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☆ Mortgage rates plummet by largest amount in a year
▼ + stars: | 2023-11-09 | by ( Manav Tanneeru | Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Mortgage rates tumbled this week in the biggest one-week drop since last November. “Many consumers are feeling strained by the high cost of living, so unless mortgage rates decrease significantly, the housing market will remain stagnant.”The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. But while mortgage rates remain relatively high, the difference between rates now and what they were a year ago has narrowed, said Lisa Sturtevant, chief economist at Bright Multiple Listing Service. “We are in a new era for mortgage rates, where prospective homebuyers can expect rates to settle above 6%,” said Sturtevant.

Persons: It’s, Freddie Mac, ”, Sam Khater, Freddie Mac’s, Joel Kan, Jiayi Xu, Xu, Realtor.com, Lisa Sturtevant, Sturtevant Organizations: DC CNN —, “, Treasury, Mortgage, Association Locations: Washington

☆ The rise of the McMansion: 11 charts show just how much bigger and fancier American houses have gotten since the 1970s
▼ + stars: | 2023-11-07 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +5 min

Data on the characteristics of newly constructed homes for 2022, released in June by the Census Bureau, revealed homes continued to get bigger after shrinking from 2015 to 2020. A higher share of four-bedroom houses were built, most constructed with air conditioning, and more houses are doing away with fireplaces. In 2022, nearly half of all homes constructed had four bedrooms, compared to two-bedroom homes at 9%. Houses have remained relatively the same height, with a slightly higher percentage of one-story homes and slightly fewer percentage of two-story homes compared to 10 years ago. The median are now comes in at around 2,300 square feet for houses built in 2022.

Persons: Goldman Sachs, —, Glenn Kelman, Realtor.com, it's, Brick Organizations: Service, Census, Myrtle Locations: Conway, Myrtle Beach, South Carolina, Las Vegas, Henderson, Paradise, Stockton , CA

☆ Minnesotans are the least stressed out people in America
▼ + stars: | 2023-10-22 | by ( Celia Fernandez | ) www.cnbc.com time to read: +1 min

From the rollercoaster housing market or to the rising costs of groceries, it seems like everyone has reason to be a little stressed out. Earlier this year, WalletHub ranked America's "most and least stressed" states. Mississippi ranked as the most stressed out state in the U.S. It had the highest rate of money-related stress. On the opposite end of the spectrum, are the least stressed states which include Utah, Connecticut and South Dakota.

Persons: WalletHub Organizations: U.S . Census Bureau, of Labor Statistics, for Disease Control, Mississippi, CNBC, South Dakota . Locations: U.S, Utah , Connecticut, South Dakota, South Dakota . Places, Hawaii, Florida

☆ These 10 states are home to the most stressed out people in America—New York and California didn't make the list
▼ + stars: | 2023-10-19 | by ( Celia Fernandez | ) www.cnbc.com time to read: +1 min

Earlier this year, WalletHub released a ranking of the "most and least stressed" states in America. Some of the most expensive states to live in, New York and California, didn't even make the top 10 list. New York landed in the 20th spot while California came in 23rd. Folks in South Dakota get the most amount of hours of sleep per night, while Pennsylvanians get the least. California and Nevada are the top two states for job security and Ohio offers the most affordable housing.

Persons: WalletHub, didn't Organizations: U.S . Census Bureau, of Labor Statistics, for Disease Control, Ohio Locations: America, U.S, New York, California, Texas , Alaska, North Dakota , Wyoming, Alaska, South Dakota, Nevada

☆ Americans now need to earn a record $115,000 to afford a typical home - up more than 50% since the pandemic
▼ + stars: | 2023-10-17 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Most US households are $40,000 shy of the needed income, with first-time buyers impacted the hardest. Surging costs and skyrocketing mortgage rates mean that Americans need to make $114,627 a year to purchase a typical property, the highest income level on record. This comes as mortgage rates were swung upwards by a tighter Federal Reserve, which sharply increased interest rates to combat inflation. "In a homebuyer's ideal world, rising mortgage rates would push demand and home prices down enough to make up for high interest payments. Average American households do not earn enough to meet these rising costs, and are about $40,000 shy of the needed income level, when looking at last year's data.

