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Here’s What Mortgage ‘Rate Lock’ Looks Like, in One Chart

by Amy McLeod Group


In 2017, MarketWatch documented many of the reasons there aren’t enough homes to buy. One of the most striking forces in the housing market right now is “rate lock,” the idea that homeowners with ultra-low mortgage rates can’t bear to give up those loans and, in buying a new home, get stuck with a mortgage with a much higher rate.

Real estate data provider Black Knight shared data that illustrated the phenomenon. Among all homes listed for sale at that time, those with a mortgage that had a “5-handle,” a rate between 5.00 and 5.99%, were far more likely to be listed for sale than those with a 3-handle.


MarketWatch recently asked Black Knight for an update. The chart above shows the picture a year and a half later.

In its October Mortgage Monitor, Black Knight notes that homes purchased with the lowest interest rates in history, are also likely to have been bargains, since that was a particularly iffy moment just after the housing crisis. “At the bottom of the market in 2012 the average U.S. home sold for $199K, while interest rates hit a low 3.35%,” Black Knight analysts wrote.

“The same home today would not only cost 50% more (nearly $300K), but the interest rate on the mortgage would also be >1.5% higher. The $741 monthly mortgage payment on that house in 2012 (assuming 20% down) would be $1,257 today, a 70% increase to purchase the same home.”

That’s why Black Knight refers to “affordability lock,” rather than using the popular term “rate lock.”

By: Realtor.com,  

Exploring Salem Oregon: Breakfast with Santa at the Carousel

by Amy McLeod Group


Saturday, December 8, 2018 - 8:00 AM to 9:30 AM

Come and visit Santa at Salem’s Riverfront Carousel!  Enjoy a catered breakfast, receive a special gift, ride the carousel, and take photos!  Reservations are required. $20 per person.

Salem’s Riverfront Carousel
101 Front St. NE
Salem, OR 97301

Call 503-540-0374 for reservations.

Event Website

Courtesy of Amy McLeod, The McLeod Group Network

Photo Credit: travelsalem.com

Where Are Interest Rates Headed in 2019?

by Amy McLeod Group


The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily throughout 2019.

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. But don’t let the prediction that rates will increase stop you from purchasing your dream home this year!

Let’s take a look at a historical view of interest rates over the last 45 years.

Bottom Line

Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

Let The McLeod Group Network assist with ALL your Real Estate needs! 971.208.5093 or [email protected].

By: KCM Crew

4 Reasons to Buy A Home This Winter!

by Amy McLeod Group


Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Insight report revealed that home prices have appreciated by 5.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase 

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4.8%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase in 2019.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage

There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person building that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on With Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Let The McLeod Group Network help you find your newhome! 971.208.5093 or [email protected].

By: KCM Crew

Displaying blog entries 11-14 of 14

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Contact Information

Photo of The McLeod Group Network Real Estate
The McLeod Group Network
Keller Williams Capital City
1900 Hines St SE #220
Salem OR 97302
971-208-5093
Fax: 971-599-5229

**Disclaimer: Amy McLeod, and her team, do not initiate, process, or service mortgages.  And provide this information only as a service.  You should confirm information here with your Licensed Mortgage Lender.