Even though we saw a slight decrease in April, home purchases are still going strong. The Mortgage Bankers Association’s (MBA) Weekly Application Survey shows that purchase activity rose 5.3% with an even higher year-over-year the week of May 29.
The
ongoing economic and virus challenges didn’t stop housing demand which
boasted a rise in home-buying activity compared to last year. A big part
of the increase is the record low in mortgage rates. The Primary Mortgage Market Survey’s 30-year fixed-rate mortgage shows a decrease by 5 basis points which keeps the ongoing record low.
The survey shows that home purchase applications have been increasing
for five consecutive weeks. In fact, the National Home Builders
Association (NAHB) predicts that the housing industry will be a leading
sector when it comes to the country’s economic recovery. Fannie Mae
reports, “the refinance volume of applications is poised to reach a
17-year high as it forecasts mortgage rates to tumble further.”
The HMI, which indicates builders’ confidence, showed a sturdy gain in May. According to the current National Association of Home Builders/Wells Fargo Housing Market Index (HMI)
when it comes to newly-built single-family homes builder confidence
rose seven points to 37 last month. The HMI index also showed an
increase in sales conditions to 42, a 46 for the component measuring
sales expectations in the next six months and 21 for the measure
charting traffic of prospective buyers.
Across the regions the HMI scores’ monthly average increased 7 points
in the Midwest to 32, in the South, it rose eight points to 42 and in
the West a 12 point increase to 44. The only region which saw a decrease
was the Northeast which fell 2 points to 17.
Click Here For the Source of the Information.
Tuesday, July 7, 2020
Thursday, June 25, 2020
A Rise In Home Building In Rural Markets
The National Home Builders Association (NAHB) has seen a new housing trend with the COVID-19 pandemic. The latest quarterly NAHB Home Building Geography Index (HBGI) found that residential construction is growing faster in lower density markets.
“We expect the virus could affect future housing preferences for those currently living in the hardest-hit, high-density environments like central cities and that housing demand will continue to increase in medium- and low-density communities,” said NAHB Chairman Dean Mon.
“The first quarter HBGI data reveals that construction growth expanded over the last year more quickly in low population density areas than high-density regions,” said NAHB Chief Economist
Robert Dietz.
“This trend will continue as households seek out single-family homes
further from urban cores, particularly as telecommuting continues in
greater numbers.”
The report reveals that proximity and affordability were two of the biggest catalyst in the shift. People are now second-guessing living in metropolitan areas after the public health crisis hit. During the COVID-19 pandemic, metro residents were more vulnerable because of the crowded living conditions, mass transit, insufficient health and public sector infrastructure. Builders are starting to look outside of metropolitan areas where the land is cheaper and there are more building opportunities.
“The HBGI data is consistent with the fact that housing costs are increasing fastest in large metro suburban counties and smaller metro areas with populations under 1 million where demand for housing is high but supply constraints are tight,” said NAHB Chief Economist Robert Dietz.
“Supply-side issues that are hurting affordability and raising costs for builders include excessive regulations, labor shortages, rising material costs and a dearth of buildable lots in mid- to high population centers.”
All national economic geographies in the country showed a 9.1% growth increase in the suburbs over a one-year moving average. In the education and health services sector (EHS), 4% made up the total single construction and made up close to twice the growth rate in the multifamily construction over the past year. The HBGI also found that the education and health services sector was the top quartile of counties and totaled 25.7% above the total employment sectors.
Click Here For the Source of the Information.
“We expect the virus could affect future housing preferences for those currently living in the hardest-hit, high-density environments like central cities and that housing demand will continue to increase in medium- and low-density communities,” said NAHB Chairman Dean Mon.
“The first quarter HBGI data reveals that construction growth expanded over the last year more quickly in low population density areas than high-density regions,” said NAHB Chief Economist
The report reveals that proximity and affordability were two of the biggest catalyst in the shift. People are now second-guessing living in metropolitan areas after the public health crisis hit. During the COVID-19 pandemic, metro residents were more vulnerable because of the crowded living conditions, mass transit, insufficient health and public sector infrastructure. Builders are starting to look outside of metropolitan areas where the land is cheaper and there are more building opportunities.
