Five U.S. Real Estate Trends to Watch in 2014

Posted by Gatlin on January 23, 2014

The Puzzle Of Real Estate

As we start into 2014, there are at least five major national real estate trends that are definitely worth watching, especially with respect to the potential market for both buyers and sellers.

The first of these broad trends is that more sellers may be placing their homes back on the market. Recently, the ongoing rise in home prices has led more homeowners to consider placing their homes back on the market. An additional factor also hinges on the expectation that new home construction is expected to increase further this year, further boosting options for home shoppers. For more on the past trends of rising home prices, please refer to our blog post earlier this month, to see some local statistics reflecting some of these recent trends right here in the Great Smoky Mountains real estate market.

The second of these trends heading into 2014 is that new home sales are expected to rise into this year. Forecasters expect the number of housing starts to range from 1.19 million to 1.25 million, up from 975,500 in 2013. In addition, builders are also compensation for years of sub-par construction levels, according to Robert Denk, an economist with the National Association of Home Builders. Furthermore, an anticipated increase in homebuilding means that new home sales should also increase, as well. While it is too early to say if this trend will play out fully, the potential for new home sales to increase is certainly a possibility heading into 2014.

The third of these trends on a national level also focus on the real possibility of mortgage interest rates rising in 2014. While fixed mortgages likely will rise this year, averaging somewhere in the 4.9 percent to 5.3 percent range, forecasters say. That’s still low historically, but well above rates for the past 2 1/2 years. The potential for the Federal Reserve to begin its “tapering” of its stimulus bond buyback program sometime this year plays a significant role in why rates could rise, albeit not as dramatically as once feared. Mortgage rates will still remain at historically low levels, despite any potential increases. For more on the potential for the Fed regarding potential tapering, please click here for a broader explanation and what it could mean for the real estate market, particularly with regards to mortgage interest rates for 2014 and beyond.

Additional trends include the possibility of credit actually easing somewhat heading into 2014, where lenders could be in a greater to extend more loans to potential homebuyers as a whole. While it is too early to state that credit as a whole will be easier to get in this new year, trends point to a potential easing of this over time, particularly with respect to new mortgages and loans. For more information regarding this emerging trend, please check out this link with regards to the potential easing of credit heading into 2014. However, one final national trend to also watch is that the commercial real estate market remains slow into 2014, where commercial real estate recovery “tends to lag broader economic growth,” according to Deloitte & Touche’s 2014 outlook.

In short, these five trends in national real estate will certainly shape the landscape of real estate here in the Smoky Mountains, as well. Why not see what the Great Smoky Mountain real estate market can offer you today? Please feel free to browse our available Featured Properties today, and see how The Jason White Team can help you realize your home ownership dreams!

Here Are A Few of My Featured Listings:

Private Chalet w/Panoramic Mtn. Views! Private, 3 BD/3 BA chalet located in Chalet Village, with amazing, panoramic mountain views! Perfectly suited as a permanent residence, 2nd home, or overnight rental. Type: Single Family Home Location: Gatlinburg, Tennessee Price: $229,900 Get more information >

Brand New Log Cabin Near Gatlinburg w/Spectacular Mtn. Views! Brand new log cabin w/2 BD/2 BA, located just 2 mi. from the Downtown Gatlinburg Strip, & is w/in walking distance to the Gatlinburg Community Center. Spectacular mountain views! Type: Single Family Home Location: Gatlinburg, Tennessee Price: $249,900 Get more information >

2049 Luzerne Drive Main Photo Restored, Vintage-Style Chalet w/Bird’s Eye View of the Great Smoky Mountains! Restored, vintage-style chalet with virtual bird’s eye views of the Great Smoky Mountains, tramway and city lights while just 5 mins. from downtown Gatlinburg. Type: Single Family Home Location: Gatlinburg, Tennessee Price: $169,900 Get more information >

The Jason White Team
Century 21 Four Seasons Realty
1441 Wiley Oakley Dr
Gatlinburg, TN 37738
Toll Free: 877-678-2121
Fax: 865-436-7227
Email: jason@jasonwhiteteam.com
Website: gatlinburgrealestateforsale.com

