I discuss the risk of a housing bubble from time to time because let’s face it; it’s always going to be a concern in this day and age.
Real estate has become extremely speculative, and with that comes quicker highs and lows. So when’s the next bubble coming, you ask?
In the past, I’ve written that some housing markets may have already experienced a new bubble since the latest outright crisis, while others may simply be suffering from an affordability crisis.
There’s also an early warning system for housing bubbles now.
Regardless of these opinions, with the home price gains we’ve realized since the housing bust, there’s certainly reason enough to worry.
After all, when home prices swing markedly higher in such a short period of time, it’s not unreasonable to expect some giving back.
Housing Market Healthiest Since 2001
Believe it or not, the housing market is apparently the healthiest it has been since 2001. In fact, it hasn’t ever been healthier, per the Leading Index of Healthy Housing Markets (LIHHM) from Nationwide, which began 14 years ago.
The current value of the LIHHM is 109.8, up slightly from a quarter earlier but well above the 100 “breakeven value.” In other words, there’s little risk at the moment. And if anything, more upside ahead for the housing market.
Put another way, the reading means we have little reason to worry about a downturn over the next year, despite the recent home price gains.
In fact, none of the nation’s largest metropolitan statistical areas (MSAs) are in negative territory, and just six are neutral.
Further, only two MSAs in the nation are negative (Bismarck, ND and Atlantic City, NJ), and they’re even close to being neutral.
Interestingly, the only thing really holding back the market from being even healthier is “a continued tight mortgage lending environment,” per Nationwide’s associated Health of Housing Markets (HoHM) Report.
But with new low down payment options like the Fannie 97 LTV mortgage and existing programs from the VA, FHA, and USDA, it would seem that might not be an issue any longer.
For the record, the LIHHM is based on four factors, including:
1. Employment 2. Demographics 3. Mortgage Market 4. House Prices
A score between 75 and 125 is possible, with 100 being neutral. There are also performance ratings for each MSA, from -4 (very negative) to +4 (very positive).
Predict the Future by Looking at the Past
Take a look at the map above. As you can see, much of the country is currently in the green, which is a good thing. As previously mentioned, there are just two negative (red) spots in the country, and they are only at -1, not -4.
And those tan colors are all neutral zones.
Now look at the map below, which is the same map from the fourth quarter of 2005.
Full of red, some neutral, and just a few green spots in places like Texas.
The national index fell below 100 in early 2005, recovered somewhat in 2006 (while staying below 100), and then kept dropping until 2010.
During that time the housing market was a mess, so this indicator has actually proven itself in the past.
Assuming it continues to be accurate, we don’t have any pressing concerns at the moment because the current map looks a lot better than it did in 2005, just before the real estate market began to peak and then crash.
Furthermore, there seems to be a time lag between when the map turns red and when home prices take a hit.
It went red in 2005, but home prices continued to rise before peaking in 2006 and 2007. Additionally, home prices didn’t really rebound until 2012, despite the LIHHM reading hitting 100 at the start of 2011.
Using that logic, there’s still plenty of time before we need to really start worrying again…
Kathy Robb always knew she wanted to do interior design, back as far as high school.
While her degree is in accounting, she took classes focused on upholstery and interior design in hopes of one day breaking into the business.
She started by selling at Round Top Texas Antiques, one of the largest flea markets in the world, in her native Texas. Interior designers would come from other countries and set up shop. She also did vetted pop-up shows between Texas and Charleston, South Carolina.
When she moved to Birmingham, she met Tom Findlay of Thomas Andrew Art Gallery, who invited her and her daughter, Penelope Baggett, to open their own shop, The Blended Bungalow, in the front of his store.
Their ideal customer is someone buying their first or second home, Robb said, and they want to help blend new pieces with any family heirloom pieces that are coming into the home. If every piece of furniture is new, it looks staged, she said, but if everything is an heirloom, it looks old.
The pair also want to avoid giving people “sticker shock,” with affordable pieces that don’t break the budget, Robb said.
The store offers furniture, home decor, candles and some women’s clothing as well, Robb said. There are also fun seasonal items and vintage china, she said.
Baggett, who lives in Texas, handles the behind-the-scenes work, social media and more, Robb said, and will fly in to help at times. Baggett opened her own business focused on refinishing furniture nine years ago, before joining her mother at The Blended Bungalow. The store features her “uniquely refinished dining sets” and Robb’s custom-upholstered chairs blended with “new, traditional pieces for a blended home that’s unique to the owner,” Robb said.
“Our mission and our goal is to bring affordable, gorgeous furniture to the public,” she said.
The store is located at 1925 29th Ave. S. and is open from 10 a.m. to 5 p.m. Wednesday through Friday and from 9 a.m. to 4 p.m. on Saturday.
For more information, visit the shop online at The Blended Bungalow on Facebook and Instagram and at their website, blendedbungalow.myshopify.com.
The last thing you want to think about before packing your bags and sailing away on your dream cruise vacation is what would happen if you got sick while on board the ship.
But unfortunately, people do get sick while on vacation. They can also injure themselves or become ill enough that they need to return home.
That’s why it’s prudent to invest in a cruise travel insurance policy and be prepared for the unexpected. It’s also a good idea to know what onboard medical care your ship can and cannot provide in an emergency. It’s especially important if you’re traveling in far-flung locales that may not have adequate medical facilities – when you can even go ashore.
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TPG reached out to several cruise lines, from mass-market companies to smaller luxury ships and expedition lines, but few wanted to comment directly on this topic in response to our questions. Some declined, while others referred us to their websites, where you can find basic information under the FAQs sections on what their ships typically offer regarding medical assistance.
If you want to know the specifics about getting a COVID-19 test on board or what would happen if you broke an arm or needed to be airlifted to a medical facility while cruising, we have direct answers from three cruise lines – MSC Cruises, Holland America Line and Azamara. We’ve also compiled general information from several lines with detailed information on their websites.
Here’s what you need to know before you go, so you can feel confident that you’ll have competent and comprehensive medical care if you fall ill while cruising on the high seas.
Do cruise ships have medical centers, and who works in them?
All ocean-going ships have medical centers staffed with trained professionals, so medical care is accessible when you’re on board the ship. The facilities and what they offer will vary, depending on the size of the ship and the number of passengers and crew.
For example, according to Royal Caribbean’s website, their medical centers are staffed with two or three licensed physicians and three to five licensed nurses 24 hours a day. The staff may be international or U.S.-based. The website also states, “All Royal Caribbean Group (Royal Caribbean, Celebrity and Silversea) ships are built, staffed, stocked and equipped to meet or exceed guidelines established by the American College of Emergency Physicians Cruise Ship & Maritime Medicine Section.”
