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Variable rate mortgages in Canada typically require borrowers to make regular payments in fixed amounts. WHAT IS THE EXTENT OF MORTGAGE AMORTIZATION EXTENSION? Both banks had no variable-rate mortgages with amortizations greater than 30 years prior to the start of rate hikes. If interest rates stay high over the next few years, as the central bank has warned, it raises questions about customers' ability to service bigger than anticipated debt at higher rates during renewals. The big banks said most customers are able to cope with higher interest rates as they had passed a rigorous stress test to handle higher interest rates.
Persons: Royce Mendes, Carolyn Rogers, OSFI, Nivedita Balu, Fergal Smith, Steve Scherer, Denny Thomas, Conor Humphries Organizations: TORONTO, Statistics Canada, Royal Bank of Canada, CIBC, Bank of Nova, National Bank, Bank of Canada, BoC, Thomson Locations: Canada, United States, Bank of Nova Scotia, amortization, Toronto, Ottawa
A recent analysis by Zillow Home Loans found that nearly 45% of borrowers purchased mortgage points, also known as discount points, in 2022 to reduce their monthly payments. That compares to 29% of borrowers who bought mortgage points in 2021, 28% in 2020 and 27% in 2019. “We started seeing more buyers purchasing discount points as soon as mortgage rates ticked up in 2022,” says Nicole Bachaud, senior economist for Zillow in Seattle. The combination of high home prices and high mortgage rates contributes to the current appeal of paying discount points. Cash-out refinance borrowers were also more likely than other borrowers to buy mortgage points.
Persons: Michele Lerner, , , Nicole Bachaud, we’re, Chuck Cavanaugh, ” Cavanaugh, Mike Salierno, ” Salierno, Cavanaugh, ” Bachaud, Cash, Bachaud Organizations: Zillow, Citibank, Northwestern Mutual Locations: Seattle, New York City, Clearwater, Fla
Barbie, Her House and the American Dream
  + stars: | 2023-06-23 | by ( Anna Kodé | ) www.nytimes.com   time to read: +17 min
Barbie, Her House and the American Dream Take a stop-motion journey with the young, single homeowner of the Dreamhouse. Today according to Mattel, the toymaker behind the iconic doll, a new Barbie Dreamhouse is sold every two minutes. A vintage Barbie doll puts a record on, dances and sits down. He came to Barbie’s house.”Now, Ms. Dalsing lives in Saint Joseph, Mo., in what she called her own dream house. “In the early 2000s, single women were the fastest growing group of home buyers in the United States,” she said.
Persons: Ken isn’t, Barbara Millicent Roberts, Roberts —, Barbie, ” Ruth Handler, Ken, Handler’s, , Barbie’s Dreamhouse, , Deborah Dinner, wasn’t, weren’t, Barbie’s, Felix Burrichter, “ Barbie Dreamhouse, ” Barbie’s, Sue Dalsing, Dalsing, “ Ken didn’t, , ” It’s, Elliot Handler, Handler, Lisa McKnight, Mattel’s Barbie, Hugh Hefner’s, Helen Gurley Brown’s, , Brown’s, Brown, Young, Tiffany, Barbie —, Houseplants, Burrichter, might’ve, Maddie Bone, Bone, Homer, , Ms, Amy Castro, ” Ms, Castro, Isabelle Roy, , Roy, He’s, Barbie couldn’t, Christie, Kim Culmone, Catherine E, McKinley, Sarah Greenwood, Katie Spencer, Greenwood, Spencer, It’s Organizations: Mattel, New York Times, , Cornell University, Survey, Wisconsin ., Furniture, The Times, Spice, University of Pennsylvania’s School of Social Locations: crave, Britain, Saint Joseph, Mo, Barbie’s, Wisconsin, Levittown, Waldoboro, United States, Canadian, Alberta, Palm Springs
The average US homeowner with a mortgage has less home equity now than 12 months ago. Equity per borrower slipped 1.9% from the same time last year, CoreLogic data shows. It's the first annual decline in homeowner equity since 2012. In total, homeowners with a mortgage cumulatively lost $108.4 billion in home equity since the first quarter of 2022, about a 0.7% drop. On Thursday, the National Association of Realtors said prices for existing homes fell in 3.1% May, the largest annual decline in since late 2011.