Recent New Home Sales Surge Nationally Despite Slowly Rising Mortgage Interest Rates and Possible Fed Tapering

Posted by Gatlin on December 19, 2013

As we head towards the end of 2013, and into the start of 2014, there are some noteworthy national trends in real estate that are worth watching. These primarily center on the increasing likelihood of rising mortgage interest rates, as well as the possibility of the Federal Reserve beginning to taper, or slow down, its long-running bond buyback program. Both trends could foretell significant changes in the real estate market nationally in 2014.

In spite of these emerging trends, there are some other numbers worth noting in terms of the national real estate market that could also impact the coming year. One of these is that new home sales surged in October 2013 by 25% from the previous month, according to a report released by the U.S. Department of Commerce.

According to Keith Gumbinger, Vice-President of the mortgage information site HSH Associates, “It may very well be that a lot of folks are feeling better about their prospects and buying a new home.” In addition, Gumbinger also stated that there has been a general ease of financing for buyers, as “builders are motivated to get folks into homes.” Finally, Gumbinger also said that inventories of existing homes are thin in several markets, prompting people to build new homes rather than buy old ones.

The largest trend, however, in the coming year will center on the very real possibility of rising mortgage interest rates, especially since the Fed is currently weighing whether or not to start with tapering, or reducing the amount and scale to the Fed has been buying back bonds and securities since the 2008 financial crisis. The key to any real impacts will center on job and wage growth in the economy as a whole, and rising home prices will also have an impact as to whether or not there will be more buyers and sellers on the market in the coming year. At this point, it is too early to state how much of an impact this will have on the market, even though mortgage rates, from a more historical perspective, still remain low by comparison.

In view of these emerging trends, as well as recent surges in both home prices and new home sales nationally, there has never been a better time to find the home of your dreams, right here in the Great Smoky Mountains! Please feel free to browse our available inventory of properties, and see the many varieties of properties that we currently have here in the Smokies! Let us help you realize your home ownership dreams today!

Here Are A Few of My Featured Properties:

Private Log Cabin w/Amazing Mtn. Views! Enjoy privacy, mountain views and great outdoor spaces in this Sevierville log home that sits on over four acres! Type: Single Family Home Location: Sevierville,TN Price: $359,900 Get more information >

Luxurious Cabin w/Amazing Mtn. Views! Luxurious, scenic, 3 BD/4.5 BA, 2,600+ sq ft log cabin with spectacular views of the Smokies and a virtual bird’s eye view downtown Gatlinburg and surrounding areas! Type: Single Family Home Location: Gatlinburg, Tennessee Price: $369,900 Get more information >

Unique Sevierville Home w/Large Backyard Beautiful, masonry-style, 3 BD/2.5 BA, 3700+ sq. ft. home located within minutes to Dollywood! Type: Single Family Home Location: Sevierville,TN Price: $299,900 Get more information >

Federal Reserve’s Decision Wednesday to Continue Stimulus Could Keep Short-Term Interest Rates Low for Immediate Future

Posted by Gatlin on October 31, 2013

Real Estate Investing

On Wednesday, the Federal Reserve made the announcement that it would continue its long-running stimulus program of asset purchases and low interest rates. The Fed was widely expected to continue adding $85 billion a month to its portfolio of Treasury securities and mortgage-backed securities, particularly after the disruptive partial shutdown of the federal government in the first half of October.

The Fed maintained a relatively optimistic economic outlook in the statement, released after a scheduled two-day meeting of its policy-making committee. It said the economy continued to expand “at a moderate pace” and that the availability of jobs continued to improve.

“Taking into account the extent of federal fiscal retrenchment over the past year, the committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy,” the Federal Open Market Committee said in its statement. “However, the committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases.”

