Mortgage Rate Increases- How Will it Impact Me?

“Short of a war or stock market crash…”

“Short of a war or stock market crash…” | MyKCM

Mortgage Rate Increases- How Will it Impact Me?

This month, Arch Mortgage Insurance released their spring Housing and Mortgage Market Review. The report explained that an increase in mortgage rates and/or home prices would impact your monthly payments this way:

  • A 5% increase in home prices increases your payments by roughly 5%
  • A 1% rise in interest rates increases your payments by roughly 13% or 14%

That begs the question…

What if both rates and prices increase as predicted?

The report revealed:

“If interest rates and home prices rise by year-end in the ballpark of what most analysts are forecasting, monthly mortgage payments on a new home purchase could increase another 10–15%. That would make 2018 one of the worst full-year deteriorations in affordability for the past 25 years.”

The percent increase in mortgage payments would negatively impact affordability. But, how would affordability then compare to historic norms?

Per the report:

“For the U.S. overall, even if affordability were to deteriorate as forecasted, affordability would still be reasonable by historic norms. That is because the percentage of pre-tax income needed to buy a typical home in 2019 would still be similar to the historical average during 1987–2004. Thus, nationally at least, even with higher rates and home prices, affordability will just revert to historical norms.”

What about home prices?

A decrease in affordability will cause some concern about home values. Won’t an increase in mortgage payments negatively impact the housing market? The report addressed this question:

“Even recent interest rate increases and higher taxes on some upper-income earners didn’t slow the market, as many had feared…Short of a war or stock market crash, housing markets could continue to surprise on the upside over the next few years.”

To this point, Arch Mortgage Insurance also revealed their Risk Index which estimates the probability of home prices being lower in two years. The index is based on factors such as regional unemployment rates, affordability, net migration, housing starts and the percentage of delinquent mortgages.

Below is a map depicting their projections (the darker the blue, the lower the probability of a price decrease):

“Short of a war or stock market crash…” | MyKCM

Bottom Line

If interest rates and prices continue to rise as projected, the monthly mortgage payment on a home purchased a year from now will be dramatically more expensive than it would be today.  If you want to discuss your personal situation, text or call me at 925-400-7007 or jason@nexthomeprg.com.  I have been a full-time Realtor/Broker for 16 years and am happy to put my experience to work for you.  I have extensive experience in San Ramon real estate as well as Danville, Dublin, Pleasanton and Alamo for  personal and investment real estate transactions.

San Ramon Passport Services

San Ramon Passport Service

passports and map

San Ramon offers passport renewal and ordering services.

If you are planning to travel abroad this summer, and your passport needs to be ordered or renewed, this is the time to start the process.  It is currently taking about 2 months to process a new passport.

Ordering a passport for the first time.

  • APPLICATIONS MUST BE TYPED OR PRINTED USING BLACK INK
  • ACCEPTED FORMS OF PAYMENT: Personal checks, cashiers checks, or money orders only; SEPARATE payments go to the Department of State and to the City of San Ramon respectively. See passport fee schedules below for details.
  • For complete information on all REQUIRED forms and documents, you need to bring to your appointment, go to http://travel.state.gov/content/passports/en/passports/apply.html

Don’t forget to make an appointment.  Follow these instructs per the San Ramon City website.

PASSPORT APPOINTMENT LOCATION:
7000 BOLLINGER CANYON RD
BY APPOINTMENT ONLY

  • The City does not process renewal forms (DS-82) for adults. These are mail-in forms.
  • The system will automatically show the first available time slot.
  • Double booking appointments will result in the 2nd appointment being canceled.
  • If you have a travel emergency, please contact 1-877-487-2778

What does it cost?

New passports range $80 for minors to $110 for adults.  Renewals by mail are $110 for adults.  Minors cannot renew by mail.  All passports processed through the City of San Ramon are charged an extra $35 fee.

Minor Rules.

If you are ordering a passport for a minor or renewing a minor’s passport, there are rules that need to be followed. For complete details, go to http://www.sanramon.ca.gov/cms/one.aspx?portalId=10826130&pageId=11593700

How long does it take for a passport to be renewed?

Currently, the U.S. Department of State is reporting that new passport requests are taking 4-6 weeks.  This does not include another 7 days for shipping.

