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☆ Mortgage rates drop after CPI report, but the housing market is far from out of the woods
▼ + stars: | 2022-12-13 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

The report sent investors rushing into U.S. Treasury bonds, causing yields to drop. Mortgage rates follow loosely the yield on the 10-year Treasury. But rates then fell sharply in November, after the CPI report for October indicated that inflation was cooling. Some suggested, albeit cautiously, that the drop in rates might be bringing buyers back to the market. Yearly was referring to a very brief rate drop in August.

☆ These are the best 10 metro areas for first-time home buyers — and how to make it more affordable no matter where you’re buying
▼ + stars: | 2022-12-09 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

After bidding wars during the pandemic, demand for home purchases has fallen amid higher mortgage interest rates. That dynamic has made some markets are more attractive for first-time home buyers for 2023, according to a Zillow report released this week. The real estate site found the "best opportunity" for first-time buyers in metros areas with more affordable rent, less competition and a higher inventory of homes for sale. Mortgage interest rates have more than doubled from early January after a series of hikes from the Federal Reserve to curb inflation in 2022. Still, some markets may be more affordable for buyers on a budget, Zillow's report shows.

☆ Some Home Buyers Could Soon Get a $1 Million Mortgage With a 3% Down Payment
▼ + stars: | 2022-12-01 | by ( Veronica Dagher | ) www.wsj.com time to read: 1 min

To qualify for a $1 million mortgage, Americans typically have to make a down payment of at least 20% of the home’s price. Starting next year, some buyers could put as little as 3% down. The cap for home loans backed by Fannie Mae and Freddie Mac rises to $1,089,300 next year in a few expensive markets including Los Angeles and New York, up from $970,800, the Federal Housing Finance Agency, or FHFA, said Tuesday. The higher limit means borrowers can qualify for bigger loans without needing to take out jumbo mortgages, which aren’t federally backed and have more-stringent requirements for income, credit and down payments.

☆ Home Buyers Could Soon Get $1 Million Mortgage With 3% Down Payment
▼ + stars: | 2022-12-01 | by ( Veronica Dagher | ) www.wsj.com time to read: 1 min

HONG KONG, Nov 30 (Reuters Breakingviews) - President Xi Jinping is wrapping up his massive property stress test, but it looks like few have passed. It was precisely what the now near-collapsed China Evergrande (3333.HK) had asked for back in 2020, before regulators dashed its hopes of listing in the Chinese mainland. Among them is Country Garden (2007.HK), whose U.S. dollar bond that matures in January has rebounded 43% to 96 cents on the dollar this month. In comparison, an Evergrande bond due in January still trades at 5.5 cents. These property bailouts are set to leave most in the sector out in the cold.

☆ U.S. pending home sales fall 4.6% in October
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +2 min

The National Association of Realtors (NAR) said on Wednesday its Pending Home Sales Index, based on signed contracts, fell 4.6% to 77.1 last month. Economists polled by Reuters had forecast contracts, which become sales after a month or two, would fall 5.0%. Pending home sales dropped 37.0% in October on a year-on-year basis. The overall decline in signed contracts suggested that existing home sales would continue to fall after posting their ninth straight monthly decrease in October. As a result, mortgage rates, for which the yield on the 10-year Treasury note acts as a benchmark, are now off their recent 20-year highs.

☆ This startup comes up with cash offers for homeowners in 24 hours. Check out the pitch deck Rive used to raise a $24 million Series A to make buying and selling real estate easier.
▼ + stars: | 2022-11-30 | by ( Tasmin Lockwood | ) www.businessinsider.com time to read: +4 min

Finnish proptech Rive has just closed a 23 million euros (around $24 million) Series A funding round. We got an exclusive look at the 14-slide pitch deck Rive used to raise the cash. While listing some properties on the market, Rive also has a portfolio of its own. Rive gives sellers cash offers with time frames that suit their moving plans. Check out the 14-slide pitch deck the company used to raise the cash below.

