• Iron Key Real Estate Blog

    Thursday, June 13, 2019   /   by Brandon Gonzales

    3 Things to Know in the Housing Market Today!

    A lot is happening in the world, and it’s having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don’t know yet.


    The following three areas of the housing market are critical to understand: interest rates, building materials, and the outlook for an economic slowdown.


    1. Interest Rates


    One of the most important things to consider when buying a home is the interest rate you will be charged to borrow the money. In our recent post we posed the question, “Are Low Interest Rates Here To Stay?” The latest information from Freddie Mac makes it appear they are. We are currently at a 21-month low in interest rates.


    2. Building Materials


    Talk of tariffs could also affect the housing market. According to a recent article, the National Association of Home Builders reports that as much as $10 billion in goods imported from C ...

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    Tuesday, June 11, 2019   /   by Brandon Gonzales

    2 Myths Holding Back Home Buyers

    Freddie Mac recently released a report entitled, “Perceptions of Down Payment Consumer Research.” Their research revealed that,




    “For many prospective homebuyers, saving for a down payment is the largest barrier to achieving the goal of homeownership. Part of the challenge for those planning to purchase a home is their perception of how much they will need to save for the down payment…


    …Based on our recent survey of individuals planning to purchase a home in the next three years, nearly a third think they need to put more than 20% down.”



    Myth #1: “I Need a 20% Down Payment”


    Buyers often overestimate the funds needed to qualify for a home loan. According to the same report:


    22% of renters and 31% of homeowners believe lenders require 20% or more of a home’s sale price as a down payment for a typical mortgage today. And,




    “If a 20% down payment was required, 7 ...

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    Thursday, June 06, 2019   /   by Brandon Gonzales

    The Feeling You Get from Owning Your Home

    We often talk about the financial reasons why buying a home makes sense. But, more often than not, the emotional reasons are the more powerful and compelling ones.
    No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, that feeling of safety and security you gain from owning your own home is simultaneously one of the greatest and most difficult to describe.
    Frederick Peters, a contributor for Forbes, recently wrote about that feeling, and the pride that comes from owning your own home.

    “As homeowners discover, living in an owned home feels different from living in a rented home. It’s not just that an owner can personalize the space; it touches a chord even more fundamental than that. 
    Homeownership enhances the longing for self-determination at the heart of the American Dream. First-time homeowners, young or old, radiat ...

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    Tuesday, June 04, 2019   /   by Brandon Gonzales

    How Homeownership Delivers Unsurpassed Family Wealth

    There are many financial benefits to homeownership, but probably none more important than its ability to create family wealth.


    How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is an online resource for research and information on how homeownership contributes to individual and community success.


    Their article, The First Rung on the Ladder to Economic Opportunity Is Housing, explains the importance of homeownership to a family’s financial health. In that article, they simply stated:




    “The ladder to economic success can stretch only so high without the asset-building power of homeownership.”



    To this point, National Association of Realtors’ (NAR) Economists’ Outlook Blog revealed in a recent post:




    “Housing wealth contributes positively to the homeowner’s and children’s economic condition, because home equity can b ...

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    Thursday, May 30, 2019   /   by Brandon Gonzales

    The Ultimate Truth about Housing Affordability

    There have been many headlines decrying an “affordability crisis” in the residential real estate market. While it is true that buying a home is less affordable than it had been over the last ten years, we need to understand why and what that means.
    On a monthly basis, the National Association of Realtors (NAR), produces a Housing Affordability Index. According to NAR, the index…

    “…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”

    Their methodology states:

    “To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 ...

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