For the third time this year, the Federal Reserve cut interest rates by a quarter point in an attempt to bolster a slowing economy. The federal funds rate will hover between 1.5% and 1.75%.The Fed’s benchmark rate does not directly affect long-term mortgage rates, but it does often influence them. The latest rate cut has economists torn on the effect it could have.Mortgage rates have been falling for nearly a year. The average 30-year fixed-rat
More than 1.5 million—or 1.5% of U.S. single-family homes and condos—were vacant in the fourth quarter, shows a newly released report from ATTOM Data Solutions. That marks a vast improvement, but so-called “zombie” foreclosures are still plaguing some housing markets.Despite an ongoing housing shortage, several markets are still dealing with zombie foreclosures. These are homes that have been vacated by the owners and remain vacant while
The homeownership rate rose in the third quarter, and economists are pointing to lower mortgage rates as a major reason for the uptick. The homeownership rate rose to 64.8% in the third quarter, up 0.7 percentage points from the previous quarter.While more Americans are becoming homeowners again, the homeownership rate still remains far from its 69.2% peak in 2004.However, economists are encouraged by the turnaround in the number of consumers ent
Across age groups, consumers believe that purchasing a home is a solid investment, according to a new survey from Porch.com, a home remodeling website. They’re upbeat even though many, particularly the youngest generation, believe they will face another housing crisis in their lifetime.About 76 percent of Generation Z members, between 18 to 21 years old, said they believe another housing crisis will happen within the next 10 years. Still, they
Consumers like the modern conveniences that digital paperwork and signings bring within a real estate transaction, but they still prefer to be face-to-face at the settlement table. Eighty-one percent of 1,000 consumers surveyed say they prefer to close a loan in person. That said, 70% still say they would like a more digital process at the closing table, according to the new survey from Solidifi, a network management services provider for the res
Down payment assistance programs are helping more consumers to become homeowners, according to a new study. Researchers with CBC Mortgage Agency, a national housing finance group, found that more than nine out of 10 home buyers would not have been able to purchase a home without down payment help. Further, more than half of the 1,100 buyers surveyed that received assistance were racial or ethnic minorities. Also, more than a third say they are th
Accessory dwelling units are popping up in more backyards, CNBC reports. These standalone housing units are either serving as rentals to generate extra income for homeowners or extra space for aging parents or adult children who move back home.The growing interest in ADUs has sparked changes to local and state zoning rules to allow for more construction. Some communities are even pointing to ADUs as a solution for a lack of affordable housin
Financial experts often advise not to spend more than 30% of your annual income on housing costs. However, buyers in several areas are far exceeding that rule.LendingTree researchers recently ranked the nation’s 50 largest cities according to how much financial leverage buyers in each metro have to achieve homeownership. The study defines “leverage” as the ratio of how much money a person borrows to his or her annual income.Five of the citi
Mortgage financing giants Fannie Mae and Freddie Mac released a redesigned mortgage application form this week, after the agency that oversees them ordered a change to remove certain questions over language preferences and housing counseling information from the previous version.The Uniform Residential Loan Application is a standardized form used by borrowers when applying for a mortgage. This is the first time in 20 years there has been a change
Airbnb has seen explosive growth the last few years, even as some cities have fought to manage short-term rentals that they fear are overtaking communities. Still, homeowners and investors are cashing in.Florida is Airbnb’s hot spot, finds a new study released from IPX 1031, a 1031 exchange resource. For homeowners or investors looking to rent out housing on a short-term basis, the state is home to seven cities with the most per capita rentals
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