Persons: , Edward Seiler Organizations: Service, Associated Press, National Association of Realtors
Pandemic boomtowns like Austin, Texas; Boise, Idaho; and Phoenix are seeing big discounts. Read on for the top 10 cities and how much home prices have declined in the past year. This has led to some robust price cuts, especially in previously hot pandemic boomtowns — like Austin, Texas; Boise, Idaho, and Phoenix — where prices surged and homebuilders have been adding inventory. The company analyzed the median price per square foot in 100 of the largest US metropolitan areas, and considered the change in prices in the year through May. Take Austin, where the median home price has fallen 7.7% since May 2022 but is still $142,751 above the national median of $441,000.
Persons: Realtor.com, , Mark Zandi, There's, Danielle Hale, Austin Organizations: Service, Phoenix, Moody's Locations: Austin , Texas, Boise , Idaho, Myrtle Beach , South Carolina, North Port , Florida, Myrtle Beach
Recent strength in the housing market suggests the US economy may have dodged a recession, according to Carson Group. Housing starts surged nearly 22% in May while building permits also rose, indicating builders are confident about demand. "Housing historically bottomed prior to the end of a recession and has typically led the economy out of one." That's a big deal because weakness — not strength — in housing starts data has historically foreshadowed recessions. Housing starts measure the groundbreaking of a foundation and precedes sales of new homes as well as spending on home goods and appliances.
Persons: , Sonu Varghese, They're, Varghese Organizations: Carson Group, Housing, Service
What is a jumbo mortgage? Do jumbo loans come with jumbo mortgage rates? Many times, jumbo rates are lower than those for conforming loans, in part because the stringent requirements to qualify for a jumbo loan lessen the risk that borrowers will default. Tips to save on a jumbo loanWith some savvy strategies, house hunters in need of a jumbo mortgage can reduce their costs. Chase, for example, offers the highest jumbo limits (up to $9.5 million), which is one of the reasons it is Buy Side’s pick for best jumbo mortgage lender.
Persons: Beth DeCarbo, Fannie Mae, Freddie Mac won’t, Greg McBride, , Jacob Channel, Andy Wagner, Wagner, Bankrate’s McBride, Michael P, aren’t, Lani, , Guy Cecala, ” Cecala Organizations: New, Federal Housing Finance Agency, Government, Jumbo, Nations Lending, ARM, American Mortgage Resource Inc, Inside Mortgage Finance, Bank of America, Chase, Mortgage Finance Locations: Minneapolis, Sacramento, CA, Denver, Boston, San Diego, New York City, Jackson, Chicago, Massachusetts, Wells, Fargo
We're revisiting housing inventory today because it's one of the key sticking points that's keeping home prices elevated and buyers wary. Get this: The housing market today has 39% fewer homes for sale than before the pandemic. Mortgage rates are currently about double what they were in 2021, when ultra-low rates fueled a home-buying boom. That could help influence mortgage rates to go even higher this year. People who are sitting on the sidelines, waiting for mortgage rates to decline, should know that's unlikely to happen in the foreseeable future."
Persons: I'm Phil Rosen, Jerome Powell, Joe Raedle, There's, Powell, Redfin's Chen Zhao, Edward Seiler, Tweet, JIM WATSON, Morgan Stanley, Steve Eisman, Larry Summers, Richard Branson's, Phil Rosen, Max Adams, Hallam Bullock Organizations: realtors, Mortgage Bankers Association, US, Getty, Fed, FedEx, Nvidia, Bloomberg, Treasury, Virgin Galactic Locations: homebuilding, New York, London
Washington, DC CNN —US home building surged in May, climbing 21.7% from April, as low inventory in the existing home market continued to boost interest in new homes. Housing starts, a measure of new home construction, came in far beyond expectations that they would decline by 0.1%, according to data released Tuesday by the Census Bureau. The number of single‐family units rose in May to 1.631 million, above expectations for 1.40 million and above the revised April estimate of 1.34 million. Building permits, which track the number of new housing units granted permits, also rose in May, after dropping in March and April. The National Association of Home Builders/Wells Fargo Housing Market Index gauges market conditions and looks at current sales, buyer traffic and the outlook for sales of new construction homes over the next six months.
