Moorhead Real Estate | What are home interest rates looking like in 2019?

The outlook for real estate in the Fargo Moorhead area looks strong even with all the head winds we have had in 2018. Our thoughts at Modern Market Realtors are that rates will remain stable thru 2019, in spite of the tariffs and the govt shut down.  Chances look great for business as ususal in the Fargo Moorhead area.  But don't take our opinion here is what the big boys say.

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The FM area which I have lived in for over 30 yrs, always seem to be anything but a bellwether for the housing market.

Fargo Moorhead Real Estate has always been an anomaly in the big picture of housing. The FM area which I have lived in for over 30 yrs, always seem to be anything but a bellwether for the market. Hmm what do I mean by that? Fargo Moorhead just seems to avoid those crazy ups and downs in the housing market. Yes we do have times when the market is better, or not as good as other times, but Fargo just never has the off the charts crazy god or crazy bad times.
 1 of the thing I notice a lot is people saying "Hows the market?"Well im here to tell you the housing market may be beginning to cool, but it's still quite good over all. Home sales are down from a year ago, more sellers are cutting their asking price and mortgage rates are climbing. Surveys last week showed 30-year rates approaching or crossing 5 percent, the highest they’ve been in seven years. Aaron Terrazas, a senior economist at Zillow.com, said that although the economy is strong, rising rates can cause a psychological chill. People have been receiving news of a looming slowdown,” Terrazas said. “They’re starting to take that into account, and they’re being more conservative in their bidding than a year ago.” Throughout the recovery, a shortage of listings has helped drive prices up, at first because homeowners were reluctant to sell at depressed prices. But this shortage is also keeping many would-be buyers on the sidelines, as they opt to rent or stay put. “Buyers are weary,” said Shannon Barnum, a sales agent with Modern Market Realtors in Fargo Moorhead. “They’re sick of hearing that it’s a sellers’ market.
 Rising rates
 The new dynamic is higher mortgage rates, after a decade in which they remained unusually low. Shannon said that while housing affordability is still excellent by historical standards, 5 percent is a threshold that will be a test for buyers. She said that’s especially true for first-timers who don’t remember the double-digit rates of the 1980s. Given the rapidly changing nature of the market, Shannon and other agents are warning sellers that buyers are on the defensive. she’s now including a clause in some listing agreements that asks sellers to approve an automatic price reduction if the house doesn’t sell in 10 to 14 days Those price reductions tended to be most common in areas that were developed in the 1980s and 1990s and are flush with big houses that need updating. In Rose Creek and CharlesWood, for example, price cuts were being offered on nearly one in four listings. Shannon Barnum, a broker associate in Fargo, says many buyers already believe homes are overpriced, so she’s advising sellers to make price adjustments ahead of what she expects to be a shift in the market. “It’s been primarily a sellers’ market the last two years,” she said. “Our buyers were getting frustrated and tired of losing their dream homes over the frenzy of multiple offers. They decided to rent instead and wait for prices to stabilize

Just listed: 3133 5th St E, West Fargo, ND 58078, USA

Check Out This Home For Sale in West Fargo ND
3133 5th St E, West Fargo, ND 58078, USA 
Call Jim Christl
701-205-5517
Modern Market Realtors
1306 24 Ave S Moorhead MN

Buying A Home Plan for Younger People – Make Sure to Plan Ahead

Granted, few young people spend much time day-dreaming about buying their first home. They're naturally preoccupied with academics, athletics, parties, dating and future career possibilities. Nonetheless, there are a number of good reasons to start learning early in life about the costs of buying a home and the responsibilities of homeownership. For example, a college student's misuse or abuse of credit cards can preclude his or her buying a home later on.

Here are five recommendations for young people who want to position themselves for homeownership:

1. Establish good credit habits and a favorable credit history. Get a credit card and use it responsibly. Apply for an automobile loan and make your payments on time every month. If you're renting an apartment, put your own name on the lease and the utility bills and make sure the rent and the bills are paid every month. If you're already struggling with credit card debt or have large student loans, take a free workshop from the non-profit Consumer Credit Counseling Service. Call (800) 388-2227 for information.

2. Start saving for a down payment and closing costs. It's possible to purchase a first home in many parts of the country without much in the way of savings. But in high-cost housing areas, starting to save early can be enormously beneficial because you'll get the advantage of compounding interest and have a longer period of time to grow your investments. Open a savings account or a stock brokerage investment account and make regular deposits.

3. Read some books. Your local library and bookstore probably have at least a few shelves of books about financial management and buying a home. Take notes. Make a financial plan for yourself.

4. Research where you'd like to live. Many young people assume they'll continue living in their own home town when they get older, but people are more mobile than ever and chances are good you'll one day live in another city or even another state. Again, the library, bookstore and Web can be excellent resources for information about housing costs and homeownership opportunities around the country.

5. Tap your real estate agent relatives for advice. Parents, grandparents, aunts, uncles or older cousins in the real estate business can give you good information about the cost of housing in the area where you want to live and what it takes to buy a home. Questions to ask: Is housing affordable in this area? How much money would I need to save in order to buy a home? What advice would you give me about planning my financial future? Would you recommend some books that I might like to read about buying a home? Don't be shy. If you have a question, ask someone in a position to know the answer.

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