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Lenders’ chief focus will be on your ability to repay your mortgage with your various sources of non-paycheck income. “When you qualify for a mortgage, it’s all based on your income,” said Melissa Cohn, regional vice president at William Raveis Mortgage. That ratio falls to between 43% and 45% if you’re taking out a jumbo loan, she added. What you should consider before taking out a mortgageEven before seeking a mortgage, get a good grasp on your expected monthly income and expenses in retirement. To get the truest reading on what makes financial sense, compare mortgage expenses to your investment returns on an after-tax basis, Stork noted.
Persons: , Jim Stork, homebuyers, you’ve, Melissa Cohn, we’ll, Fannie Mae, ” Cohn, Cohn, Mark Luscombe, Cohen, Lori Trawinski, Trawinski, you’re, Stork, ” Stork Organizations: New, New York CNN, National Association of Realtors, William, Mortgage, Social Security, Wolters, Kluwer, Accounting, AARP Locations: New York, Illinois, Florida
Want a low mortgage rate? Take someone else’s
  + stars: | 2024-05-31 | by ( Samantha Delouya | ) edition.cnn.com   time to read: +6 min
This means that a buyer keeps the seller’s repayment period, mortgage balance and, notably, the seller’s lower mortgage rate. Securing that ultra-low mortgage rate means that Harper will save thousands of dollars in monthly payments. “I just decided I wanted to see how low I could pay on the interest rate,” Harper said. And while the mortgage rate on the second loan may be high, the total monthly payment could still be lower — if the assumed mortgage rate is low enough. Snagging a low mortgage rate like Harper’s in today’s high interest rate environment may seem like a dream come true to some prospective homebuyers, but the process is not always smooth sailing.
Persons: , Ted Tozer, Ginnie Mae —, Tozer, Ellen Harper, Harper, , ” Harper, ” Tozer, homebuyers, he’d, Raunaq Singh Organizations: CNN, of Housing, Urban, Urban Institute, Intercontinental Exchange, Federal Housing Administration, US Department of Veterans Affairs, Realtors Locations: Georgia, Georgia , Arizona , Colorado , Texas, Florida
Mortgage rates have been holding relatively steady this month, though 30-year mortgage rates inched up slightly this week. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates were 6.36% this week, according to Freddie Mac data, which is a 12-basis-point increase from the previous week. Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen this year, mortgage rates should fall even further.
Persons: Lawrence Yun, Freddie Mac Organizations: National Association of Realtors, NAR, Zillow, Federal Reserve, Fed Locations: Chevron
According to a report by the National Association of Realtors, pending home sales fell 1.5 percent in October to their lowest level in 20 years. These so-called pending sales are a forward-looking indicator of closed sales one-to-two months later. Pending sales were 7.4% lower than in April of last year. Because the count is based on signed contracts, it shows how buyers are reacting to mortgage rates in real time. With home prices still climbing and supply very low, leading to increased competition, that jump in rates had a huge effect on sales.
Persons: Justin Sullivan, Lawrence Yun, Yun, Hannah Jones Organizations: National Association of Realtors, Mortgage News, NAR, West, Realtor.com Locations: CALIFORNIA, San Anselmo , California, Midwest, Redfin
Washington CNN —US economic data released Thursday was broadly disappointing. And mortgage rates inched higher this week, thrusting the average rate back above the psychological 7% threshold. HousingHousing data released Thursday mostly showed that the market remains tough, especially for first-time buyers. The Fed doesn’t directly set mortgage rates, but its actions, which influence yields, do. There were 219,000 first-time claims filed during the week ended May 25, according to Labor Department data released Thursday.
Persons: ” Oren Klachkin, it’s, Freddie Mac, They’re, ” Lawrence Yun, hasn’t Organizations: Washington CNN, Treasury, Federal, Nationwide, Commerce, Housing, Fed, National Association of Realtors, ” Jobs, Labor Department, Dow, Nasdaq Locations: American
US home prices hit another record high in March
  + stars: | 2024-05-28 | by ( Bryan Mena | ) edition.cnn.com   time to read: +3 min
Washington CNN —US home prices reached a record high in March, reflecting the housing market’s persistent affordability crisis. The S&P CoreLogic Case-Shiller US National Home Price Index, a measure of home prices across the country, jumped 6.5% in March from a year earlier to a record high. It is the sixth time the index has reached a new record high over the past year. Persistent challenges, but some slight improvementsHousing affordability, which factors in incomes, home prices and mortgage rates, remains in the doldrums. Annual home price growth is down from a record high of 20.8% in March 2022, but it has picked up steam in the past several months.