Persons: , Robert Dietz, ” Dietz, Alicia Huey Organizations: DC CNN, Housing, Census, National Association of Home Builders, Federal Reserve Locations: Washington, Wells Fargo
Plus, data also suggests solar panels increase a home’s value somewhat when it comes time to sell. Does a new roof increase home value? Does a new kitchen increase home value? Does a new bathroom increase home value? “Classic subway tile is clean, simple and has a timeless appeal.”Do energy-efficient windows increase home value?
Persons: Daniel Bortz, , David Steckel, you’ll, Steckel, Mallory Micetich, Micetich, HomeAdvisor, Courtney Mason, Mason Organizations: Rewiring America, Census, Google, Energy Locations: New York, Riverside , Calif, Atlanta ,, Tampa, Fla
Other experts say buyers purchasing mortgage points can be a great strategy for the right situation. Being able to lower that monthly payment can really help give some more wiggle room in people's budgets and help them reach affordability. "Being able to lower that monthly payment can really help give some more wiggle room in people's budgets and help them reach affordability," Bachaud said. In addition to higher upfront costs, home buyers should also weigh other factors before buying mortgage points. But putting those sums toward a down payment likely will not make much of a difference on your monthly costs, Elliott said.
Persons: Getty, Grubbs, Nicole Bachaud, Bachaud, Kamila Elliott, Atlanta . Elliott, Elliott, Stephanie Grubbs Organizations: Fed, Zillow, Wealth Partners, CNBC, Douglas Locations: Atlanta ., Douglas Elliman
The current housing market offers 39% fewer homes for sale than pre-pandemic, Redfind said. Homeowners are unwilling to part ways with low mortgage rates secured before borrowing costs went up. Mortgage rates are now hovering close to 7%, nearly double where they were at in 2021, when ultra-low rates fueled a home-buying boom. "People who are sitting on the sidelines, waiting for mortgage rates to decline, should know that's unlikely to happen in the foreseeable future. Edward Seiler, the associate vice president for housing economics at the Mortgage Bankers Association, told Insider earlier that the housing market has never been this unaffordable for new buyers.
Persons: Redfind, , Chen Zhao, Redfin, Edward Seiler, Seiler Organizations: Service, Federal Reserve, Mortgage, Mortgage Bankers Association Locations: homebuilding
The housing market has totemic importance in Britain's consumption-driven economy and is closely linked to consumer confidence. The average mortgage rate on new two-year mortgage deals rose on Wednesday to 5.90%, according to property data provider Moneyfacts - the highest since December last year, in the aftermath of the mini-budget. "It takes a far lower mortgage rate to create the same amount of financial stress in terms of repayments as a double-digit mortgage rate did back in previous periods," Hudson said. Reuters GraphicsSTRESSThe question now is how mortgage market stress will feed through into the real economy. Jamie Lennox, director at broker Dimora Mortgages, said there was "no end in sight" for the trouble in the mortgage market.
Persons: Hannah McKay, Liz Truss, We're, Neal Hudson, Hudson, Jamie Lennox, shivers, BoE, Philip Shaw, Lucy Raitano, Iain Withers, Kirsten Donovan Organizations: REUTERS, Bank of England, Investors, HSBC, Reuters, Financial, Thomson Locations: London, Britain, BoE's
Many Gen Z-ers who came of age during the past couple of years missed out on the record-low mortgage rates of 2020 and 2021. But even with higher rates now in place, Mr. Channel expects the number of Gen Z home buyers to grow from here. “Even though you might hear a lot of doom and gloom and people might say, ‘Well, Gen Z-ers will never be able to buy a house,’ they said the same thing about millennials, and millennials are the largest group of home buyers in America,” he said. Mr. Channel relayed some tips for 20-somethings looking to buy a home: Focus on boosting your credit score and repaying student loans. And take advantage of first-time buyer programs, including Federal Housing Administration loans, which can ease the burden on young buyers with smaller down payments and lower credit scores.
