Win When You Sell (And When You Move)

Win When You Sell (And When You Move) | MyKCM

If you’re trying to decide when to sell your house, there may not be a better time than this winter. Selling this season means you can take advantage of today’s strong sellers’ market when you make a move.

Win When You Sell

Right now, conditions are very favorable for current homeowners looking for a change. If you sell now, here’s what you can expect:

  • Your House Will Stand Out – While recent data shows there are more sellers getting ready to list their homes this winter, there are still more buyers in the market than there are homes for sale. If you sell your house now before more houses are listed, it will get more attention from serious buyers who are eager to find a home.
  • Your House Will Likely Get Multiple Offers – When supply is low and demand is high, buyers have to compete with each other for a limited number of homes. The latest Realtors Confidence Index from the National Association of Realtors (NAR) shows sellers are getting an average of 3.6 offers in today’s market.
  • Your House Should Sell Quickly – According to the same report from NAR, homes are selling in an average of just 18 days. As a seller, that’s great news for you if you’re looking for a quick process.

Win When You Move

Win When You Sell (And When You Move) | MyKCM

In addition to these great perks, you’ll also win big on your next move if you sell now. CoreLogic reports homeowners gained an average of $51,500 in equity over the past year. This wealth boost is the result of buyer competition driving home prices up. You can leverage that equity to fuel a move, before mortgage rates and home prices climb higher. To get a feel for how rates are projected to rise, see the chart below.The longer you wait to make your move, the more it will cost you down the road. As mortgage rates rise, even modestly, it will impact your monthly payment when you purchase your next home. Waiting just a few months to make that change could mean a long-term financial impact.

The good news is today’s rates are still hovering in a historically low range. According to Doug Duncan, Senior VP and Chief Economist at Fannie Mae:

“Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low . . .

Selling before rates climb higher means you can make your move and lock in a low rate on the mortgage for your next home. This helps you get more home for your money and keeps your payments down too.

Bottom Line

As a homeowner, you have a great opportunity to get the best of both worlds this season. You can truly win when you sell and when you buy. If you’re thinking about making a move, let’s connect so you have the information you need to get the process started.

Tips for Single Homebuyers: How To Make Your Dream a Reality

Tips for Single Homebuyers: How To Make Your Dream a Reality | MyKCM

If you’re living on your own and looking to buy a home, know that you can make your dream a reality with thoughtful planning and the right team of experts. Research from Freddie Mac shows 28% of all households (36.1 million) are sole-person, and that number is growing. Over the past 40 years, the number of sole-person households has nearly doubled, and that’s a trend that’s expected to continue. According to Freddie Mac:

Our calculation suggests that there will be an additional 5 million sole-person households in the United States by the next decade. This means 42% of the household growth will be contributed by sole-person households, . . .”

If you fall into this category, here are three tips to help you achieve your homeownership goals.

1. Know Your Credit Score

When you buy a home on your own, you have to qualify for your loan based solely on your own finances and credit history. Investopedia says:

“. . . lenders will be looking at just one credit profile: yours. Needless to say, it has to be in great shape. It is always a good idea to review your credit report beforehand, and this is especially true of solo buyers.”

It’s important to find out your score so you know where it falls. If you’re not sure if it’s strong enough or where to focus your energy to improve it, meet with a professional for expert advice on your individual situation.

2. Explore Down Payment Options

Next, look into down payment programs so you can get a feel for what you’ll need to save to buy a home. Rob Chrane, CEO of Down Payment Resourceexplains:

“Buyers should discuss their program options with their loan officer and real estate agent to make sure they choose the program best suited to their personal needs.”

In this step, lean on the pros to determine what you’re eligible for and what’s right for you.

3. Think About Your Future Home and Your Needs

You should also spend time thinking about what you want. What type of home do you picture yourself in? To answer that question, Quicken Loans shares this advice:

Think about your lifestyle, what you want out of your home and your needs. Is being close to work important? Do you need a lot of yard space? Do you want an extra bedroom that you can transform into a home office? Condo or detached home? Lots of space for entertaining? It’s all up to you (and your budget).”

