How to Keep a Cool Head This Summer

With the flurry of news coming about the economy and the housing market, keep these points in mind to be properly prepared.

In the past few months, news about the housing market and the economy has been coming out fast and furiously. How do you tell which news to rely on, as well as understanding which parts are actually applicable to your situation?

To keep things clear and simple, break it down to the basics and keep the following points in mind:

1. Interest Rates Continue to be Low...for Now

Since the beginning of the year, mortgage interest rates have been creeping up, with growing worry about potential inflation. What's most relevant for you to know is that at the moment, mortgage rates continue to hold at historically low levels. Yes, they have creeped up some, but compared to the average mortgage rate across the last few decades of time, but they are still very, very low. There is no guarantee how long they will stay at these low levels.

2. Understand the Details of Your Market

Many housing markets around the country right now are flaming hot, particularly around the tri-state area. Even Manhattan has experienced a significant uptick in activity.

Get familiar with your market and what's been happening within it lately and be specific about what you want to know. Consider talking to a trusted real estate agent to find out information that will give you insight on how to plan and position yourself. For example, in the case of looking within a specific market, it is extremely helpful to know details like how many days the average new listing is staying on the market. A good agent should be able to give you a feel of the pulse of the market you are interested in, so you can best understand what you are dealing with and how to best prepare.

3. Plan and Prepare

Plan and Prepare for what you want to get - whether that be your next home, or a lower monthly bill on the mortgage of your current home. This is not just having a clear understanding of the market your property is in, but also of your financial profile, including all necessary documents applicable to the mortgage process. Being prepared on these fronts will allow you to make your best bid, particularly when the competition is so fierce.

Regardless of what you read, there is a lot going on now in housing markets all over the country, but with a little thought and focus, you can be put yourself in the best position to get what you want.

Contact me with what you are thinking about and any questions about these points above or your own scenario. Best, Jim