Sell you home today for a loss & get rewarded in the future

Sell you home today for a loss & get rewarded in the future

Is it a Seller Market with Raleigh Mortgage Rates???

Is it a Seller Market with Raleigh Mortgage Rates???

It is unbeleivable that Raleigh mortgage rates are below 4% — this may be causing a shift from a buyer’s market to a Sellers market. Seriously, we are not in a full force “Seller’s Market” though-out the Triangle however I have been seeing a shift as many of my Clients are being caught in a bidding war competing against multiple offers. Remember, real estate is local…and hyper local (i.e. neighborhood by neighborhood) so consult your trust real estate professional.

Today, the NewsObserver published an article recently titled “Triangle Home Sales Up 20% in the First Quarter” – folks, this market is green and growing so if you have been thinking of buying your first home or considering to move up – NOW IS A GREAT TIME.

Here are some quick Kevin Martini fact to know:

Home showing up 11%
Pending home sales up 22%
Closings up 20%
The average sales price was $223,800

The gets news gets better…Raleigh mortgage rates remain near historic lows and now continues to be a GREAT time to purchase a home. The home affordability is at one of the best levels EVER.

Last week inflations date was released & Raleigh Mortgage Rates responded

Last week inflations date was released & Raleigh Mortgage Rates responded

Last week inflation news hit the wires and this impacted Raleigh Mortgage Rates. Now inflation is measured on both a wholesale and consumer levels. The wholesale-measuring Producer Price Index (a.k.a. PPI) showed that prices remained mostly unchanged during March. Remember, inflation hurts the value of fixed investments like Bonds (including Mortgage Bonds, to which Raleigh mortgage rates are tied)…so the lack of inflation on the wholesale side was very good news for Bonds and Raleigh mortgage rates.

Also helping Bonds Raleigh home loan rates last week was the tame inflation data from the Consumer Price Index (a.k.a. CPI). The headline reading for March was right in line with estimates. Then when you take out volatile food & energy, the Core CPI was also inline with estimates – HOWEVER he year-over-year number was 2.3%, just slightly higher than the previous reading of 2.2%. While this raises eyebrows a bit, the Fed is still reiterating that inflation remains restrained.

Here is the Kevin Martini take on this… if the Core CPI continues to rise…which is indicative of inflation…Raleigh home loan rates will have a tough time improving much further – period.

One key factor to keep an eye on is the labor market, as Initial Jobless Claims increased 13,000 for the week ending April 7. This marks the highest level since January & the second highest reading for 2012. The Fed has acknowledged that job creations are short of their goals.

The bottom line is that many factors will impact the direction in which Bonds and Raleigh mortgage rates move in the weeks ahead. The good news is that Raleigh home loan rates remain near historic lows & now continues to be a great time to purchase or refinance a home.

Earning season continues on Wall Street plus the economic calendar is FULL…reports on sales, housing, jobless claims and manufacturing:

Starting Monday…Retail Sales will be reported…nvestors will be able to gauge how consumer spending is holding up.

In manufacturing news, the Empire State Index out of New York and the Philadelphia Fed Index will be released on Monday and Thursday, respectively.

Housing will be in the news this week with Housing Starts and Building Permits for March being reported on Tuesday. Those reports will be followed by the Existing Home Sales report for March, which will be released on Thursday.

The weekly Initial Jobless Claims report will be released on Thursday. The report released last week showed that jobless claims rose to their highest level since the week ending January 28. So the markets will be watching this week’s release!
Again, it is earning season & corporate earnings may influence the Stock markets – and as we know, the Bond markets usually move in the opposite direction.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Raleigh mortgage ratesimprove, while strong economic news normally has the opposite result.

So…what do you want your Raleigh Mortgage Payment to Be?

So…what do you want your Raleigh Mortgage Payment to Be?


When you're buying a home in Raleigh or a home anywhere for that matter, it is my opinion, to search for what home costs, not by the listing price of the home. Price is just the cost on the sticker.  In contrast, cost is what you pay each month to own the home. It's your Raleigh mortgage, your taxes, your insurance, and even you home owners association. It's your combined cost of homeownership.



Please make no mistake…in the Kevin Martini family, price matters in the long run but cost is what hits your wallet every month.

