For all you fence sitters, the party is over…….no not really, but seriously, if you are considering buying a home and have been putting it of you may want to reconsider. Interest rates a year ago were in the middle to high 3’s and today they are at 4.5% and continuing to creep up as our economy gets better. In addition, home prices are also rising a bit, so with those two factors what it means is a year from now you won’t be able to buy as much house unless your income rises as well. For all you young people out there that are just coming into the housing market, please read article to the bottom and you will see the what the interest rates have been in the past by the decade. That should convince you that now is the time to buy that dream home now…..and buy as big as you think you will need and can afford as these current rates will never be back. They are still the lowest in my life time. Don’t miss the boat! As always, if you need any help making a purchase in the greater Tampa Bay area, please feel free to give Richard Kemper a call at 813-777-5332 or email me at getrichquick2@aol.comImage 


Freddie: No more record-low mortgage rates



WASHINGTON – April 2, 2014 – While mortgage rates have been rising the last few months, they’re still historically low compared to the trend over the last four decades, Freddie Mac says in a blog post.

But rates as low as they were in November 2012 – when the 30-year fixed-rate mortgage reached an all-time low of 3.31 percent – aren’t likely to return any time soon, the mortgage giant says. 

Still, Freddie assures borrowers that the all-time record high of 18.63 percent reached in October 1981 isn’t on the horizon either. (At 18.63 percent, monthly mortgage payments on a $200,000 loan would be $3,117, compared to $992 a month at today’s 4.32 percent average.)

With mortgage rates at 4.32 percent, 123 of the 157 metros that Freddie Mac tracks remain very affordable to households earning the median income. In order for affordability to be hampered in the majority of markets, interest rates would have to reach 7 percent, according to Freddie Mac.

“Stubbornly high unemployment over the last several years coupled with stagnant income growth exacerbates declining affordability in a rising interest rate environment,” according to Freddie’s blog post. “More jobs and income growth would help blunt the effects of higher interest rates and make buying a home more accessible. While jobs and income have shown some improvement in recent months, they continue to be challenged.”

Mortgage rates through the years

Here’s an overview of mortgage rates in the past four decades, as well as the approximate payment on a $200,000 mortgage and how it changes with the rise and fall of rates, according to Freddie Mac.

 Average 30-year fixed-rate mortgage: 8.86%
 Approximate payment on a $200,000 mortgage: $1,589

 Average 30-year fixed-rate mortgage: 12.70%
 Approximate payment on a $200,000 mortgage: $2,166

 Average 30-year fixed-rate mortgage: 8.12%
 Approximate payment on a $200,000 mortgage: $1,484

 Average 30-year fixed-rate mortgage: 6.29%
 Approximate payment on a $200,000 mortgage: $1,237

 Average 30-year fixed-rate mortgage: 4.36%
 Approximate payment on a $200,000 mortgage: $997

Source: “Mortgage Rates: From Dirt Cheap, to Cheap,” Freddie Mac (March 24, 2014)

© Copyright 2014 INFORMATION, INC. Bethesda, MD (301) 215-4688 



Read below to get all the details, but bottom line looks like foreclosures are on decrease, but so are institutional investors. So what does it all mean? We don’t know exactly yet, but as we go into the 2014 major selling season, we will have some hard statistical data to look at. If you are on the fence about buying, you need to go ahead and buy as interest rates are slowly going up and so are home prices. Just to give you an example, we put in a full price offer on a property in Tampa and asked for $3000 towards buyer closing costs and prepaids and didn’t get the property….someone offered more than our great offer. What does this mean? If you are out there looking for a home and you see something you like, put a good offer in immediately before your dream home is picked up by another buyer. As always, if you need any help purchasing a home in the Tampa area, please feel free to give me a call at 813-777-5332 or email me at You can see me on the web at 

Feb. foreclosures up for year, down for month


IRVINE, Calif. – March 27, 2014 – RealtyTrac released its February 2014 Residential & Foreclosure Sales Report. It finds that U.S. residential properties, including single-family homes, condominiums and townhomes, sold at an estimated annual pace of 5,083,241 in February – a 0.2 percent decrease from January, but up 7 percent year-to-year.

