Eugene Oregon Real Estate Blog

Good Monday Morning!

The Eugene, Springfield area and the entire State of Oregon is heading in direction that is very dangerous for homeowners.  The Oregon legislature has recently passed legislation that has put some strict rent control measures into effect.  Over time, this alone will create increases in rent rates.  But, the most dangerous legislation is now being talked about by the Oregon legislature.  Our representatives are discussing massive property tax increases and at the same time looking at removing some of the property tax safe guards that have aided in keeping property taxes under control in the past.  This is a dangerous road for Oregon to go down, because rental rates are already extremely high in many areas, including the Eugene/Springfield area.  Any property tax increases are going to be passed right on to the renters and this will lead to rents that spiral out of control over time.  It will also lead to fewer investors who are willing to build, purchase or retain rental properties.  Property tax increases put a squeeze on the rental inventory as well and again this leads to higher rental rates.  How does this effect the housing market?  We already have a housing crisis in the Eugene/Springfield area, where home prices have risen sharply over time and now there are few homes available that are in the price range suitable for first time homebuyers.  This has been caused by an enormous increase in land prices due to the County and City governements refusal to expand urban growth boundaries, higher labor costs, increased building material costs and already high property taxes.  Now you increase property taxes by and estimated 20% to 30% or more and you have just wiped out the potential for most first time buyers to ever purchase a homein our area.  At the same time as the home prices have increased, so have rents.  This creates a situation where would be first time home buyers are paying so much for rent that it is almost impossible for them to save enough money for a down payment and closing costs for a home.  The first time home buyer market also fuels the rest of the housing market.  This situation will have enourmous effects on our overall local housing market.

Is this what we want for Oregon and the Eugene/Springfield area?  It is dangerous road to be on and it is one that once you go down it, there is little chance of turning back.  It can lead to long term depression for our area and even worse it can lead to a situation to where young people and young familes can't afford to live in our community.  It also puts extreme pressure on retired people and those with fixed incomes.  If you are interested in stopping this potentially harmful legislation, then I suggest that you contact your state representative and voice your opinion right away.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

24542 Bolton Hill  

Price: $949,000    Beds: 4    Baths: 3/1    Sq Ft: 3700 

Stunning estate w/ amazing valley view! Enjoy beautiful sunsets & sunrises over Fern Ridge Lake & Three Sisters mountains from a serene & private hillside. Oak & hickory hardwoods, marble & porcelain tile. Master suite. Bonus rm w/ balcony, office & wet bar. Outdoor fireplace/pizza oven, patios, 5-car attached garage, covered RV parking, 6-car shop. Merchantable timber...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There are many mortgage loan option available today and choosing the one that is best for you is important.  One of the key things that you must consider if you are in the market to purchase a home and in need of a mortgage loan, is how much money do I need to have for my down payment and how much money should I put down.  Here is an article form "Realty Times" that give you some great information on down payments.

You'd be a homeowner right now if it weren't for one thing: the down payment. Right? Even for those who have decent credit and make good money, the down payment is often the great homeownership killer.

For many others, who do have enough money set aside to make a substantial down payment, the question is: how much? Conventional wisdom—not to mention most of the banks and a good portion of homebuying and financial experts—will tell you that 20 percent is the standard bearer when it comes to down payments. But is it really necessary to put 20 percent down?

The short answer is: no.

Now for the long answer.

"Raising a 20 percent down payment isn't an easy thing to do. Fortunately, you don't have to. "It's a myth that all homebuyers must have a 20 percent down payment to buy a home," says Nancy Herrera-Siples, a Riverside, Calif., branch manager at Primary Residential Mortgage on U.S. News. "So why do you constantly hear that you need to put 20 percent down? Because if you don't, it usually means you'll have to shell out money for either private mortgage insurance or government insurance, which is usually financed by the Federal Housing Administration (FHA)."

And there's another rub for those who are already struggling to come up with the minimum down payment: that extra couple of hundred dollars per month feels like a penalty. It's not, of course—"Mortgage insurance protects the lender in case you can't make your payments and the house is foreclosed on," said U.S. News—but that money can make a significant difference for those who are stretching to buy a home.

