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☆ U.S. consumer confidence at four-month low; house price growth slows
▼ + stars: | 2022-11-29 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

The labor market has remained resilient despite the Federal Reserve's stiff interest rate increases, helping to keep consumer spending and the overall economy afloat. "That tectonic shift in consumer confidence from inflation worries to job concerns is coming though." The Conference Board's consumer confidence index fell to 100.2, the lowest reading since July, from 102.2 in October. Though house prices have came off the record highs reached during the COVID-19 pandemic-driven housing market boom, they remain significantly high. A third report from the Federal Housing Finance Agency showed house prices increased 11.0% in the 12 months through September after advancing 12.0% in August.

☆ U.S. Government to Backstop Mortgages Above $1 Million Mark for First Time
▼ + stars: | 2022-11-29 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

WASHINGTON—The federal government is about to backstop mortgages of more than $1 million for the first time, a reflection of the rapid appreciation in home prices nationally over the past few years even as the mortgage market has recently cooled. The maximum size of home-mortgage loans eligible for backing by Fannie Mae and Freddie Mac will rise to $1,089,300 next year in high-cost markets, such as parts of California and New York, from $970,800 this year, the Federal Housing Finance Agency said Tuesday.

☆ U.S. house annual prices slow again in September
▼ + stars: | 2022-11-29 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Nov 29 (Reuters) - U.S. single-family home prices slowed further in September as higher mortgage rates eroded demand, closely watched surveys showed on Tuesday. Monthly house prices fell in July for the first time since late 2018. House prices rose 10.6% year-on-year in September, slowing from August's increase of 12.9%. The 30-year fixed mortgage rate breached 7% in October for the first time since 2002, data from mortgage finance agency Freddie Mac showed. Tight supply will, however, likely keep a floor under house prices.

☆ US government entities Fannie Mae and Freddie Mac were just cleared to purchase mortgages of over $1 million for the first time because home prices are still so high
▼ + stars: | 2022-11-29 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +3 min

Fannie Mae and Freddie Mac help make mortgages available by purchasing them from lenders. The limit will top $1 million for the first time in 2023, reflecting a new norm in US housing. Fannie and Freddie are the largest buyers of US home mortgages and are credited with providing constant liquidity in the housing market through their purchases, even during downturns. Their scope in residential markets is capped by the so-called conforming loan limit, which per a 2008 law is set in accordance to changes in home prices. Outside the priciest areas of the country — which include areas around New York, Washington, DC, and coastal California — the conforming loan limit will also rise by 12.2%, to $726,200.

☆ U.S. consumer confidence at four-month low; house price inflation slows
▼ + stars: | 2022-11-29 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

"However, any potential recession could be short and shallow given the tight labor market and the hint that layoffs may not be as bad as feared." The Conference Board's consumer confidence index fell to 100.2, the lowest reading since July, from 102.2 in October. Lower-income households have borne the brunt of inflation that, before October, was marked by annual consumer prices increasing at rates not seen since the early 1980s. Though house prices have came off the record highs reached during the COVID-19 pandemic-driven housing market boom, they remain significantly high. Tight supply will, however, likely keep a floor under house prices.

☆ High home prices push Fannie Mae and Freddie Mac to back loans of more than $1 million
▼ + stars: | 2022-11-29 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

As a result, the baseline conforming loan limit for 2023 will be $726,200, up $79,000 from this year’s limit of $647,200. Higher-cost areas will have a new loan limit of $1,089,300, or up to 150% of the baseline loan limit. Mortgages above these loan limits are considered “non-conforming” or “jumbo” mortgages, and typically come with higher interest rates. The baseline loan limit is the highest loan amount – not the purchase price – for a one-unit purchase. The law establishes the maximum loan limit in high-cost areas as a multiple of the area’s median home value, up to a maximum of 150% of the baseline loan limit.

The SEC's whistleblower program was created as part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, a law passed in response to the 2008 financial crisis. Under the law, eligible whistleblowers can receive a cash award of between 10% and 30% of any monetary sanctions collected above $1 million. Hong provided further documentary evidence, helping FHFA and the U.S. Justice Department secure settlements with RBS for $5.5 billion and $4.9 billion, respectively. Hong sought an award under the SEC's whistleblower program but the commission declared him ineligible because the action against RBS was not taken by the commission itself. Hong's lawyers appealed to the Supreme Court, contending that the SEC is undermining the aim of Congress to incentivize and award whistleblowers by "coordinating enforcement efforts with other agencies and then refusing to pay an award."