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A clinical staff from multiple nationalities works in MSC Cruises’ facilities. The medical professionals also adhere to the standards prescribed by the American College of Emergency Physicians – Cruise Ship Medicine Section Guidelines.
Holland America’s medical centers are staffed with a team of experienced physicians and nurses that can manage a broad range of conditions. The onboard facilities are fully equipped with testing and treatment capabilities, and the team has a close working relationship with the Centers for Disease Control and Prevention (CDC), the U.K.’s National Health Service, regional and local public health agencies and the University of Texas Medical Branch. These associations benefit both the guests and their employees.
Azamara’s spokesperson tells us that the medical facility on board its four boutique ships offers “enhanced equipment, isolation staterooms that provide comfortable and complimentary care, onboard testing capabilities and telehealth medical support. Guests who fall ill will meet with the medical team, which is typically at least one registered physician and one nurse, who will then develop a multi-level response plan.”
Viking’s website also states that its ocean and expedition vessels have upgraded state-of-the-art medical facilities with specialized equipment.
It’s best to contact the company directly if you’re traveling with a smaller cruise or expedition line and want information on specific capabilities and the medical services they offer should you become ill or injured. Many smaller ships sail close to shore, so additional medical facilities will be available in port. However, this won’t be an option when sailing expeditions to remote destinations like Antarctica or the Arctic.
Related: How to avoid seasickness on your next cruise
Do I need an appointment to see a doctor on board?
You should visit the medical center if you have a persistent sore throat, headache, fever, body aches or an upset stomach that could be the flu or a contagious virus, such as COVID-19 or norovirus. If you’ve tripped or fallen and have a swollen ankle or hand, you should also seek medical care.
According to a representative for MSC Cruises, you don’t need an appointment to go to the onboard medical centers. Walk-ins are welcome 24/7, but you can also make an appointment.
MSC’s spokesperson recommends seeing someone if you’re not feeling well, and they tell us their staff can handle a “spectrum of medical situations ranging from routine general practice cases and medical emergencies to those requiring intensive care.”
Holland America guests can dial the emergency number on their cabin phone 24 hours a day for medical assistance.
Azamara’s medical centers are open twice a day for walk-ins. If you need to see someone during off hours, guest services can call an on-duty nurse.
On a Carnival Cruise Line ship, medical staff is on call 24 hours a day for emergencies. On sea days, you can visit the medical center between 9 a.m. and noon and again between 3 and 6 p.m. On port days, the facility is open from 8 to 10 a.m. and from 4 to 6 p.m.
According to its website, Princess Cruises’ ships also have medical centers staffed by full-time registered physicians and nurses. The facilities are open twice daily, and they provide 24-hour emergency care.
Can you get a COVID-19, flu or strep test on the ship?
Most cruise lines, including those mentioned above, can perform various tests, as needed, as part of the medical services offered. These include testing for COVID-19, flu, strep or other suspected illnesses.
Some lines, like Azamara, offer COVID-19 testing without a medical consultation, while others, such as MSC Cruises and Holland America, do not offer walk-in testing. Guests must see a physician first to determine if testing is necessary.
Related: Why I feel safer now on a cruise ship than in my home town
“The onboard physician may recommend a test for COVID-19 if one’s symptoms suggest the possibility of a Covid infection,” shares a Holland America spokesperson in an email. “We encourage our guests to purchase their self-tests before traveling and bring them aboard. In that way, if they have any concerns, they may test themselves and protect their family, fellow guests and our crew. Of course, we do request they notify the medical staff if they test positive.”
Can I get medications on board the ship?
If you forgot to pack basic over-the-counter medications, such as aspirin, ibuprofen, allergy medications or antacids, these items are typically available in one of the shops on the ship or at the medical center. You should also be able to find them at a pharmacy in port when you go ashore.
If you’ve forgotten prescription medications and need a prescription filled, you’ll have to visit the medical center to see a nurse or a physician. A cruise ship can’t stock all possible medications, so you might need to accept an alternative.
Cruise lines aren’t going to release their formularies, but they probably have prescription medications for the most common ailments such as high blood pressure, cholesterol, diabetes and thyroid disease. They also stock antibiotics for infections.
If you have another medical condition, you may not find the appropriate medicines to treat it on board. On its website, Carnival advises that its ships may not have certain medications and vitamins available. If you forgot your medications and they’re not stocked on your ship, you must visit a medical facility ashore.
MSC Cruises urges passengers to bring any required medications for their journey from home. If they forget or need something, over-the-counter medications are available in the retail spaces. Guests will find some medicines at the reception desk for minor ailments like motion sickness. They can visit the medical center for other requests, such as basic prescription medications inadvertently left at home.
Related: 27 cruise ship embarkation day do’s and don’ts
In addition to over-the-counter medications available at the retail shops, such as pain medications for headaches, cough drops or upset stomachs, doctors at Holland America’s medical centers can prescribe and dispense basic medications you may have forgotten. They also have medication to treat severe illnesses until a guest is better or until they can be brought ashore for treatment.
Some over-the-counter medications, including antacids and ibuprofen, are available to guests at the medical center on Azamara’s ships. If a guest needs a prescription medication, it can be prescribed after a consultation.
Carnival sells over-the-counter medications for colds, coughs and upset stomachs at the medical center, or in some cases, at the retail shops. Its ships also have motion sickness pills available (for a fee) through room service, guest services or the medical center. In extreme cases, they can administer a shot for motion sickness.
The line also offers complimentary medi-coolers to store prescription items that must be kept at a specific temperature. They are available in limited quantities with a $75 deposit. You can request one once you’re on board the ship.
What if I fall and break a bone or need stitches?
The trained staff at the ship’s medical center can handle injuries, such as broken bones or deep cuts that require stitches. If the injury is more severe, the medical team can stabilize a guest until the ship reaches the port and the patient can be transferred off the ship.
MSC Cruises’ onboard medical centers can handle a spectrum of medical situations, including the initial management of fractures and suturing of lacerations, a spokesperson explained.
Holland America’s medical centers are also well-equipped to care for guests that need immediate medical attention, much like an urgent care center at home. Their ships have X-ray machines, and the medical teams are trained to operate radiology and lab equipment.
Azamara can also handle these types of injuries, says a spokesperson for the line. In the case of a broken bone or orthopedic injury, the onboard provider will also recommend that the guest follows up with an orthopedic referral at the next available port.
“While Azamara’s onboard staff is available to help with any medical issues that arise, the medical facilities are not intended as clinics for guests,” a spokesperson says. “Azamara is not responsible for the diagnosis, treatment or services furnished by shipboard medical personnel, who are independent contractors.”
