housing
Market Update: The Fed Rate Cut
Last week the Federal Reserve made the decision to cut rates for the first time since 2008. With wages on the rise and unemployment rates at a 50-year low, the decision was made to help boost the economy. This means potential savings for homeowners across America looking to refinance or sell their home since home equity is also on the rise.
*These numbers are based on the weekly average data pulled in from Freddie Mac
With rates being at their lowest point in 3 years, now is an optimal time to purchase and refinance. We want you to take full advantage of the housing market’s favorable conditions!
Give us a call for a free 5-minute mortgage review!
Your New Mortgage Checklist
6 Tips For First-time Homebuyers
Unpack & unload: the best way to unpack and relax!
{Image source: Google}
You’ve just moved into your new home, now what? Well, might I suggest first unpacking your unpacking kit? That may sound like an oxymoron, but I promise you it will save you as you work tirelessly to put your home into order.
What goes into an “unpacking kit”:
-a box cutter and or scissors
-trash bags
-hand soap
-toilet paper
-shower curtain and liner
-shampoo and conditioner
-all-purpose cleaning wipes or spray
-pain relief (Tylenol or Advil)
-pet food (if applicable)
-paper plates and bowls
-plastic utensils
Everything inside of this box should be self-explanatory, but you don’t want to have to unpack and starve or remain dirty after cleaning!
Now that you have your lifeline, here are our top two hacks for unpacking:
- This should go without saying, but just in case, as you unload your boxes from your car or from the moving truck, DO NOT LIFT WITH YOUR BACK!!! This is number one for a reason. Don’t cause a serious injury, instead, lift with your legs!
- Go with the flow: the unpacking flow. My recommendation:
First, unpack your bathroom. The human body doesn’t wait for anyone! If you don’t want to unpack ALL your bathrooms, unpack at least one. Next, unpack your kitchen. There shouldn’t be terribly too many things, and you will, of course, need to refuel at some point. Then, move on to your bedroom. After unpacking most of your things, you will need rest! And of course, if you don’t get everything finished, you can at least sleep comfortably. Finally, everything else. Decorations, of course, should be last, as you must see where everything else fits first.
Market Update: Is Renting Cheaper Than Buying?
According to a recent survey done by Freddie Mac, 82% of renters think renting is more affordable than owning a home. But according to the actual data, renters spend more of their income than homeowners. Up to 36% of renters are spending a whopping 1/3 of income monthly! Even with these facts, renters still think it’s cheaper to rent due to the misconceptions of the amount of money needed for a down payment, as well as looming student loan debt.
Bills, Bills, Bills
{Image courtesy of Google}
You toss and you turn as payday approaches and all you can think about is as soon as your paycheck hits… so do your automatic payments. As soon as the money comes in, the money goes out and that’s just the revolving door we watch as working middle-class individuals. However, today’s mortgage market update comes with some positive money saving news!
CoreLogic released it’s latest “Loan Performance Insights Report” and over the last 16-months, the national delinquency rate has been declining. Nationally we are currently sitting at 3.6% which is the lowest it has been in over 20 years.
{Image courtesy of CoreLogic}
In other national news, two housing bills were passed on Tuesday, July 9th, 2019, to await Senates vote before heading over to Trump’s desk for final approval. The first bill that passed was the “Protect Affordable Mortgages for Veterans Act of 2019”. This law will now allow a 210-day window of time to pass after the loan is established to start on the due date of the initial loan. This will help brokers and lenders remain compliant and allow those who are helping clients refinance know when the 210-day seasoning period starts.
The next bill that passed yesterday was the “Housing Financial Literary Act of 2019”. This bill will specifically help those who are purchasing a home for the first time.
How? You ask?
If the bill is to pass the Senate, those first-time homebuyers who take a pre-ownership counseling course, they will receive a 25-basis-point discount on their mortgage insurance. However, the bill is specific to only FHA loan products. In hopes that this bill passes it would allow first-time homebuyers to take more advantage of their financial futures and opens up more opportunity for those who are on the fence of being able to purchase their first home.
Mortgage Rates Are At A Three-year Low
Picture source: Google
This week mortgage interest rates have hit historical marks by reaching three-year lows. This significant marker of low rates comes just two months after The Federal Reserve announced rates have fallen and are not anticipated to rise again for the remainder of 2019. Low rates in conjunction with a surplus of home sales, the housing market is expected to continue to improve and show favorable conditions. Not only are the lower rates good news for potential homebuyers that are looking to enter into the market, but also continues to open opportunities to homeowners that are looking to refinance.
Market Update: The Federal Reserve Holds Rates
Image Source: Investopedia
No news is good news for the mortgage industry right now. The Federal Reserve announced; rates are holding steady! This recent announcement comes just 2 months after the initial Fed meeting that resulted in the decision to drop rates and is anticipated to keep them low for the remainder of 2019. Weaker inflation and labor economic data has also aided in keeping rates low. With the excitement of rates remaining steady and purchase season in full swing, now would be an optimal time to purchase a new home. The Federal Reserve holding mortgage rates provides optimism surrounding refinancing to lower mortgage payments, removing or lowering mortgage insurance and pulling cash out for Spring home projects.
Baby Boomers: Looking For Dream Retirement Homes
A lot of baby Boomers are retiring and looking to buy their retirement homes. According to the National Association of Home Builders, builder confidence has reached 76 for the 55 and older market. With the recent decline in mortgage rates, this has been particularly favorable for the demand on 55 and older housing. There could be slight challenges with the new demand of retirement homes being built for Baby Boomers. Rising construction costs and a lack of skilled labor, will present problems for builders, which could rev up cost.
For the last several weeks Mortgage Applications have been on the decline but that’s all changing. Within this past week, applications are on the rise and purchase season is picking back up. According to the Mortgage Bankers Associations, there has been a 2.7% increase compared with the previous week. Majority of new applications were from purchases. The average loan size for purchases has elevated slightly from $332,000 to $335.600.
Don’t forget before purchasing a home to take all cost into consideration, especially property tax. While property taxes range in price, they are calculated on the area you live in. According to ATTOM data solutions, property taxes have gone up on average. One of many reasons why property taxes are rising, is due to changes in the cost of government and the level funded by State taxes. Another factor in the rise of property taxes is that State and local governments are receiving less from the federal government and need to pay for all services provided by residents.
Down payments can feel like a looming cost and be the greatest financial barrier to home ownership according to research. However, there is a common misconception about the amount of money new homeowners need to put down. According to The Mortgage Report, new homeowners do not have to put much down at all. Most buyers put down only 10% in comparison to the 20% that many people think they need.
The Hall Way 