The end is near for an increasingly popular program in which lenders help borrowers obtain a “Home Possible” 3 percent down payment loan from Freddie Mac by putting up 2 percent of the purchase price, leaving the borrower to come up with only the remaining 1 percent.Starting in November, lenders will no longer be able to put up 2 percent, according to a directive Freddie Mac released last week. Instead, borrowers either have to come up with
As home prices continue to rise, some mortgage lenders are loosening their underwriting standards so borrowers can purchase property sooner. “The reality has sunk in that there are buyers out there who will be able to buy homes and make the mortgage payments,” William E. Brown, president of the National Association of REALTORS®, told mortgage industry news website OriginatorTimes.com. The industry is “trying to give them more options to bu
Though rents are still rising across the country, the growth is slowing. Average monthly rents reached $1,350 nationwide in July, an uptick of only $1 since June and an increase of 2.6 percent from a year ago, according to data by Yardi Matrix.Supply is loosening up as a larger influx of new apartment buildings hits the market, helping to put a tighter lid on escalating rental costs. The RentCafé Blog reports that the largest jump in apartment c
Mortgage rates have mostly held steady the past few weeks, with the 30-year fixed-rate loan still averaging below 4 percent.“The 10-year Treasury yield was relatively flat this week, as was the 30-year mortgage rate, which rose 1 basis point to 3.93 percent,” says Sean Becketti, Freddie Mac’s chief economist. “Despite a strong advance estimate for second-quarter GDP, markets are erring on the side of caution."Freddie Mac reports the follo
Investors are increasingly turning their attention to student housing. The investment volume in student housing in 2016 jumped 64.5 percent year over year, compared to a 4.3 percent overall increase in the multifamily sector.Student housing still remains a relatively small portion of the multifamily sector, however. Student housing comprised 6.6 percent of total multifamily transaction volumes in 2016. But it’s soaring to record levels: In 2016
Real estate pros specializing in commercial real estate are seeing an increase in gross income and sales volume, according to the National Association of REALTORS®’ 2017 Commercial Member Profile, released Wednesday.The median gross annual income for 2016 was $120,900, an 11 percent increase from the $108,800 income reported in 2015, according to the report, based on a survey of nearly 2,000 NAR members who conduct all or part of their busine
Mortgage financing giant Freddie Mac will begin this fall to tighten restrictions on low down payment mortgages that allow borrowers to only contribute 1 percent of the home’s purchase price. Borrowers will now be required to come up with at least 3 percent in order to then receive any contribution from a lender.Read more: Freddie Mac: Housing Is Still AffordableFreddie Mac and Fannie Mae started the low down payment offerings in 2014 by rolli
Existing-home prices have jumped 6.5 percent from a year ago to a record high of $263,800 in June, according to the National Association of REALTORS®. It marks the 64th consecutive month for year-over-year price increases. The escalating prices are causing some to fear a price correction could be on the horizon.However, new research from JPMorgan finds that the risk of a dramatic decline in U.S. home prices is very low. JPMorgan culled historica
Though existing-home sales took a hit last month, June’s pending home sales—a forward-looking indicator based on contract signings—suggest a comeback is in line for most of the country. Every major region of the U.S. except the Midwest saw an uptick in contract signings last month, the National Association of REALTORS® reported Monday.NAR’s Pending Home Sales Index in June rose 1.5 percent from May to a reading of 110.2, marking the fi
Consumer perception of mortgage servicing brands is growing dimmer, with many saying banks are more focused on profit than their customers’ needs, according to the J.D. Power 2017 U.S. Primary Mortgage Servicer Satisfaction Study.“The past few years have not been easy for mortgage servicers, as they’ve struggled with regulatory and market pressures but still managed to deliver on customer satisfaction,” says Craig Martin, senior director
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