Brandon Caldwell-Mortgage Advisor/Loan Officer NMLS 2014161

11/23/2022

Central Ohio Housing Report - October 2022
Columbus remains a Top-5 hottest market per REALTOR.com despite a slight dip in sales
For the second consecutive month, Columbus ranked No. 5 in the Realtor.com list of hottest housing markets in the United States. Despite some shifting dynamics in lending and interest rates, central Ohio remains one of the most desirable markets in the country thanks to affordability and market demand.
In October, homes continued to spend a little more time on the market. Houses lasted 21 days on average, compared to 15 days last October. There was a 16 percent dip in new listings compared to the previous year, as 2,786 new homes appeared on the market this month.
“As REALTORS®, we are accustomed to the seasonality of real estate in Ohio,” said Sue Van Woerkom, 2022 President of Columbus REALTORS®. “A slowdown as temperatures drop is normal, but we also understand the impact that interest rates are having on markets across the country.”
Despite higher interest rates for the buyer, there are some good indicators that this is a great time to purchase a new home in central Ohio.
Inventory of homes for sale is up 28 percent over last year, as the area shows a current inventory of 3,772. That’s a positive for potential buyers looking for that perfect fit.
We have also noticed that there may be some wiggle room in pricing for the buyer.
“Through the summer, we continued to see homes selling for slightly over the asking price, but we are seeing a small shift that can result in some added value for the buyer depending on the location they are seeking,” added Van Woerkom.
Compared to last October, when homes in central Ohio were selling for just over the asking price at 100.3 percent, this October showed that buyers were getting an average of 2.2 percent off the original listing price. Year-to-date sales show that area homes are selling at 1.6 percent over the actual asking price.
When spotlighting counties in central Ohio, Franklin saw 1,323 closed sales with a median sales price of 275,000, a 9.1 percent increase in median sales price, year-over-year. Clark County saw an 88 percent spike in closed sales in October with 32, while Perry County posted 35 deals, up 40 percent over last October’s total. Some of the hottest suburbs in October based on days on the market until sale were Bexley (10 days), Gahanna (10 days), Grandview Heights (12 days), Westerville (13 days), Upper Arlington (13 days), Worthington (14 days), and Pickerington (14 days).
In October, the average sales price was up 9.8 percent to $327,768 year-over-year, and the median sales price saw a 9 percent increase over last October, rising to $284,945. For the year in central Ohio, 27,605 homes have been sold, a 9.5 percent decrease over 2021; however, the average sales price in 2022 sits at $332,711, which is an 11.4 percent gain over 2021.
October Housing Report
All Housing Reports