☆ Falling house prices will help the Fed tame inflation – but they also increase the risk of a prolonged economic downturn
▼ + stars: | 2022-11-26 | by ( George Glover | ) www.businessinsider.com time to read: +5 min

But a housing market slowdown also increases the risk of a recession. The aggressive monetary tightening lifted the average 30-year US mortgage rate from 5.60% to 6.84% over the last three months, according to Bankrate. "A decline in home buying is one of the byproducts of tighter monetary policy," Macquarie's head of economics David Doyle told Insider. What has the Fed said about the housing market? Should borrowing costs remain too high for too long, those industries risk facing a decline in business at a time when monetary tightening is already squeezing their cash flows.

☆ They Loved the Diversity of Oakland. Could They Find a House They Loved There, Too?
▼ + stars: | 2022-11-24 | by ( Mark Kreidler | ) www.nytimes.com time to read: +4 min

“The Seattle experience really solidified that thought for us, that this was something we all needed,” said Ms. Meredith, 43, an author and freelance writer. The younger Mr. Meredith spent his formative years in Jackson, Miss., and later did graduate work at the University of San Diego. “We loved the grittiness, the sunshine, and the diversity,” Ms. Meredith said. “Initially I think we were dumbstruck — awe-struck,” Ms. Meredith said. And they were willing to exhaust the Oakland market before they considered looking anywhere else.

☆ Mortgage rates have dropped and home sales are down by almost 30% from last year. One of the richest women in real estate explains why it's still a good time to be in the market.
▼ + stars: | 2022-11-23 | by ( Laila Maidan | ) www.businessinsider.com time to read: +5 min

The 30-year fixed mortgage rate is at 6.61%, down from a peak of 7.08%. There appears to be some movement on the housing front as mortgage rates have steeply dropped. As of 2017, Herman had a net worth of $260 million, making her the richest self-made woman in US real estate according to Forbes. You can't compare current mortgage rates to last year's print of 3%, which she noted was an anomaly she hasn't seen in her 30 years of being in the industry. But historically we are really not at high-interest rates," Herman said.

☆ Chinese lender BoCom agrees $14 bln credit line with developer Vanke
▼ + stars: | 2022-11-23 | by ( ) www.reuters.com time to read: +2 min

BEIJING, Nov 23 (Reuters) - China's Bank of Communications Co Ltd (BoCom) (601328.SS) said on Wednesday it would provide a 100 billion yuan ($13.98 billion) credit line to developer Vanke in the latest sign of support for the embattled property sector. The property sector makes up about a quarter of the economy. Under the agreement, BoCom will likely offer Vanke (000002.SZ) property development loans, mortgage loans and loans for merger and acquisition deals, according to a statement released by the lender. The agreement is part of the bank's efforts to implement 16 measures outlined by Chinese regulators to support the property sector, it said in the statement. China's property sector, once a pillar of growth, has slowed sharply this year due to government efforts to restrict excessive borrowing by developers.

☆ How Much House Can I Afford?
▼ + stars: | 2022-11-19 | by ( ) www.wsj.com time to read: +6 min

By Sheryl Nance-NashYou’ve decided you’re going to pursue the American dream and get that house, be it your first one or to trade up. One of the first—and most important—things you’ll need to do is figure out how much house you can afford. Read on to get started building a budget for your house. Plug in factors like income, estimated down payment, loan term, how much you spend a month on debt, and your credit score and you’ll get a sense of what you can and cannot afford. Costs to include in your housing DTIprincipalinterestreal estate taxesmortgage interestAdditional costs to include in your broader DTIcredit card debtcar loansstudent loansOther installment loansHow much house can I afford without putting 20% down?

☆ Existing home sales drop 5.6 percent in October, 28.4 percent year-over-year decline
▼ + stars: | 2022-11-18 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailExisting home sales drop 5.6 percent in October, 28.4 percent year-over-year declineCNBC's Diana Olick, joins 'Squawk on the Street' to discuss existing home sales numbers slowing, year-over-year price declines in home sales, and the factors weighing on higher-end home buyers.