Still, when your only option to buy is a low down payment, which can mean an FHA loan or one of the new low down payment loans from Freddie Mac and Fannie Mae—"At the end of 2014, the two government-backed companies announced plans to slash down payments from 5% to 3%," said CNN—PMI might literally be a small price to pay. Especially if swelling rents are making homeownership look more and more promising. Remember that PMI does go away eventually when your loan balance is 80 percent or less of the home's value. If you're in an area where homes are rising in value, this could happen sooner than you think.

Still confused about the ins and outs of down payments? Here are a few reasons to go high…or low.

When to make a substantial down payment

• When you're looking to keep your monthly payment as low as possible and have cash to spare
• When you just can't fathom paying PMI
• When your goal is to buy a forever home and own it free and clear
• When you are approaching retirement age and can envision a reverse mortgage sometime down the line
• When you want to buy your house and pay it off as quickly as possible
• When the rate is lower with a higher down payment. "The more you put down, the better position you are in for negotiating a lower interest rate with your lender," said Credit.com. Plus, a "low down payment might affect other loan features, such as…the points, which are upfront interest charges," said Banking My Way.
• If you're worried about being under water. If the market should drop in your area, you run the risk of owing more than your home is worth

When to go low

• When you don't have the funds for a higher down payment and can't earn or borrow them quickly enough
• When the rate on your FHA or Fannie or Freddie loan is comparable to that you'd get with a higher down payment
• When you need to escape a high-rent situation and the monthly payment on a house is lower than what you're currently paying, even with the PMI factored in
• When you're confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly
• When your investments can't be touched without a penalty or are returning better than the interest rate you'll get on your home
• If you have something better to do with the money. "If you bought a $400,000 home, 5% down would be $20,000, while 20% down would be $80,000—a whopping difference. An immediate need such as a college tuition payment would make the smaller down payment more appealing," said Banking My Way.
• When you feel more secure setting money aside for emergencies instead of tying it all up in your house.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2230 Comstock Ave 

Price: $575,000    Beds:4     Baths: 3.5    Sq Ft: 2904

Quiet park-like backyard. Master with his/hers sinks, jetted tub, large dual head shower, private camode, walk-in closet, two sided/see-through fireplace. Upstairs hall closet laundry plus a full laundry room area. Guest bedroom with murphy bed set in beautiful cabinetry can double as bonus area... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

If you are purchasing a home, the home inspection is an integral part of this process. To protect your best interests, having the home you are purchasing inspected first can give you a look at the condition of the home and may save you from purchasing a home with unknown issues.  My advice to my clients is to never make a home purchase blindly and without having an expert look at all of the homes components.  Here is an article form Realty Times that gives you go information on home inspections.

If you're hiring someone to inspect the home you want to buy, or you're a seller trying to find out if there are any hidden problems that need fixing before you put your home on the market, here are five things you need to know:

1. You can choose your home inspector.

Your real estate professional can recommend an inspector, or you can find one on your own. Members of the National Association of Home Inspectors, Inc. (NAHI), must complete an approved home inspector training program, demonstrate experience and competence as a home inspector, complete a written exam, and adhere to the NAHI Standards of Practice and Code of Ethics.

2. Home inspections are intended to point out adverse conditions, not cosmetic flaws.

You should attend the inspection and follow the inspector throughout the inspection so you can learn what's important and what's not. No house is perfect and an inspection on any home is bound to uncover faults. A home inspector will point out conditions that need repair and/or potential safety-related concerns relating to the home. They won't comment on cosmetic items if they don't impair the integrity of the home. They also do not do destructive testing.

3. Home inspection reports include only the basics.

A home inspector considers hundreds of items during an average inspection. The home inspection should include the home's exterior, steps, porches, decks, chimneys, roof, windows, and doors. Inside, they will look at attics, electrical components, plumbing, central heating and air conditioning, basement/crawlspaces, and garages.

They report on the working order of items such as faucets to see if they leak, or garage doors to see if they close properly. Inspectors may point out termite damage and suggest that you get a separate pest inspection. The final written report should be concise and easy to understand.

4. Home inspectors work for the party who is paying the fee.

The NAHI Standards of Practice and Code of Ethics clearly state that members act as an unbiased third party to the real estate transaction and "will discharge the Inspector's duties with integrity and fidelity to the client." A reputable home inspector will not conduct a home inspection or prepare a home inspection report if his or her fee is contingent on untruthful conclusions.