Again, a professional can help you balance what you want and how much you should spend on your monthly housing costs to determine what type of home is right for you.

While buying a home solo can feel like a big challenge, it doesn’t have to be. If you lean on the professionals, they can help you navigate these waters and make sure you’re able to take advantage of the great opportunities in today’s housing market (like low mortgage rates) to buy your dream home.

Bottom Line

The share of sole-person households is growing. If you’re looking to buy a home on your own, be confident that the dream is achievable. When you’re ready to begin your search, let’s connect so you have expert advice each step of the way.

Home Listings Supply in U.S. Hits All-Time Low

By WPJ Staff | December 2, 2021 8:10 AM ET

According to national property broker Redfin, the number of homes for sale hit an all-time low during the week ending November 28, 2021. During that period, sustained demand pushed the median home price to another record high, and a third of homes sold in one week or less.” The number of homes for sale typically declines another 15% in December,” said Redfin Chief Economist Daryl Fairweather. “That means that by the end of the year, there will likely be 100,000 fewer homes for sale than there were in February when housing supply last hit rock bottom. I think more new listings will hit the market in the new year, but there will also be a long line of buyers who are queuing up right now.”

“Meanwhile, headlines and new restrictions related to the omicron variant of the coronavirus might fuel some uncertainty and volatility in the economy,” Fairweather continued. “In the short term, global interest rates, including mortgage rates, could fall. In this extremely tight housing market, we would quickly see a proportional increase in competition and home prices.”

Key housing market takeaways for 400+ U.S. metro areas:

  • The median home-sale price hit a new all-time high of $360,375, up 14% year over year. This was up 31% from the same period in 2019 and up 1.5% from a month earlier, far greater than the 0.2% increase seen during the same period last year.
  • Asking prices of newly listed homes were up 12% from the same time a year ago and up 27% from 2019 to a median of $349,750.
  • Pending home sales were up 8% year over year, and up 49% compared to the same period in 2019.
  • New listings of homes for sale were down 4% from a year earlier, but up 12% from 2019.
  • During the seven-day period ending November 28, active listings fell to a new all-time low. For the four-week period, active listings fell 23% from 2020 and 42% from 2019.
  • 45% of homes that went under contract had an accepted offer within the first two weeks on the market, above the 39% rate of a year earlier and the 28% rate in 2019. Since the four-week period ending September 19, the share of homes under contract within two weeks is up 2.3 percentage points. During the same time in 2019, the share fell 3.1 points.
  • 33% of homes that went under contract had an accepted offer within one week of hitting the market, up from 27% during the same period a year earlier and 18% in 2019. Since the four-week period ending September 12, the share of homes under contract within a week is up 2.9 percentage points. During the same time in 2019, the share fell 2.3 points.
  • Homes that sold were on the market for a median of 25 days, down from 31 days a year earlier and 46 days in 2019.
  • 43% of homes sold above list price, up from 35% a year earlier and 21% in 2019.
  • On average, 3.8% of homes for sale each week had a price drop, up 0.7 percentage points from the same time in 2020 and up 0.2 points from this time in 2019.
  • The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, was 100.5%. In other words, the average home sold for 0.5% above its asking price.
  • Mortgage purchase applications increased 5% week over week (seasonally adjusted) during the week ending November 26. For the week ending November 24, 30-year mortgage rates were flat at 3.1%.
  • Touring activity through November 21 fell about 1 percentage point behind 2019 relative to the first week of January according to home tour technology company ShowingTime.
  • The Redfin Homebuyer Demand Index fell 7% during the week ending November 28 but was up 9% from a year earlier.