February marked the fourth consecutive month where foreclosure sales activity decreased month-to-month.
“Supply and demand have reached a bit of a standoff in this uneven real estate recovery,” says Daren Blomquist, vice president at RealtyTrac. “The supply of distressed properties – which buyers and investors have come to rely on over the past few years – is evaporating quickly in most markets – but that dwindling supply is not being adequately replenished by non-distressed homeowners listing their homes, or by new homes being built.”

Meanwhile, a key source of demand over the past two years – institutional investors purchasing single family homes as rentals – is starting to decline, Blomquist says, and “it’s not yet clear if that diminishing demand will be filled by first-time homebuyers and move-up buyers.”

The national median sales price of U.S. residential properties – including both distressed and non-distressed sales – was $164,667 in February, down 1 percent from the previous month but up 4 percent for the year. It was the 20th consecutive month where the median price increased or stayed flat year-to-year, but it was the second month-to-month decrease.
Short sales and distressed sales – in foreclosure or bank-owned – made up 16.9 percent of all U.S. sales in February, up from 16.1 percent of sales in January but down from 19.1 percent of sales in February 2013. The median price of distressed properties – in foreclosure or bank-owned – was 44 percent below the median price of non-distressed properties.
Short sales nationwide accounted for 5.7 percent of all sales, up from 5.5 percent in January but down from 6.9 percent year-to-year. Metro areas with the highest percentage of short sales included Las Vegas (17.0 percent), Orlando (16.8 percent), Tampa (14.9 percent), Memphis (14.5 percent), and Miami (12.3 percent). The percentage of short sales decreased from a year ago in all of these metros.
Sales of bank-owned properties nationwide accounted for 9.7 percent of sales, up from 9.3 percent in January but down from 11.1 percent a year ago. Metro areas with the highest percentage of bank-owned sales in February included Cleveland (29.8 percent), Stockton, Calif. (25.5 percent), Las Vegas (25.4 percent), Detroit (23.0 percent), and Jacksonville, Fla. (21.1 percent).
Sales at the public foreclosure auction accounted for 1.5 percent of all sales nationwide in February, up from 1.3 percent in January and up from 1.1 percent in February 2013.
• 97 percent of all sales at the foreclosure auction were all-cash
• 35 percent of foreclosure auction sales were to institutional investors
• 81 percent sold for $200,000 or less
Metro areas with the highest percentage of foreclosure auction sales in February included Lakeland, Fla., (6.9 percent), Columbus, Ohio (5.4 percent), Charlotte, N.C. (4.7 percent), Miami (4.7 percent), and Las Vegas (4.6 percent).
Institutional investors – entities that purchase at least 10 properties in a calendar year – accounted for 5.9 percent of all U.S. residential property sales in February, up from a revised 5.0 percent of sales in January but down from 7.2 percent of sales in February 2013.

February was the third consecutive month where the institutional investor share of sales declined on a year-over-year basis after 19 consecutive months of year-over-year increases.
• 91 percent of all institutional investor purchases in February were all-cash
• 17 percent were properties in foreclosure or bank-owned
• 81 percent were priced $200,000 or lower
• 63 percent were between 1,000 and 2,000 square feet
• 55 percent were built in 1990 or later
Among metropolitan statistical areas with a population of 500,000 or more, cities with the highest share of institutional investor purchases in February were Atlanta (25.2 percent), Columbus, Ohio, (21.4 percent), Knoxville, Tenn., (18.2 percent), Phoenix (15.2 percent), and Cape Coral-Fort Myers, Fla. (14.8 percent).
All-cash sales accounted for 43.3 percent of all U.S. residential sales in February, up from a revised 42.1 percent in January and up from 20.2 percent in February 2013. February was the eighth consecutive month were cash sales accounted for 35 percent or more of all sales nationwide.
• 12 percent of cash sales were to institutional investors
• 15 percent were in foreclosure or bank-owned
• 67 percent were priced $200,000 or lower
Metro areas with share of all-cash sales above 50 percent included Miami (71.3 percent), Tampa (65.9 percent), Orlando (62.3 percent), Las Vegas (59.5 percent), New York (57.1 percent), Atlanta (56.7 percent) and Detroit (56.0 percent).

© 2014 Florida Realtors®