The inspector should maintain client confidentiality and keep all report findings private, unless required by court order. That means it is your choice whether or not to share the report with others. If you're a seller, you don't have to disclose the report to buyers, but you must disclose any failure in the systems or integrity of your home.

5. Inspectors are not responsible for the condition of the home.

Inspectors don't go behind walls or under flooring, so it's possible that a serious problem can be overlooked. Keep in mind that inspectors are not party to the sales transaction, so if you buy a home where an expensive problem surfaces after the sale, you won't be able to make the inspector liable or get the inspector to pay for the damage. In fact, you may not be entitled to any compensation beyond the cost of the inspection.

As a buyer, you need the home inspection to decide if the home is in condition that you can tolerate. You can use the report to show the seller the need for a certain repair or negotiate a better price. You can also take the report to a contractor and use it to make repairs or to remodel a section of the home.

One thing you should not do when buying a home is skip having the home inspected because of cost or undue pressure by the seller. A home inspection is reasonable, it can save you money in the long run, and it's required by many lenders, particularly for FHA loans. There's a reason why buyers should beware, and a home inspection gives you the information you need to make a sound buying decision.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

39285 Upper Camp Creek Rd  

Price: $950,000    Beds: 5    Baths: 3    Sq Ft: 3520

New Construction. this home is sure to impress. Open Living, Dining, & Kitchen. Great for entertaining. Master suite with walk-in closet and master bath. Two additional bedrooms are on opposite side of house. This home includes a Laundry room and a ...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Eugene and Springfield area homes sales were off slightly in January.  There were fewer closed sales in January of 2019 than in January of 2018.  This could indicate the beginning of a flattening Real Estate market here.  With mortgage interest rates down and a slightly higher inventory of homes on the market for sale, this also means an improved climate for homebuyers.  The next several months will give us a better indication of what kind of Real Estate market 2019 will be.  Here are the numbers for January 2019 home sales in the Eugene/Springfield area.

January Residential Highlights

Lane County started the year with some cooler activity relative to last January. New listings, at 371, ended 12.9% cooler than last year in January 2018, despite showing a 62.7% increase from last month in December 2018, when 228 newlistings were entered.

Pending sales fared similarly, cooling 18.4% from January 2018 (425) but warming 11.2% from December 2018, when 312 offers were accepted.

Closed sales, at 279, decreased 14.4% from January 2018 (326) and 17.7% from December 2018 (339).

Inventory rose in January to 2.2 months, with total market time decreasing by two days to end at 62 days during the same period.

Average and Median Sale Prices

Comparing the average price of homes ending January 31st of this year ($309,500) with the average price of homes sold in the twelve months ending January 2018 ($289,100) shows an increase of 7.1%. The same comparison of the median shows an increase of 8.8% over the same period.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

2945 Ava Street  

Price: $360,000    Beds: 3    Baths: 2    Sq Ft: 1570

New Construction. this home is sure to impress. Open Living, Dining, & Kitchen. Great for entertaining. Master suite with walk-in closet and master bath. Two additional bedrooms are on opposite side of house. This home includes a Laundry room and a ...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Last month, homes sales were down nationally and home values also dipped slightly. This took place at the same time that home mortgage rates were down over the previous several months. It is too early to tell, but this could indicate the fact that the housing market is going to flatten out this year and the trend for home price increases could be over for now. We will certainly know more by mid year, but the trend over the last few months looks as if the housing market is going to slow from the fast pace of the last several years. This trend could be extremely favorable to would be homebuyers.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

3346 Roanoke Ave 

Price: $610,000    Beds: 4    Baths: 2.5    Sq Ft: 2577

This beautiful one level home features an open concept floor plan, tall ceilings, 4 bedrooms and 2.5 baths. Stainless steel Dacor appliances. Office space/den with french doors & builtins. Large island bar off kitchen, granite counters, and hardwood floors...... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

One of the most frequent questions I am asked is, what do I do to get my home ready for sale?  This can vary quite a bit from home to home, but there are some things that remain fairly constant.  What you want to accomplish is to be able to get more money from your home sale without spending more than the additonal money you would spend on your improvements. Typically, items that will enhance the general appearance of your home are what you want to focus on.  Items such as painting, replacing dated lighting and plumbing fixtures, landscaping, counter tops, decluttering, cleaning, etc. are typically things you can do that will be good investments.  The following is an article from Realty Times that will give you some great ideas on what to do to your home to prepare it for sale and at the same time give you a good return on your time and money.