Persons: Redfin, —, that's, Chen Zhao, Zhao, Goldman Sachs Organizations: Service, Reserve

☆ Housing has never been this unaffordable - and home prices are only going to keep rising, Goldman Sachs says
▼ + stars: | 2023-10-14 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Housing is even more unaffordable now than ahead of the 2008 crash, according to Goldman Sachs. But the bank expects limited supply and borrowers being "locked in" at lower mortgage rates to drive prices even higher. "We continue to expect home prices to rise at a slow pace," strategists said in a research note. AdvertisementAdvertisementDon't expect US house prices to slip anytime soon despite record-high unaffordability levels, according to Goldman Sachs. AdvertisementAdvertisementGoldman Sachs noted that one benefit of the current tightness in the housing market is that there won't be a repeat of 2008, when home prices fell around 20% from their peak in the wake of the financial crisis.

Persons: Goldman Sachs, —, Goldman's, Lofti Karoui, that's, Freddie Mac Organizations: Service, National Association of Realtors, Biden Administration, Federal Reserve

☆ This chart shows how housing affordability has plunged across the US
▼ + stars: | 2023-10-13 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

US housing affordability has sharply eroded over the last several years. Moody's strategists broke down the repercussions of unaffordability and illustrated it in the chart below. In the last decade, Moody's said, Florida, Idaho, and Nevada saw the steepest declines in affordability, largely fueled by an influx of new residents and housing demand. AdvertisementAdvertisementMeanwhile, extreme weather events, construction inflation, and excessive litigation, Moody's strategists said, have made insurance more expensive. These headwinds to housing market affordability, in Moody's view, will ultimately have negative implications for credit.

Persons: —, Moody's Organizations: Service, National Association of Realtors, Moody's, Insurance, Institute Locations: Moody's, Oregon, Washington , Colorado , Florida , Massachusetts, New York, Hawaii, California, Florida , Idaho, Nevada, Florida, Arizona , California , Colorado, Utah

☆ The housing market is brutal. These 6 charts show just how bad things are for buyers.
▼ + stars: | 2023-09-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

Record-high monthly mortgage payments and low home inventory have made the housing market historically unaffordable. Below are 6 charts illustrate how difficult the current housing market is for buyers. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyAdvertisementAdvertisementThe housing market has never before been this unaffordable for Americans. These six charts from real estate group Redfin show just how brutal it is for people navigating the current market. AdvertisementAdvertisementSeparate National Association of Realtors' data published last month showed that home prices saw a record increase in over half of the US housing market over the past quarter.

Persons: it's Organizations: Service, Federal Reserve, Redfin, metros, Association of Realtors Locations: Wall, Silicon, San Jose, Milwaukee, Atlanta, Las Vegas, Newark , NJ, Seattle, San Antonio ,, San Jose ,

☆ The housing market is stuck: Americans can't afford homes, investors aren't buying property, and economists see little relief ahead
▼ + stars: | 2023-09-02 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Low inventory, high mortgage rates, and high prices have created a difficult housing market. Low inventory, high mortgage rates, and high prices have put the housing market into a state of unaffordability that's weighing on house hunters, current homeowners, and even real estate investors. AdvertisementAdvertisementAs things stand, roughly one-quarter of homeowners are sitting on mortgage rates of less than 3%, near the highest on record. The seasonally-adjusted data showed prices climbed in every single city in the group's 20-city index. Otherwise said, half the cities in our sample now sit at all-time high prices."

