Homebuyer demand hit its highest level in 11 years, as January continues to shape up to be a hot month for the housing market. Weekly mortgage applications jumped 30% for the week ending Jan. 10, a sign that home buyers are emerging, the Mortgage Bankers Association’s seasonally adjusted index shows.“The mortgage market saw a strong start to 2020,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA. “
A higher credit score could mean thousands of dollars in savings on a mortgage, according to a new study from LendingTree that compares very good credit scores to fair ones.A fair credit score is considered in the range of 580 to 669, while a very good credit score ranges from 740 to 799.The average borrower with a fair credit score will pay about $261,076 in total interest over the lifetime of their mortgage. On the other hand, a borrower with a
High home prices may be stymieing job growth in some metros. Over the last five years, affordability has worsened in areas that have seen a decline in job growth, according to a report released Wednesday by the National Association of REALTORS®.Affordability rankings declined in 81 metro areas—in the third quarter of 2019, 34 of them saw non-farm job growth fall faster than compared to the national rate over the previous five years.These 81 me
Child care costs have jumped 49% over the last 25 years. The cost of housing has increased by 14% in comparison, according to a new analysis from Freddie Mac.“The list of expenses for a family can be never-ending … and presents challenges for many looking to buy or rent,” says Sam Khater, Freddie Mac’s chief economist. “One of the major challenges, when it comes to affording a home, is the high cost of child care. Our analysis finds tha
Renters are finding fewer places that charge a security deposit. That may be good news for tenants, but it’s a source of stress for landlords.Security deposits have traditionally been a way for landlords to protect themselves if a resident causes damage to a property or stops making payments. But the large upfront payments before moving in have proved to be problematic for tenants. Renters can spend more than $3,400 on moving costs, according t
The 30-year fixed-rate mortgage averaged 3.64% this week, the lowest level in thirteen weeks. Sam Khater, Freddie Mac’s chief economist, says rates dropped as investors sought the safety of the U.S. Treasury’s fixed-income markets in light of the U.S.’s escalating turmoil with Iran. That said, “the drop in mortgage rates, combined with the strong labor market, should propel a continued rise in home buyer demand,” Khater says.Freddi
Americans are feeling upbeat about the housing market. More than half of Americans—or 63%—say now is a good time to buy a home, and 74% of sellers say now is a good time to sell, according to the fourth-quarter findings from the Homeownership Opportunities and Market Experience survey, conducted by the National Association of REALTORS®.Low mortgage rates and a belief that the economy is improving may be helping to ignite some momen
Wildfire-prone areas in California are seeing home sales slow as insurers retreat from high-risk regions, The Wall Street Journal reports.Insurers paid more than $24 billion for California wildfire losses in 2017 and 2018. Now, they’re looking to cover their losses and are reportedly raising prices or declining to renew policies in some parts of the state.Potential buyers are backing out of purchases or lowering their offers after rea
The cost per square foot of a home can vary drastically from place to place. On average, Americans pay $123, but in some cities, the price can top $1,000.“In general, price per square foot is higher in markets where there’s high demand but land is scarce due to underlying geographic constraints,” Robert Dietz, chief economist of the National Association of Home Builders, told realtor.com®. “Prices are also higher in markets with steeper
The Federal Housing Finance Agency’s new loan limits for 2020 have gone into effect; Fannie Mae and Freddie Mac, which are operated by the FHFA, began backing larger loans last week when the new year started. The cap on Fannie and Freddie loans has increased to $510,400 from 2019’s $484,350 limit.This is the fourth consecutive year that the FHFA has raised conforming loan limits, which can stretch even higher in areas with expensive median ho
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