Lowest Ever Inventory Faces Exploding Demand
In December, the number of homes for sale sank to an all-time low, dipping below 700,000 for the first time ever. With demand remaining high, homebuyers can expect a bidding war and that they may have to pay more than they would have just one year ago.1
Demand Keeps Driving Higher Prices
The housing prices in 20 large American cities rose at a 7.9% yearly pace in October, while prices increased a staggering 8.4% nationwide. These rates represent the fastest growth the market has seen in 6 years and also signal a booming housing market despite the ongoing pandemic. The demand is growing while supply remains very low.2
Mortgage Discount Points Explained
Mortgage points, also known as "discount points," allow you to pay more in closing costs upfront to get a lower mortgage rate and lower monthly payments over the life of the loan. Typically, the cost of one mortgage point equals 1% of the loan amount, and this single point lowers your interest rate by about 0.25%.3
Time to Refinance to a 15-year Mortgage?
Homeowners with 30-year-fixed-rate mortgages and several years of equity may want to consider refinancing to a 15-year mortgage this year. With historically low rates, refinancing can save you money on interest, build more equity into your home, and enable you to pay off the loan faster, which can be especially helpful if you are retiring soon.4
House Size and Happiness
The stresses of life can feel amplified if your home is too small, according to a recent study. When a family has more perceived space, they can communicate better emotionally, and they are more accepting of one another. Notably, if you perceive your space positively - no matter the size - it can diminish the adverse effects of less square footage.5
Sources: 1Realtor Magazine, 2Realtor.com, 3Mortgage News Daily, 4Mortgage News Daily, 5Fast Company
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