With home prices up in some areas, the return on remodeling investments at resale can be good. Making little changes can have big impacts when it comes to remodeling your home to sell.

Some updates will return as much as they cost in hotter markets, but unless your home is in a rapidly inflating city, you may not get enough bang for your buck.

But the lesson isn't to avoid remodeling your home. It's to rethink your expectations. Do you want to enjoy your updates for a few years? Or do you want to make your home more immediately appealing to homebuyers?

If you're remodeling for your own household, updating a home has a legitimate purpose that is unquantifiable. When you add square footage, update systems and fixtures, or rearrange traffic flow, you improve the functionality of your home. Refreshing wall colors, window coverings, and flooring adds to the beauty and enjoyment of your home. Many would consider that money better spent, and if you decide to sell in a few years, you'll be ahead of the game in terms of updates that will appeal to homebuyers.

But if you're remodeling strictly for the next buyer, there's some risk. Will you choose the right elements to appeal to the next buyer? What if they don't share your taste or appreciate the areas where you allocated your remodeling budget?

Start with what absolutely has to be done, whether you plan to stay in your home or not. You may be tempted to put off replacing the roof for an average of nearly $20,000, because Remodeling Magazine says it will only return approximately 72 percent of costs. But a new roof could make the difference in whether or not an FHA or VA buyer can buy your home and pass government inspection.

Otherwise, stick to smaller updates that can yield big impacts in terms of curb appeal, safety and building integrity. The top five cost-to-value projects that netted the most return in 2015 were:

• Replacing the front door with a 20-guage steel door - 102 percent.
• Manufactured stone veneer -- 92. 2 percent
• Fiber-cement siding -- 84.3 percent.
• Garage door replacement -- 82.5 percent
• Wood window replacement -- 78 percent.

As you can see, the most lucrative projects for resale were all about curb appeal. Seal the deal with a new welcome mat, new sconces to complement the new steel door, and potted plants for color. Wow your buyers on the outside and they'll be more likely to choose your home over the competition.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

39285 Upper Camp Creek 

Price: $950,000    Beds: 5    Baths: 3    Sq Ft: 3520

Private Camp Creek retreat located at the top of the hill & backing to land owned by Weyerhaeuser. This home features an open kitchen & dining area. Main level master suite & 2 extra guest suites w/balconies. Two separate living/family areas. Outdoor space w/patio, deck, garden & seasonal creek. Fully fenced dog run w/doghouse set w/electricity. Large 5 bay shop. RV hookups & parking. Please no drive-bys. Call for an easy appointment. View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Has the increase in home pricing reached a point where it is keeping large numbers of would be homeowners out?  A recent survey that was conducted by the National Association of Realtors thinks so.  Here is the report from that survey.

Homeowners and non-homeowners both strongly consider homeownership part of the American Dream.

That is according to new consumer survey data from the National Association of Realtors®, which revealed that among those polled, approximately 75 percent of non-homeowners believe homeownership is part of their American Dream, while nine in 10 current homeowners said the same.

NAR’s Aspiring Home Buyers Profile analyzed 2018 quarterly consumer insights from its Housing Opportunities and Market Experience (HOME) survey1 to capture the housing expectations and sentiments of non-homeowners – both renters and those living with a family member.

When non-homeowners were asked for the chief reason why they currently do not own a home, most respondents said it was because they were currently unable to afford a mortgage. Over the last quarter of 2018, 43 percent of non-owners said they did not own a home because they were not in a position to purchase, which was down from the third quarter of 2018, when 49 percent of non-homeowners answered the same. Also in the 4th quarter, 33 percent of non-homeowners said they do not own because current life circumstances are not suitable for ownership, while 16 percent said they need the flexibility of renting.

In addition, the survey looked at the main reason why non-homeowners would buy a home in the future. Throughout 2018, 28 to 31 percent of non-owners each quarter said an improvement in their financial situation would be the top reason that would encourage them to buy a home in the future. In each quarter, 26 to 30 percent of non-owners said a change in lifestyle – such as getting married, starting a family or retiring – would be the primary reason they would make a future home purchase.