As a result of the Fed’s decision, the expectations are that short-term interest rates will remain low, at least for the immediate future. Fears about higher interest rates, especially on mortgages, have been on the rise since the Fed had also recently indicated a slowdown, or tapering, of its ongoing stimulus program. Fed officials had spent much of the summer preparing investors for a retreat from the bank’s stimulus campaign before the end of the year. That remains a possibility: The Fed’s policy-making committee is scheduled to meet for the final time this year in mid-December. However, no timetable or other decision on any tapering is expected from the Fed until at least mid-December, at the earliest.

What does this all mean for you? With low short-term interest rates still anticipated for at least the immediate future, there are many great deals and properties available here in the Great Smoky Mountains, with many types of homes and great deals still available! Please feel free to browse our available properties today, and let us help you find the home of your dreams!

Here Are A Few of My Featured Listings:

Unique Chalet Adj. to Ober Gatlinburg! Uniquely built and designed 1BD/1BA chalet located along Ski Mountain Road, close to Ober Gatlinburg, and mins. to downtown Gatlinburg! Type: Single Family Home Location: Gatlinburg, Tennessee Price: $129,900 Get more information >

Contemporary Home w/Mt. LeConte View! Well-built and designed 3BD/2.5BA home with a bonus room and attached 2-car garage, located just minutes from dwtn. Gatlinburg and all of the attractions. Type: Single Family Home Location: Gatlinburg, Tennessee Price: $375,000 Get more information >

Unique Chalet Adjacent to Nat’l Park! 12 pristine acres bordering Great Smoky Mtns. National Park w/direct views of downtown Gatlinburg & surrounding mtns. Cove Mountain Trail literally touches the rear property line. Type: Single Family Home Location: Gatlinburg,Tennessee Price: $697,000 Get more information >

Latest News from the National Association of Realtors (NAR) Shows Existing Home Sales Are At Their Highest Levels Since 2007

Posted by Gatlin on October 10, 2013

Existing-home sales increased in August and reached the highest level in six-and-a-half years, while the median price shows nine consecutive months of double-digit year-over-year increases, according to the National Association of Realtors (NAR).

Total existing home sales, which include completed transactions for single-family homes, townhomes, condominiums, and co-ops, went up by 1.7% to a seasonally adjusted annual rate of 5.48 million units in August from that of 5.39 million units in July. This is also 13.2% higher than the 4.84 million units sold in August 2012, one year prior to August 2013.

Sales are at the highest pace since February 2007, when they hit 5.79 million, and have remained above year-ago levels for the past 26 months.

According to Lawrence Yun, the chief economist for NAR, “rising mortgage interest rates pushed more buyers to close deals, but monthly sales are likely to be uneven in the months ahead from several market frictions.” These could include decreasing existing home inventories, as well as more restrictive lending standards, along with the potential for higher interest rates in the long-term.

In addition, while it is unclear at this point, the ongoing government shutdown could also pose potential longer-term complications from agencies, such as FHA (Federal Housing Administration), the IRS, and others, being at least partially shutdown or closed all together. External pressures such as these also could have a longer-term impact on the market itself.

However, according to NAR President Gary Thomas, “As the equity position of most homeowners continues to improve, some who have been on the sidelines will list their home for sale,” he said. “Most of those owners also will be buying another home, but higher levels of new home construction going into 2014, combined with some reduction in demand from less favorable affordability conditions, will help to moderate price growth to more sustainable levels.”

What does this all mean for you? Right now, there are still many great properties available in the Great Smoky Mountains real market, and if you are interested in buying a new home, today is the best time for you to realize your dreams of home ownership. Please feel free to browse our available properties, and see what we can do to help you find a new home here in the Great Smoky Mountains today!