Persons: , Brian Luke, Dow, “ We’ve Organizations: Washington CNN, Dow Jones, Federal Reserve, Treasury, National Association of Realtors Locations: San Diego , New York, Cleveland, Los Angeles
The owners of the red-brick Georgian Colonial home are asking for $5.25 million. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . Now, fans can purchase the red-brick Georgian Colonial home for a pretty penny. The owners are asking for $5.25 million, per a Zillow listing of the house.
Persons: Macaulay Culkin, , Kevin McCallister Organizations: Service, Street Journal, Realtors, Business Locations: Georgian
Analysts are expecting the Memorial Day weekend to usher in yet another summer of strong consumer spending on travel and other leisure activities. “We haven’t seen Memorial Day weekend travel numbers like these in almost 20 years,” Paula Twidale, senior vice president at AAA Travel, said in a release. Spending this summer will likely be a little softer than last year’s, they said, but still strong. The bank’s consumer travel survey showed that 72% of people said they’re planning to travel, with 36% saying they’ve already planned their trip. Even among respondents making less than $75,000 a year, more than 60% said they’re planning to travel this summer.
Persons: ” Paula Twidale, Royal Caribbean’s, ” David Tinsley, they’ve, Joelle, aren’t, Dogecoin, Shiba Inu “, Atsuko Sato, , Sato, ” Kabosu, Kabosu, Shiba, Loretta Mester, Neel Kashkari, Lisa Cook, Robin, John Williams, Raphael Bostic, Lorie Logan Organizations: CNN Business, Bell, Washington CNN —, Transportation Security Administration, AAA, AAA Travel, Bank of America Institute, Bank of America, Japan, Europe, New York Fed, Public Policy Research, Mizuho Financial, Federal, Global, Index, Board, HP, Dick’s Sporting Goods, Abercrombie, Fitch, Eagle Outfitters, Costco, Dell, Dollar, Hormel, US Commerce Department, US Labor Department, National Association of Realtors, China’s National Bureau of Statistics, Atlanta Fed Locations: Washington, Caribbean, South Korea, Switzerland, Colombia, Costa Rica, Canada, Mexico, Domestically , California, Florida, California, , Sakura, CAVA, Chewy, Burlington, Birkenstock, Nordstrom, Kohl’s
Read previewThe housing market may be starting to turn a corner, offering frustrated buyers a chance to jump back into the market after a long stretch of dismal prospects. "We think the housing market is going to improve over the next half of a year," Glenn Kelman, the CEO of Redfin, in a recent interview. Inventory is risingMore inventory is finally trickling into the housing market, which could help push prices down. Elevated mortgage rates are a key problem in today's housing market, as they deter both buyers and sellers from making deals. Rates dropping to 5%-6% would make the housing market "explode," but even a 6.5% 30-year mortgage rate would be enough to make the housing market "very strong," Reffkin said.
Persons: , Glenn Kelman, That's, Robert Reffkin, Reffkin, Freddie Mac, Redfin's Kelman, Kelman, Compass's Reffkin Organizations: Service, Business, National Association of Realtors, CNBC Locations: Reffkin, Texas, Florida
Middle managers are becoming an endangered species in Corporate America, with some companies viewing the role as obsolete , writes Business Insider's Lindsay Dodgson. Remote work, tech efficiencies, and a general push to cut costs have contributed to middle managers' demise. It's a strategy Corporate America, particularly Big Tech, deployed in 2023. The "year of efficiency," as Mark Zuckerberg dubbed it, was all about flattening organizations, and middle managers were the ones getting squished . The death of middle managers could also fuel the current dismantling of another cohort: the middle class .