What if I’m really sick and need a specialist or hospital?
The medical staff on oceangoing vessels are trained to handle emergency situations such as a heart attack or stroke and they have defibrillators and other life-saving equipment on board in case of such emergencies.
MSC Cruises’ vessels are equipped with intensive care facilities where guests can be stabilized and cared for until the passenger can be transferred to a hospital. If the ship is at sea, the ship’s captain and medical staff will need to decide how the passenger will be evacuated. Options may include a diversion of the ship to the nearest port, a boat transfer or, if necessary, a helicopter evacuation.
“The decision is influenced by a variety of external factors, like weather, distance to land and resource availability,” an MSC Cruises spokesperson told TPG. “The decision is also made by consulting with local shoreside maritime authorities.”
Related: How to avoid getting sick on a cruise
Holland America also has established and well-practiced medical protocols surrounding treating seriously ill passengers. “In situations that require referral to shoreside hospitals, the shipboard treating doctors evaluate suitable options by medevac,” a company spokesperson said.
The line works with local emergency services to arrange for the patient to be picked up and transferred to a designated shoreside medical facility when necessary. The care team will also continue to assist and support the disembarked guest and their traveling companions.
Azamara will also assist in bringing guests that need additional care to a hospital as quickly as possible. The onboard team will request an airlift if necessary (depending on the location). Since the line’s itineraries include more time in port, ships are typically close to land. Azamara will also follow up with the guest to ensure they receive the necessary care.
Royal Caribbean Group’s physicians and nurses are required to maintain Advanced Cardiac Life Support (ACLS) training. “In responding to medical emergencies, our goal is to first stabilize emergency patients and, when necessary, evacuate the patient to an appropriately equipped and staffed shoreside medical facility,” its website says.
Will insurance cover me if I get sick on a cruise?
You’ll be charged a fee for service if you need to visit a physician or nurse during your cruise. Cruise ships don’t file insurance claims, so you’ll have to do that directly with your insurance company once you’re home. Princess’ website clearly states that charges for medical services will be added to your shipboard account and that guests will receive an itemized bill to send to their insurance company.
This is one of the reasons to invest in travel insurance when you travel. Your regular health insurance policy may or may not cover you when you’re traveling outside the country — or will only cover some but not all of your expenses. Some insurance plans, like Medicare, won’t cover you outside the U.S. except for a few specific emergency circumstances. A travel insurance policy with good medical coverage can make up the difference or reimburse you for medical bills your regular insurance won’t.
Related: The 5 best cruise travel insurance plans
Bottom line
It’s advisable to bring emergency supplies with you when you cruise because you never know what might happen. You’ll want to pack essential over-the-counter medications, such as ibuprofen, aspirin, antacids and allergy medications. If you think you may need any of these medicines during your vacation, you’ll want to have them on hand, so you won’t need to pay high prices on the ship or schedule a consultation with a doctor in order to get them.
You might also want to bring a COVID-19 test with you or any braces or assistive devices you occasionally use. It will be much cheaper to bring them from home than to purchase them on board.
Also, consider purchasing a travel insurance policy to cover the cost of medical care that your regular health policy won’t reimburse you for when traveling, especially when you’re out of the country. Depending on the policy, you can also recover some of the expense of the trip if you have to return home early.
It’s important to know that if you fall ill or become injured during your vacation, you can get medical care on board the ship for many situations – or at least be stabilized until the medical team and crew can transfer you ashore to a hospital or emergency facility.
It’s best to check with each cruise line before traveling to understand their policies, especially if you have a preexisting condition that could flare up while on the cruise. Be sure to ask what medical care is available specifically on the ship you’ll be sailing on, as older and smaller vessels may have different facilities and capabilities than the newer and larger ships.
A variety of significant mortgage rates inched upward over the last seven days. The average interest rates for both 15-year fixed and 30-year fixed mortgages both were driven higher. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also climbed.
As inflation surged in 2022, so too did mortgage rates. To rein in price growth, the Federal Reserve began bumping up its federal funds rate — a short term interest rate that determines what banks charge each other to borrow money. By making it more expensive to borrow, the central bank’s goal is to reduce prices by curtailing consumer spending.
After hiking interest rates 10 times since March 2022, the Fed pumped the brakes at its June meeting. The central bank’s federal funds rate will remain at a range of 5.00% to 5.25% for the time being, although the Fed hasn’t ruled out the possibility of further increases if inflation doesn’t continue to moderate. The Fed will decide whether or not to raise rates at its next meeting on July 26.
The most recent Consumer Price Index, a popular gauge of price growth, shows that the Fed’s string of rate hikes is having its intended effect. Annual inflation is now at 3.0% for the 12-month period ended in June, which is the lowest it’s been in more than two years.
The Fed doesn’t set mortgage rates directly, but it does play an influential role. Mortgage rates move around on a daily basis in response to a range of economic factors, including inflation, employment and the broader outlook for the economy. A lower inflation rate is good news for mortgage rates, but the potential for additional hikes from the central bank this year will keep upward pressure on already high rates.
“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree.
Rather than worrying about mortgage rates, though, homebuyers should focus on what they can control: getting the best rate they can for their financial situation.
To increase your odds at qualifying for the lowest rate available,take the steps necessary to improve your credit score and to save for a down payment. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you make an apples-to-apples comparison among lenders.
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 7.19%, which is an increase of 1 basis point from one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but often a higher interest rate. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 6.52%, which is an increase of 1 basis point from seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 6.25%, a rise of 6 basis points compared to a week ago. You’ll usually get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But since the rate changes with the market rate, you might end up paying more after that time, as described in the terms of your loan. For borrowers who plan to sell or refinance their house before the rate changes, an ARM may be a good option. If not, changes in the market could significantly increase your interest rate.
Mortgage rate trends
Mortgage rates were historically low throughout most of 2020 and 2021 but increased steadily throughout 2022. Now, mortgage rates are well above where they were a year ago. Fewer buyers are willing to jump into the housing market, driving demand down and causing home prices in some regions to ease. But that’s only part of the home affordability equation.
“Interest rates have been much higher in the past and people bought homes and financed homes at those rates,” said Daniel Oney, research director at the Texas Real Estate Research Center at Texas A&M University. “But it’s been hard for people to react to such a rapid increase in just a short amount of time.”
Even though the Fed hit pause on rate hikes in June, mortgage interest rates will continue to fluctuate on a daily basis. That’s because mortgage rates aren’t tied to the federal funds rate in the same way other products are, such as home equity loans and home equity lines of credit, or HELOCs.
