“We are living in the middle of the most ‘happening’ place on the Planet,” a friend recently told me. I happen to agree – there are tons of great activities, there are jobs that are making folks happy, great housing options and Raleigh Mortgage rates are still really low.
The Raleigh Cary, NC area was popping with big events this past weekend! Recent social events in the area included the Cameron Village “Underground Rises” fashion show/Love Language concert, North Hills opened their new amphitheater with The Embers, Cuegrass cooked up hot tune, and Brewgaloo in down town Raleigh NC had the longest lines we’ve ever seen. We were just named as #10 Least Expensive City for Beer Drinkers (Raleigh, NC)!
Cary’s Koka Booth Amphitheater is kicking off it’s Hob Nob Jazz Festival on Wednesday nights – and that’s a great time to hang out with neighbors too! No wonder Raleigh and Cary have been named to so many “TOP OF” and “BEST Places to Live” in 2014!
Homes are selling at top prices, as inventory is still very low. Especially for those looking for houses under the $375,000 mark. We talk to first time Home Buyers every day who made bids on more than 4 or 5 houses before they get an offer accepted on their dream home!
Mortgage rates improved last week after two bad weeks in a row, and with more interest in the Raleigh and Cary housing market – we are seeing many folks looking at NEW HOMES. Unfortunately, many of them are going to the new home neighborhoods with no Real Estate agent, and they are just taking the “deal” the builder’s mortgage company is offering. You can do so much better than that!
Raleigh Mortgage and Real Estate New Update
Raleigh ranked #4 on Forbes’ “The Best Cities For Jobs 2014″
Since March of 2014, the Raleigh / Cary NC area has made it to over a dozen “best of lists.”
~#10 City Gaining the Most College Graduates (Raleigh, NC) Forbes | April 2014
~ #4 Most Cost-Attractive Mid-Sized City for Business (Raleigh, NC) KPMG | April 2014
~ #3 Fastest Growing City (Raleigh-Cary, NC) CNN Money | March 2014
~ Top 8 Region On the Rise (Raleigh, NC) Time | March 2014
~ #8 Top U.S. Biopharma Cluster (Raleigh-Durham, NC) Genetic Engineering & Biotechnology News | March 2014
~ #10 Least Expensive City for Beer Drinkers (Raleigh, NC) Nerd Wallet | March 2014
Forbes put the spin on the Economy, and what the Cary, Raleigh NC Region is experiencing this way:
“As the recovery from the Great Recession stretches into its fifth year, the locus of economic momentum has shifted. In the early years of the recession, the cities that created the most jobs — sometimes the only ones — were either government or military-dominated, or were powered by the energy boom in Texas, Oklahoma and the northern Great Plains. Now the recovery has shifted to a new group of cities that have benefited from the boom on Wall Street and the parallel IPO surge in Silicon Valley — call them asset inflation cities.”
I’ve been involved and included on a couple of Government Sponsored Technology Task Forces, looking at what we need to continue to add to our offering in the area – to be certain that Raleigh and Cary, NC are top of the list for companies looking to expand. Why is a Raleigh mortgage lender interested in whether Google Fiber comes to Raleigh next?
Simple. Housing Markets, especially STRONG housing markets, follow jobs. We are positioned, with our major Universities, Government headquarters, and RESEARCH collaboration between the Universities and Research Triangle Park to be THE best “Technology Community” for the next generation. That’s why the other accolades we received this year are so important!
~ #5 Emerging Tech Hub in the World (Raleigh, NC) TransferWise | February 2014
~ #11 Best City for Female Entrepreneurs (Raleigh, NC) Nerd Wallet | February 2014
~ #2 Fastest-Growing City in 2014 (Raleigh, NC) Forbes | February 2014
~ #6 Most Affordable and Growing City in the U.S. (Raleigh, NC) Cheapism.com | January 2014
THIS is where you can feel comfortable about jobs. We have the Entrepreneurial Spirit in Raleigh – and we are growing at a fast pace. The Real Estate Market (again, broken record here) is strong, but, because we do not have enough “existing” houses for first time home buyers, New Home Builders are racking up, and getting higher prices for those new homes. Home Buyers, who go to the new home communities with no agent – are simply not going to get the best deals on a New Home in Raleigh or Holly Springs… and you are probably not getting the best Raleigh Mortgage rates either.
Is there A New Housing Bubble?
According to Bloomburg News, many cities that are experiencing low inventory and higher demand are setting themselves up for a “Bubble” in the housing market. Is that the case in Raleigh and Cary? We don’t think so, although paying too much for a new home – is a real concern.
Across the country, Sales of previously owned properties in March tumbled 7.5 percent from a year earlier to the slowest pace in 20 months, while purchases of new houses sank 14.5 percent from February, according to reports this week. Again, this is not what we are seeing in the Raleigh Area – but it could slow some folks who are trying to move here, and have property to sell first.
According to the National Association of Mortgage Lenders in Washington, mortgage applications to buy homes plunged 19 percent from a year earlier, indicating slowing demand this Spring, which is typically the busiest season for home buyers.
The housing market’s underlying fragility is emerging as outside influences that fueled a two-year rebound are receding. Mortgage interest rates are rising from record lows as the central bank withdraws its stimulus, and (foreclosure hungry) investors, who had helped drive national prices up more than 20 percent as they went on a buying spree, are now retreating.
Each Summer, the price of gas goes up. It’s a seasonally adjusted phenomenon that happens because the “mix” of gas changes during the summer months. Higher Gas Prices generally bring higher mortgage rates, as the concern of Inflation always begins to sneak in. This is a cycle we’ve seen appear for a couple of years.
Interest rates on 30-year Raleigh mortgages are still about half the 8.36 percent average since 1971, according to Freddie Mac’s data. Rates on 30-year loans peaked at 18.6 percent in 1981, and they were considered LOW when we bought our first home in 1984 with a 13.75% rate!
Freddie Mac Economist are now predicting that mortgage interest rates could be at 5.0% by the end of the year. In a recent prediction by economists with Freddie Mac called for slowly rising mortgage rates between now and the end of this year — and through 2015 as well. This could be the case – but if you consider that we have an election looming in the fall, we expect mortgage rates to stay below the 5.0% range. This is still about $125 a month HIGHER for mortgage payments from the lowest point. We do NOT see substantially lower Raleigh mortgage rates in the next 6 month forecast.
In general, if you are looking for lower Raleigh mortgage interest rates – you are looking for “BAD NEWS” in the economy. So bad job numbers this Friday, or more unrest with Russia could be destabilizing, and force mortgage rates down. However, the economy seems to be bouncing along pretty well, the Dow is up, and mortgage rates do not appear to be heading lower anytime soon.
If you are interested in getting the BEST DEAL on a new home in Raleigh and the surrounding areas, and you want to get more information on a Raleigh Mortgage – call Steve and Eleanor Thorne 919 649 5058. We offer today’s best mortgage rates, all of the Mortgage Tax Credits Available and the NC First Time Home Buyer Programs!