Here Are A Few of My Featured Listings:

Great Mountain View Consistently produces income in the high $20k range. Cabin with a view, tongue and groove throughout, wood floors, recreation room with pool table and air hockey for your enjoyment. Type: Single Family Home Location: Pigeon Forge Price: $239,900 Get more information >

Picture Perfect Log Cabin Almost $25,000 in rental income for 2012! Well built log cabin with privacy and only 5 miles to Pigeon Forge. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $219,900 Get more information >

Close Up City & Mountain Views Almost $50,000 in rental income for 2012! This is designed to be a year around home or an income producing rental. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $439,900 Get more information >

Federal Reserve’s Latest Message May Encourage Greater Short-Term Housing Affordability

Posted by Gatlin on September 26, 2013

In a surprise move, the Federal Reserve voted last Wednesday to continue its stimulus through the buying of securities, including the continuation of purchases ofagency mortgage-backed securities at a pace of $40 billion per month, as well as longer-term Treasury securities at a pace of $45 billion per month. This went against the expected and anticipated notion that the Fed was considering tapering, or slowing down, of its stimulus efforts.

In its decision, the Fed cited concerns regarding the rate of growth in the economy as a whole, as well as concerns about the recent trend of rising mortgage rates at a time when the housing market is starting to recover from the Great Recession of 2008.

At a press conference last Wednesday, Fed Chairman Ben Bernanke stated that the Fed, by its decision, is “avoiding a tightening until we can be comfortable that the economy is in fact growing the way that we want it to be growing.”

One of the significant impacts of this decision was that The Fed’s bond purchases benefit borrowers by pushing down long-term interest rates. The yield on the benchmark 10-year Treasury note dropped sharply after the Fed announcement. Rates on mortgages and many other consumer and business loans tend to parallel the 10-year Treasury’s yield, and also saw declines in rates following the Fed announcement.

According to Gus Faucher, a senior economist at PNC Financial Services Group, “It helps people who are looking to buy a house in the near term.” In addition, Mr. Faucher also stated that “it makes housing more affordable. That’s one reason the Fed decided not to act — to make sure the recovery in the housing market continues.”

What does this all mean? Essentially, the Fed decided not to discontinue the buyback of asset-backed securities, at least for now, due in part to concerns about rising mortgage rates and their impact on the housing market, which has been gradually improving throughout this year. Therefore, the expectation is that there will be no tapering by the Fed, and any efforts to decrease the Fed’s stimulus will not occur in the short term, thereby keeping mortgage rates lower, at least for now.

Why not consider buying a new home in the Great Smoky Mountains today? We have many great properties available, and with still historically low mortgage rates, today is the day for you to realize your dreams of home ownership! Please feel free to browse our available inventory of homes today, and then contact one of our buyer specialists today to how we can help you find a new home! Take the first step today in finding the home of your dreams, right here in the Great Smoky Mountains!

Here Are A Few of My Featured Listings:

Luxurious Log Cabin Mins. to Dollywood! Spacious, luxurious 5 BD/4 BA home located mins. from Dollywood and Pigeon Forge! Type: Single Family Home Location: Pigeon Forge Price: $289,900 Get more information >

3.84 Acres & On The River Beautiful river frontage along the middle prong of the Pigeon River, known and verified to be the cleanest in the state. Beautiful, 30′ deep pool and huge boulders create a scenic park like setting. Type: Single Family Home Location: Sevierville,TN Price: $259,900 Get more information >

Wears Valley Luxury You’ll notice the unusually high quality construction from the moment you pull in the driveway. Type: Single Family Home Location: Pigeon Forge Price: $575,000 Get more information >

Recent Public Perception of Real Estate Industry Trending More Positive, and Shows Increasing Consumer Confidence

Posted by Gatlin on September 12, 2013

Based on a recent poll conducted by Gallup, the American public’s perception of the real estate industry is beginning to improve to levels not seen since 2007, before the onset of the economic downturn in 2008. The improvements in ratings of the real estate industry likely are due to the recent recovery of the housing market from the depths of the housing crisis.

In addition, this recent public opinion reversal is largely attributed, based on the Gallup survey, to broader improvement in the economy, as well as increased consumer confidence, resulting in a more positive view on the part of the public related to the real estate industry as a whole.