Persons: we've, Craig J, Lazzara, DJI, Daryl Fairweather, haven't, Shay Stein, Realtor.com, Fannie Mae, Bill McBride Organizations: Homeowners, Service Locations: Wall, Silicon, Realtor.com

☆ The Fed may be about to crash the plane, but the focus should be on profits
▼ + stars: | 2023-07-30 | by ( Jim Cramer | ) www.cnbc.com time to read: +5 min

No matter what the Fed seems to do, it's become a game of whack-a-mole — whether it be wages, home prices, creeping commodities, or Fed subsidies that are about to roar in. The idea that the Fed is driving the price of a house to further unaffordability has taken hold. The yield curve can't be wrong, so it remains a matter of time before Fed Chair Jerome Powell crashes the plane — and let's not forget that lurking, lurking election. And the multiple on those profits is going up not because of hideous expansion, but because of a triumph over the pandemic. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

Persons: it's, Jerome Powell, let's, Jim Cramer's, Jim Cramer, Jim, Al Drago Organizations: Federal Reserve, Procter, Gamble, Treasury, Jim Cramer's Charitable, CNBC, US Federal Reserve, Market, Bloomberg, Getty Locations: Weimar Republic, Washington , DC

And while Biden’s growing list of Republican challengers differ on many issues, when it comes to the economy, they’re in agreement that Biden failed. In addition, a tight labor market has left many small businesses with ongoing hiring difficulties. Here’s what Biden can take credit for – and what he can’t. In other aspects, the labor market certainly had a boost from Biden’s fiscal policies. Since then, the American workforce has consistently outpaced the pre-pandemic workforce.

Persons: Joe Biden, “, ” Biden, Biden, Jerome Powell, ”, Ben Bernanke, Olivier Blanchard, It’s, it’s, let’s, That’s Organizations: DC CNN, Wednesday, Federal Reserve, –, Congress, American, Manufacturers, Treasury Department, P Global, Institute for Supply Management, Bureau of Labor Statistics, Republicans, Fed, International Monetary Fund, Brookings Institution, Biden, European Central Bank, Federal Reserve Bank of New Locations: Washington, Chicago, American, United States, Ukraine, Federal Reserve Bank of New York

☆ Homebuyers on a budget should look for a house in these 15 smaller markets where the average down payment for a starter home is $50,000 or less
▼ + stars: | 2023-06-13 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Affordable starter homes that were once ubiquitous can now be rare finds. Here are 15 towns where the average down payment on a starter home is $50,000 or less. The firm found that the share of starter homes built has fallen from about 70% in the 1940s to just 7% in the early 2020s. Unlike in previous decades, homebuyers can't count on finding affordable starter homes in so-called "secondary" cities that neighbor larger metropolitan areas. 15 towns with relatively affordable homesThough prospects for first-time homebuyers seem grim, it's worth noting that starter homes in smaller secondary cities haven't been completely picked over yet.

Persons: it's, they're, It's, Alexandra Ciuntu, Point2, homebuyers, Ciuntu, unaffordability Organizations: Boomers Locations: Point2

☆ Manhattan median rents hit another high in March
▼ + stars: | 2023-04-13 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

A one bedroom apartment had a median rent of $4,150, up 9.6% from last year, while a two bedroom apartment had a median rent of $5,680, up 18.3% from a year ago. A studio apartment rents for a median price of $3,190, up 16% from last year. “It isn’t a rocket ship,” he said of median rents. “It is just creeping higher and every so often it creeps high enough to reach a new high.”The opposite of rising rents is not necessarily falling rents, it is stabilizing rents, Miller said. New leases in March were up 15.4% from last year, according to the report, and leasing activity jumped 20.5% from February.

☆ Silicon Valley Bank's failure might just spark a faster housing rebound
▼ + stars: | 2023-03-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Now let's see how the fast-moving banking turbulence impacts the highly sensitive US housing market. "It seems that home sales activity has bottomed out, and 2023 will be the turning point for the housing market," she said. While her long-term outlook on a housing rebound hasn't changed, mortgage rates look set to fall faster than previously expected, which could allow more Americans to enter the housing market. And looking ahead to the Fed's meeting next week, Evangelou expects policymakers to moderate their aggressive policy. In other news:The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020.