As long as inflation continues to trend downward, though, mortgage rates should decline slightly towards the end of 2023. The most recent housing forecast from Fannie Mae calls for the average 30-year fixed mortgage rate to close out the year at around 6.3%.
“Mortgage rates have been volatile for some time now and while they could eventually start trending down over the next six months to a year as inflation growth continues to cool, their path is probably going to be bumpy,” Channel said.
We use data collected by Bankrate to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:
Current average mortgage interest rates
Loan type
Interest rate
A week ago
Change
30-year fixed rate
7.19%
7.18%
+0.01
15-year fixed rate
6.52%
6.51%
+0.01
30-year jumbo mortgage rate
7.21%
7.20%
+0.01
30-year mortgage refinance rate
7.34%
7.33%
+0.01
Rates as of July 24, 2023.
How to find the best mortgage rates
You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. When looking into home mortgage rates, think about your goals and current financial situation.
Things that affect the mortgage rate you might get include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Generally, you want a good credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate.
The interest rate isn’t the only factor that affects the cost of your home. Be sure to also consider other costs such as fees, closing costs, taxes and discount points. Be sure to speak with multiple lenders — like local and national banks, credit unions and online lenders — and comparison shop to find the best mortgage loan for you.
How does the loan term impact my mortgage?
One important factor to consider when choosing a mortgage is the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are stable for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only stable for a certain amount of time (usually five, seven or 10 years). After that, the rate adjusts annually based on the current interest rate in the market.
When choosing between a fixed-rate and adjustable-rate mortgage, you should consider how long you plan to stay in your house. Fixed-rate mortgages might be a better fit for people who plan on living in a home for a while. While adjustable-rate mortgages might have lower interest rates upfront, fixed-rate mortgages are more stable in the long term. However, you may get a better deal with an adjustable-rate mortgage if you only intend to keep your house for a couple years. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. It’s important to do your research and understand what’s most important to you when choosing a mortgage.
Offers came quickly for an adobe house in Driftwood, TX. The uniquely beautiful space is listed for $1.37 million and pending sale.
“You don’t see a lot of Santa Fe-style homes in the Texas Hill Country and that, paired with all of the landscaping, it’s an outstanding property,” says listing agent Nayeli Cutler, with Twelve Rivers Realty.
Cutler notes that the original owners built the 2,106-square-foot, Southwest-style house in 1988 with the help of New Mexico architect Mike Fischer, in hopes of enticing their daughter to move back to Texas from Santa Fe.
“They thought she moved there for the architecture,” Cutler explains. “So they built her a home to try and woo her back, but it didn’t work out.”
More than five acres
The two-bedroom, two-bath property has had a few owners, and this is the second time Cutler is selling it. She previously represented the home in 2009, when it last changed hands.
“The current owners have improved the landscape,” she says, adding they acquired a back parcel of land to bring it to its current 5.7-acre size. The property has agricultural and wildlife exemptions, including one for beekeeping, which is a boon for owners.
“When you own land in Texas, having these exemptions on your property saves you thousands of dollars in property taxes,” Cutler says.
Southwest style
With its three kiva fireplaces, tiled floors, stained glass, and wood-beamed ceilings, the house indeed looks like it belongs in New Mexico—the space abounds with the hallmarks of Southwest-style.
Another appealing attribute is the home’s indoor-outdoor connection.
“It has two courtyards and lots of windows that look out into those courtyards,” Cutler says.
Hollywood comes calling
In 2008, the house caught the eye of the production crew filming the HBO movie, “Temple Grandin.” Much of the 2010 biopic starring Claire Danes was filmed in Austin, as a stand-in for an Arizona ranch.
This house “was her aunt’s house in the movie,” Cutler says. “They approached the owner at the time to see if they would be able to film there. And they actually put in all of those corrals for the movie.”
The property is just outside of Austin, about 30 minutes to downtown, and right across the street from the breweries and wineries of the Hill Country area.
“It’s truly very unique,” Cutler notes. “I call it country life with city convenience. You are surrounded by so many small towns that you can visit in a day trip, but you’re so central, and it’s just outside of the Austin fray.”
Guest set-up
A restored, 1967 trailer in the back of the house can be used as guest quarters. Both the trailer and the wood-burning hot tub convey with the sale.
“It is just a fun place for your guests to kind of have a glamping vacation when they come and visit you,” Cutler says, noting that it’s tucked away from the main house to allow for some privacy.
The unusual property clearly stood out to buyers. After just a few days on the market, there were offers on the table.
“We priced it very aggressively in order to get the most traction possible and for it to move quickly,” Cutler says.
A family living in Sunset Heights, close to the center of Houston, Texas, is parting with their home for just $1.
But in order to get your hands on the 1,056 square foot, 2-bedroom, 1-bath property, you need to write an essay and submit a $150 entry fee.
So in total, you’re looking at $151 if your essay is selected and the $1 purchase contract is written up.
The house is located at 213 E. 23rd Street, Houston, TX 77008. Per Zillow, it was actually sold on September 30, 2013, and currently has a Zestimate of $339,299.
So the owner would only need about 2,267 entries to get that value. By the way, the home was sold for just $281,000 less than two years ago.
About the Home
The home was built in 1920 and sits on a 5,300 square foot lot across from “the adorable Halbert Park.” I can’t vouch for its adorability seeing that I’ve never been to Houston.
However, it does have a WalkScore of 78, meaning you should be able to get to trendy shops and restaurants without the need for four wheels.
And the owner renovated the bathroom in 2014, adding new tile, a sink, and some plumbing work. Old carpets were also removed to reveal the original hardwood underneath.
The kitchen received some upgrades in 2013 and washer/dryer connections were also added for convenience.
Why They’re Doing It?
If you’re wondering why the owner, Michael Wachs, is selling his home for just a buck, he explains on his website that “we have made home ownership in an expensive and competitive market more affordable.”
But he stresses that he’s not rich, and that the $150 entry fees should be enough to cover the mortgage he has on the home.
Wachs apparently got inspiration from a similar sale in Maine, and figured this would be a good way for a person to acquire a home without a pricey mortgage.
In order to make an offer, you must complete a 200-word essay explaining why you would like to purchase the home and submit a non-refundable $150 offer fee. I’m assuming a heartwarming narrative will work wonders here.
Essays should not contain identifying information so they can be read and judged anonymously.
Assuming your essay is chosen, a contract will be written up for $1 to purchase the home. The buyer will be responsible for all taxes, including real estate transfer taxes, property taxes, and all fees, including lawyer’s fees.
