Thomas Valvo - Mortgage Banker

Home Values are cooling off!

For reference the average home appreciation rate is typically anywhere from 3% to 5% per year. From 2015 to 2019 you can see that home values appreciated at a normal pace. 2020 to now home values have seen appreciation at unsustainable rates. This means if you are still in the market looking for a home you will more than likely see list prices lowering. How much the price lowers obviously depends on the market you are looking in. Here in St. Louis, we will likely see that 6.4% drop even more by year’s end since 2022 appreciation rate is only from January through August.

It’s that’s time of the year again! Back to school is an exciting time for students but some students may not be prepared. I have been lucky enough to be able to work with and on setting up this back to school drive for local students! You can donate by scanning the QR code or by using this link https://www.amazon.com/hz/wishlist/ls/97FA281HE8YQ?ref_=wl_dp_view_your_list

July St. Louis Housing Market:

As you can tell, the housing market is starting to cool down. This is attributed to many factors but some of the main factors are, rate hikes by the Federal Reserve and home values appreciating at an unsustainable level. Predictions for the future are that the housing market will continue to cool off with demand shrinking, giving time for supply to pick back up which in-turn will cause home values to start lowering as well (Economics 101: low supply and high demand = higher prices). Things will begin to become more affordable with time!

(All of these figures include Single Family Residence, Condos and Townhomes. The information was retrieved from The St. Louis Association For Realtors, 2022)

MARKET UPDATE:

More good news coming from the housing market today. According to Black Knight (mortgage software provider) the annual rate of price appreciation dropped 2% from 19.3% to 17.3% (CNBC, 2022). What does this tell us? First off, homes have finally stopped appreciating at an unsustainable pace. Secondly, it tells us that the Fed interest rate hikes have cooled down demand which in turn will allow time for the supply to build back up. Let me know if you've seen prices coming down in your area!

If you're interested in looking for a home again, give me a call or DM to get your pre-approval process going. I'm also available to answer any questions you may have.

In another effort to tame inflation, the Fed increased policy rates by 0.75% at their July meeting, in line with expectations. Even with the anticipated Fed hike, mortgage rates have fallen since June, though with some volatility.

The Fed's actions are intended to slow rising prices by inhibiting investment, creating less demand and thus tempering inflation. Whether this helps the broader economy remains to be seen.

Its impact on the housing market, however, is becoming clear. The frenzy of the last two years is fading along with the historically low rates we've enjoyed, returning the market to a more normal pace.

What's next?
The Fed is expected to continue increasing rates at each meeting of the Open Market Committee as long as conditions warrant. Remaining 2022 meetings will occur in September, November and December.

It's housing market update time. Looking at June of 2022 and comparing to June of 2021, there is some good news!

In regards to closed sales, new listings, and homes for sale, there were finally increases! That means more homes are coming on the market and people are still purchasing houses regardless of the current rate environment. Finally, home values have continued to appreciate but values are cooling off only increasing 5.15% year-over-year. Reach out to me with any questions!

Happy 4th of July from all of us at Paramount Bank!

Yes, rates are in the high 5's to low 6's right now. To keep things in perspective, the highest rates were in October of 1981 at 18.45%! Historically speaking, rates right now are still low! The other good news is that what goes up, must come down. If you purchase now with an interest rate in the high 5’s to low 6’s, its important to know there is always an option to refinance when rates come back down (Which they will). Reach out with any questions or concerns.

In recognition of American Housing Month, the American Bankers Association Foundation today released an infographic outlining five tips for how home buyers can overcome challenging market conditions and make their dream of homeownership a reality. https://brev.is/c8smk

It's finally summer and there's so much to do! A lot of fun activities around STL, I know I'll be attending some of these events! Check out this list from Explore St. Louis to start filling your summer social calendar! https://brev.is/ZBoGc

Quick little mortgage news update. Yesterday was one of the five worst days for mortgage rates in the past 15 years as rates increased approximately 0.5% in a short period of time. It's important to make sure you factor these changes in to make sure you still qualify for the purchase price you were pre-approved for. Luckily rates are cyclical and your current rate may be temporary until rates go down and the opportunity to refinance presents itself.

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Paramount Bank Paramount Bank is an online lender providing personal banking and home loan solutions. Download Paramount Bank Mobile app today. Member FDIC. NMLS #551907.

Its important to know your options when it comes to purchasing in this crazy market. Call me today to find a solution to your home purchase financing needs.

Down payments for mortgages are widely misconceived. Education is paramount to becoming a first-time home buyer and I am more then happy to help you with any questions you may have. Feel free to text or call me at anytime (314)-956-7884.

The true meaning of Memorial Day can sometimes be lost in the swarm of long weekend plans with loved ones. While those moments are important too, we want to honor our fallen heroes that fought for the freedoms we have today. The history of Memorial Day is rich and one to reflect on today and everyday. https://brev.is/STSwr

May is Military Appreciation Month and we'd like to salute those who've served. Our SALUTE home loan program helps veterans and active military families take advantage of their VA home loan benefits with a dedicated team of SALUTE Home Loan experts. We are proud of our own Paramount active military members and veterans and are honored to serve others through our dedicated home loan program.
https://brev.is/nT3Uy

Happy Cinco De Mayo! Time to overindulge on chips and guac and forget about rates being above cinco!

I always find market summaries to be a great resource to keep myself and my clients informed on current market trends. Here are two quick facts to keep in mind while looking for a home.

1) Currently The National Association of Realtors show existing homes at a 1.7 month supply of inventory with a median price of $357,300. That's a 15% increase in price from last year.

2) The Commerce Department data for new homes shows a 6.7 month supply of inventory, with new home median prices moving up 10.7% annually to around $400,600.

Let me know your thoughts! I'm here to answer any questions you may have, feel free to reach out!

Thomas Valvo - Mortgage Banker updated their business hours.

Thomas Valvo - Mortgage Banker updated their phone number.

Thomas Valvo - Mortgage Banker now takes appointments on their Page.

5.0 star review received on Experience.com for Thomas Valvo by Joseph S. - Thomas was generally almost immediate with responses, gave clear, concise advice, and when another party was making themselves an issue, Thomas happily and handily dealt with them.

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Making the decision to go from renting to owning is one of many big decisions we make throughout life. You can use our rent to mortgage calculator to see how much home you can afford with your current monlthy rent payment!

Use this link or scan the QR code. Feel free to reach out to me with any questions!

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Looking to buy a house? Worried your offer will be overlooked? Getting pre-approved is a great way to come to the table being the strongest buyer in this sellers market. Reach out and get pre-approved today!

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Hey Everyone,

Right now is a great time to tap into your home equity! Start on those home improvements you've wanted, or even pay off credit card or student debt. Start 2022 with a clean slate!

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