Lawrence Yun, NAR chief economist, says unaffordable housing has caused a number of potential buyers to hold off on purchasing a new home. “The lack of affordable and moderately priced homes has forced non-homeowners to delay achieving that part of the American Dream. However, as the survey confirms, significant lifestyle changes like marriage or starting a family often spur non-owners to pursue home-ownership.”

For this year’s survey, homeowners and non-owners were also asked about adult family or friends moving into their homes, the span of time this individual(s) lived within the household, and if they thought about moving to a new home because of the change.

According to the survey, 11 percent of homeowners had an adult child move into their residence, while 5 percent of non-owners had an adult move into their home.

Of those who had someone move into their home, 44 percent said that the individual intended to live with them for over one year or to stay permanently. Forty-four percent of non-owners reported that the individual planned on living with them for between six months to one year.

Eighty-eight percent of those surveyed who had someone move into their home reported that their living situation remained acceptable and therefore did not warrant consideration of moving into a different home. Twelve percent said they did consider moving or ultimately did move due to their home situation changing.

“While home sales were slightly down in 2018, there is still a sizable pent-up housing demand. Economic growth, interest rates, and the supply of moderately priced-homes will dictate how well the real estate industry will do this year,” said Yun.”

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

2330 Comstock Ave

Price: $585,000    Beds: 5    Baths: 3.5    Sq Ft: 2904

Quiet park-like backyard. Master with his/hers sinks, jetted tub, large dual head shower, private camode, walk-in closet, two sided/see-through fireplace. Upstairs hall closet laundry plus a full laundry room area. Guest bedroom with murphy bed set in beautiful cabinetry can double as bonus area. Large cook's kitchen with upper end stainless steel appliances. Separate formal dining room. This home has a 10X16 studio in the backyard. View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Real Estate sales in 2018 were not a great deal different than 2017.  Home sales numbers were almost the same both years.  The largest difference is the average home sales price as home prices continue to rise in the Eugene and Springfield area.  Home inventories also remained low through both years, with first time buyers having a difficult time finding homes for sale in the lower price ranges.  2019 has started out looking very similar to both 2017 and 2018.  Only time will tell if the trend of the last two years carries through this year.  Here are the home sales statistics for December of 2018 and for the year 2018.

Lane County closed out 2018 with some mixed activity. New listings (228) outpaced December 2017 (223) by 2.2%, despite cooling 42.0% from last month in November 2018 (393). Even so, it was the best December for new listings in Lane County since 2011, when 231 were put on the market.

Pending sales (312) fared similarly, ending 1.0% higher than December 2017 (309) but showing a 11.1% decrease from November 2018 (351). Once again this was the strongest December for pendings since at least 2001 when RMLSTM started keeping record.

Closed sales, at 339, ended 8.6% below December 2017 (371) and 8.4% below November 2018 (370).

Total market time rose to 64 days in December, and inventory

decreased slightly to land at 1.9 months.

Year to Date Summary

Comparing the entirety of 2018 to 2017, new listings (6,394) increased 0.1%, closed sales (5,203) fell one short of 2017 (0.0%), and pending sales (5,240) decreased 0.3%.

Average and Median Sale Prices

Comparing 2018 to 2017 through December, the average sale price increased 7.3% from $287,900 to $309,000. In the same comparison, the median sale price rose 8.7% from $260,000 to $282,600.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

39825 Upper Camp Creek Rd

Price: $950,000    Beds: 5    Baths: 3    Sq Ft: 3520

Private Camp Creek retreat located at the top of the hill & backing to land owned by Weyerhaeuser. This home features an open kitchen & dining area. Main level master suite & 2 extra guest suites w/balconies. Two separate living/family areas. Outdoo....View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sales numbers are on the rise nationally again as well as home prices. Locally, we have started 2019 with a bang as home sales have been brisk.  The previous issue of low inventory is again becoming an issue locally and may continue into the near future as home sales remain strong.  This is a good sign for the 2019 housing market both nationally and locally.  

If you are considering the sale of your home this year, I strongly suggest that you don't wait for Spring- Summer this year.  Right now you have a strong market that should allow you to obtain a sale in a shorter period of time for the highest dollar value.  

Have An Awesome Week!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-January-2019

THIS WEEK'S HOT HOME LISTING!