Furthermore, a recent report from Fannie Mae shows that, despite recent rises in mortgage rates, consumers do expect home prices to continue their recent steady rise. One additional trend worth noting is the month of July also saw where consumer credit increased $10.4 billion (or 4.4% annualized), as non-revolving credit increased 7.4% and revolving credit fell 2.6%, continuing a trend where consumer credit has increased every month since August of 2011. This indicates that credit is becoming easier to obtain, which could help in increasing consumption and economic growth. As such, this potentially bodes well for homebuilders, who have also seen recent gains, in line with increasing home prices.

What does all of this mean? We see that these trends, as well as the public’s perceptions, are continuing to show a gradual growth in real estate nationally. However, while mortgage rates have been on the rise, such rates are also still at all-time historically low levels. Therefore, why not consider looking for a new home in the Great Smoky Mountains area today, with many great homes still available to choose from? Please feel free to browse our available properties today, and see what the Smoky Mountains have to offer for you. There are many great homes still available for you to take advantage of, and you can realize your dreams of owning a home today in the beautiful Smoky Mountains!

Here Are A Few of My Featured Listings:

Spacious Home w/Great Mtn Views Spacious home full of character & detail. A vintage door from the 1890’s welcomes you inside where you will find vaulted ceilings, lots of windows and lots of unique spaces. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $359,200 Get more information >

Privacy & Mountain Views Enjoy privacy, mountain views and great outdoor spaces in this Sevierville log home. Inviting and comfortable it features soaring ceilings, a breakfast bar, tile counters in the kitchen and much more! Type: Single Family Home Location: Sevierville,TN Price: $359,900 Get more information >

Beautiful Mountain Sunsets Incredible large diameter log construction creates a special, solid, and timeless appeal. Type: Single Family Home Location: Pigeon Forge Price: $450,000 Get more information >

Total Existing Home Sales in July Nationally on the Rise

Posted by Gatlin on August 29, 2013

As a further sign of continued gradual growth in the housing market, the National Association of Realtors (NAR) recently announced that existing-home sales rose strongly in July, with the median price maintaining double-digit year-over-year increases.

According to the latest NAR report regarding July’s trends, total existing home sales increased 6.5 percent to a seasonally adjusted annual rate of 5.39 million in July from a downwardly revised 5.06 million in June, and are 17.2 percent above the 4.60 million-unit pace in July 2012; sales have remained above year-ago levels for 25 months.

In addition, Freddie Mac also recently indicated that the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.37 percent in July from 4.07 percent in June, and is the highest since July 2011 when it was 4.55 percent; the rate was 3.55 percent in July 2012.

Furthermore, the national median existing home price for all housing types was $213,500 in July, which is 13.7 percent above July 2012. This marks 17 consecutive months of year-over-year price increases, which last occurred from January 2005 to May 2006. Also, based on the NAR findings, Total housing inventory at the end of July rose 5.6 percent to 2.28 million existing homes available for sale, which represents a 5.1-month supply at the current sales pace, unchanged from June. Listed inventory is also now 5.0 percent below a year ago, when there was a 6.3-month supply.

Therefore, based on the findings of the NAR for July in 2013, we foresee that home prices will continue their gradual rise, in spite of recent interest rate increases, and that housing inventories continue to slowly decrease, thereby raising the home prices as demand remains steady or increases.

There are still many great deals on homes available in the Great Smoky Mountain market, and today is a good time to look for the many properties that are available right now. If you have thought about purchasing a property in the Great Smoky Mountain region, now is the time to start looking. We invite you to browse our available properties today, and see what our area has to offer for you.