Also keep in mind that a free and clear home still comes with costs such as taxes, insurance, and ongoing maintenance.
The home is being sold as-is and no repairs will be made by the seller.
And here’s the kicker folks – the seller is a Realtor! So that might explain why he’s selling his home this way. Call it “free” marketing and lots of buzz and perhaps even a higher-than-expected sales price.
Offers are being accepted until June 13th if you’re interested.
With record low unemployment and a reasonable cost of living, Ohio packs plenty of amenities for residents. But if you live in Ohio, the large number of FDIC-insured banks can make it tough to choose just one. To help, we’ve pulled together a list of local, national, online, and regional banks operating in the state.
10 Best Banks in Ohio
The best checking accounts in Ohio offer the amenities you need, while also reducing fees. Most banks offer features like mobile check deposits and ATM access, but in-person customer service and access to branches can also make a difference. All the banks listed below are worth considering for their low-fee banking services, whether you’re in Cleveland, Columbus, or one of the many other great Ohio cities.
1. KeyBank
If you’re looking for an Ohio bank that provides a personal banking experience, KeyBank might have everything you need. The standard checking account comes without fees or balance requirements.
The best APY comes with its money market savings account option, which pays up to 5.00% APY. The bank operates branches and ATMs throughout Ohio, and you’ll get expanded ATM access at Allpoint ATMs nationwide.
Fees:
No monthly fees
$20 fee for overdrafts
Balance requirements:
$10 opening deposit required
No minimum daily balance
ATMs:
Fee-free at KeyBank ATMs
Fee-free at Allpoint ATMs nationwide
$3 fee for out-of-network ATM transactions
Interest on balance:
Up to 5.00% APY on money market savings accounts
Up to 4.74% APY on CDs
Additional perks:
2. Huntington National Bank
Huntington National Bank has branches throughout the Midwest, but its headquarters is in Columbus. That gives the bank a strong presence throughout the state, with a bank branch in Columbus, Cleveland, and the Akron areas.
Huntington Bank has a fee-free checking account that even waives fees on overdrafts up to $50. But one of the biggest selling points for Huntington Bank is its interest rates. The 0.06% APY on savings accounts and 5.13% APY on CDs is better than average, particularly for traditional banks.
Fees:
No monthly fees
$15 (waived up to $50)
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at more than 1,700 ATMs nationwide
$3.50 out-of-network ATM fee
Interest on balance:
Up to 0.06% APY on savings accounts
Up to 5.13% APY on CDs
Up to 4.18% APY on money market accounts
Additional perks:
Standby Cash serves as an automatic line of credit
Early access to paycheck with direct deposit
3. Chime
Chime is an online banking platform open to consumers throughout the U.S. Ohio residents looking for banking services will get all the basic amenities through Chime’s app. You get mobile check deposit, funds transfers, and a Visa debit card. Like many other online banking options, Chime also gives you cash access through partnerships with ATM providers and retailers nationwide.
Fees:
No fees
No fees for overdrafts
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 fee for out-of-network ATM transactions
Interest on balance:
2.00% APY on savings accounts
Additional perks:
4. Wright Patt Credit Union
Credit unions have competitive rates and perks, but they also come with membership requirements. Wright Patt Credit Union is open to anyone who lives, works, worships, or attends school in 20 Ohio counties.
You’ll have fee-free ATM access at WPCU ATMs throughout Southwest and Central Ohio, as well as through CO-OP ATMs nationwide. But one of the biggest selling points is WPCU’s interest rates. Currently, they’re paying 7.00% APY on the first $1,000 in your savings account.
Fees:
No monthly service fees
$9 fees for overdrafts
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at WPCU ATMs
Fee-free at CO-OP ATMs nationwide
No fee for out-of-network ATM transactions
Interest on balance:
Up to 7.00% APY on savings accounts
Up to 4.85% APY on CDs
3.30% APY on money market accounts
Additional perks:
WPCU Sunshine Community Fund supports local nonprofits
Competitive rates on personal loans
5. Chase Bank
Chase is a national bank with locations across Ohio. The Chase Total Checking Account comes with a $12 monthly fee. However, Chase waives it if you have direct deposits of $500 or more each month, keep at least a $1,500 daily balance, or maintain a $5,000 minimum balance across all your Chase accounts.
For younger costumers, take a look at the Chase Student Checking Account, which is designed for students between the ages of 18 and 24.
Fees:
$12 monthly fee (waived with requirements)
$34 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance
ATMs:
Fee-free at 16,000+ Chase Bank ATMs
$3-$5 out-of-network ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 3.75% APY on CDs
Additional perks:
$100 checking account bonus
Credit cards offer bonuses and general rewards
6. Woodforest National Bank
Woodforest National Bank is a community bank with branches in Ohio, Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.
The basic checking account comes with a $6.95 fee, but Woodforest waives it with monthly direct deposit or a daily balance of at least $100.
Fees:
$6.95 monthly maintenance fee (waived with requirements)
$32 overdraft fee
Balance requirements:
$25 deposit to open
No minimum daily balance
ATMs:
Fee-free at Woodforest National Bank ATMs
$2.50 out-of-network ATM fee
Interest on balance:
Up to 0.50% APY on savings account balances
Up to 4.60% APY on CDs
Additional perks:
7. Fifth Third Bank
Headquartered in Cincinnati, Fifth Third Bank is one of the top regional banks in Ohio. You’ll get fee-free ATM access not only at Fifth Third ATMs but also at more than 40,000 partner ATMs nationwide. Fifth Third Momentum Checking comes with no monthly maintenance fees, and you can avoid overdraft fees by depositing enough money to cover the overage by midnight the next business day.
Fees:
No monthly service fees
$37 overdraft fee
Balance requirements:
No deposit to open
No minimum daily balance
ATMs:
Fee-free at 1,500+ Fifth Third Bank ATMs
Fee-free at 40,000+ partner ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
0.01% APY on savings account balances
Up to 4.75% APY on CDs
Additional perks:
Early access to your paycheck
Extra business day to resolve overdrafts
8. GO2bank
If you haven’t checked into online banks lately, you might have missed how far they’ve come. Not only are their interest rates and fees competitive with most traditional banks, they also offer features that make it easy to skip the bank branch experience. GO2bank offers nationwide access to cash at Allpoint ATMs, as well as cash deposits at more than 90,000 retailers.
Fees:
$5 monthly maintenance fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No deposit to open
No minimum daily balance
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
4.50% APY on savings account balances
Additional perks:
Up to 7% cash back on gift card purchases
Deposit cash at 90,000+ retailers nationwide
9. Quontic Bank
Another online banking option is Quontic Bank, which began as a community bank in New York City in 2009. Quontic has a wider range of cash withdrawal options than most banks, thanks to partnerships with Allpoint, MoneyPass, and Citibank. But one feature that sets this bank apart is its mortgage loan program.