825 SAND AVE

Price: $525,000    Beds: 3    Baths: 2    Sq Ft: 2344

 Grand very well-maintained home! Light filled vaulted open layout w/ large windows & skylights. Living rm w/ gas fireplace opens to dining area. Office/bonus rm w/ exterior entrance & Shoji sliding dr/rm divider. Massive kitchen w/ cook island........ .View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Good news for home buyers.  Mortgage rates have dropped and may continue to slide.  This along with improved inventory of homes for sale is making our current Real Estate market very attractive.  Here is an article from Realtor.com that explains the unexpected drop in mortgage loan rates.

Unless prospective home buyers have been living under a rock, they're probably all too familiar with the fact that mortgage rates are on the rise. And with a strong economy spurring the Federal Reserve to raise interest rates, mortgage rates are likely to continue their climb in the longer term.

The average rate of a 30-year fixed loan was anticipated to hit 5% last month. That would have been an increase of about a percentage point from a year earlier, a change that can add hundreds of dollars a month to a mortgage payment and tens of thousands of dollars over the loan's three-decade duration. But then something unexpected happened.

Instead of continuing their steady rise, mortgage interest rates began to fall. That average hit 4.75% as of Dec. 6, down from 4.94% a month earlier, which was this year's peak, according to Freddie Mac data. So what happened?

Well, buyers have an underperforming stock market and the worst trade deficit in a decade to thank for the temporary reprieve.

“It’s good for home buyers because it makes the monthly payment more affordable for a home," says Chief Economist Danielle Hale of realtor.com®. “It’s the lowest level we’ve seen in two months, but it’s still pretty high.”

What do trade and the stock market have to do with mortgage rates?

Trying to understand why mortgage rates go up and down is complicated stuff. Most folks think that they're tied to the Federal Reserve's short-term interest rates, which the Fed has hiked three times so far this year. But even if it does raise rates again this month by 0.25 percentage points, as expected, it doesn't mean that mortgage rates will jump as a result.

That's because while mortgage rates are influenced by these short-term rates, they're really more closely tied to the factors driving longer-term rates like the 10-year U.S. Treasury bond market. When the stock market drops or there is a trade deficit, investors get spooked. (The trade deficit is a result of more foreign imports coming in and fewer American products exported to the rest of the world.) So investors typically turn to bonds and mortgages, which are considered safer, long-term investments.

“The problem is, there’s negative headlines ... around the stock market and around international trade," says Sam Khater, chief economist of Freddie Mac. "When stock prices drop, it causes a flight to safety and Treasury bonds."

Since mortgage rates are generally an inverse reflection of the strength of the bond market, when bonds are up, mortgage interest rates drop. Basically, when investors put more money into mortgage-backed securities, there is more money to lend to home buyers. So interest rates, which are basically the price of borrowing money, come down—and the cost savings are passed onto lenders making loans.

"Mortgage rates are decided by investors looking for a return on their money over the next 10 years," says Hale. “If people think international trade is going to hurt the economy and U.S. company growth prospects, then they might choose to invest in something safer, like Treasury bonds, and that drives mortgage rates down.”

The lower rates could give the housing market a shot in the arm. It's been slowing in recent months due to a triple whammy of high home prices, rising mortgage rates, and an increase in homes for sale. Lower monthly mortgage payments could bring some prospective buyers back into the market.

"In the short term, this is good for consumers," says Khater. "Now we’re back down to the same rates of a few months ago, and there’s more inventory to purchase from."

So will mortgage rates continue to fall?

Unfortunately for buyers, mortgage rates aren't expected to continue falling for long.

"Trade will ultimately get worked out and the economy will continue to grow, so the doomsday scenario that people are expecting right now is unlikely to happen," predicts Hale. This means investors won't be as keen on bonds and mortgage-backed securities. "As the uncertainty passes, we expect mortgage rates will also turn around and begin climbing again.”

Khater agrees.

"The thing that gets lost with all the noise is the fundamental health of the economy remains sound," he says. "And mortgage rates will typically increase when the economy is stronger."

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

2230 Comstock Ave

Price: $585,000    Beds: 5    Baths: 3/1    Sq Ft: 2904

Builder's home with only one owner. Quiet park-like backyard. Master with his/hers sinks, jetted tub, large dual head shower, private camode, walk-in closet, two sided/see-through fireplace. Upstairs hall closet laundry plus a full laundry room area... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!