Homeowner Equity Growth Streak Continues

Homeowner Equity Growth Streak Continues

Homeowners with a mortgage saw their equity rise 13.3 percent year over year, according to CoreLogic’s Home Equity Report for the first quarter of 2018, released Thursday. The average homeowner gained $16,300 in home equity between the first quarter of 2017 and the first quarter of 2018. That is the highest growth in home equity in four years.

“Home-price growth has accelerated in recent months, helping to build home-equity wealth and lift underwater homeowners back into positive equity,” says Frank Nothaft, CoreLogic’s chief economist.

Western states saw the largest uptick in home equity. California homeowners gained $51,000 on average in home equity, while Washington homeowners saw about $44,000 on average, in equity.

“Home equity balances continue to grow across the nation,” says Frank Martell, president and CEO of CoreLogic. “In the far Western states, equity gains are fueled by a long run in the home price escalation. With strong economic growth and higher purchase demand, we expect these trends to continue for the foreseeable future.”

Source: “Homeowner Equity Report,” CoreLogic (June 7, 2018)

‘Low Price’ Homes Appreciating Fastest

‘Low Price’ Homes Appreciating Fastest

Gains for lower-priced homes are seeing significantly higher increases than more expensive homes, according to the latest CoreLogic Home Price Index Report.

CoreLogic researchers analyzed four individual home price tiers. The tiers were broken down into a “low price” tier that reflected homes priced at 75 percent or less of the median; “low to middle price” homes were between 75 and 100 percent of the median; “middle to moderate price” were for homes priced between 100 and 125 percent of the median; and the “high price” tier represented homes priced greater than 125 percent of the median. The lowest price tier rose 9.3 percent year over year compared with 8.5 percent for the low to middle price tier; 7.1 percent for the middle to moderate price tier; and 5.7 percent for the high price tier.

Appreciation in the low price tier began pulling ahead of the other price tiers in 2013. The five-year appreciation rate—from April 2013 to April 2018—for the low price tier was 53 percent compared with the five-year appreciation of 43 percent for the low to middle price tier; 37 percent for the middle to moderate price tier; and 29 percent for the high price tier.

All price tiers combined have risen on an annual basis every month since February 2012, CoreLogic reports. The company’s overall index is now 3.9 percent higher than its precrisis peak in April 2006. Four states have showed double-digit year-over-year increases. All of them are in the West: the state of Washington is up 12.8 percent year over year, Idaho is up 12.4 percent, Nevada increased 12.2 percent, and Utah is up 11.5 percent.

Source: “Price Gains for Lower-Priced Homes Outpace Those of Higher-Priced Homes,” CoreLogic Insights (June 5, 2018)

Yes, you can achieve the American dream of home ownership

We can help

At freedom mortgage, we believe everyone should have the opportunity to own their own home.  If you feel you may not be able to qualify for a mortgage, we have good news.  We can provide you with flexible loan options that can help you achieve your home buying goal.  That includes the Freddie Mac Possible and home possible advantage mortgage programs.

Take advantage of lower down payments and more flexibility.

Yes, you can achieve the American dream of home ownership

Freddie Mac possible offers:

• Lower down payment of 5%
• Borrowers with no credit score may be permitted
• 1 – 4 unit properties
• Fixed rate and adjustable rate mortgages
• Flexible source of funds can be used to qualify
• Lower mortgage insurance requirements

Home Possible advantages:

• Low down payment of 3%
• 1 –unit properties
• Fixed rate mortgages
• Flexible source funds can be used to qualify
• Lower insurance premiums

Contact us to find out if Home Possible mortgage can help you achieve your home ownership goals.

Baby Boomers Plan to Delay Retirement

Baby Boomers Plan to Delay Retirement

The majority of working baby boomers ages 50 and over say they expect to delay retirement, according to a survey by The NHP Foundation, a nonprofit real estate corporation supporting affordable housing. The cost of housing may be one reason why.

Prospective retirees say their top three concerns are an inability to afford quality health care (36 percent); dependency on children (28 percent); and being forced to choose a living situation inferior to their preference (22 percent), according to the survey. Eighty-five percent of respondents say they would prefer to stay in their current home, but many may be forced to consider renting a room or seeking out more affordable housing options.

Older homeowners are carrying nearly double the mortgage debt than people their age a decade ago, according to data from the Consumer Financial Protection Bureau. The NHP Foundation speculates that this may be why a growing number of baby boomers plan to delay retirement. “With one in four in desperate need of affordable housing—equating to 2,500 new retirees every day—there needs to be a priority to create an adequate supply of affordable rental housing for boomers now and in the future,” says Richard Burns, president and CEO of The NHP Foundation.

Thirty-one percent of survey respondents say they have not prepared a retirement budget, and the majority have not budgeted for unforeseen health-related expenses. “There is a disconnect between baby boomers’ current financial status and where they perceive themselves in retirement,” Burns says. “This wishful thinking carries potential consequences that will likely have a large impact throughout all areas of the economy.”

Of an estimated 78 million baby boomers, about 10,000 reach retirement age each day, according to The NHP Foundation.

Source: The NHP Foundation

Mortgage Rates Retreat

Mortgage Rates Retreat

After climbing to their highest level in more than seven years, mortgage rates eased a bit this week. It was the first time they declined in four weeks, says Sam Khater, Freddie Mac’s chief economist. The 30-year fixed-rate mortgage fell 10 basis points to a 4.56 percent average this week.

“The decline was driven by recent trade and geopolitical issues, which led to a sudden decrease in long-term Treasury yields,” Khater says. “Meanwhile, confident American consumers shrugged off the market volatility, as purchase mortgage applications continue to trend higher from a year ago.”

But even with higher rates this year, Khater believes demand from home buyers will stay elevated as long as job growth and other economic fundamentals stay strong.

“Extremely low inventory conditions in most markets are preventing sales from breaking out while also keeping price growth elevated,” Khater says. “Even if rates climb closer to 5 percent, sales have room to grow more—but only if current supply levels start increasing more meaningfully.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 31:

• 30-year fixed-rate mortgages: averaged 4.56 percent, with an average 0.4 point, down from last week’s 4.66 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
• 15-year fixed-rate mortgages: averaged 4.06 percent, with an average 0.4 point, dropping from last week’s 4.15 percent average. A year ago, 15-year rates averaged 3.19 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.80 percent, with an average 0.3 point, dropping from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.11 percent.

Source: Freddie Mac

Buying a fixer-upper? Purchase and renovate all in one loan! Get a Renovation loan!

For the house that’s almost perfect, we have the perfect solution: A Renovation loan.

Renovation loan

Renovation Financing allows you to buy a house and fix it up using one loan with one monthly payment.  You pick the contractor and finance improvement costs.

You just love the house.  Except for the leaky pipes.  Or maybe the kitchen is too small?

Here are just a few ideas of what you can do with renovation loans:

1 – Remodel a kitchen or bath

2 –  Add a new addition

3 – Paint a house or add siding

4 – Add a porch, deck and or patio

5 – replace a leaky roof

6 – Install new flooring, carpeting or tile

7 – Update electrical wiring, plumbing and or heating system

8 – Conserve energy with new windows

And so much more… Call me today about a Renovation loan.