Here Are A Few of My Featured Listings:

Unique Contemporary Home w/Mtn Views Come & enjoy this one of a kind, unique, contemporary home! This 5000+ sq ft, 4 BD/3 BA home is located just off the Parkway in Sevierville in a beautiful, private neighborhood! Type: Single Family Home Location: Sevierville,TN Price: $325,000 Get more information >

180 Degree City & Mountain Views Produced over $14k in rental income in 2012. Very private ridgetop retreat w/wraparound covered deck that has amazing 180 degree views of the mountains & city lights. Type: Single Family Home Location: Chalet Village Price: $189,900 Get more information >

Gone With The Wind Almost $27,000 income for 2012!! If you have dreamed of having a luxury chalet on top of the mountain with sweeping views of the valley, city and mountains then you have to look at this one. Type: Single Family Home Location: Chalet Village Price: $299,900 Get more information >

The Jason White Team
Century 21 Four Seasons Realty
1441 Wiley Oakley Dr
Gatlinburg, TN 37738
Toll Free: 877-678-2121
Fax: 865-436-7227
Email: jason@jasonwhiteteam.com
Website: www.SmokyMountainLifestyle.com

National Market and Consumer Trends Show Higher Home Prices and a Decrease in Housing Inventory

Posted by Gatlin on August 15, 2013

The recent national trends of higher home prices and decreasing housing inventory continued through the month of July. According to Realtor.com, the nation experienced a 5.24% decline in housing inventory, which is the second month in a row with year-over-year inventory declines in the single digits. In addition, this report also shows that national median home listing prices increased 5.27% year-over-year while the median age of housing inventory is down 16.67% nationally. This shows a continued trend of higher home prices, while also showing a decrease in both the amount and age of housing inventory nationally.

Furthermore, according to the latest Fannie Mae Monthly National Housing Survey for July, consumers expect home prices to climb 3.9% on average over the next 12 months, holding steady from the May and June survey results. Also, the share of survey respondents who say it is a good time to buy a house increased to 74%, while those surveyed indicating that it’s a good time to sell a house increased to 40%, matching the survey high.

According to Doug Duncan, who is a Senior Vice-President and Chief Economist for Fannie Mae, “expectations for continued improvement in housing persist, and sentiment toward the current buying and selling environment is back on track from its dip last month.” In addition, Mr. Duncan also stated that “these results are consistent with our own analysis of previous housing cycles, which finds that interest rates and home prices are not strongly correlated.”

On the whole, the national trends continue to reflect a slight decrease in housing inventory, while also showing a continued rise in home prices available on the market. In view of these trends, there are many great deals available for homes in the Great Smoky Mountain market today, and right now is a good time to look for the many properties that are still available. If you have recently thought about purchasing a property in the Smoky Mountain region, today is a good time to start looking. We invite you to browse our available properties, and see what the Smoky Mountain region has to offer.

Here Are A Few of My Featured Listings:

Enjoy Resort Living In The Mountains Great rental income: 2012 – $32,195 & 2011- $24,226.Private three bedroom, three bath log cabin with great mountain views from three decks. Type: Single Family Home Location: Pigeon Forge Price: $289,900 Get more information >

Come Be A Happy Bear Over $27,000 in gross rental income for 2012! This one will make you $$$. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $259,900 Get more information >

Home Prices on the Rise Nationally Show a Strengthening Housing Market

Posted by Gatlin on August 1, 2013

Over the last year, U.S. home prices have jumped 12.2% as of May of this year, from that of May of 2012, which represents the largest annual gain since March of 2006. In addition, to reflect this recent trend, the Standard & Poor’s/Case-Shiller 20-city home price index released on Tuesday surged 2.4% in May from that of April, all in 2013. Furthermore, these price increases were widespread, where all 20 cities measured by the S&P Index showed gains over a month’s time, from April to May in this year.

The S&P Index covers roughly half of all U.S. homes, and measures prices compared with those in January of 2000, along with creating a three-month moving average. The May index figures, as noted here, are the latest figures available. Despite a recent increase in mortgage rates, especially since early May, the figures noted by the S&P Index have not been significantly impacted, and still show a general trend towards rising home prices across the nation.

The factors behind these home price increases primarily center on more people bidding on a scarcer supply of home that are available for sale, indicating a shrinking housing inventory nationally. In addition, steady price increases, along with stable job gains and historically low mortgage rates, have encouraged more Americans to buy homes. Also, with higher home prices, more sellers are able to put their homes on the market, which creates greater supply and contributes to the ongoing gradual housing recovery that is now currently underway.