“The HBGI data is consistent with the fact that housing costs are increasing fastest in large metro suburban counties and smaller metro areas with populations under 1 million where demand for housing is high but supply constraints are tight,” said NAHB Chief Economist Robert Dietz.
“Supply-side issues that are hurting affordability and raising costs for builders include excessive regulations, labor shortages, rising material costs and a dearth of buildable lots in mid- to high population centers.”
All national economic geographies in the country showed a 9.1% growth increase in the suburbs over a one-year moving average. In the education and health services sector (EHS), 4% made up the total single construction and made up close to twice the growth rate in the multifamily construction over the past year. The HBGI also found that the education and health services sector was the top quartile of counties and totaled 25.7% above the total employment sectors.
Click Here For the Source of the Information.
Thursday, June 18, 2020
Many St. Tammany Little Leagues Hope To Still Have A Season
If all goes well youth
sports will be allowed to begin the spring season on June 13. A full
season will be played with end-of-season tournaments in August.
The decision to reopen will depend on Gov. John Bel Edward’s announcement regarding phase 2 according to St. Tammany Parish President Mike Cooper. Cooper also said the decision to reopen
youth
sports this summer will also be discussed among recreation districts,
parks, coaches and parents.
“We want to see the kids on the fields in the next few weeks,” St. Tammany Recreation District No. 1 board member Rick Danielson said.
Although non-contact youth sports were allowed in Phase 1, St. Tammany did not allow any sports. The parish’s decision was based on the concerns there were not enough staffing to enforce the recommended safety guidelines.
“We don’t know all the effects on children,” Cooper said “Even young children are getting COVID-19 or other associated illnesses.”
The districts have now had time to come up with safety procedures and policies to follow while holding a season during COVID-19. The procedures will include removing bleachers, staggering schedules to reduce crowds during events, disinfecting dugouts between games, and reforming lines at the concession stands.
Among the St. Tammany districts to reopen will include Slidell Bantam Baseball Association, and St. Tammany Recreation District No. 1, which oversees the sprawling Pelican Park complex near Mandeville. Slidell Bantam Baseball Association usually has around 1,000 players ages 4 to 15 playing during the spring season and Pelican Park already had 504 boys and 206 girls signed up for the 2020 Spring season.
Not all St. Tammany districts agree. Tammany Parish Recreation District 7, which covers Pearl River, and St. Tammany Parish Recreation District No. 4, which covers Lacombe have canceled their spring season altogether.
Most parents are on board with the decision to play. Slidell Bantam Baseball Association’s board president Brad Smith says there has been a positive response to reopening.
“Parents want their kids to get out and do normal things and be back at the ballpark,” Smith said.
Click Here For the Source of the Information.
The decision to reopen will depend on Gov. John Bel Edward’s announcement regarding phase 2 according to St. Tammany Parish President Mike Cooper. Cooper also said the decision to reopen
“We want to see the kids on the fields in the next few weeks,” St. Tammany Recreation District No. 1 board member Rick Danielson said.
Although non-contact youth sports were allowed in Phase 1, St. Tammany did not allow any sports. The parish’s decision was based on the concerns there were not enough staffing to enforce the recommended safety guidelines.
“We don’t know all the effects on children,” Cooper said “Even young children are getting COVID-19 or other associated illnesses.”
The districts have now had time to come up with safety procedures and policies to follow while holding a season during COVID-19. The procedures will include removing bleachers, staggering schedules to reduce crowds during events, disinfecting dugouts between games, and reforming lines at the concession stands.
Among the St. Tammany districts to reopen will include Slidell Bantam Baseball Association, and St. Tammany Recreation District No. 1, which oversees the sprawling Pelican Park complex near Mandeville. Slidell Bantam Baseball Association usually has around 1,000 players ages 4 to 15 playing during the spring season and Pelican Park already had 504 boys and 206 girls signed up for the 2020 Spring season.
Not all St. Tammany districts agree. Tammany Parish Recreation District 7, which covers Pearl River, and St. Tammany Parish Recreation District No. 4, which covers Lacombe have canceled their spring season altogether.
Most parents are on board with the decision to play. Slidell Bantam Baseball Association’s board president Brad Smith says there has been a positive response to reopening.
“Parents want their kids to get out and do normal things and be back at the ballpark,” Smith said.