☆ Mortgage rates plunge in wake of bank failures
▼ + stars: | 2023-03-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Mortgage rates dropped this week in the wake of several bank failures, reversing course after rising half a percentage point over the past month. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The events of the past week, ranging from strong economic indicators to unforeseen events in banking, sent mortgage rates down. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “This year, both prices and mortgage rates are higher than a year ago, resulting in a 50% increase in housing costs for the typical US home.

☆ This Isn't What Millennial Middle Age Was Supposed to Look Like - The New York Times
▼ + stars: | 2023-03-14 | by ( Jessica Grose | ) www.nytimes.com time to read: +25 min

Things have been difficult for her family, she says, but one thing she isn’t worried about: a midlife crisis, looming just over the horizon. One of our questions was about whether they had experienced a midlife crisis and how they would define the term. Many people said they felt they couldn’t be having a midlife crisis, because there was no bourgeois numbness to rebel against. “Who has midlife crisis money?”The traditional midlife crisis, as presented in popular culture, at least, unfolds amid suburban ennui. We just increase our Lexapro.”Was the midlife crisis ever even real?

☆ Morgan Stanley's Jonas calls Ferrari his top pick, replacing Tesla
▼ + stars: | 2023-03-06 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Morgan Stanley has replaced Tesla as its firm-wide top pick with Ferrari . Analyst Adam Jonas increased Ferrari's price target by $30 to $310, implying the stock could rally 14.2% over the next year. Nearly half of the increase to Ferrari's price target stems from foreign exchange, as the dollar's recent fall against the euro helped the Italy-based company, Jonas said. To be sure, Jonas still rates Tesla as overweight and has a $220 price target on the stock, implying upside of 11.2% from Friday's close. RACE TSLA YTD mountain Ferrari and Tesla — CNBC's Michael Bloom contributed to this report.

☆ The CIO of a $9 billion real-estate investing firm explains why the US will avoid a 2008-sized crash — and says it's a good time to buy in correction-hit cities like Austin
▼ + stars: | 2023-02-27 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +5 min

Even cities that were hit the hardest, such as Austin, are starting to come back from their lows. Macdowell explains why these types of correction-hit cities now offer intriguing buying opportunities. "I would take the view that in the right property markets, this would actually be a pretty good time to buy," he said. "On the real estate value side — in certain markets, certain neighborhoods — given the lack of inventory, prices will be well supported from where they are today." Although prices in the city have already corrected from their peaks, Macdowell believes that rental rates and growth will remain strong due to local housing demand.

☆ 10 smart real-estate investing strategies to follow now as nationwide home prices begin falling, according to a housing industry guru and investor
▼ + stars: | 2023-02-07 | by ( Lisa Kailai Han | William Edwards | ) www.businessinsider.com time to read: +7 min

BiggerPockets' Dave Meyer predicts a year ripe with uncertainty for the real estate sector. Real estate investor and expert Dave Meyer has good news: national home prices are due for a decline in 2023. But alongside the coming correction, Meyer warned investors that the real estate sector will also include its fair share of obstacles and volatility this year. What's more, there's no one-size-fits-all approach to real estate investing, since housing markets are highly diverged between regions. Homebuyers need to stay calmIn addition to those three pieces of advice, Meyer shared seven more real estate investing strategies to consider this year in his 2023 real estate market outlook report.

☆ Here's why the housing market could see more action this year - and what it means for affordability
▼ + stars: | 2023-01-30 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Now — into the housing market we go. Nadia Evangelou, senior economist for the NAR, told me recently the housing market could turn around in 2023, but unaffordability would remain a prevailing theme. In other news:People sit outside the New York Stock Exchange (NYSE) in New York City, U.S., September 15, 2016. Elon Musk said he's worried about the Fed "crushing" the value of the entire stock market. The current uncertainty in the housing market can be paralyzing for investors, but there's still opportunities to make money, he explained.

