This week, the current average interest rate for a 30-year fixed mortgage is 6.77%, increasing 22 basis points over the last two weeks. If you’re planning to refinance, the current average 30-year fixed refinance rate is 6.87%, increasing 25 basis points from two weeks ago.
Meanwhile, today’s national 15-year refinance rate is 6.12%, up 28 basis points from two weeks ago.
Source: Bankrate.com
What does this mean to investing in New Hampshire?
Image source: NHAR.com
In New Hampshire, Real Estate prices are following suit with the national trends. As compared to this time last year, we are seeing slight increases in prices, however most metrics are trending downward – days on market has increased, sales volume has decreased substantially, average days on market are moving up, and overall closed sales are down as well, almost 30%!
As a result of what we’re seeing in the market, it is more important than ever to be selective, stick to your buying criteria, and to understand the communities in which we invest. This will result in a much higher probability of success with your investment returns.
There are a few factors we look at to determine if an area has the demographics to help increase the probability of a successful long-term investment. First, we recommend investing in areas where population is increasing. Overall, New Hampshire population has grown by ~.5% each year for the past few years… which is great news, as this keeps the housing prices appreciating slowly.
Second, we stick to areas with excellent employment opportunities, and those areas with alternative demand for housing – Ex: Dover NH has hospitals, manufacturing, and retail to drive demand, but it also has the University of New Hampshire just next door in Durham, NH – this creates a hedge against downturns in the market and helps to keep demand high for rental housing in the Seacoast Region.
Lastly, we focus on areas that have something that sets it apart from other regions. An example of this would be the communities of the “Lakes Region” which surround Lake Winnipesaukee, which is unmatched in its beauty, and attracts long-term tenants, as well as tourists who come to the area to enjoy the natural beauty of the region…in this case, it helps support short-term rentals as well.
Based on the criteria above, we recommend the Monadnock Region, Seacoast Region, and Lakes Regions of New Hampshire for real estate investment.
Click the link here: ‘Learn more about New Hampshire‘ to learn more about the communities we recommend investing in and why.