07 Jan Mortgage News Review for January
With interest rates continuing to rise, how much home will Charlotte-area residents be able to afford? Meanwhile, in Wilmington, changes are on the horizon for several local Realtor groups. Here is more on the mortgage news stories we are watching:
How Are Rising Mortgage Rates Influencing Home Sales in the Charlotte Area?
The Federal Reserve increased interest rates four times in 2018, with the most recent hike — to a range of 2.25% to 2.5% — taking place in early December. The increasing rates will certainly impact how much homebuyers in the Charlotte region can afford. Based on the local area’s median household income of $63,841, Zillow predicted that with a residential mortgage rate of 4.63% for a 30-year fixed loan, including 20% down, a homebuyer can afford a home in the Charlotte area worth $387,800. Buying power declines $36,400 if interest rates increase to 5%, and if rates keep going up to 6%, Charlotteans will have $55,000 less for purchasing a home.
Local Realtors’ Associations Changing Direction
In the December 10 edition of the Cape Fear REALTORS® (CFR) newsletter, both CFR and the Brunswick County Association of REALTORS® (BCAR) announced they had submitted letters of intent to withdraw from the N.C. Regional Multiple Listing Service. The effective date of withdrawal is June 1, 2019. According to the announcement, this decision was not taken lightly. Rather, it was made to ensure MLS data is kept safe and intact and to take care of members’ best interests. The work to separate is occurring behind the scenes, and members shouldn’t notice a shift in the products they need and use. Equally important is that the breakup will not be felt in the local housing market or the MLS, according to officials.
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Martin, Jenna. “CBJ Morning Buzz: Rising rates’ impact on Charlotte homebuyers; Rain putting damper on Belk Bowl festivities; Snag for election investigation?” Web blog post. Charlotte Business Journal. 28 December 2018. Web 28 December 2018.
Nunn, Cece. “Area Realtors’ Groups Announce Intention To Leave Regional MLS.” Web blog post. WilmingtonBiz. 19 December 2018. Web 19 December 2018.