Hello, and welcome to Real Estate Reality Radio. The most important hour of radio every Friday from 9 to 10 on WBCB 1490 am. Thank you for joining us. For those of you who are new to the show I have spent the last 40 years in the real estate industry both as a realtor and a mortgage banker. The show is dedicated to dispelling the myths associated with Real Estate and finance in your marketplace.
Within every market there are obstacles and solutions on the path to tremendous opportunities. I believe that most people are looking for practical advice. Please feel free to call 215-740-8999 or visit peterbuchsbaum.com.
Please join us live on the web at www.wbcb1490.com or on your FREE app Tune In Radio from 9:00am to 10:00 am every Friday.
So last week we were joined by Randi Marmer from TruMark Federal Credit Union as we kicked off our effort to raise money for Kiss A Pig.
This week the Real Estate News included Higher Rates will not deter the rise in real estate prices. The article was interesting in that it cited past recoveries and that the rise was not too fast. Well, I disagree. One, the rise is the fastest that I have witnessed in my 40 years in the industry and this recovery is nothing like past recoveries. The survey says “bad math skills equal foreclosure”. So a professor at Columbia Business school conducted a survey and found that math challenged borrowers were five time more likely to default on their loans. I had to smile at one of the questions: “How much would a $300 sofa cost at half price”. Seriously if you failed that question I do not think it’s your math skills that are in question. And an interesting article boasting the best advice for Homebuyers and Sellers. The first item on the list was to price your home below market to create a bidding war. This sounded dangerous to me. The best advice that I saw was be prepared. They stated that the more prepared you are the better settlement will be. I cannot argue that. If you tune into Real Estate Reality Radio you will certainly be better prepared. Finally, Mortgage Rates Soar to 4.46%. The largest jump in 26 years. According to the article rates have moved fro 3.35% in early May to 4.46% today. A full point rise in rates will cost the homebuyers $56 per month for each $100,000 borrowed. According to Mark Zandi from Moody Analytics “if sustained the rate increase will take some of the steam out of the housing market.” Great observation Sherlock!
Today I am once again joined by George Luciani of Capital Planning Advisory Group. George has been a frequent visitor to the show. With everything that is taking place in today’s stock and bond market we wanted to again explore why now is the best time to move forward if a home is what you want. And how do all of the reports affect you and me.
In combination with CBS and WPHT 1210 am we have also been fortunate enough to have been asked to write some articles in “Local Living Magazine” to explore some of the questions you all ask us and the answers we provide. Look for your latest issue this month. For a FREE subscription please email us.
Each week we discuss the myths of the mortgage market. It is not about rate. A higher rate with no mortgage insurance may provide a lower payment.