Chevy Chase was alive this last weekend with fireworks celebrations everywhere. It started at Columbia Country Club last Wednesday on a most beautiful evening. Other displays continued throughout the week and on the 4th you could hear the finale of downtown’s event. We had a group of friends over to the backyard and celebrated with a traditional barbeque and listened to other neighbors set off firecrackers throughout the night. The fireflies were doing their part as well. They have been prolific this year.
We honor the birth of our country on this day as well as all the brave men and women who have given their lives throughout history to preserve our freedom and independence. We are fortunate to live in the city which is the seat of our government which makes the fourth of July all the more special for us.
Chevy Chase Real Estate
Real estate did not rest this holiday weekend. We had an active open house with over 15 groups of people through and ratified a contract on another house and had a home inspection conducted on the 4th. We are still so fortunate in our Chevy Chase housing market to still have people buying and relocating to our area.
One important change in the mortgage market may affect our real estate home buyers in the Bethesda Chevy Chase market.
This fall, the government is scheduled to stop backing loans of more than $625,500, making them subject to higher interest rates and down payments. The change could drag down home prices, especially in upscale neighborhoods, and deliver a slow down to our real estate market.
How much mortgage can you afford?
The loan limit — down from $729,750 — would have affected about 40 percent of mortgages made in Great Falls if it were in place last year and more than 20 percent of the loans made in expensive areas such as Bethesda, McLean, Chevy Chase, Potomac, Fairfax Station and Upper Northwest Washington, according to a Washington Post analysis of data from LPS Applied Analytics.
Unless Congress acts soon, the change will kick in Oct. 1. But the effects may be felt before then. Borrowers who want to beat the deadline should apply by mid-July because it can take months to process mortgages these days, industry experts said.
When it comes to large loans, “the time for the dirt-cheap mortgage may be running out,” said Keith Gumbinger, a vice president at mortgage research firm HSH Associates.
If the loan limit is lowered, buyers trying to get into the pricey neighborhoods may be forced to stay put or scale back their aspirations. Owners of more expensive homes would have a harder time selling. And refinancing may no longer make sense for some homeowners, analysts said.
