Archives for February 2017

Rising Rates- Rising Prices?

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There are some who are calling for a decrease in home prices should mortgage interest rates begin to rise rapidly. Intuitively, this makes sense as the cost of a home is determined by the price of the home, plus the cost of financing that home. If mortgage interest rates increase, fewer people will be able to buy, and logic says prices will fall if demand decreases.

However, history shows us that this has not been the case the last four times mortgage interest rates dramatically increased.

Here is a graph showing what actually happened:

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Last week, in an article titled “Higher Rates Don’t Mean Lower House Prices After All, the Wall Street Journal revealed that a recent study by John Burns Real Estate Consulting Inc. found that:

“[P]rices weren’t especially sensitive to rising rates, particularly in the presence of other positive economic factors, such as strong job growth, rising wages and improving consumer confidence.”

Last week’s jobs report was strong and the Conference Board just reported that the Consumer Confidence Index was back to pre-recession levels.

Bottom Line

We will have to wait and see what happens as we move forward, but a decrease in home prices should rates go up is anything but guaranteed.

 

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Validating a Collection Debt

Andorra Credit Repair shares some great information on Validating a Collection Debt on your Credit Report:

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You find a Collection Debt on your credit report and you just don’t remember it….what do you do?

Ask for a validation notice. A debt collector must send you a validation notice within five days that explains how much you owe and to whom you owe the debt.  Document when you make this request. If the collection agency cannot validate the debt then they probably don’t have a legal right to collect the debt.

Once you have the validation notice, make sure that this is truly your debt. Sometimes, debts are created in your name such as in cases of identity theft. You’ll want to check your credit report. Your credit report should include evidence of the debt. You can get your FREE credit reports at www.AnnualCreditReport.com.

A tactic that scavenger debt collectors use is to purchase debt that has passed the “statute of limitations” for pennies on the dollar and then try to use scare tactics to collect the debt from unsuspecting people who have no idea that this debt is no longer collectible.

Need more information?  Any Credit Repair company can assist in education you, however since Andorra Credit Repair shared this information, why not reach out to them. Blog Banner

Rising Rents……Take a Look

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People often ask if now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.

The Census Bureau recently released their third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

 

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