☆ Premarket stocks: Fed officials crushed investors' hopes this week
▼ + stars: | 2022-11-18 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

But messaging from Fed officials this week has brought Wall Street back down to earth. Tech layoffs don’t mean impending recessionA series of high-profile layoffs have rattled Big Tech this month. The series of high-profile layoff announcements prompted fears that the labor market was weakening and that a recession could be around the corner. Those fears aren’t unwarranted: The Federal Reserve is actively working to slow economic growth and tighten financial conditions to rebalance the white-hot labor market. “The main problem in the labor market is still that labor demand is too strong, not too weak,” they concluded.

☆ Buyers need a six-figure income to afford a 'typical' home, report finds. Here's how to reduce the cost
▼ + stars: | 2022-11-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

In October, U.S. buyers needed to earn $107,281 to afford the median monthly mortgage payment of $2,682 for a "typical home," Redfin reported this week. That's 45.6% higher than the $73,668 yearly income needed to cover the median mortgage payment 12 months ago, the report finds. The primary reason is rising mortgage interest rates, said Melissa Cohn, regional vice president at William Raveis Mortgage. "The bottom line is mortgage rates have more than doubled since the beginning of the year," she said. "Home prices have gone up substantially, mortgage rates have more than doubled and that's just crushing affordability," said Keith Gumbinger, vice president of mortgage website HSH.

☆ U.S. housing starts tumble in October amid soaring mortgage rates
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

Housing starts decreased 4.2% to a seasonally adjusted annual rate of 1.425 million units last month, the Commerce Department reported on Thursday. Data for September was revised higher to a rate of 1.488 million units from the previously reported 1.439 million units. Multi-family housing construction has fared better as the soaring mortgage rates force many potential home buyers to remain renters. Mortgage rates have jumped in response to rampant inflation, which has compelled the Federal Reserve to unleash the fastest interest rate-hiking cycle since the 1980s. The 30-year fixed mortgage rate is averaging above 7%, the highest since 2002, according to data from mortgage finance agency Freddie Mac.

☆ 3 major predictions for real estate in 2023, according to a 17-year Wall Street veteran who also lists 10 cities that could see the most and least price corrections
▼ + stars: | 2022-11-17 | by ( Laila Maidan | ) www.businessinsider.com time to read: +5 min

T here will be disparity in price corrections for homes listed above and below median home prices. in price corrections for homes listed above and below median home prices. Rising mortgage rates will increase demand for affordable homes and reduce their supply, he said. On Monday, 30-year fixed mortgage rates were at 7.08% in the US, more than double where they were a year ago. Rising mortgage rates will increase demand for more affordable properties and reduce their supply, he said.

☆ Mortgage rates plunge to 6.61% amid signs of easing inflation
▼ + stars: | 2022-11-17 | by ( Anna Bahney | ) edition.cnn.com time to read: +6 min

Mortgage rates dropped sharply last week following a series of economic reports that indicated inflation may finally be easing. Mortgage rates have risen throughout most of 2022, spurred by the Federal Reserve’s unprecedented campaign of hiking interest rates in order to tame soaring inflation. While the Fed does not set the interest rates borrowers pay on mortgages directly, its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds. Mortgage rates are expected to remain volatile for the rest of the year.

☆ Future Florida homebuyers face increasing costs and greater exposure to natural disasters, which could devastate residents and the state's booming real estate market
▼ + stars: | 2022-11-17 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +5 min

Data from Freddie Mac shows an increasing share of people are relocating to areas more prone to natural disasters. This is especially the case in Florida, a pandemic housing hotspot that has experienced severe flooding and storms. Sign up for our newsletter to get the latest on the culture & business of sustainability — delivered weekly to your inbox. Flordians are the most at risk to natural disastersIndeed, certain US housing markets — particularly cities in Florida — are more vulnerable to natural disasters than others. The organization anticipates that by April 2027, Florida's population will average 294,756 net new residents per year, averaging 808 each day.