11/15/2022

Don't pay 2 sets of closing costs for your construction loan

08/08/2022

Prime rate and 30yr interest rates what's the difference and how do they affect each other.
1. What is the Prime rate?
The lowest rate of interest at which money may be borrowed commercially. When Prime is raised, it is harder to borrow and spend money in the economy, thus cooling demand, and this helps slow down inflation. (Inflation is the enemy of low interest rates.)
2. What does the Prime rate affect?
Short-term loans between banks, credit cards, home equity lines of credits (HELOC), and other lines of credit. (Anything that bases off of the Prime rate. AKA: "the federal funds rate" would be affected.)
3. How does the Prime rate affect fixed mortgage rates?
The Prime rate has little 'direct effect' on most long term fixed mortgage interest rates. Only credit cards, home equity lines of credit, and other lines of credit are typically tied to the Prime rate.
4. If the Prime rate is raised, will that directly affect fixed rate mortgages?
No. Not normally. And, if the market was already "prepared for the adjustment", it may not affect fixed mortgage rates at all. (Yesterday was this example. The markets were expecting up to a 1% hike, so, the .75% was not "shocking".)
5. What does it mean when the Federal reserve "hikes Prime"?
The Federal Reserve "rate hikes" send the Prime rate higher, and that in turn means the monthly interest payments on existing debt through certain programs will soon be higher. The price of any new lines of credit will be based on the new prime rate as well. (Things like credit cards, and home equity lines of credits will feel this. In contrast, fixed rate mortgages will not feel a change, because they are not directly based off of the Prime rate.)
6. Yesterday, why *didn't* 30-year mortgage interest rates rise?
The Fed only raised the Prime rate by 75 basis points (.75%). So this is not even the full 1% that many predicted. Mortgage interest rates responded "positively" to this yesterday. It looks like the market was "expecting" the full 1% and having only a .75% raise to Prime, was a relief instead of a shock. As an example, if the Fed would have raised Prime 1.5%, instead of the 1% predicted, that could have caused a shock in the markets that could have affected everything negatively. (Stocks, mortgage rates, and lines of credit. Inflation is the enemy of low interest rates.)
7. Is the Prime rate and mortgage interest rates the same thing?
Remember, Prime (AKA: The federal funds rate) and actual fixed mortgage interest rates are 2 different things. Typically, fixed mortgage interest rates are based off of mortgage backed securities, and, not off of Prime. Meaning, when Prime is raised, that doesn't "directly affect" mortgage-backed securities.
8. What is a mortgage-backed security?
A mortgage-backed security is a type of asset-backed security which is secured by a mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals that securitizes, or packages, the loans together into a security that investors can buy.
9. How do mortgage-backed securities affect long-term interest rates?
The cost of mortgage-backed securities has a "direct impact" on residential mortgage rates. This is because mortgage companies lose money when they issue loans while the market is down. When the prices of mortgage-backed securities drop, mortgage providers generally increase interest rates. (When the price of mortgage-backed securities drops, this raises their yield. And the yield is what controls mortgage interest rates. The higher the yield, the higher the interest rates.)
10. Summary: Fed Prime rate vs. mortgage-backed securities
Raising the Prime rate typically does not 'directly affect' long-term fixed mortgage rates. However, *if* the markets shift for mortgage-backed securities (Shocking, unexpected news. Such as the Fed raising Prime 1.5% yesterday instead of their actual .75%), that "could" have affected long-term interest rates, because it missed the forecast. Adjusting Prime itself is not in direct correlation with the pricing of mortgage-backed securities, but, the effects of "unexpected" economic news can indirectly affect mortgage rates.

06/29/2022

06/15/2022

https://www.foxbusiness.com/economy/fed-raises-interest-rates-75-basis-points-ramps-up-inflation-battle

The Federal Reserve on Wednesday approved the largest interest rate hike since 1994 as officials try to tame runaway inflation, which in May surged to another 40-year high.

03/07/2022

Home loans should not take forever to close. Working with the right individual can make all the difference

01/22/2022

https://abc6onyourside.com/news/local/ohio-governor-mike-dewine-20-billion-dollar-intel-semiconductor-plant-to-be-build-in-licking-county-new-albany-1-21-2022

Ohio Governor Mike DeWine announced Friday Intel will be building a semiconductor plant in Licking County. More than $20 billion will be invested in the construction of two new leading-edge chip factories in Licking County, according to Intel. "This is a special day. A great day in Ohio history," De...

01/06/2022

https://www.marketwatch.com/story/mortgage-rates-surge-to-highest-level-in-over-a-year-to-kick-off-2022-11641484323?utm_source=facebook&utm_medium=news_tab

The latest uptick in mortgage rates could be the start of a prolonged increase.

11/18/2021

Lights of Glenross,” multi-neighborhood light show with multiple homes synchronized to music by tuning in to 94.1 FM; enter at Eagle Walk Road, Delaware, 5 to 9 p.m. Sundays through Thursdays, 5 to 11 p.m. Fridays and Saturdays, beginning Thanksgiving

Once you've taken in the light sights at the Columbus Zoo and Franklin Park Conservatory, more holiday displays can be viewed around the city.