Mortgage Rates Remain Flat as Omicron Fears Spread

Rates increased one basis point to 3.11% in the week ending Dec. 2

December 2, 2021, 9:50 am By Flávia Furlan Nunes

Mortgage rates increased one basis point to 3.11% in the week ending Dec. 2, ignoring the volatility in the financial markets caused by the Omicron Covid variant, according to the latest Freddie Mac PMMS mortgage report.

A year ago at this time, the average 30-year fixed-rate loan averaged just 2.71%, according to the report published on Thursday. Mortgage rates are in a historical low level, but the expectation is that they will increase in the coming months due to higher interest rates.

Sam Khater, Freddie Mac’s chief economist, said in a statement that the consistency of rates, in the face of changes in the economy, is primarily due to the evolution of the pandemic, which lingers and continues to pose uncertainty. “This low mortgage rate environment offers favorable conditions for refinancing,” he added.

The survey focuses on conventional, conforming, and fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.

Economists at Freddie Mac said the 15-year fixed-rate mortgage averaged 2.39% last week, down from 2.42% the week prior. However, it’s higher than it was a year ago, at 2.26%. Meanwhile, the five-year ARM increased to 2.49%, up two basis points from last week. A year ago, 5-year ARMs averaged 2.86%.


Mortgage rates tend to move in concert with the 10-year Treasury yield, which reached 1.43% on Dec. 1, down from 1.54% a week before.

The year-over-year increase in rates is impacting mortgage applications. The latest Mortgage Bankers Association (MBA) survey published on Wednesday showed a 7.2% decline for the week ending Nov. 26, in comparison to the previous week.  

Compared to a year ago, the overall market composite index dipped 29.6% on a seasonally adjusted basis. “Over the past three weeks, rates are up 15 basis points, and refinance activity has declined over 18%,” Joel Kan, the MBA’s associate vice president of economic and industry forecasting, said in a statement.

Fannie Mae, Freddie Mac will soon back mortgages on homes worth nearly $1 million

Last Updated: Dec. 1, 2021 at 12:02 p.m. ETFirst Published: Nov. 30, 2021 at 12:01 p.m. ET
By Jacob Passy
The limits on which mortgages the federal government will back have increased in almost every part of the U.S., thanks to rising home prices.

Fannie Mae and Freddie Mac will soon provide guarantees for mortgages close to $1 million, owing to the past year’s titanic increase in home prices.

On Tuesday, the Federal Housing Finance Agency released its breakdown of the conforming loan limits for 2022. These are the maximum allowable mortgages that can be backed by Fannie Mae FNMA, -3.18% and Freddie Mac FMCC, -2.93% — larger home loans would be considered jumbo loans, which are typically portfolio loans or securitized privately.

Throughout most of the country, the 2022 baseline limit on loans for single-family homes backed by Fannie and Freddie will be $647,200, which represents an increase of nearly $100,000 from 2021. The new limits officially go into effect on Jan. 1.

The FHFA based the increase on data gleaned from its House Price Index, which showed an 18.05% increase on average in home prices nationwide between the third quarters of 2020 and 2021.

In high-cost housing markets, Fannie and Freddie are allowed to support mortgages of greater amounts. By law, the limit for high-cost areas is set at 150% of the baseline limit, meaning that in some markets the mortgage giants could back loans up to $970,800 in value.

Conforming loan limits vary from county to county. According to the FHFA, there were only four counties nationwide where the loan limits did not increase — a reflection of how widespread home-price appreciation has been over the past year. By law, the loan limits set by the FHFA cannot be reduced, even in cases where home prices drop.

New data has suggested that home-price growth has begun to slow. September was the first month since May 2020 in which annual home-price growth decreased, according to the latest edition of the S&P CoreLogic Case-Shiller Home Price Index. And data from Realtor.com showed that listing prices have fallen on a yearly basis in 17 of the 50 largest metro areas nationwide, a reflection of the fact that more homeowners are finally putting their homes up for sale.