Click Here For the Source of the Information.
Tuesday, June 9, 2020
Home Loans On The Increase For Six Consecutive Weeks
As the pandemic
stay-at-home orders are now being lifted around the United States, more
and more people are looking to purchase a home. The mortgage rates have
now dropped even more since the pandemic hit at the beginning of 2020.
The 10-year Treasury yield has consistently lead the mortgage rates but this has not been the case since the coronavirus has produced an economic downturn. The unpredictable economy has fueled
unpredictable mortgage rates. On a good
note, the parallel between mortgage rates and bond yields is improving.
“Financial volatility has notably decreased in recent weeks, resulting in steady improvements in the stock market, and more predictable — albeit modest — movements in bond markets,” Zillow ZG, 1.50% economist Matthew Speakman said. “The eased strains in financial markets have also resulted in mortgage rates remaining fairly flat in the last couple of weeks and are generally calmer following the turmoil experienced in the early days of the coronavirus outbreak.”
The end of May has shown “the lowest level since Freddie Mac began tracking this data starting in 1971.” Freddie Mac reported the week ending May 28 the average 30-year fixed-rate was 3.15%, a drop of nine basis points from the week before. This will make the third report in a row that has shown historical low-interest rates. The 15-year fixed-rate also dropped to 2.62% which was a drop in eight basis points.
Homebuyers are ready to buy and are looking to purchase a home in the next several months. According to the Mortgage Bankers Association, the amount of mortgage applications has been on the rise making the volume of purchase loans up 54% from early spring. This is a great time to purchase a home and sales should see a rebound from the pandemic.
Click Here For the Source of the Information.
The 10-year Treasury yield has consistently lead the mortgage rates but this has not been the case since the coronavirus has produced an economic downturn. The unpredictable economy has fueled
“Financial volatility has notably decreased in recent weeks, resulting in steady improvements in the stock market, and more predictable — albeit modest — movements in bond markets,” Zillow ZG, 1.50% economist Matthew Speakman said. “The eased strains in financial markets have also resulted in mortgage rates remaining fairly flat in the last couple of weeks and are generally calmer following the turmoil experienced in the early days of the coronavirus outbreak.”
The end of May has shown “the lowest level since Freddie Mac began tracking this data starting in 1971.” Freddie Mac reported the week ending May 28 the average 30-year fixed-rate was 3.15%, a drop of nine basis points from the week before. This will make the third report in a row that has shown historical low-interest rates. The 15-year fixed-rate also dropped to 2.62% which was a drop in eight basis points.
Homebuyers are ready to buy and are looking to purchase a home in the next several months. According to the Mortgage Bankers Association, the amount of mortgage applications has been on the rise making the volume of purchase loans up 54% from early spring. This is a great time to purchase a home and sales should see a rebound from the pandemic.
Click Here For the Source of the Information.
Wednesday, June 3, 2020
The Demand For A Home Office Is On the Rise
The shelter-in-place
orders have most Americans working from home. This huge shift in where
we spend our time has changed the way certain specialty rooms are
viewed. The National Association of Home Builders (NAHB) data that was
just collected shows that specialty rooms such as home offices and
exercise rooms are on the must list for current home buyers.
The certain preference study data comes from the NAHB’s What Home Buyers Really Want. The survey asks recent and current home buyers what features they want in a home and a community. The
most recent study was conducted in 2018
but the NAHB believes this trend will only grow with the COVID-19
pandemic.
Houzz.com recently conducted a survey that concluded that 55% of homeowners and practitioners have a home office, 25% work from their kitchen or dining room table, and 11% work from their sofa. The study also looked at the challenges the country is currently facing working from home. Thirty-percent find it hard to find a quiet location away from high-traffic living areas while 25% have trouble with getting a strong Wi-Fi connection as well as creating a comfortable workspace.
Working from home has become the norm and here are a few quick tips to enhance the space from NAR’s Realtor Magazine. Pick the right location such as a spare bedroom, dining room, den, or any quieter space you can find. Always make sure your lighting is perfect in the space to avoid eye strain. Last, make it ergonomic by arranging your chair, desk, computer, keyboard, mouse, and phone in a safe and efficient way. Make sure you are comfortable, this will allow for a more productive work from home day.