☆ Blackstone's real-estate strategy, laid out in a leaked transcript, sets the stage for tenant battles over evictions and rising rents
▼ + stars: | 2023-01-19 | by ( Rebecca Ungarino | Alex Nicoll | ) www.businessinsider.com time to read: +9 min

The major real-estate investor Blackstone is playing defense as tenants scrutinize its policies. This week, tenants addressed Blackstone and an investor, UC Investments, to raise concerns. A transcript of an executive's remarks, obtained by Insider, sheds light on Blackstone's strategy. It is Blackstone, the New York-based investment giant that has become the world's largest real-estate investor. Vik Sawhney, Blackstone's chief administrative officer and global head of institutional client solutions, introduced Meghji, according to the transcript.

On the bright side, the very same rate hikes have resulted in much higher yields on savings accounts. How to pick between high-yield savings accounts and CDsHigh-yield savings accounts High-yield savings accounts grant you the advantages of accessibility and liquidity. When it makes sense, you can always combine high-yield savings accounts and CDs to maximize your down payment saving strategy. You get the best of both worlds — the flexibility of a high-yield savings account and the security of a CD. Fortunately, savings rates have also increased, making it a little easier to save for a down payment.

☆ Tesla shares tumble following deliveries report
▼ + stars: | 2023-01-03 | by ( Ashley Capoot | ) www.nbcnews.com time to read: +3 min

Shares of Tesla dropped 13% on Tuesday morning, a day after the electric auto maker reported fourth-quarter vehicle production and delivery numbers for 2022. The company reported 405,278 total deliveries for the quarter and 1.31 million total deliveries for the year. According to a consensus of analysts’ estimates compiled by FactSet, as of Dec. 31, 2022, Wall Street was expecting Tesla to report around 427,000 deliveries for the final quarter of the year. Those more recent estimates were in line with a company-compiled consensus distributed by Tesla investor relations Vice President Martin Viecha. Some Wall Street analysts think Tesla’s deliveries miss spells trouble for the electric vehicle maker, but others see a buying opportunity for the company in 2023.

☆ Tesla shares tumble 10% following deliveries report
▼ + stars: | 2023-01-03 | by ( Ashley Capoot | ) www.cnbc.com time to read: +3 min

Shares of Tesla dropped 10% on Tuesday morning, a day after the electric auto maker reported fourth-quarter vehicle production and delivery numbers for 2022. The company reported 405,278 total deliveries for the quarter and 1.31 million total deliveries for the year. According to a consensus of analysts' estimates compiled by FactSet, as of Dec. 31, 2022, Wall Street was expecting Tesla to report around 427,000 deliveries for the final quarter of the year. Some Wall Street analysts think Tesla's deliveries miss spells trouble for the electric vehicle maker, but others see a buying opportunity for the company in 2023. "We believe key debates from here will be on whether vehicle deliveries can reaccelerate, margins and Tesla's brand," the analysts said.

☆ Top analyst cuts Tesla price target while projecting it will 'widen its lead' in EVs
▼ + stars: | 2022-12-29 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

Morgan Stanley's Adam Jonas cut his price target on Tesla to $250 per share from $330, citing weaker demand for electric vehicles, but kept his overweight weighting on the stock. Tesla's stock is down 68% year to date, and 42% in December alone. Tesla appears to be responding to the weaker demand by slowing the rollout of its cars. However, the weaker market for electric vehicles is a bigger threat to Tesla's competitors than Musk's company, Jonas said. "On a relative basis, the reiteration of our OW rating must be seen vs. more challenged EV-related peers such as EW-rated Fisker (FSR), UW-rated Lucid (LCID), and UW-rated QuantumScape (QS)," Jonas wrote.

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