 

5501 De Marcus Blvd #229 Dublin

5501 De Marcus Blvd #229, Dublin

Investment Property Realtor Jason Kerner
Gorgeous Property Presented by Broker/Realtor Jason Kerner

Ideally Located Near BART and Hacienda Crossings Mall

I have just listed this gorgeous townhouse at Elan in Dublin Station.  This is a fantastic location .5 miles from BART and within walking to incredible shopping, restaurants, and the Hacienda Crossing outdoor mall.  5501 De Marcus Blvd #229

5501 DeMarcus Blvd Unit 229-print-018-7-marcus18-4200x2803-300dpi

Home Details

This spacious 2-story townhouse style living offers 2 bedrooms, 2 bathrooms, plus a loft with 1400 square feet.  The 2-story windows in the living room welcome sunlight and make the house bright and cheery.

5501 DeMarcus Blvd Unit 229-print-005-9-marcus5-4200x2812-300dpi

Upgraded Townhouse with Designer Elements

Recent upgrades include hardwood floors and new carpet.  The modern kitchen includes granite counters, stainless steel appliances, and maple cabinets.   This property is perfect for a residence or a wonderful investment opportunity!

Call or text me for a personal tour of this property at 925-400-7007.

Sheep Shearing at Forest Hill Farms

Sheep Shearing Days at Forest Hill Farms on Sat. 11-3pm

Sheep Shearing Days at Forest Hill Farms Saturday 11-3pm

Forest Hill Farms is hosting their annual Sheep Shearing Days on April 21, 2018, 11-3pm.

San Ramon residents are lucky to have Forest Hill Farms within miles of our neighborhood.  Hosted by the San Ramon Historic Foundation, Sheep Shearing Days at Forest Hill Farms is one of our children’s most favorite San Ramon events.  All are welcome!

Children will enjoy a list of fun activities that include:  craft activities, face painting, wool spinning demonstrations and sheepdog presentations. Also available are tours of the Glass House or a tractor ride for a small fee.  The event also hosts live music and food options available for purchase.

Sheep Shearing Day
Saturday, April 21, 2018
11am-3pm at Forest Homes Farms Historic Park
Tickets: $3-7
(Children 3 & under FREE)

For tickets and more information, call 925.973.3284 or visit http://SRHF.org

If you are interested in buying or selling a home in San Ramon, give me a call.  As your local Broker/Realtor with 16 years of full-time experience,  I look forward to meeting you!  Text or call 925-400-7007.  To learn more about my real estate team, check out http://www.KernerHomes.com.  Make it a great day!

Getting Pre-Approved is First Step to Buying a Home- by San Ramon Realtor Jason Kerner

Getting Pre-Approved Should Always Be Your First Step

Getting Pre-Approved Should Always Be Your First Step | MyKCM

In many markets across the country, the number of buyers searching for their dream homes is far greater than the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.  If you need help figuring out what you can afford, give me a call and we can crunch some numbers together.  As your local Broker/Realtor with 16 years of full-time experience, I am happy to help.  Text or call 925-400-7007 or visit KernerHomes.

Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so.  Give me a call and I can help make this process as easy as possible.  Let’s put my 16 years of real estate experience to work for you.  Call or text 925-400-7007 or email me at jason@nexthomeprg.com

 

Buyer Demand Still Outpacing the Supply of Homes for Sale- by San Ramon Realtor Jason Kerner

Buyer Demand Still Outpacing the Supply of Homes for Sale

Buyer Demand Still Outpacing the Supply of Homes for Sale | MyKCM

The price of any item is determined by the supply of that item, as well as market demand. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between Seller Traffic (supply) and Buyer Traffic (demand).

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”

Buyer Demand Still Outpacing the Supply of Homes for Sale | MyKCM

The darker the blue, the stronger the demand for homes in that area. Only four states had a ‘stable’ demand level.

Seller Supply

The index also asked: “How would you rate seller traffic in your area?”

As you can see from the map below, 25 states reported ‘weak’ seller traffic, 21 states reported ‘stable’ seller traffic, 3 states and Washington D.C. reported ‘strong’ seller traffic, and only 1 state reported ‘very strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for their dream homes.

Buyer Demand Still Outpacing the Supply of Homes for Sale | MyKCM

Bottom Line

Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together to help you capitalize on the demand in the market now!  Call me at 925-400-7007.  Make it a great day!

20 Tips for Preparing Your House for Sale This Spring- by San Ramon Realtor Jason Kerner

20 Tips for Preparing Your House for Sale This Spring [INFOGRAPHIC] posted by San Ramon Realtor Jason Kerner

Tips for Preparing Your House for Sale This Spring [INFOGRAPHIC] | MyKCM

Highlights:

  • When listing your house for sale your top goal will be to get the home sold for the best price possible!
  • There are many small projects that you can do to ensure this happens!
  • Your real estate agent will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local contractors who can help!
  • Call me if you want help deciding which projects will add the most profit to the sale of your home at 925-400-7007.

