Mortgage applications for home purchases, a gauge of future home buying, saw a 12% uptick last week, reversing a month of plummeting activity due to the COVID-19 pandemic, the Mortgage Bankers Association reported. Housing experts say it could mark a sign that home buyers are returning.Refinancing demand fell last week, which caused the overall volume to decline by 3.3% for the week, according to the MBA’s seasonally adjusted index. The overall
Contract signings dropped in March as many housing markets paused as the coronavirus outbreak spread across the country.The National Association of REALTORS®’ Pending Home Sales Index, a forward-looking indicator based on contract signings, dropped 20.8% in March compared to February. All four major regions of the U.S. saw a drop in contract activity last month.Contract signings are down 16.3% compared to a year ago.“The housing market
The 30-year fixed-rate mortgage averaged 3.33% this week, near its all-time low, Freddie Mac reports.“Mortgage rates have stabilized over the last few weeks as the market searches for direction in the fog of economic data,” says Sam Khater, Freddie Mac’s chief economist. “While financial markets initially rallied on the news of Federal Reserve support and are improving due to the Senate’s passage of a new small business stimulus, we con
Some borrowers who’ve obtained a mortgage are going into forbearance before the loan can be sold by the lender to a government-sponsored enterprise. As a result, the Federal Housing Finance Agency announced Wednesday that for a limited time it will be directing mortgage financing giants Fannie Mae and Freddie Mac (the enterprises) to purchase home loans that have gone into forbearance shortly after closing. The agency says it hopes this step wi
Investors who have cash on hand are viewing opportunities brewing in the housing market amid the COVID-19 pandemic. Housing stock is very low in many markets as some sellers have pulled their homes off the market. But investors are still viewing potential growth areas and reportedly making purchases for home flipping and rentals.Investors believe that people quarantined in their homes may start to feel like their current house is inadequate in so
The three main credit reporting bureaus—Equifax, Experian, and TransUnion—have announced that everyone will be able to request a free credit report from each of them weekly over the next year. The new policy started this week.The companies say the reports are being made more readily available to help Americans “protect their financial health during the sudden and unprecedented hardship caused by COVID-19.”The CARES Act requires that compa
Mortgage rates dropped for the third consecutive week, inching closer to the lowest averages ever on record. “Refinance activity remains high, but home purchase demand is weak due to economic tightening,” says Sam Khater, Freddie Mac’s chief economist. “While new monthly economic data are driving markets lower this week, they are a lagging indicator and should be priced in already. Real-time daily economic activity metrics suggest that th
Where would we be without family and friends? More of us would be apartment dwellers, according to a new report from the National Association of REALTORS®. Thirty-two percent of first-time homebuyers received a gift or loan from a relative or friend last year, according to the report, and 8% of repeat buyers received down payment gifts, according to “2020 Downpayment Expectations & Hurdles to Homeownership.” The report, released today, i
Real estate has been the sole road to wealth for many of the world’s billionaires. Overall, there are 256 billionaires in the world whose main business is in real estate—up by 17 a year ago, according to the Hurun Global Real Estate Rich List 2020.China is the leader at 137, 54% of the international total, the report shows. Hong Kong is home to the most real estate billionaires.Meanwhile, the U.S. boasts 34 real estate billionaires, or 13% of
The IRS has moved the federal tax day to July 15, but in preparation, there are several things real estate pros can do to lower their tax bill. Many agents and brokers classify themselves as self-employed under federal tax guidelines. Income tax, therefore, is not automatically withheld from paychecks and generally must be paid through quarterly estimated tax payments.Self-employed status means that real estate pros may be eligible to deduct thei
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