Quontic has been designated by the U.S. Treasury as a Community Development Financial Institution (CDFI), which allows it to issue loans to borrowers who fall outside the requirements for a conventional home loan.
Fees:
No monthly fee
No fees for overdrafts
Balance requirements:
$100 opening deposit
No minimum daily balance
ATMs:
Fee-free at Allpoint ATMs nationwide
Fee-free at MoneyPass ATMs
Fee-free at SUM Program ATMs
Fee-free at select Citibank ATMs
Interest on balance:
Up to 1.10% APY on checking account balances
4.25% APY on savings accounts
Up to 5.15% APY on CDs
Up to 4.75% APY on money markets
Additional perks:
CDFI lending makes mortgage loans available to a wider range of applicants
Free contactless Quontic ring wearable with new checking account
10. Civista Bank
Local banks have plenty to offer, including a competitive annual percentage yield and personalized customer service. Civista Bank has branches in Northern, Northwestern, Central, and Southwestern Ohio, as well as Southeastern Indiana and Northern Kentucky. If you travel often, though, be aware that fee-free ATM transactions are limited to the service area.
Fees:
No monthly fee
$37 overdraft fee
Balance requirements:
$50 opening deposit
No minimum daily balance
ATMs:
Fee-free at Civista ATMs nationwide
$4.50 fee for out-of-network ATM transactions
Interest on balance:
Rates not publicly disclosed
Additional perks:
Bottom Line
With so many Ohio banks, the options can be overwhelming. It can help to narrow down the features you need. From personalized banking services to help with investment accounts, choosing a bank account is a personal decision. Compare rates and features between financial institutions until you find the right bank to meet your needs.
The decline of Fort Morgan didn’t happen suddenly. There wasn’t a giant factory that closed or a natural disaster that devastated the small, farming town on the plains in the northeastern corridor of Colorado.
Instead, Fort Morgan’s story is a familiar one playing out across rural America: children moving away to find better jobs in the cities and big-box stores and online shopping leading to empty storefronts on Main Street. But this isn’t how the story ends for Fort Morgan, about an hour and 15 minutes northeast of Denver.
HGTV is turning its star power on Fort Morgan with the Season 2 premiere of “Home Town Takeover.” The show will feature its biggest name stars, including Ben and Erin Napier of “Home Town” and Dave and Jenny Marrs of “Fixer to Fabulous,” as they take on revitalization projects around town. The six-episode series is to premiere on Sunday.
The popular network has a strong track record of transforming struggling, down-on-their-luck, small towns and cities into popular tourist and real estate destinations. Several of these communities have credited the shows built around them for their turnarounds. Can HGTV and its talent re-create the magic in Fort Morgan—and perhaps inspire other struggling towns to invest in their own revitalizations?
“At the end of the day, millions of people are going to see this show,” Jenny Marrs tells Realtor.com®. “They’re going to be inspired either to go and visit Fort Morgan, which would be amazing and help the town as far as tourism, but also just be inspired to maybe do the same thing in their own town.”
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Watch: Exclusive: Is HGTV’s ‘Renovation 911’ the Most Dramatic Home Improvement Show Yet?
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Over the four months of filming for the show, the teams completed 18 projects. They included fixing up homes of local heroes, businesses such as the town’s bowling alley, and community spaces such as the downtown business district and a local park.
“Our town could use a jump-start,” says local artist Ann Iungerich. “The last 10 to 15 years, it’s gone through a slump. We could use a boost to get us back on track.”
Helping out on the projects were guest stars Jonathan Knight, star of HGTV’s “Farmhouse Fixer” and former vocalist for New Kids on the Block; rapper Lil Jon, who also has a show, “Lil Jon Wants To Do What?”; and Ty Pennington of “Rock the Block,” among others.
“These towns each have a special story,” says Jenny Marrs. She was most impressed by the people she met in Fort Morgan and how they rallied together to improve their community. “People stop, they say hello, they wave at you when you drive by, they know your name at the grocery stores. These sort of simple things can be really powerful.
“Families have lived in these small towns for generations. This is their family legacy and history,” she continues. “They shouldn’t have to move if we can help make the town viable again.”
The HGTV effect on real estate markets
The Texas city of Waco is perhaps the best example of the power of HGTV and its charismatic stars.
“Fixer Upper” premiered in 2013 and launched Chip and Joanna Gaines into the stratosphere. The couple built an empire off of that show, with a furniture line at Target, eight bestselling books between them, and even their own network, called Magnolia. But their greatest accomplishment might have been transforming the public image of Waco.
Before the popularity brought by the Gaineses, the city had been best known for a deadly standoff in 1993 between federal agents and a religious cult run by David Koresh. Now, tourists flock to the city to shop at the Gaineses’ stores and eat at their restaurant, Magnolia Table.
Average home prices in McLennan County, which includes Waco, surged almost 52.1% from 2015 to 2019, according to data previously provided by local real estate broker Camille Johnson. (“Fixer Upper” ran from 2013 to 2018 on HGTV. It was rebooted as “Fixer Upper: Welcome Home” on the Magnolia network in 2021.)
Before “Home Town” began filming in Laurel, MS, Mayor Johnny Magee flew out to Waco. He wanted to see the impact that “Fixer Upper” had on the struggling city.
“What we saw were tourists everywhere, and people were claiming that the same could happen in Laurel. We were doubtful,” says Magee. He didn’t realize how popular the show starring the Napiers would be when it premiered in January 2016.
Today, Laurel is booming. Its hotels and restaurants are full, home sales have risen as more people have moved here, and the town’s tax base has increased.
Home list prices surged in Laurel, shooting up 84.1% from July 2016 through July 2022, according to Realtor.com data. That’s compared with a 71.9% increase nationally and 60.8% in Mississippi over the same period.
“I am a native Laurelite who is amazed about what has happened since Ben and Erin Napier have begun the ‘Home Town’ show in Laurel. When the show began, downtown was like a ghost town,” says Magee. “What we have experienced has blown the minds of everyone who knew Laurel pre-‘Home Town.’”
Bentonville, AR, where “Fixer to Fabulous” is filmed, is a bit of an exception as it’s a city of more than 55,000 residents. It’s also the birthplace and headquarters of Walmart.
However, the Marrses have seen tourism tick up as a result of their show. There are now golf cart tours of the homes that have appeared on “Fixer to Fabulous.”
