About 87.5 million households are unable to afford a median-priced new home, according to data from the National Association of Home Builders. If the new-home market prices were to rise by just $1,000, an additional 117,932 would be priced out. Mortgage rates also could further hamper household affordability. Many economists have predicted rates will rise …
Category: Real Estate Tips
May 21
Mortgage Delinquencies Drop to Record Low
The percentage of homes with mortgages that have late payments or are in foreclosure has dropped to the lowest seen on record in more than two decades, according to CoreLogic’s data dating back to 1999. The nation’s overall delinquency dropped to 3.4% at the end of 2021, with the majority of states posting a year-over-year …
May 17
Housing Wealth Skewed to Rich Homeowners
Homeowners across the board are feeling richer from rising home prices, but the wealthiest have enjoyed the largest gain, according to a report from the National Association of REALTORS®. From 2010 to 2020, about 71% of the increase in housing wealth was in high-income households. Low- and middle-income households received a smaller share of housing wealth gains, …
May 16
Mortgage Rates Rise This Week
Following two weeks of declines, mortgage rates edged up, and economists say that consumers should expect further increases over the coming weeks. The Federal Reserve will likely raise its short-term interest rates at its meeting next week. While the Fed’s benchmark rates do not have a direct effect on mortgage rates, they do often influence …
May 15
CFPB Urges Lenders to Help Homeowners Avoid Foreclosure
As many borrowers continue to emerge from forbearance due to pandemic-related aid, a government watchdog is encouraging lenders to help them avoid a potential foreclosure wave. The Consumer Financial Protection Bureau says that as of March 1, more than 768,000 mortgage borrowers remain in active forbearance. Many of these consumers are at risk of foreclosure …
May 14
What Fed’s Rate Hike Means for Mortgage Borrowers
Consumers can expect higher borrowing costs across the board after the Federal Reserve announced it would raise its short-term benchmark rate for the first time in three years, financial analysts say. The Fed increased its target federal funds rate by a quarter of a percentage point Wednesday after it had been near zero. The central …
May 13
Mortgage Rates Continue to Climb
As mortgage rates rise, levels below 4% for the most popular 30-year fixed-rate mortgage are likely to remain in the rearview mirror. The 30-year fixed-rate mortgage averaged 4.16% this week, Freddie Mac reports. “The 30-year fixed-rate mortgage exceeded 4% for the first time since May of 2019,” says Sam Khater, Freddie Mac’s chief economist. “The …
May 10
More Homeowners Cashing In on Their Equity
Despite increasing equity, fewer homeowners are taking out home equity lines of credit. A March 18 report from ATTOM Data Solutions shows the number of HELOCs issued in the fourth quarter of 2021 was down 5.5% from the previous quarter, and 4.2% below the level issued in the fourth quarter of 2020. HELOC mortgage originations fell …
May 09
Rates Doing Little to Help First-Timers
Higher home prices are overshadowing potential savings from historically low mortgage rates, according to a new analysis by CoreLogic, a real estate research firm. “[The] 2020–2021 pandemic housing market recorded the fastest annual home price appreciation in the 45-year history of the index,” Yanling Mayer, principal economist for CoreLogic, writes in a March 18 analysis on …
May 07
FHA, VA Loan Demand Drops on Higher Rates
First-time buyers and veterans may be facing increasing obstacles to affording homeownership. In response, mortgage applications for home purchases involving Federal Housing Administration and Veterans Affairs loans are falling. The loans tend to be popular with first-time buyers, veterans, and those with lower incomes less able to pay a large down payment for a home purchase. …
May 07
Mortgage Rates Surge
Elevated inflation and the Federal Reserve’s monetary tightening policy drove the latest leap in mortgage rates this week. Since the beginning of this year, mortgage rates have jumped by 1.2%. The typical home buyer would need to spend $250 more every month to be able to purchase a home, Nadia Evangelou, senior economist and director …
May 06
Some Owners Turn to Cash-Out Refinances
Some homeowners are turning to the equity in their current home to fund their next real estate transaction. But the move isn’t without risks. Most homeowners who bought a home before 2020 have seen rapid appreciation and rising equity in their homes. A cash-out refinance is allowing them to use that equity to help fund their …
