Borrowers kicked off 2018 with a mortgage rate drop. The 30-year fixed-rate mortgage is now down a quarter of a percentage point from a year ago.“Treasury yields fell from a week ago, helping to drive mortgage rates down to start the year,” says Len Kiefer, Freddie Mac’s deputy chief economist. “The 30-year fixed-rate mortgage fell four basis points from a week ago to 3.95 percent in the year’s first survey. Despite increases in short
For the first time since 2004, the renter population decreased, according to the Annual Rent Report from ABODO, an apartment listing service. Still, renters continue to outpace owners, according to the report.There are about 43 million renters in the U.S., which is more than a third of U.S. households, according to a report from Harvard University’s Joint Center for Housing Studies.Despite the decrease in renters in 2017, landlords continue t
The recent tax bill could cause the Federal Reserve’s rate increases to come faster—mortgage rates are expected to go up three or four times in 2018. This could push 30-year mortgage rates up past 4 percent in the new year.Mortgage rates typically follow the Treasury yield. The federal funds rate sets the stage for the path mortgages will take. The Mortgage Bankers Association forecasts that mortgage rates will go up, but will stay below 5 p
Over the past 12 months, many well-off Americans have been getting wealthier. The United States added more than a million new millionaires over the past year as stock prices rose, according to the Global Wealth Report published last month by Credit Suisse.That has helped fuel increases in many second-home markets across the country. Hawaii and Colorado may be the two luxury markets that saw the largest upticks in 2017, according to data from real
The phrase “house poor” describes buyers who’ve bought a home they can’t afford. Most financial advisers say those who spend 30 percent or more of their pretax income on housing costs qualify for such a label. Under that standard, nearly 40 million U.S. households are considered “house poor,” according to the State of the Nation’s Housing 2017 Report from the Joint Center for Housing Studies of Harvard University.Banks use different
The new tax law, which was signed into law at the end of 2017, will directly or indirectly affect most current and prospective homeowners. Those affected directly are mostly found in the higher-cost housing areas of the nation, and will find their mortgage interest deduction limited by a new maximum loan amount of $750,000, down from $1 million. There is also a cap on the deductibility of state and local taxes of $10,000. In addition, the gre
Retirees are finding that a $1 million nest egg—which was once considered a benchmark for a secure retirement—may no longer be enough. As younger generations age, they will likely see that having a million dollars in retirement may even put them at poverty risk when they retire, financial planners warn.A 67-year baby boomer retiring with $1 million will generate $40,000 to live off in the first year (adjusted for inflation and assuming a wit
With tax reform signed into law, homeowners in areas with high property taxes are scrambling to prepay their 2018 tax bill in order to take advantage of deductions that will be severely curtailed once the legislation takes effect Jan. 1. The new tax law, which Congress passed and President Donald Trump signed last week, caps the amount of state, local, and property taxes that homeowners can deduct at $10,000.Some counties already allow for prepa
Rents have been skyrocketing the past few years, and the winter holiday season can take an even bigger bite out of consumers’ paychecks. But some renters are finding they still have plenty of money left in the bank at the end of the holiday season.For example, renters in Virginia Beach, Va., and Wichita, Kan., are considered among the lucky few who still who have money left in the bank after paying the rent, buying gifts, and covering other con
The Federal Housing Finance Agency is asking for input on a possible change to its credit scoring models.Fannie Mae and Freddie Mac are weighing an update or switch to its credit score requirements from Classic FICO to possibly another scoring model. The assessment is limited to mortgage loan applications received from lenders and mortgage loans acquired by Fannie Mae and Freddie Mac.Some lenders call the FHFA’s move long overdue.“The FHFA’
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