How To Think Strategically as a Buyer in Today’s Market

How To Think Strategically as a Buyer in Today’s Market | MyKCM

The game of chess can provide incredible lessons to apply to all aspects of life, including the homebuying process. Chess requires you to plan and think about your strategy from the very beginning of the game.

The homebuying process, like chess, requires strategy and planning. Here are a few things to keep in mind to ensure your plan is as strong as possible when you begin your home search.

Pre-Approval: the Best Opening Play To Make as a Homebuyer

It’s important to have a great opening play when you’re buying a home. And the best move you can make when you begin your home search is getting pre-approved by a lender. You’ve probably already heard this is an important step, but what exactly is pre-approval and what benefits does it provide you?

As Freddie Mac puts it:

“The pre-approval letter from your lender tells you the maximum amount you are qualified to borrow. Getting a pre-approval letter is not a loan guarantee, it simply states how much your lender is willing to lend you. . . .”

And while determining how much you can afford at the start of your search is critical, the pre-approval letter also serves another important purpose. Freddie Mac also notes:

“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.”

In the game of chess, a strong opening move signals to your opponent that you’re a serious competitor. As a homebuyer, your pre-approval letter signals to the seller that you’re a serious, interested buyer.

Homebuying: It’s a Team Game, Not a Single-Player Experience

Every step you take to create your strategy as a buyer is important in today’s market. Why? Mortgage rates are still low, but increasing. Prices are going up. There’s a limited supply of homes for sale. These are just a few key variables in today’s market you need to be prepared for.

That means leaning on expert guidance as you plan every move is more important than ever. Have a team of professionals – like your trusted real estate agent and a loan officer – every step of the way to make sure you make the right moves.

Bottom Line

Getting a pre-approval letter isn’t just good strategy, it can be game-changing. It allows you to get a full understanding of what you can afford, and it signals to sellers that you’re serious. Let’s connect today to ensure you’re playing chess and being strategic during the home buying process.

Pending Home Sales Jump 7.5% in October

November 29, 2021Media Contact: Quintin Simmons 202-383-1178

Key Highlights

  • Contract signings increased 7.5% in October from September, a reversal of last month’s decline. 
  • Compared to the prior month, contract signings increased in all regions.
  • Compared to one year ago, contract signings were 1.4% lower. 

WASHINGTON (November 29, 2021) – Pending home sales increased in October, rebounding after a decline the month prior, according to the National Association of Realtors®. Contract activity rose month-over-month in each of the four major U.S. regions. On a year-over-year basis, however, transactions were split, as two regions reported drops and two others posted gains.

The Pending Home Sales Index (PHSI),* www.nar.realtor/pending-home-sales, a forward-looking indicator of home sales based on contract signings, rose 7.5% to 125.2 in October. Year-over-year, signings fell 1.4%. An index of 100 is equal to the level of contract activity in 2001.

“Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later,” said Lawrence Yun, NAR’s chief economist. “This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.

“The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years.”

While the market is expected to remain robust, Yun forecasts home prices will rise at a gentler pace over the course of the next several months and expects demand to be milder as mortgage rates increase.

Realtor.com®’s Hottest Housing Markets(link is external) data revealed that out of the largest 40 metros, the most improved metros over the past year, as of November 18, were Orlando-Kissimmee-Sanford, Fla.; Jacksonville, Fla.; Tampa-St. Petersburg-Clearwater, Fla.; Dallas-Fort Worth-Arlington, Texas; and Nashville-Davidson, Tenn.

October Pending Home Sales Regional Breakdown

Compared to the previous month, contract signings rose at the strongest pace in the Midwest and South regions. Month-over-month, the Northeast PHSI increased 6.9% to 99.5 in October, a 10% drop from a year ago. In the Midwest, the index climbed 11.8% to 124.6 last month, up 5.1% from October 2020.

Pending home sales transactions in the South rose 8.0% to an index of 149.7 in October, up 0.6% from October 2020. The index in the West grew 2.1% in October to 107.5, down 6.2% from a year prior.

The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.