“It’s a powerful thing,” Dave Marrs says of the HGTV effect on Bentonville.
But there are a few downsides.
Home prices can rise as a result of being in the spotlight, say the Marrses. The number of properties for rent and sale is likely to drop even further as out-of-towners move in. That’s likely to make it harder for locals to find places. And those who grew up in the community might find themselves competing with deep-pocketed investors and retirees.
When home prices increase, property taxes can also rise. That was a substantial problem that homeowners in Waco experienced.
Fort Morgan’s already benefiting from ‘Home Town Takeover’
Since the news broke in July that the new season of “Home Town Takeover” would be filmed in Fort Morgan, commercial properties downtown have been selling quicker, says Brian Urdiales, a Fort Morgan councilman and Compass real estate broker.
“It isn’t typical to see three commercial properties on Main Street go onto the market and then close in a short time,” he says. “It would be great to see all the foot traffic and people on Main Street like when I grew up.”
Tourists have also begun to trickle in, says artist Iungerich, 61, a lifelong resident of the town. She submitted the town’s original application to be on the show when it launched just before the COVID-19 pandemic hit in early 2020. And she created an art installation that will be featured on the show: a 5-foot-tall bowling ball, a 9.5-foot-tall pin, and a crown, all placed in front of the local bowling alley.
The recent trickle of tourists is certainly something new for Fort Morgan, founded after an eponymously named military post opened in the mid-19th century along the South Platte River.
Today, the fort no longer remains and Fort Morgan is primarily a farming and ranching community of about 11,500 residents. There is a large Cargill beef processing plant, a mozzarella cheese processing facility, and a historic sugar factory.
The old railroad depot is boarded up, but folks can still catch an Amtrak train to Denver or into Nebraska. There are some restaurants, and the movie theater has recently been remodeled.
Fort Morgan has “the blue-collar jobs. They have the farming. They just didn’t have the draw to keep people there,” Dave Marrs tells Realtor.com. “So a lot of our focus was ‘Hey, you’re working here, stay here. Spend time here, spend money here so the town can develop even more.’”
Despite the town’s struggles, Fort Morgan’s real estate market has remained appealing to buyers priced out of more expensive parts of the state. During the pandemic, many Denver-area buyers came to Fort Morgan seeking more affordable properties, more space, and a more rural lifestyle. Homes sold briskly in a single weekend, often for over the asking price.
The real estate market has since come back down as higher mortgage interest rates are forcing many would-be buyers to the sidelines. Home list prices are mostly back to pre-pandemic levels, at a median of $330,550 in March, according to Realtor.com data.
Homes in Fort Morgan are still attracting buyers, especially as prices are about half of Denver’s median price tag of $663,000 and roughly $100,000 less than the national median of $424,500 in March.
“Our market’s always been pretty strong,” says Urdiales. He’s still seeing bidding wars, investors making all-cash offers, and first-time buyers jumping into the fray. “People are still buying.”
And the international exposure the town is about to receive is expected to be positive for the real estate market, especially as many viewers are working remotely and can live just about anywhere.
“It brings this aura of glamour to the small-town lifestyle,” says Jeff Engelstad, a real estate professor at the University of Denver. “You get on a million people’s radar, and you’re going to land a few of them.”
Home prices surge in Wetumpka after ‘Home Town Takeover’
Perhaps the best blueprint of what’s in store for Fort Morgan might be what happened in Wetumpka, AL. The small town was featured in the first season of “Home Town Takeover,” which premiered in May 2021.
As HGTV broadcast this small town into living rooms all over the world, the real estate market caught fire. Prices rose and homes flew off the market. Homes for rent or sale were scarce.
Home list prices in Wetumpka grew 42.3% from January 2021 through January 2023, according to Realtor.com data.
While some of that is due to the hot housing market during the pandemic, Wetumpka saw much larger run-ups in prices than the state or rest of the country. Over the same period, prices rose 26% in Alabama and 23.9% nationally.
The market has since slowed along with the rest of the nation, but some homes are still receiving multiple offers, says Wetumpka real estate broker Beverly Wright, of Re/Max Cornerstone Realty.
“It’s pretty crazy,” says Shellie Whitfield, executive director of the Wetumpka Area Chamber of Commerce. “We’re still building housing, and once the shovel’s in the ground, they’re sold.”
When she moved to Wetumpka in summer 2017, about 40% of the stores downtown were boarded up. Now, only two storefronts are empty and busloads of tourists visit the town’s new bookstore, ice cream parlor, pet store, and even a high-end olive oil and vinegar store.
“They sped us up about 15 years. It’s been really great,” says Whitfield. “They just catapulted us just far beyond anything anyone could have imagined.”
Whitfield is confident the show will have a similar effect on Fort Morgan.
“They definitely will see some impact because there is such a strong following for the show,” says Whitfield.
The Marrses want viewers to be inspired to take action to turn their own towns around.
“I hope that people watch this show and say we can do that,” Jenny Marrs says. “It’s a spark that gets the fire started.”
In our latest real estate tech entrepreneur interview, we’re speaking with Stephen Arifin from The Closing Docs.
Who are you and what do you do?
My name is Stephen Arifin and I am one of the founders of The Closing Docs. Prior to serving as a software engineer at Microsoft, I had launched and supported several other revenue generating software tools. I am the technical founder and lead for our company. I graduated with an Electrical Engineering degree from the University of Texas at Austin.
I love bringing new technology and creative ideas into outdated industries, and that’s exactly what we’ve done with The Closing Docs. Our automation has streamlined the income verification process for companies managing more than 635,000 units.
What problem does your product/service solve?
The Closing Docs provides automated income verification to property managers and lenders. Historically, screeners and underwriters are collecting paper pay stubs and bank statements from applicants. This manual process is ripe for fraud, is really cumbersome and is burdened by many start/stop cycles in the set of related activities. By expediting deal closings and eliminating fraud, we have significantly compressed vacancy periods and underwriting cycles, getting applicants approved in minutes, not days or weeks. We provide a real solution to a very real and cascading problem. Even before COVID-19, pay stub fraud was on the march. And now, with rampant job loss, fraudulent pay stub and bank statement submittals are apt to increase in prevalence significantly. With the current rate of unemployment announcements, it is more important than ever to have a clear view of applicant income. The outdated method to verify an applicant’s income involves scanning or taking pictures of bank statements, W-2’s, and pay stubs. This form of income verification was a very manual process, which involved screeners deciphering bank statements and playing detective investigating whether the documents were falsified. Each applicant’s income documents arrived in a different format, which led to huge inefficiencies in approving a rental applicant. Many property managers also call the applicant’s employer, which can take days to get a hold of the right person in HR to confirm employment. Each day it takes to approve a tenant means your property is remaining vacant and not generating income. Using The Closing Docs, we pull the applicant’s bank statement data directly from the applicant’s bank account, with their permission. Since our data comes directly from the bank, our income verification completely eliminates fraud. Once the applicant decides to share the data, a standardized report is generated for the property manager instantly, verifying the applicant’s income in minutes rather than days. That means shorter vacancy periods, more income, and faster, more accurate data.
