Mortgage lenders believe first-time home buyers will make up a larger portion of their business in the new year, and they believe 3 percent mortgages are key to getting more into homeownership. The majority of the 200 lenders surveyed by Genworth Mortgage Insurance believe that the demand for 97% loan-to-value products will surge in 2018.“As long as the underwriting is strong, borrowers going into higher LTV loans is completely prudent and safe
A slight dip in interest rates last week brought more homeowners and home buyers to the mortgage market. More homeowners were quick to refinance before interest rates rise again, and home buyers were able to lock in lower rates during the week.The Mortgage Bankers Association reported that total mortgage application volume—which includes for refinancings and home purchases—rose 3.1 percent last week on a seasonally adjusted basis. Mortgage ap
Most home buyers put in the effort to save for their down payment, but that is only a fraction of the cost they should expect for homeownership. There are many other lesser-known costs that can sometimes come as a shock to buyers. Make sure your home shoppers plan accordingly for the following extra expenses, including:Earnest money: The amount of earnest money required varies by state and local market. In a slower market, $500 to $1,000 migh
Housing prices have returned to the “boom levels” of a decade ago, but this time around, the fast appreciation is being fueled by strong supply-and-demand dynamics rather than predatory lending practices, investor speculation, and too much construction, according to new realtor.com® data released Monday.“As we compare today’s market dynamics to those of a decade ago, it’s important to remember rising prices didn’t cause the housing c
Housing experts worry that millions of foreclosures will surface in Texas, Florida, and Puerto Rico after recent hurricanes forced owners from their homes. Though many lenders have extended grace periods for affected customers, consumer advocates fear that many will simply walk away from their mortgages.“I’m anticipating a wave of problems coming in February,” Amir Befroui, a foreclosure specialist with Lone Star Legal Aid in Houston, told
Yesterday, Senate Finance Committee Republicans released their version of the tax reform bill. Although it goes one step further than the House bill by preserving the $1 million cap on the mortgage interest deduction—rather than cutting it to $500,000—it eliminates the deduction for property taxes. These are among the important differences between the plans, both versions of which will lead to higher taxes for many middle-income homeowners
Mortgage financing giant Freddie Mac devotes its entire November Insight report to exploring the warning signs from last decade’s housing price bubble and weighs it against the current housing market. Economists, however, are quick to say today’s market is not currently overheating.“The evidence indicates there currently is no house price bubble in the U.S., despite the rapid increase of house prices over the last five years,” says Sean B
Mortgage rates were down across the board this week, lowering borrowing costs for potential home buyers and refinancers.“After holding steady last week, rates dipped slightly this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 10-year Treasury yield fell roughly 7 basis points, while the 30-year mortgage rate dropped 4 basis points to 3.90 percent.”Freddie Mac reports the following national averages with mortgage rates f
Consumers are less satisfied with mortgage lenders this year, with complaints surfacing of a slow purchase process even though more are using digital mortgage applications that were touted as being faster and easier, according to J.D. Power’s 2017 U.S. Primary Mortgage Origination Study. The study is based on responses from more than 5,800 customers who originated a new loan or refinanced within the past year. Still, some mortgage lenders—li
Fannie Mae’s Home Purchase Sentiment Index receded from its all-time high set last month, as Americans showed less confidence about buying and selling in October. But the dip may be seasonal, according to Fannie Mae’s chief economist.The index, which measures consumers’ perceptions on the housing market, showed an 8 percentage point decrease month over month on the net share of respondents who said now is a good time to sell; it decreased 6
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