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Added on the 12/11/2020 18:43:34 - Copyright : Wochit
In this video we take a closer look at what happens when interest rates rise and examine the effect this could have on the housing market, investment bonds and how it could eventually strengthen the pound against other currencies
Ending a six-month run of spiraling demand, sales of existing homes in the US contracted in November. It's being read as a signal that rising prices and historically low supply is finally slowing the housing market's rally. According to Business Insider, the National Association of Realtors says home sales fell 2.5% last month to a seasonally adjusted annual rate of 6.69 million. The median price for existing homes fell to a six-month low as well, dipping month-over-month to $310,800 from $313,100. Even so, the pace is still up 25.8% from the year-ago period.
Popular in the runup to the housing bust of the Great Recession, a jumbo loan is a mortgage for more than the borrowing limit for regular mortgages. At present, jumbo loans are for mortgages over $510,400 in most parts of the US, and over $765,600 in pricey areas like Alaska, Guam, and the US Virgin Islands. According to Business Insider, jumbo loans can be had--but not easily. Downpayments are typically higher, as are the loan rates. You'll also need to have a low debt-to-income ratio, and excellent credit. Finally, be sure to shop around for a jumbo loan. Rates and requirements vary, so do your research or hire a mortgage broker to do it for you.