So the first question you should ask yourself regardless if you are a first-time home buyer or a seasoned real estate investor is:

“how much can you afford to spend on a home each month”

Yes, I am suggesting to search for homes by the "Monthly Payment" not the “List Price”

As a Raleigh homebuyer, this is the most important question you can ask yourself. Folks, let me warn you…ranges do not work – you need to know your specific number.

Once you know your monthly budget, determining whether a home is “affordable” for you is a matter of working some basic Raleigh mortgage math.

Home Affordability

Homes are more affordable today than at any time in recorded history. It’s not because home prices are down, though -- it’s because Raleigh mortgage rates are.

Low Raleigh mortgage rates extend a buyer’s housing budget farther than falling home prices ever could. But with Raleigh mortgage rates changing every 3 to 4 hours on average, affordability can be VERY short-lived.

Every time Raleigh mortgage rates change, so does your budgeted maximum purchase price & the changes can be dramatic.  For Example: For each 0.125% increase to mortgage rates, your maximum purchase price must fall by about 1 ½ % to stay with your budget payment.

This is why timing the housing market is reckless. Rising Raleigh mortgage rates can quickly erase your savings.

About The Author:

Kevin Martini is a trusted Raleigh lender with the Kevin Martini Group at SunTrust Mortgage.  You can email Kevin at Kevin@KevinMartini.com or call at 919.274.3700.

5 tips by Kevin Martini to help Raleigh Sellers to sell their home fast & for top dollar

5 tips by Kevin Martini to help Raleigh Sellers to sell their home fast & for top dollar

Here are 5 tips offered by the Kevin Martini Group at SunTrust Mortgage  to make your Raleigh home sell fast and for top dollar.

1. Order an inspections before marketing your home. For $250 – $400 a professional will alert you to any major issues.  Now if there are none…you have gained a great selling point.
2. Make needed repairs. Even a drippy faucet may suggest your home is not well maintained.
3. Clear the clutter.  Home stagers say to clean off the counter, thin out the closets & store at least a 1/3 of your furniture.
4. Deep clean.  Now is the time to hire a professional house cleaner.  You want the windows to gleam, carpets that are stain & odor free, wood floors to shine & NO HINT of dust or fingerprints.
5. Curb your enthusiasm.  Curb appeal is your potential Raleigh home buyer’s first impression.  Consider planting bright flowers & perhaps you turn the sprinklers on for just a moment so the lawn sparkles.

Ideally, better offers will result by being proactive and implementing these 5 ways to make your Raleigh home worth more.  Now even if you cannot get quite what you want, remember:  When you buy your new Raleigh home, lower prices will be on your side plus Raleigh mortgage rates are very attractive.

Need help finding your new dream home — check out the Home Buyers Scouting Report.

Raleigh Home Loans Rates Move Higher Yesterday

Raleigh home loan rates rose sharply this afternoon after the Federal Reserve released the minutes from their March meeting.

All Type of Raleigh mortgage rates rose…I am talking FHA, VA, USDA conventional & even the jumbo Raleigh home loan ratesBefore I give you the Kevin Martini breakdown --- let me share that the Federal Open Market Committee (a.k.a. FOMC) meets 8 times a year to discuss policy & revise statements they have made that are currently in play –FYI policy that they put in play. Now 3 weeks after they have a gathering…the Federal Reserve publishes what's known as the Fed Minutes (i.e. summary of the the conversations that shaped the meeting). The Stock market…the bond pay close attention to the Fed Minutes because the Federal Reserve is the top dog and set the tone in the investing arena.

For the past several years, Fed policies have helped drive stock markets up and bond pricing down, creating the low Raleigh mortgage rate environment to which we've all grown accustomed. As a result, when investors believe the Fed is close to withdrawing said policies, Raleigh home loan rates rise.

Folks, that is what happened today – April 3, 2012. & that did not ONLY impact Raleigh mortgage rates -- mortgage rates rose in all 50 states.

The March Fed Minutes show a Federal Reserve committed to improving the U.S. economy, but clearly within a "Wait-and-See" mode. After 2 rounds of quantitative easing, Fed members are watching employment data improve, housing numbers rebound, and an increase in consumer spending.

