This week marked the 15th record low for mortgage rates this year. The 30-year fixed-rate mortgage dipped further to an average of 2.67%, the lowest rate ever recorded by Freddie Mac, with records dating back to 1971.“The housing market continues to surge higher and support an otherwise stagnant economy that has lost momentum in the last couple of months,” said Sam Khater, Freddie Mac’s chief economist. “Mortgage rates are at record
Fewer investors are taking on home flips during the pandemic. But many of those who’ve stayed with it are seeing profits rise.The number of home flips dropped again in the third quarter, comprising only 5.1% of all home sales, ATTOM Data Solutions reports. Home flipping reflects a transaction in which the property is bought and sold within 12 months.The gross profit on a typical home flip nationwide—which is the difference between the median
The Federal Reserve left borrowing costs at record lows on Wednesday, while acknowledging there’s still a long way to go as the nation’s economy heals from the COVID-19 outbreak.The key rate acts as a benchmark for borrowing and savings. Interest rates will remain at 0% to 0.25%, which they have since March. The Fed’s benchmark rates do not have a direct influence over mortgage ratesbut can influence them. Mortgage rates have been reaching
2020 marks the biggest year in the history of lending at the U.S. Department of Veterans Affairs, Chris Birk, director of education at Veterans United Home Loans, told Bankrate.com.The volume of mortgages backed by the VA has drastically increased: VA loan volume nearly doubled from 2019 to 2020. This also marks the first time that the VA has issued more than 1 million loans in one year.“This was truly a historic year,” Birk says.VA loans onc
Renters who desire more space as they ride out the pandemic are increasingly looking to upsize into single-family homes. Since the COVID-19 pandemic began, single-family rental prices have for the first time outpaced their pre-pandemic growth rate.National rent increases for single-family rental homes increased 3.1% year over year in October, according to CoreLogic’s latest reading, published in its new Single-Family Rent Index.This spring and
While many Americans want to upsize in the COVID-19 pandemic, others are still embracing a tiny home lifestyle, whether as a full residence or just a home office, finds a new survey from IPX1031, a 1031 tax exchange resource. There’s enough desire that investors still think it’s a lucrative investment, too.Tiny homes are often considered to be 500 square feet or less.Seventy-two percent of 2,000 Americans, surveyed in November by IPX1031, sai
All-cash deals are rising in certain areas of the country, comprising about 36% of the market nationwide, according to data from realtor.com®. Buyers who can pay all in cash are finding themselves in a prime position in the competitive housing market, as sellers tend to favor those who can. Meanwhile, buyers who must rely on financing are struggling to compete.Cash sales are climbing the most in the Northeast and West, up 3 and 2 percentage
Demand may fall for homes in areas at high risk of natural disasters, such as flooding and wildfires, which could cause price growth to slow. A new realtor.com® analysis shows that properties in such areas will likely see 5% less price growth in 2021 than homes in similar areas at low risk of natural disaster.This trend is already rising. Homes in high-risk flood areas have seen a sales price growth of 5 percentage points lower than similar home
Mortgage financing giant Fannie Mae announced it would be extending some of its flexible lending standards into 2021 due to the COVID-19 pandemic. The extensions include allowing verbal verification of employment and power of attorney flexibilities, as well as some appraisal alternatives to ensure that transactions don’t get delayed. The extensions also require more checks on payment histories of self-employed borrowers.The temporary measures w
Homeowners are building wealth as property appreciation surges to its highest level since 2014. In the third quarter, the average homeowner had gained about $17,000 in equity year over year, according to CoreLogic’s latest Home Equity Report. Owners in Washington State saw the largest annual increase in home equity at $35,800, followed by California at $34,000.“The housing market has remained a strong pillar in an otherwise tumultuous ec
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