 

170307-self-driving-bus-california-easymile-1

San Ramon’s Driverless Bus- by San Ramon Realtor Jason Kerner

San Ramon’s Driverless Bus

San Ramon Introduces the Driverless Bus

The first driverless shuttle in California makes it’s debut in San Ramon’s Bishop Ranch Business Park.  San Ramon is the first city to test out this driverless system,which is called “The EasyMileShuttle”.  The bus does not have a driver, steering wheel or driver’s seat.  It is, however, fully licensed by the DMV to operate.  In fact, it is the only DVM licensed driverless shuttle in the State.  Plan to see this little red bus moving through Bishop Ranch April 27, 2018.

The Goal for EasyMile

Making rounds in the Bishop Ranch Business Park, The EasyMile shuttle test went well, pleasing our city leaders.  The bus holds 12 travelers.  The ultimate goal of the program is to help transfer the workforce from BART to Bishop Ranch.  In addition, Contra Costa County hopes to have over 100 driverless shuttles working by 2020.  This will help solve the problem with BART and parking spaces plus crowded streets.  With the new City Center San Ramon opening up in the near future, offering this shuttle service will be great for community neighbors.

To read more, check out:  Bishop Ranch News

See Video of EasyMile

https://youtu.be/jB-qXcojLRU

Driverless Transporation in the News

Given the recent driverless accident in Arizona, there are programs around the country that are in the process of being postponed for evaluation for safety issues.  It will be interesting if this program continues or is postponed pending any possible safety issues.

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Safest Colleges in the Country- San Ramon Realtor Jason Kerner

Safest Colleges in the Country

by San Ramon Realtor Jason Kerner

Many of our children will be accepting college invitations over the next few months.  Acceptance letters are being sent out in a fury and our youths have hard decisions to make about the next 4 years of their life.  To add to the complexity of selecting the perfect school, parents want to make sure their children are safe at college.  How do safety rankings impact college choices?

Safe Colleges

Alarms.com has just released their Safest College Campus in the US statistics.  California has a host of schools that would make parents happy.  The highest ranking California college is # 13 Cal State San Marcos.  #44 UC Irvine also appears in the top 50 safest colleges in the US.  Here is the complete list of California’s top-ranked safest schools.

  1. Cal State San Marcos (13)
  2. UC Irvine (44)
  3. Cal State Fullerton (59)
  4. Cal State Dominguez Hills (67)
  5. UC San Diego (71)
  6. Cal State East Bay (75)
  7. Cal State LA (83)
  8. UC Davis (85)
  9. Cal State Northridge (87)
  10. San Jose State University (90)
  11. San Diego State University (97)
  12. Cal State Long Beach (101)
  13. Cal Poly Pomona (106)
  14. Sacramento State University (127)
  15. UC Santa Barbara (151)
  16. UC Riverside (161)
  17. UC Los Angeles (162)
  18. Cal Poly San Luis Obispo (163)
  19. CSU Chico (164)
  20. Fresno State University (186)
  21. Cal State San Bernardino (196)
  22. UC Berkeley (209)
  23. San Francisco State University (220)
  24. UC Santa Cruz (234)

Does This Impact College Choices?

The San Ramon Valley Unified School District is an award-winning district.  We are high achievers with incredibly talented and academic students.  Our schools offer cutting-edge programs in engineering, technology, and science.  Will your family be discussing college safety this Spring?  If so, feel free to use this ranking from Alarms.com.

Empty Nesters

Many of us will be making housing changes after our children go off to college.  Using the equity built in our homes and the desire to downsize are always appealing goals.  Maybe retirement is coming soon or traveling more becomes a priority?  If you are one of the many looking to find a new home, give me call.  I will be happy to help make your transition easy and profitable.

4 Reasons Spring is a Great Time to Buy a Home

4 Reasons Spring is a Great Time to Buy a Home!

4 Reasons Spring is a Great Time to Buy a Home! | MyKCM

Here are four great reasons to consider buying a home today instead of waiting.  To discuss any of these reasons in more details, feel free to give me a call at 925-400-7007 or jason@nexthomeprg.com.

*Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.3% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

**Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage hovered close to 4.0% in 2017. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by nearly a full percentage point by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

***Either Way, You Are Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?  If so, let’s talk or text at 925-400-7007.

****It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?  To find out what homes are available in your area, contact me directly or check out our local home search program at: Home Search

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.  To learn more about Kerner Homes, go to http://www.KernerHomes.com.  Make it a great day!