Persons: , Brooks Kraft, Insider's Lindsay Dodgson, millennials, Gen Zers haven't, Robyn Phelps, they're, Mark Zuckerberg, Gen, Jeffrey Gundlach, we're, Blackstone, Abanti Chowdhury, Jensen Huang, Hopper, Blackwell, Lilit, Tyler Le, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, George Glover Organizations: Service, Business, Brooks Kraft LLC, Getty, America, Big Tech, Citi, Street Journal, KKR, Meta, Google, Nvidia, Paragon Intel, National Association of Realtors, FAA Locations: Corporate America, millennials, New York, London
Washington CNN —Mortgage rates declined for the third consecutive week in a shred of good news for Americans dealing with a still-tough housing market. Mortgage rates track the benchmark 10-year US Treasury yield, which moves in anticipation of the Federal Reserve’s decisions on interest rates. Stubbornly high inflation this year has dashed hopes that the Fed could cut interest rates in the spring or in the summer. Some Fed officials said earlier this week that they likely won’t raise interest rates again and a few have said they expect to cut rates this year. With mortgage rates still elevated, some homeowners are deciding to stay put.
Persons: Freddie Mac, inflation’s cooldown, there’s, homebuyers, ” Sam Khater, Freddie Mac’s, That’s, ” Lawrence Yun, , Yun, Joe Biden Organizations: Washington CNN —, Treasury, National Association of Realtors, Fed, Housing Locations: San Diego, Chicago, Detroit
Sales of homes priced below $100,000 fell 7.1% year over year, while sales of those priced over $1 million jumped 40%. The median price of an existing home sold in April was $407,600, an increase of 5.7% year over year. The median price in the Northeast was $458,500, up 8.5% year over year. The median price in the West was $629,600, up 9.3% from April 2023. Correction: The supply of homes priced at more than $1 million was up 34% year over year.
Persons: Lawrence Yun, Yun Organizations: National Association of Realtors, Realtors Locations: Issaquah Highlands, Issaquah , Washington, US, Midwest, West
Buying a house gets even more expensive
  + stars: | 2024-05-22 | by ( Geoff Weiss | ) www.businessinsider.com   time to read: +1 min
Home prices climbed to record highs for April, according to the National Association of Realtors. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementHome prices reached record highs in April, a new report from the National Association of Realtors found. The median price of an existing home climbed 5.7% year over year in April to $407,600, keeping pressure on prospective homeowners already dealing with high interest rates. The association said it's the 10th month in a row of year-over-year increases and the highest-ever tally for the month of April.
Persons: , it's Organizations: National Association of Realtors, Service, Business
Washington CNN —Rising US home prices are heightening the housing affordability crisis for Americans, especially first-time buyers. Housing affordability takes into account prices, household incomes and mortgage rates. Sales fell in April for the second month in a row as mortgage rates surged past 7%. Mortgage rates track the yield on the 10-year US Treasury note, which moves in anticipation of the Fed’s decisions on interest rates. Low housing affordability typically crimps demand.
Persons: it’s, , Lawrence Yun, Freddie Mac Organizations: Washington CNN —, National Association of Realtors, Global, NAR, Federal Reserve, Fed, Treasury Locations: San Diego, Chicago, Detroit, America,
A "For Rent" sign is posted near a home in Houston, Texas, on Feb. 7, 2022. Many Americans are sitting on low-interest-rate mortgages and could face a decision when it's time to move: sell or rent out their existing property. By comparison, the average 30-year fixed-rate mortgage was around 7% in May. That makes qualifying for a second mortgage harder, especially without tapping equity from your original property, Gumbinger said. Plus, if you're using rental income to qualify for the second mortgage, lenders typically only consider 75% of your proceeds, Gumbinger said.
Persons: Keith Gumbinger, Homeownership, Gumbinger, homebuyers Organizations: Federal Housing Finance Agency, Finance, Trump, National Association of Realtors Locations: Houston , Texas
Read previewAfter years of sellers calling the shots in the real-estate market, the balance may finally be tipping towards homebuyers in some US cities. But with fewer prospective buyers in the market for homes, home prices are now declining in several cities across the US. Related storiesThe trend, has led many sellers to lower their prices — though prices still remain significantly higher than a decade ago. As homes linger on the market, sellers are reducing their prices to draw buyers, she added. "It's definitely a buyers' market right now," Boatright said.