☆ It's a historically bad time to buy a home, and a leading economist says it might not get any better until 2024 at the earliest
▼ + stars: | 2022-11-16 | by ( Robert Davis | ) www.businessinsider.com time to read: +4 min

One economist expects conditions to improve in 2024 as inflation eases. Evangelou, says the homebuying market will see a sizable drop in activity in 2023 as inventory levels and demand continue to decline. Because of this, Evangelou says first-time homebuyers should plan to compete again in 2024 at the earliest. About 80% of homebuyers described the real estate market as "bad," according to the November consumer sentiment survey from the University of Michigan. "The next couple of years are going to be volatile as households have to deal with elevated inflation," Evangelou told Insider.

☆ China Throws Developers a Lifeline, but Home Buyers Might Stay Cautious
▼ + stars: | 2022-11-15 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

China’s latest package to rescue its languishing housing sector is the most significant policy shift since it started tightening the screws two years ago. Beijing has rolled back some of the previous rules aiming to reduce debt in the industry. In 2020, the government introduced a policy called “three red lines” that limited developers’ abilities to raise financing unless their debt ratios were below specific thresholds. The government had also pushed banks to lower the percentage of their loans to the property sector.

☆ China's real estate crisis could be over with new rescue plan. Property stocks are soaring
▼ + stars: | 2022-11-14 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN Business —Chinese authorities are making their biggest effort yet to end a crisis in the country’s vast real estate sector that has weighed heavily on the economy over the past year. Tao Wang, chief China economist at UBS, described the package of measures as a “turning point” for China’s property sector. Along with other policies announced earlier this year, it could inject more than 1 trillion yuan ($142 billion) into real estate, she estimated. In October, sales by the 100 biggest real estate developers contracted 26.5% from a year ago, according to a private survey by China Index Academy, a top real estate research firm. “Beijing’s zero-Covid strategy, despite some latest fine tuning, will continue to weigh on the property sector,” they added.

While supply concerns have eased, the main dynamic behind the price retreat has been weakness in the residential construction sector in China, which takes about 70% of iron ore that is exported by sea. Given that construction accounts for more than a third of China's total steel demand, the ongoing weakness in residential property has been a cloud over iron ore's outlook. A recovery may be on the cards in November, with commodity analysts Kpler estimating that seaborne iron ore imports will be around 96.87 million tonnes. But the overall message from iron ore imports this year is that they will likely be slightly lower in 2022 than last year. While the market tends to focus on weakness in residential property construction, total construction has been holding up far better.

☆ All eyes on the consumer ahead of Black Friday and the holidays
▼ + stars: | 2022-11-13 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +6 min

Beyond a slew of retail earnings reports, the government will report retail sales figures for October on Wednesday. But the most recent Consumer Price Index figures for October provided some relief for shoppers…and Wall Street. Consumer spending rose 1.4% during the third quarter, according to the government’s most recent gross domestic product (GDP) report. A report on housing starts and building permits data for October will come out towards the end of this week. When Home Depot reported its most recent earnings in August, it noted that customers didn’t make as many purchases as they did a year ago.

☆ A 25-year-old real estate investor who owns 6 properties in Boston and Georgia isn't deterred by high mortgage rates: 'It's a much better time to buy now than this time last year.'
▼ + stars: | 2022-11-12 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +4 min

Karina Mejia is looking to expand her portfolio of properties, despite high interest rates. It's a better time to buy now than it was last year, she said, because you can actually negotiate. Karina Mejia is looking to expand her six-property real estate portfolio. "You're not going to have your mortgage rate fluctuate like a rental payment can every year," explained Mejia. "If you can still afford a mortgage payment in your current market and buy a home that you would like, then it absolutely still makes sense to buy."

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