Click Here For the Source of the Information.
The certain preference study data comes from the NAHB’s What Home Buyers Really Want. The survey asks recent and current home buyers what features they want in a home and a community. The
Houzz.com recently conducted a survey that concluded that 55% of homeowners and practitioners have a home office, 25% work from their kitchen or dining room table, and 11% work from their sofa. The study also looked at the challenges the country is currently facing working from home. Thirty-percent find it hard to find a quiet location away from high-traffic living areas while 25% have trouble with getting a strong Wi-Fi connection as well as creating a comfortable workspace.
Working from home has become the norm and here are a few quick tips to enhance the space from NAR’s Realtor Magazine. Pick the right location such as a spare bedroom, dining room, den, or any quieter space you can find. Always make sure your lighting is perfect in the space to avoid eye strain. Last, make it ergonomic by arranging your chair, desk, computer, keyboard, mouse, and phone in a safe and efficient way. Make sure you are comfortable, this will allow for a more productive work from home day.
Click Here For the Source of the Information.
Monday, June 1, 2020
VA Loans and How They Work
Veterans are a big part of our community in the United States. The
country honors these men and women who have served in the United States
Armed Forces in many ways. One example is through VA Loans for veterans
who would like to purchase a home. A VA Loan is provided by private
lenders and is partially guaranteed by the Department of Veterans
Affairs.
VA Loans are a great way for military borrowers to obtain a mortgage. They have been helping military families purchase a home since 1944. If you are interested in purchasing a home through a VA Loan here is what you need to know.
According to veteransunited.com, “A VA loan is a $0-down mortgage option issued by private lenders and partially backed, or guaranteed, by the Department of Veterans Affairs (VA). Eligible
borrowers can use a VA loan to purchase a property as
their primary residence or refinance an existing mortgage.”
Unlike conventional mortgages, VA Loans are partially backed by the Department of Veterans Affairs (VA). Lenders who originate the loans have more confidence with this guarantee from the VA and are able to offer $0 down financing and many great rates and terms.
There are many ins and outs of a VA Loan. A borrower can use full VA entitlement as many times as they would like to if the loan is paid off each time. You can have more than one VA loan at a time and even obtain another VA loan if you lost one to foreclosure.
VA Loans are mainly used for properties that are “move-in ready” and are not usually used for a fixer-upper or a property such as a working farm. They can only be used for a primary residence and not for investment properties or vacation homes.
Even though a VA Loan does not require mortgage insurance, you will be required to pay a mandatory fee. The VA Funding Fee enables the VA to keep VA Loans available and can be paid all
at once or rolled into the
loan amount. The VA loan entitlement will not let you get a loan with
just any co-borrower. You can find some lenders who lend a joint loan.
One of the great benefits of a VA loan is there is no prepayment
penalty. Making an extra payment or adding money on top of your monthly
payment is not penalized like with some conventional mortgages.
If you are a military veteran and would like to obtain a VA loan, here are the steps to the process. Before you can be approved for VA loan entitlement, you must be prequalified for a loan. A lender will be able to prequalify you for what you can afford based on income, credit, entitlement and any other financial factors they require. Once a lender prequalifies you, then you must be preapproved. This is the step in the process where a lender will verify income and your financial information. Once preapproved, the lender will give you a preapproval letter. When searching for a home and placing an offer, you must make sure that the home is VA loan approved.
Once you place your property under contract you will begin the VA appraisal. The VA appraisal is a requirement to make sure the property under contract is of fair market value and meets the VA requirements. When the VA appraisal is cleared you will be able to close on your new home. Remember when purchasing a home, VA loans represent the most powerful lending program on the market for military borrowers.
Click Here For the Source of the Information.
VA Loans are a great way for military borrowers to obtain a mortgage. They have been helping military families purchase a home since 1944. If you are interested in purchasing a home through a VA Loan here is what you need to know.
According to veteransunited.com, “A VA loan is a $0-down mortgage option issued by private lenders and partially backed, or guaranteed, by the Department of Veterans Affairs (VA). Eligible
Unlike conventional mortgages, VA Loans are partially backed by the Department of Veterans Affairs (VA). Lenders who originate the loans have more confidence with this guarantee from the VA and are able to offer $0 down financing and many great rates and terms.
