Most Renters Plan to Buy

Most Renters Plan to Buy
But Fear Lending Standards: Ninety percent of renters say they expect to buy a home in the future, but the majority are fearful of their ability to qualify for a mortgage at today’s stringent underwriting standards, according to a new survey conducted by Fannie Mae. In fact, 42 percent of those who intend to buy a home one day say they don’t think they’ll be able to do so for at least five years.  'Younger renters who prefer to own are much more likely than their older counterparts to say that they are renting mainly to make themselves financially ready to own,' according to the survey. 
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Rising Rates Won't Put Housing Out of Reach

Rising Rates Won't Put Housing Out of Reach

Rising mortgage rates are not yet jeopardizing housing affordability, according to a new report by Goldman Sachs that found affordability still far above past average levels. 

“For a mortgage interest rate of 3.81 percent, the average home buyer can afford to buy a house worth $279,000—45 percent above the current median sales price of existing homes,” according to the Goldman Sachs report. “Even if mortgage rates continue to increase from here, the median home will still be affordable to the median borrower, based on the conventional 25 percent debt-to-income threshold.” Goldman Sachs researchers say that from 2014 to 2016, they expect housing prices will increase about 4 to 5 percent each year.                                     Watch our Video....

HUD & VA Team up

HUD & VA Team up To Help 9,000 Homeless Vets Find Homes: The U.S. Housing and Urban Development and Veterans Affairs have teamed up to provide housing for about 9,000 homeless veterans nationwide who live on the streets or in shelters.

HUD and the VA will provide $60 million to local public housing agencies to distribute the grants to homeless vets that will provide rental assistance. The vets participating will be able to rent privately owned housing and will contribute no more than 30 percent of their income toward rent.

These grants make it possible to help more veterans obtain housing, bringing us steps closer to our goal of ending veteran homelessness by 2015.” Read more ....

Downsizing Trend Reverses,

Downsizing Trend Reverses, Generation Y Homebuyers Favor: As National Homeownership Month kicks off, the National Association of Home Builders (NAHB) is taking a look at the features today’s young homebuyers want most and how builders are adapting to those needs.

“As the economy recovers and young people who had to live at home with their parents move forward with their lives and achieve their dreams of homeownership, home builders are delivering homes that cater to the floor plans, features and affordability that this generation desires,” said NAHB chairman Rick Judson, a homebuilder and developer from Charlotte, North Carolina. According to the association’s 2012 consumer preference survey, more than 80 percent of Generation Y homebuyers (people born in 1977 or later) prefer a highly energy-efficient home over a lower-priced home without energy-efficient features, preferring to save instead on utility costs.Home Prices Post 12.1% Annual Gain in April

Report Warns Shadow Inventory Threat Remains

Report Warns Shadow Inventory Threat Remains
It's Not Over: Foreclosures have been falling in recent months, but two government watchdogs warn that the foreclosure crisis isn’t over yet.

About 1.7 million borrowers have missed more than one payment on their government-backed mortgages, according to a newly released report by the inspectors general of the Federal Housing Finance Agency and Department of Housing and Urban Development.  

The shadow inventory is made up of loans that have been delinquent for at least 90 days. If these delinquent loans become foreclosures, they could pose significant financial challenges to mortgage giants Fannie Mae, Freddie Mac, or other federal housing agencies, the report notes.  Read more ...

Buyers won't rush to beat rising mortgage rates

Buyers won't rush to beat rising mortgage rates

Will housing heat up as buyers race to beat rising rates? The media loves this concept. A reminder how foolish so much media 'analysis.'

No new data, no new Fed talk, blow out the 10-year T-note’s February-March 2.05 percent high to 2.15 percent on Tuesday, and 2.19 percent today. Mortgages are above 4 percent for the first time in more than a year, and for lower-down, middling-credit borrowers, 4.25 percent-plus.

Enough to slow housing? No. Payments versus prices are still far into all-time-low territory.

Will housing heat up as buyers race to beat rising rates? The media loves this concept. A reminder how foolish so much media “analysis.” In a long working life I’ve never once met a “not-buying” client converted into “buying-now” because rates are rising. Read more ....

Housing Bubble Concerns Brew in Key Markets

Housing Bubble Concerns Brew in Key Markets

Skyrocketing home prices in a few markets have some analysts concerned that prices are on the rise too fast and could ultimately hamper the housing recovery. 

'In many markets, fundamentals are improving as unemployment rates continue declining, while low prices and low interest rates have affordability high,' according to analysts for Fitch Ratings, a credit rating agency. 'However, especially in cities that never fully unwound the mid-2000s bubble, rapidly increasing price levels are a potential cause for concern.'  Read more ....