Persons: , Nicole Marburger, Austin, Marburger, homebuyers, Sellers, San Antonio —, Mercy, Boatright, I've Organizations: Service, homebuyers, Business, National Association of Realtors, Lone Star State, Austin, Austin and New Braunfels, Real, Hunters Locations: United States, San Antonio, New Braunfels, — New Braunfels, Austin, Austin and New, Texas, Braunfels, homebuyers
Property values tend to rise over time, but they've grown especially fast in recent years. Higher home prices and elevated mortgage rates make renting cheaper in top US cities. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . In recent years, tenants have seen firsthand that the same is true of those who own houses — or apartment complexes.
Persons: Organizations: Service, National Association of Realtors
Wealthy Americans are starting to spend more carefully
  + stars: | 2024-05-19 | by ( Bryan Mena | ) edition.cnn.com   time to read: +7 min
A robust stock market coupled with rising home values have boosted Americans’ wealth from 2019 through 2022, according to a Federal Reserve report on household finances. There’s been some evidence of wealthy Americans growing cautious in the latest round of company earnings results. Federal Reserve officials Michael Barr, Christopher Waller, Philip Jefferson and Raphael Bostic deliver remarks. Federal Reserve officials Christopher Waller, John Williams, Raphael Bostic, Michael Barr, Loretta Mester and Susan Collins deliver remarks. The Federal Reserve release minutes from its May policymaking meeting.
Persons: they’ve, , ” Nanette Abuhoff Jacobson, There’s, ” Jonathan Akeroyd, Moet, The Beverly Hilton, Michael Kovac, LVMH Moët Hennessy Louis Vuitton, , Jacobson, ’ Ariel Barnes, Barnes, ” Barnes, Baby Boomer, Xers, Matt Egan, Read, Michael Barr, Christopher Waller, Philip Jefferson, Raphael Bostic, John Williams, Loretta Mester, Susan Collins, Robin, Ralph Lauren, Booz Allen Hamilton, Buckle Organizations: CNN Business, Bell, Washington CNN, Federal, Fed, Hartford Funds, CNN, Burberry, The Beverly, The Beverly Hilton Hotel, Walmart, Royal Caribbean Cruises, Jackson State University, Federal Reserve Bank of New, Palo Alto Networks, Urban Outfitters, NVIDIA, National Statistics, National Association of Realtors, Reserve, Intuit, US Labor Department, Chicago Fed, Global, US Commerce Department, Atlanta Fed, Booz, University of Michigan Locations: Washington, British, Americas, Beverly Hills , California, Jackson , Mississippi, Federal Reserve Bank of New York, Palo, Ross, Burlington
She placed a winning bid for 5,555 euros, and with taxes and fees, spent 5,900 euros (roughly $6,200) to secure the property. Mickey Todiwala | CNBC Make ItMeredith Tabbone knocked down several walls to open up her kitchen, dining and living areas. Mickey Todiwala | CNBC Make ItDespite "4 million moments of frustration" over the years, Tabbone says the expense has been well worth it. Mickey Todiwala | CNBC Make ItThe houses were sold for 1 euro each but also incurred a 500-euro realtors fee and 2,800-euro deed. Mickey Todiwala | CNBC Make It
Persons: Meredith Tabbone, Rubia Daniels, Tabbone, she's, Mickey Todiwala, She's, Daniels, It's, Rubia Daniels Rubia Daniels Organizations: CNBC, realtors Locations: Sicily, Chicago, Sambuca di Sicilia, Sambuca, Italy, Berkeley , California, Berkeley, Calif, Mussomeli
Read previewThis as-told-to essay is based on a conversation with Eric Newland, a 56-year-old retired Medical Service Corps officer who is now a real-estate agent in New Braunfels, Texas. The city is about 32 miles northeast of San Antonio and roughly 40 miles southwest of Austin, within the Texas Triangle." The city is growing but retaining its identityDespite its growth, the city maintains its small-town charm, with quaint shops and restaurants. Moving towards San Antonio and Austin, the city begins to feel like a larger town with several strip malls and new homes. An upside is that there have been a lot of new businesses, more income to the city, and even live music.