Before launching new stimulus (i.e. QE3), the Federal Reserve seems content to ride out the current wave of economic expansion. Wall Street wasn't prepped for this 411.

Based on comments from Fed Chairman Ben Bernanke made last week, investors thought a new stimulus round was imminent; likely to follow even the slightest economic hiccup. Today, those expectations are squashed.

Based on the March Fed Minutes, the Federal Reserve is unlikely to add new market stimulus, short of the economy losing its momentum, or deflation setting in. Right now, with growth occurring steadily and consistently, and with inflation running just short of 2 percent, markets are at risk for neither.

30-year fixed rate Raleigh mortgage rates had famously dropped below 4 percent last week – TODAY, they're back above 4 percent now.

For the last 2 quarters, Raleigh mortgage rates have held within a very tight range. They've dropped as low as mid to upper 3%. One thing that's for certain, though, Raleigh mortgage rates are wound tighter than a coil.

Each time they rise, they don't rise slowly -- they rise turbo fast. It is the Kevin Martini Group opinion that Raleigh mortgage rates are unsustainable at their current, sub-4 levels.

Folks, consider this your call-to-action. It's time to start that refinance. It's time to lock that mortgage rate. It is time to stop renting.

About Kevin Martini

Kevin Martini is a trusted Raleigh lender with the Kevin Martini Group at SunTrust Mortgage. You can email Kevin at Kevin@KevinMartini.com or call at 919.274.3700.

The Weekly Kevin Martini – information on where Raleigh Mortgage Rates

Another volatile week for Raleigh mortgage rates…

Last week, Personal Income & Personal Spending came in basically @  expectations. Yes, this is good news, however the report hinted that inflation is something to keep on the radar.Personal Income rose by 0.2%. But after factoring in the 0.3% rise in headline Personal Consumption Expenditures (a.k.a. PCE) (FYI: PCE includes energy and food), income actually declined by 0.1%. We have seen incomes actually decline on an inflation adjusted basis 3 of the past 4 months. It is the Kevin Martini Group opinion this is because oil & ultimately gas prices are rising.

AND THERE IS MORE…the final reading of 4th Quarter Gross Domestic Product (GDP) for 2011 remained at 3%, I think this is a decent number. However, for 2011 overall, GDP wasONLY 1.625%, well below the number needed for a normal functioning economy.

So the big question inquiring minds want to know is “Mr. Bernanke – are you going to “QE” or not to “QE” – that is the question”  

Remember: Raleigh mortgage rates are tied to Mortgage Bonds…so as Bonds improve, Raleigh mortgage rates improve…and helping the housing market by keeping Raleigh mortgage rates low would be a big reason that the Fed would do another round of QE. Another key factor to keep in mind when it comes to whether Bonds and Raleigh mortgage rates will improve is the safe haven trade.  Folks, there was drama on the other side of the pond in Europe…specifically Greece…believe it or not, they may have restructure once again – YIKES!

All this to says– there are many factors at play which could impact the direction that Bonds and Raleigh mortgage rates move in the coming weeks and months. The important thing to take away is that Raleigh mortgage rates still remain near historic lows and now continues to be a great time to purchase or refinance a home.

Let me know if I can answer any questions at all for you:  (Kevin@KevinMartiin.com) or 919.274.3700

 BIG WEEK NEXT WEEK:

• ISM Manufacturing Index will be released on Monday and gives the investor a broad look at manufacturing around the country.
• Wednesday’s ADP Employment Change will be the precursor to the government report on Friday.
• Initial Weekly Jobless Claims will be released on Thursday. Jobless claims ticked up last week to 359,000 but the Labor Department said that the data includes the annual seasonal-adjustment revisions extending back five years, which led to the recent increases.
• The data that the entire investing community will be watching and waiting for is Friday’s Employment Report, which includes Non-farm Payrolls and theUnemployment Report. For the past three months, employers have added 244,000 new workers on average and this pace will have to continue in order to get back to a more normal functioning economy.

Always keep in mind…weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Raleigh mortgage rates improve, while strong economic news normally has the opposite result.

About Kevin Martini

Kevin Martini is a trusted Raleigh lender with the Kevin Martini Group at SunTrust Mortgage.  You can email Kevin at Kevin@KevinMartini.com or call at 919.274.3700.