There are many ins and outs of a VA Loan. A borrower can use full VA entitlement as many times as they would like to if the loan is paid off each time. You can have more than one VA loan at a time and even obtain another VA loan if you lost one to foreclosure.
VA Loans are mainly used for properties that are “move-in ready” and are not usually used for a fixer-upper or a property such as a working farm. They can only be used for a primary residence and not for investment properties or vacation homes.
Even though a VA Loan does not require mortgage insurance, you will be required to pay a mandatory fee. The VA Funding Fee enables the VA to keep VA Loans available and can be paid all
If you are a military veteran and would like to obtain a VA loan, here are the steps to the process. Before you can be approved for VA loan entitlement, you must be prequalified for a loan. A lender will be able to prequalify you for what you can afford based on income, credit, entitlement and any other financial factors they require. Once a lender prequalifies you, then you must be preapproved. This is the step in the process where a lender will verify income and your financial information. Once preapproved, the lender will give you a preapproval letter. When searching for a home and placing an offer, you must make sure that the home is VA loan approved.
Once you place your property under contract you will begin the VA appraisal. The VA appraisal is a requirement to make sure the property under contract is of fair market value and meets the VA requirements. When the VA appraisal is cleared you will be able to close on your new home. Remember when purchasing a home, VA loans represent the most powerful lending program on the market for military borrowers.
Click Here For the Source of the Information.
Thursday, May 21, 2020
Mortgage Rates to Stay Near Historical Lows in May
The Federal Reserve
has stepped up to ensure the rates stay near historical lows. During
the policy meeting held on April 29th, the central bank said they would
keep buying mortgage-backed securities to allow credit to keep flowing.
Jerome Powell, the Federal Reserve’s chairman, says the Fed will keep purchasing the mortgage-backed securities for “the next year or so” with the unknown economic consequences from the COVID-19 pandemic. The Fed said in its most recent announcement that it foresees “considerable risks to the economic outlook over the medium term.”
The Fed has brought a lot of money to the table when it comes to mortgage-backed securities. In a comment, the Federal Reserve relayed this was necessary “to support smooth market functioning.” Before the Fed stepped in, mortgage rates fell during late February but took a turn up in March because of the market turmoil.
The Federal Reserve has purchased more than half a trillion dollars’ worth of mortgage-backed securities since the middle of March. According to the Fed purchasing these mortgage-backed securities has given lenders the confidence that there will be enough money to keep funding mortgages to consumers. The mortgage rates will stay stable because the Federal Reserve is standing in as a reliable buyer.
Luckily there strategy is working. Currently, the average rate on a 30-year fixed-rate mortgage is 3.389%, a 15-year fixed-rate is at an average of 2.923% and the average for the 5/1 ARM is down to 3.117%. During Nerdwallet’s survey of mortgage rates, they found that the 30-year fixed-rate mortgage is 88 basis points lower than this time last year.
Click Here For the Source of the Information.
Jerome Powell, the Federal Reserve’s chairman, says the Fed will keep purchasing the mortgage-backed securities for “the next year or so” with the unknown economic consequences from the COVID-19 pandemic. The Fed said in its most recent announcement that it foresees “considerable risks to the economic outlook over the medium term.”
The Fed has brought a lot of money to the table when it comes to mortgage-backed securities. In a comment, the Federal Reserve relayed this was necessary “to support smooth market functioning.” Before the Fed stepped in, mortgage rates fell during late February but took a turn up in March because of the market turmoil.
The Federal Reserve has purchased more than half a trillion dollars’ worth of mortgage-backed securities since the middle of March. According to the Fed purchasing these mortgage-backed securities has given lenders the confidence that there will be enough money to keep funding mortgages to consumers. The mortgage rates will stay stable because the Federal Reserve is standing in as a reliable buyer.
Luckily there strategy is working. Currently, the average rate on a 30-year fixed-rate mortgage is 3.389%, a 15-year fixed-rate is at an average of 2.923% and the average for the 5/1 ARM is down to 3.117%. During Nerdwallet’s survey of mortgage rates, they found that the 30-year fixed-rate mortgage is 88 basis points lower than this time last year.
Click Here For the Source of the Information.
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