Persons: , Eric Newland, Fort Sam Houston, I've, Braunfels, Newland, Eric Newland There's Organizations: Service, Medical Service, Business, Fort, Texas, Austin, Army, Realtors, Railroad Locations: New Braunfels , Texas, Braunfels, New Braunfels, Fort Sam, Iraq, Afghanistan, Korea, Germany, San Antonio, Austin, Dallas, Houston, there's, Wurstfest, United States, Schlitterbahn, California, Texas, San Diego, Angeles
If homes seem more expensive than ever, it's because they are — even after adjusting for inflation. U.S. homebuyers are spending more than double to buy a home now than they were in 1965, when the median home price was $20,200, according to U.S. Census data. In 2024 dollars, that works out to roughly $202,215, which is less than half of the $420,800 that a home costs today, per U.S. Census data. With homes selling for a median price of $20,200, a median earner would spend just under three times their income on a home. In 2024, the median annual household income is estimated to be $78,171, according to data consulting firm Motio Research.
Persons: homebuyers Organizations: Motio Research, National Association of Realtors, CNBC Locations: U.S
Home prices are on the rise again after declining for the second half of 2023, with 93% of all major metro areas posting gains so far in 2024, a National Association of Realtors report reveals. Roughly one-third of the 223 major metro markets NAR examined had a double-digit price increase in the first three months of 2024. The surge in prices is largely due to pent-up demand for homes, says Lawrence Yun, NAR's chief economist. "In the current market, rising prices are the direct result of insufficient housing supply not meeting the full demand," Yun says. Here are the 10 metro areas where home prices have increased the most so far in 2024.
Persons: Lawrence Yun, Yun Organizations: National Association of Realtors, NAR Locations: U.S
Price growth was partially offset by lower mortgage costs, as 30-year fixed rates hung between 6.6% and 6.94% in the first quarter. That's a small win for buyers, considering that rates peaked at 7.8% late last year and were above 7% until mid-December. At the first sight of lower mortgage rates, that widespread price appreciation has returned — much to the chagrin of buyers who thought they were going to catch a break. Conversely, prices fell outright only in 15 cities, versus 32 in the fourth quarter of 2023. 15 cities where home prices are downBelow are those 15 US real-estate markets where single-family home prices fell from last year.
Persons: , Lawrence Yun Organizations: Service, National Association of Realtors, Business, NAR Locations: That's
Americans say it’s the worst time ever to buy a home
  + stars: | 2024-05-09 | by ( Matt Egan | ) edition.cnn.com   time to read: +4 min
Just 21% say it’s a good time to buy a house, according to a Gallup survey released Thursday. An overwhelming majority of Americans — 76% — say it’s a bad time to buy a house. Young Americans seeking to buy a home have been confronted by a toxic one-two punch of record-high home prices and painful mortgage rates. For context, in April 2019, the final reading before Covid-19, 61% of Americans polled by Gallup said it was a good time to buy a house. Mortgage rates top 7%Americans started to sour on the housing market as mortgage rates spiked and home prices surged after Covid.
Persons: ” Jeffrey Jones, White, , Lawrence Yun, ” Yun Organizations: New, New York CNN, Gallup, Young, homebuyers, National Association of Realtors, Federal Reserve, NAR Locations: New York, That’s
Home prices are falling in parts of Florida and Texas even as they soar nationally. Sale prices only dropped in 15 of 221 metro areas last quarter, and five were in those states. High prices, steeper mortgage rates, and supply catching up with demand help explain the declines. AdvertisementHome prices are falling in parts of Florida and Texas as buyers tap out and supply catches up with demand. AdvertisementThe takeaway is that a combination of sky-high prices, steeper mortgage rates and other costs like insurance squeezing buyers' budgets, and supply catching up with demand has resulted in prices flatlining or falling in parts of Florida and Texas, bucking the national trend.
Persons: , Fort Myers, Redfin, Coral Organizations: Service, National Association of Realtors, Fort, Fort Walton, Austin, Rock, NAR, Panama City, Homeowners, Federal Locations: Florida, Texas, Panama City, Crestview, Fort, San Antonio, New Braunfels, Lac , Wisconsin, Illinois, Kankakee, Rockford, Champaign, Urbana, Austin, Panama
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