Persons: Channel, , Gen, , Organizations: , Channel, Federal Housing Administration Locations: Salt, Minneapolis, — San Francisco, New York, Jose, America
How to Find a Real Estate Agent
  + stars: | 2023-06-14 | by ( Aly J. Yale | ) www.wsj.com   time to read: +15 min
According to the Association of Real Estate License Law Officials, more than three million people hold active real estate licenses in the U.S. That’s a lot of people with a range of experience and expertise. That’d be “knowledge,” says Philip Hordijk, founder of real-estate brokerage Leven Real Estate. A note of caution: Think hard before choosing a friend or family member to help with a real estate transaction. Search online directories—with careThere are plenty of third-party real estate sites that offer agent directories, too, including Realtor.com and Zillow. Real-estate broker vs. agentThere is also a differentiation between a real-estate agent and a real-estate broker.
Persons: Aly J, , Jonathan Rundlett, , Philip Hordijk, Kimberly Jay, I’m, ” Jay, Jeremy Kamm, ” Kamm, , Jesse Sheldon, don’t, ” Hordijk, Christian Ross, Völkers, Desiree Avila, Charles Rutenberg, Johnny, you’re, ” Ross, Bret Weinstein, ” You’ll, you’ve, Sellers, Hordijk Organizations: Yale, Association of Real, License, National Association of Realtors, Compass, Real, Engel, Exxon Mobil, Houston Association of Realtors, NAR, News Corp, Street, Realtors Locations: U.S, Leven Real Estate, New York, New York City, Seattle, Fort Lauderdale, Avila, Houston, Denver, In Texas
A Chinese property developer is offering gold bars to buyers in a desperate bid to boost home sales. According to The Guardian and local media outlets, the property developer in question is Huafa Group, which is based in Hangzhou, a city in eastern China. Disgruntled buyers are raging over the gold barsHowever, some buyers have been kept waiting for the promised gold after purchasing a flat. A staff member at Huafa told Insider the Huafa Hui Tianfu development had "nothing to do" with them. Flashy giveaways are commonplace in China's property marketThis is not the first time Chinese property developers have dangled freebies to entice homebuyers.
Persons: , they've, monthslong, Hui Tianfu, China's, Zhu, Xian, Shao, Xiao Qiang, homebuyers Organizations: Service, Guardian, Weibo, China's Twitter, Huafu Group, Jiemian, Huafa, Qianjiang Evening, Estate Development Corporation, China Index Academy, Bloomberg, Wall Street Locations: Hangzhou, China, Hangzhou Yuejia
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
Analysts are betting on another rate hike in July, to help the Bank of Canada bring inflation back down to its 2% range. Here are some factors that are keeping demand robust in the Canadian economy. The savings rate has halved to 2.9% in the first quarter from the fourth quarter of last year, Statistics Canada said. The central bank says the fiscal spending is not adding to inflation, but it is not helping bring it down either. ($1 = 1.3347 Canadian dollars)Reporting by Steve Scherer; Additional reporting by Nivedita Balu in Toronto; Editing by Paul SimaoOur Standards: The Thomson Reuters Trust Principles.
Persons: Randall Bartlett, Bartlett, Steve Scherer, Nivedita Balu, Paul Simao Organizations: OTTAWA, Bank of Canada, Desjardins, Statistics, Thomson Locations: Canadian, Statistics Canada, Provinces, Toronto
"Persistently high inflation and the recent spike in lending rates will trigger a correction in the UK (Aa3 negative) housing market," Moody's Investor Service said in a report. LONDON – The U.K.'s biggest bank temporarily withdrew mortgage deals via broker services on Thursday, as the effect of higher interest rates ripples through the British housing market. HSBC told CNBC Friday that it was reviewing the situation regularly, but did not specify whether the new deals would differ from its previous offerings. Higher rates are a possibility, given that the Bank of England is continuing to increase interest rates. It comes eight months after hundreds of mortgage deal offers were pulled in one day after market chaos at the time sparked concerns about rising base rates.