What are you most excited about right now?
Well, implementing new customers on first phone calls and inside of 30 minutes is pretty exciting – I’ve never experienced that before now! Property managers know how painful the income verification process is, and when they finally find a product that makes it easier by light years, their eyes spark up. It’s really fun to know you have true product market fit.
What’s next for you?
Growth, growth, growth. With the customer adoption and retention we’re experiencing, it’s time to grow the business hockey-stick style. We’re leveraging sales channels through integrations with a bunch of property management software programs, like Appfolio, Buildium, Yardi, and Propertyware, and we also support Chrome, Safari, Firefox, and Edge browsers for our integrations. We’re focused on increasing our sales and have expanded our marketing budget to expedite uptake.
What’s a cause you’re passionate about and why?
Being an entrepreneur myself, I’m extremely passionate about helping other entrepreneurs succeed. The best place I’ve found to give back in this way is through Seattle’s Community Carrot program.It takes another founder that’s been in the trenches to truly understand what starting a business is like. While building The Closing Docs, I’ve received a tremendous amount of support from my friends and family, along with other like-minded founders and mentors. Now, I am happy to step out of my way to help other aspiring entrepreneurs achieve their dreams.
Thanks to Stephen for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
A few notable mortgage rates slumped over the last seven days. The average interest rates for both 15-year fixed and 30-year fixed mortgages slid down. We also saw a cut in the average rate of 5/1 adjustable-rate mortgages.
As inflation surged in 2022, so too did mortgage rates. To rein in price growth, the Federal Reserve began bumping up its federal funds rate — a short term interest rate that determines what banks charge each other to borrow money. By making it more expensive to borrow, the central bank’s goal is to reduce prices by curtailing consumer spending.
After hiking interest rates 10 times since March 2022, the Fed pumped the brakes at its June meeting. The central bank’s federal funds rate will remain at a range of 5.00% to 5.25% for the time being, although the Fed hasn’t ruled out the possibility of further increases if inflation doesn’t continue to moderate. The Fed will decide whether or not to raise rates at its next meeting on July 26.
Current Mortgage Rates for July 2023
Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
The most recent Consumer Price Index, a popular gauge of price growth, shows that the Fed’s string of rate hikes is having its intended effect. Annual inflation is now at 3.0% for the 12-month period ended in June, which is the lowest it’s been in more than two years.
The Fed doesn’t set mortgage rates directly, but it does play an influential role. Mortgage rates move around on a daily basis in response to a range of economic factors, including inflation, employment and the broader outlook for the economy. A lower inflation rate is good news for mortgage rates, but the potential for additional hikes from the central bank this year will keep upward pressure on already high rates.
“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree.
Rather than worrying about mortgage rates, though, homebuyers should focus on what they can control: getting the best rate they can for their financial situation.
To increase your odds at qualifying for the lowest rate available,take the steps necessary to improve your credit score and to save for a down payment. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you make an apples-to-apples comparison among lenders.
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 7.23%, which is a decrease of 14 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed mortgage will usually have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 6.48%, which is a decrease of 11 basis points compared to a week ago. You’ll definitely have a larger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, if you’re able to afford the monthly payments, there are several benefits to a 15-year loan. You’ll most likely get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 6.19%, a fall of 5 basis points compared to a week ago. With an adjustable-rate mortgage mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, you could end up paying more after that time, depending on the terms of your loan and how the rate adjusts with the market rate. Because of this, an ARM might be a good option if you plan to sell or refinance your house before the rate changes. Otherwise, changes in the market mean your interest rate could be much higher once the rate adjusts.
Mortgage rate trends
Mortgage rates were historically low throughout most of 2020 and 2021 but increased steadily throughout 2022. Now, mortgage rates are well above where they were a year ago. Fewer buyers are willing to jump into the housing market, driving demand down and causing home prices in some regions to ease. But that’s only part of the home affordability equation.
“Interest rates have been much higher in the past and people bought homes and financed homes at those rates,” said Daniel Oney, research director at the Texas Real Estate Research Center at Texas A&M University. “But it’s been hard for people to react to such a rapid increase in just a short amount of time.”
Even though the Fed hit pause on rate hikes in June, mortgage interest rates will continue to fluctuate on a daily basis. That’s because mortgage rates aren’t tied to the federal funds rate in the same way other products are, such as home equity loans and home equity lines of credit, or HELOCs.
As long as inflation continues to trend downward, though, mortgage rates should decline slightly towards the end of 2023. The most recent housing forecast from Fannie Mae calls for the average 30-year fixed mortgage rate to close out the year at around 6.3%.
“Mortgage rates have been volatile for some time now and while they could eventually start trending down over the next six months to a year as inflation growth continues to cool, their path is probably going to be bumpy,” Channel said.
We use data collected by Bankrate to track rate changes over time. This table summarizes the average rates offered by lenders nationwide:
Current average mortgage interest rates
Loan type
Interest rate
A week ago
Change
30-year fixed rate
7.23%
7.37%
-0.14
15-year fixed rate
6.48%
6.59%
-0.11
30-year jumbo mortgage rate
7.26%
7.39%
-0.13
30-year mortgage refinance rate
7.33%
7.44%
-0.11
Rates as of July 18, 2023.
How to find the best mortgage rates
To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. When shopping around for home mortgage rates, consider your goals and current financial situation.
Specific mortgage rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV or any combination of those factors can help you get a lower interest rate.
Apart from the interest rate, other factors including closing costs, fees, discount points and taxes might also affect the cost of your house. Be sure to comparison shop with multiple lenders — such as credit unions and online lenders in addition to local and national banks — in order to get a mortgage loan that’s the best fit for you.
What’s the best loan term?
When picking a mortgage, you should consider the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed for the duration of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (typically five, seven or 10 years), then the rate adjusts annually based on the market rate.
When choosing between a fixed-rate and adjustable-rate mortgage, you should consider the length of time you plan to live in your house. Fixed-rate mortgages might be a better fit if you plan on staying in a home for quite some time. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. If you aren’t planning to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage might give you a better deal. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. It’s important to do your research and think about your own priorities when choosing a mortgage.