with their real estate agents. At one time pocket listings were more prevalent among luxury homeowners, but now that the Internet has created an open marketplace, sellers in many price ranges like to keep their property out of the public. They feel more confident with buyers they know that are already working with an agent and have been pre-qualified or are serious about purchasing, before viewing their home. Another reason we see more pocket listings here at Lake of the Ozarks is because it is a second-home destination. Many times the sellers are vacationing and don’t want the burden of showings, unless they know it is serious buyer. We have photos and details of our pocket listings, and generally contact our clients that we feel would make a good fit. If there is something specific you are looking for, please make sure we know your criteria. Many times these listings are available to us and new ones come on often. Schedule a time to meet or call us today to discuss, the lake market is very active this year! Now is the perfect time to buy.

Take Advantage of Low Interest Rates Today! Waiting Can Cost You Money…

Interest rates on home loans are still hovering near record lows, but as the economy and housing market continue to improve, home buyers should expect to see interest rates tick up, which can have a big impact on buying power. Home and Condo values have not changed substantially since the low point in 2010. An interest rate increase could raise the price of the loan significantly each month or tens of thousands over the term of the loan, being all other factors are the same.

Consider this example: A $500,000 home with a 20% down payment and a 30-year fixed mortgage at 4.13% will cost about $2,481 a month including taxes, interest and insurance. Over 30 years, once the house is paid off, it will have cost $893,315. Under that same scenario, but with a 5% interest rate, that house will cost $2,688.95 a month including taxes and interest, more than $200 per month more. Over the life of the loan, the home owner would have ended up paying $968,000, almost $75,000 more.

So if you know the lake is where you want to retire, or you want to move up, start planning now! We can search properties through our local MLS for the entire lake area, as well as have several listings available to our team that are not currently listed. Please let us know what criteria you are looking for, and schedule a time to come and view some properties soon!

2013 Lake Market Trends:

1. 2416 Total Sales, an Increase of 12% Over 2012
2. Sales Volume Increased 19% Over 2012
3. Waterfront Home Sales Are Up 14% in Volume Over 2012
4. Residential Foreclosure Sales Trends: 2011=24%, 2012=19%, 2013=17%
5. Average Prices Are Starting to Increase and Inventory is Still Declining

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Luxury Home Market at Lake of the Ozarks

At Krantz & Associates, we understand some of the reasons you hire us is for our marketing and knowledge of the luxury home market.  This is why we hold the Certified Luxury Home Marketing Specialist® (CLHMS) Designation.  Watch for the Certified Luxury Home Marketing Specialist® (CLHMS) designation and logo.  This certification is an indicator of competency which signifies that the agent is a member in good standing of The Institute, has met education requirements, and has documented experience in the top 10% of their market.