Organizations: Service, HSBC, CNBC, Bank of England
Mortgage rates fall for the first time in three weeks
  + stars: | 2023-06-08 | by ( Anna Bahney | ) edition.cnn.com   time to read: +4 min
Washington, DC CNN —Mortgage rates dropped this week after a three-week climb, as rates remain volatile amid conflicting economic indicators. Mortgage rates topped 5% for the first time since 2011 a little more than a year ago and have remained over 5% for all but one week during the past year. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Jiayi Xu, Xu, ” Xu, Bob Broeksmit, Organizations: DC CNN —, Fed, Federal, Treasury, , Mortgage, Association Locations: Washington
These would-be buyers face the most severe housing shortage of any other income bracket, according to a new analysis from the National Association of Realtors and Realtor.com that found the market is short more than 300,000 affordable homes for these buyers. Given that income, these buyers can purchase homes valued up to $256,000 without being overburdened with housing costs. Middle-income buyers can afford to buy less than a quarter — only 23% — of listings that are currently on the market. In a balanced market, buyers earning $75,000 can afford to purchase 66% of the listings in the Youngstown metro area. However, these buyers would be able to afford to buy more than 50% of the listings in a balanced market.
Persons: , Nadia Evangelou, that’s, ” Evangelou, “ It’s, Toledo —, Danielle Hale, Organizations: DC CNN, National Association of Realtors, NAR, El, homeownership Locations: Washington, United States, homeownership, Ohio, — Youngstown , Akron, Toledo, Youngstown, El Paso , Texas, Boise , Idaho, Spokane , Washington, In Boise, Boise
One-Third of U.S. Home Buyers Paying in Cash
  + stars: | 2023-06-07 | by ( ) www.wsj.com   time to read: 1 min
One-third of home purchases in the U.S. in April were made in cash, up from 30.7% a year earlier, and the highest share in nine years, according to an analysis by Redfin. All-cash purchases are making up a bigger portion of the home buying pie for one major reason: higher mortgage rates are deterring home buyers who take out mortgages more than they are deterring all-cash buyers. Overall home sales fell 41% from a year earlier in April in metro areas included in Redfin’s analysis, which comprised 40 of the most populous U.S. metros. That compared with a 35% decline for all-cash sales. Mortgage rates are near their highest...
Locations: U.S
Mortgage rates fell back from their recent highs, but demand dropped for the fourth straight week. Total mortgage application volume declined 1.4% last week, compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The refinance share of mortgage activity increased to 27.3% of total applications from 26.7% the previous week. Mortgage rates have not moved much this week, as there has been little economic data to push them in either direction. Next week's monthly inflation report from the government will likely be the next major read on the economy to influence mortgage rates.
Persons: Joel Kan Organizations: Mortgage Locations: San Francisco , California
Summary poll dataBENGALURU, June 5 (Reuters) - Home prices in India are set to hold above consumer inflation, even though interest rates are expected to stay higher for longer than previously thought, a Reuters poll of property analysts found. The May 16-June 1 poll of 12 property analysts predicted national home prices would reach a median 6.0% this year, a modest upgrade from the 5.5% expected in a March survey. "The interest rate cycle is near its end," Arvind Nandan, managing director of research at Savills India, said. Rates are set to stay at 6.50% for the rest of 2023 and start falling early next year. All analysts who answered an additional question said they were bullish about the housing market outlook.
Persons: Arvind Nandan, Anuj Puri, Rohan Sharma, Vivek Mishra, Veronica Khongwir, Madhumita Gokhale, Hari Kishan, Ross Finley, Barbara Lewis Organizations: Reserve Bank of, JLL Research, Thomson Locations: BENGALURU, India, Reserve Bank of India
Agent Advice found 10 cities that yield a high return with home values below the national median. A shortage of new listings is helping to steady property prices as elevated interest rates present affordability challenges for buyers." Cities with the best returns on investmentA recent study by Agent Advice analyzed home values and typical rent prices across US cities. He added that the top ten cities for the best ROI have a typical housing value far below the national average. And as many as seven of the ten have a typical housing value less than 50% of the national average.
Persons: Chris Heller, Victor Whitmore, Whitmore, Travis Hanson, Thomas Harr, Harr, Heller, Jackson Organizations: Investors, Trading Economics, Columbus, Dothan, Sumter Locations: Tulsa , Oklahoma, Lubbock , Texas, Columbus , Ohio, Cities, Houma, LA, Johnstown, Beckley, WV, Decatur, IL, Shreveport, Peoria, SC, Texarkana, TX, TN
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