Delaware-based realtor Claryssa McEnany was helping a client sell a home earlier this year when she witnessed a blatant example of appraisal bias. How appraisal bias affects Black homeownersTesting done by fair housing groups have shown that McEnany's experience isn't uncommon, and that the impacts of appraisal bias can be costly. How does appraisal bias happen? But creating an appraisal report isn't an exact science. What to do if you think you've experienced appraisal discriminationIf you think you've experienced discrimination in the appraisal process, your first step should be to look at the appraisal report.

☆ Homes in White neighborhoods are being appraised at higher values than in communities of color, new report finds
▼ + stars: | 2022-11-03 | by ( Nicquel Terry Ellis | ) edition.cnn.com time to read: +3 min

CNN —Homes in predominately White neighborhoods are being assessed at twice the value of homes in communities of color with comparable amenities, according to a new report released Wednesday. Some families also had White friends stand in for them during the appraisal to get a higher value. The report, titled “Appraised: The Persistent Evaluation of White Neighborhoods as More Valuable Than Communities of Color,” notes that the racial inequities were exacerbated by the Covid-19 pandemic, which resulted in an unprecedented rise in home values. “Home value inequalities are the result of appraisal practices that elevate White spaces as the most valuable. Howell said the method being used by appraisers gives them the authority to determine a home’s value and what they consider a comparable neighborhood.

☆ Inflation worries hurt U.S. consumer confidence; house prices decelerating
▼ + stars: | 2022-10-25 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

The Conference Board's consumer confidence index fell to 102.5 this month from 107.8 in September. Consumers were also more inclined to buy a house, probably encouraged by a sharp slowdown in house price inflation. On a monthly basis, prices fell 0.9% in August, the second straight monthly drop. Prices fell 0.7% on a monthly basis after decreasing 0.6% in July. It was the first time since March 2011 that monthly prices posted back-to-back declines.

Royal Bank of Scotland signs are seen at a branch of the bank, in London, Britain December 1, 2017. RBS agreed to settle Justice Department and FHFA investigations over its sales of residential mortgage-backed securities in the run-up to the financial crisis. The SEC did not pursue its own action against RBS in this instance. The petition Hong filed on Monday asks the Supreme Court to consider what constitutes an "action" within the SEC's whistleblower incentive program. "The better a whistleblower's information, the larger the sanctions, the larger the whistleblower award, and the greater the self-interested motivation for the SEC to take enforcement actions that it has conveniently placed outside of Dodd-Frank's reach," it added.

☆ US home prices climbed in July, but showed a 'forceful deceleration'
▼ + stars: | 2022-09-27 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

But the market showed signs of cooling as rising mortgage rates pushed more prospective buyers to the sidelines. On a monthly basis, prices fell 0.2% from June, the first month-over-month decrease for the national index since February 2012. Tampa notched the biggest gains, with home prices rising 31.8% in July from the year before. Higher mortgage rates cooled demandThe home price reports highlight the cooling effect of rising mortgage rates. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and mortgage rates rise.

☆ US home prices climbed in July, but showed a ‘forceful deceleration’
▼ + stars: | 2022-09-27 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

☆ Why it's getting even harder to keep a roof over your head
▼ + stars: | 2022-09-22 | by ( Anna Bahney | Cnn Business | ) edition.cnn.com time to read: +6 min

Americans are now spending more than 35% of their median income on monthly principal and interest payments for that newly purchased median-priced home. Historically, Americans spent closer to 25% of median income on payments. Instead, mortgage rates tend to track the yield on the 10-year US Treasury. As investors anticipate the Fed's rate hikes, they often sell government bonds, which sends the yield higher and, with it, mortgage rates. In May, the Biden administration announced a Housing Supply Action Plan to close the affordability gap and ease housing costs.

When it comes to managing your money and planning to reach long-term financial goals, understanding the language is key. This glossary of terms focused on money management, saving, investing, retirement planning, loans, and other areas of personal finance can help you decipher the jargon you're likely to encounter along the way. Conforming mortgage: A mortgage that meets the requirements to be purchased by Fannie Mae or Freddie Mac. JJumbo loan: A mortgage that exceeds the borrowing limit for regular mortgages set by the Federal Housing Finance Agency. USDA mortgage: A mortgage offered by a private bank or lender that's guaranteed by the Department of Agriculture.

According to RenoFi, the average price of a single-family home in the U.S. could reach $382,000 by 2030. For example, the average price of a home in New York City this year is $795,000, but the average price around Albany in Upstate New York is $227,500, according to Redfin trends. It projects that San Francisco will have the highest average home value in the country at a staggering $2,612,484. For example, Betterment doesn't require clients to maintain a minimum investment account balance, but there is a ACH deposit minimum of $10. So if you want to buy a $400,000 home in 2030, you've got 9 years to start saving.

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