What does all of this mean? The national trends, as reflected by the recent S&P Index, show a steady growth in the housing market, and continued strength in home prices across the board. For both buyers and sellers, the market appears to be more receptive at the present time, and is showing gradual gains amidst an ongoing economic recovery.

There are still many great deals on homes available in the Great Smoky Mountain market, and right now is a good time to look for the many properties that are available right now. If you have thought about purchasing a property in the Great Smoky Mountain region, today is a good time to start looking. We invite you to browse our available properties that we have in the area.

Here Are A Few of My Featured Listings:

Beautiful Log Cabin w/Mtn. Views Brand new log cabin w/ 2 BD/2 BA, located just 2 mi. from the Downtown Gatlinburg Strip, & is w/in walking distance to the Gatlinburg Community Center. Type: Single Family Home Location: Gatlinburg,Tennessee Price: $259,900 Get more information >

Remodeled Condo w/Amazing Mtn Views This contemporary style 2BD/2BA home offers practically a bird’s eye view of the ski slopes at Ober Gatlinburg plus an unparalleled exhibit of the Great Smoky Mountains! Type: Condo Location: Gatlinburg,Tennessee Price: $209,900 Get more information >

The Jason White Team

Century 21 Four Seasons Realty

1441 Wiley Oakley Drive

Gatlinburg, TN 37738

Toll Free: 877-678-2121

Fax: 865-436-7227

Email: jason@jasonwhiteteam.com

Website: www.SmokyMountainLifestyle.com

Fed Seeking to Ease Recent Increase in Interest Rates

Posted by Gatlin on July 25, 2013

Federal Reserve officials recently expanded upon the latest comments by Fed Chairman Ben Bernanke, whose comments led a recent sudden spike in interest rates, including mortgage rates, which increased to the highest levels seen in nearly two years. The effects of this recent spike have led to potential increased borrowing costs for first-time and returning homebuyers, at a time when the housing market is showing slow, but steady, national growth.

Bernanke’s recent comments indicated that the Fed would reduce the amount of bond purchases that it has made since the 2008 economic downturn, along with keeping the benchmark interest rate down at all-time lows. However, according to William C. Dudley, President of the Federal Reserve Bank in New York, any increase in the Fed’s benchmark interest rate is “very likely to be a long way off,” and that any decision to reduce the pace of asset purchases wouldn’t represent a withdrawal of stimulus.

In fact, showing the reflectiveness of this recent rate spike, the average rate for a 30-year fixed mortgage recently rose to 4.46 percent from 3.93 percent, the biggest one-week increase since 1987, McLean, Virginia-based Freddie Mac said in a statement. The rate was the highest since July 2011 and above 4 percent for the first time since March 2012.

What does all of this mean? For the long-term housing market, especially for first-time and returning homebuyers, the Fed’s recent trend to consider a reduction of bond purchases and assets indicates a shift that may result in higher interest rates, including mortgage rates. While not immediate, the trends, as well as recent comments by the Fed, indicate that interest rates will go up in the long-term – it is just a matter of when and by how much.

Here Are A Few of My Featured Listings:

Beautiful & Spacious Home w/Amazing View Over $185,000 in rental income from 5/1/12-4/30/13. Self managed using VBRO.com eliminating big management fees and improving net income. Prepare to be impressed by the top quality construction and high end finish work. Type: Single Family Home Location: Gatlinburg,Tennessee Price: $1,950,000 Get more information >

Beautiful Cedar Log Home w/Mtn View Beautiful, private, and well-maintained 4 BD/2.5 BA cedar log home located with Amazing Mountain and Natural views! Type: Single Family Home Location: Gatlinburg,Tennessee Price: $589,000 Get more information >

The Jason White Team
Century 21 Four Seasons Realty
1441 Wiley Oakley Drive
Gatlinburg, TN 37738
Toll Free: 877-678-2121
Fax: 865-436-7227
Email: jason@jasonwhiteteam.com
Website: www.SmokyMountainLifestyle.com

Tag: real estate news