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This was achieved by allowing first-time buyers to purchase a home with a smaller down payment — as low as 3.5%. The program is still around, and it's often a great way for real-estate investors to get started. Advertisement3 ways to make the most of government loan programsWelgan also shared two strategies that real-estate investors can use to maximize the leverage offered through government loans. Buyers can now purchase up to a four-unit property with a down payment of as little as 5%. "That's been a game changer for real-estate investors," Welgan said.
Persons: , Jeff Welgan, Fannie Mae, Buyers, Welgan, Fannie Mae's, That's, ADUs, Dave Meyer, Fannie, I've Organizations: Service, Act, Business, Federal National Mortgage Association, Mortgage, Urban Locations: Los Angeles County , California, Michigan, California
The obligations of a buyer’s agent to youLegally and ethically, buyer’s agents have six key obligations to you. Obedience: While they can make recommendations, a buyer’s agent must follow your instructions, assuming you’re not asking them to do anything illegal. Such a body may be known as the real estate commission, the board of real estate or department of real estate. Find out, too, if the agent has availability that will work with your schedule, said David Kent, founder of The Real Buyer’s Agent in Charleston, South Carolina. It also may include what commission you will pay the agent if the seller of a home you buy hasn’t agreed to pay both the listing agent and the buyer’s agent, which is traditionally how it’s been done.
Persons: , , Amy Lessinger, That’s, ” Lessing, Lessinger, else’s, you’re, RESPA, they’re, Jason Abrams, David Kent, Kent, ” Abrams, Abrams Organizations: New, New York CNN, National Association of Realtors, NAR, National Association of Real, Keller Williams Realty Inc Locations: New York, Charleston , South Carolina
AdvertisementFor decades, the city's restrictive zoning and land-use policies have made missing-middle housing almost impossible to build. But there aren't many options, particularly for homeownership, between mostly high-end apartments and prohibitively expensive single-family homes. But he's concerned the law won't do enough to shorten the permitting process for missing-middle housing construction. The HOME Act will encourage the construction of smaller single-family homes and promote density, making housing — particularly homeownership — more affordable. Turner just wants the city to "level the playing field" for developers who are willing to build missing-middle housing.
Persons: , Scott Turner, Turner, Austin's, Austin, Eliza Relman, that's, he's, Brennan Griffin, Joe Sohm, Brandon Bell, Greg Anderson, Anderson, there's, It's, Nicole Nabulsi Nosek, I've, townhomes Organizations: Service, Business, Riverside Homes, Austin, Austin Business, Texas, HOME, Austin Habitat, Humanity, Texans, Reasonable, Democrats Locations: Austin, Austin , Texas, Texas, Manor, Georgetown, City Hall
It makes sense then that just 36.5% of adults say they feel they're better off financially than their parents, according to CNBC's International Your Money Financial Security Survey conducted by SurveyMonkey. A greater share — 42.8% — say they're worse off than their parents, while the remaining 20.7% say they're faring about the same. Here are three ways younger generations are financially worse off than their older counterparts. More equality Younger generations have navigated adulthood with more freedoms than a lot of their parents may have had. Gender and racial pay gaps, along with other barriers to wealth-building, certainly still affect Gen X and millennials.
Persons: they're, Gen, Xers, Clever, Gen X, Tara Unverzagt, I'm, millennials, Louis Fed, Unverzagt Organizations: Financial Security, SurveyMonkey, Education Data Initiative, CNBC, Pew Research Locations: U.S
The housing market looks to be gradually approaching a recovery. A growing number of mortgage-locked homes are going up for sale, JPMorgan said. AdvertisementThe housing market looks like it's starting to thaw, thanks to a growing number of mortgage-locked sellers who are opting to put their homes on the market anyway, according to JPMorgan Asset Management. Homeowners could now be more willing to dip into the housing market, as many are realizing high mortgage rates aren't going away anytime soon, real estate economists have said. Researchers from the Federal Housing Finance Agency recently warned that the mortgage lock-in effect could linger for years to come, barring a sudden drop in mortgage rates.
Persons: , Stephanie Aliaga, Aliaga Organizations: JPMorgan, Service, Asset Management, National Association of Realtors, Homeowners, Fed, Buyers, Federal Housing Finance Agency
Investing without owningLike real-estate investment trusts (REITs), real-estate funds provide exposure to the tangible asset class without owning and managing property. Investing directly through a private real-estate fund would take a few extra steps. The process requires an investor to identify a real-estate fund of interest. Once that's completed, funds from the retirement account are directly transferred into the real-estate fund. It's also important to read the terms of each fund; some may have added costs for repairs, expenses, and maintenance, which your IRA funds would cover.
Persons: Paul Daneshrad, Daneshrad, He's, we're, Dow, there's, Roth, that's, Gary Diamond, Fishman, Diamond, It's Organizations: Starpoint, Business, Federal, CPA
The odds of a recession are "very high" in the US, according to Joe LaVorgna. AdvertisementThe odds of the economy tipping into a recession are "very high," as the US is poised to see a wave of unemployment and a major drop in consumer spending. Advertisement"All three of those metrics are still flashing recession," LaVorgna said. AdvertisementStrong consumer spending on goods also looks poised to drop, which could end up dragging economic growth lower, LaVorgna said. "It makes me think recession risk … still has a very high probability," he added.
Persons: Joe LaVorgna, LaVorgna, Organizations: Service, Nikko Securities, Rosenberg Research, Treasury, Investor Locations: Nikko
Stocks may crash 30% and a recession could hit within months, Gary Shilling said. Shilling predicted the housing market would rebound in time, and dismissed de-dollarization fears. AdvertisementA legendary market prophet has warned that overpriced stocks may come crashing down, and a recession might strike within months. "Stocks are very, very expensive now" relative to both corporate earnings and rival assets like Treasury bonds, Gary Shilling recently told the Retirement Lifestyle Advocates radio show. The president of A. Gary Shilling & Co. is known for making several prescient market calls over the past four decades.
Persons: Gary Shilling, Shilling, , Merrill Lynch's, bitcoin, It's, there's Organizations: Service, Polaroid, Federal Reserve, Fed, Companies, Homes, greenback
Patrick Pleul | Picture Alliance | Getty ImagesGermany's housebuilding sector has gone from bad to worse in recent months. "The housebuilding sector is, I would say, a little bit in a confidence crisis," Dominik von Achten, chairman of German building materials company Heidelberg Materials, told CNBC's "Squawk Box Europe" on Thursday. In January both the current sentiment and expectations for the German residential construction sector fell to all-time lows, according to data from the Ifo Institute for Economic Research. The business climate reading fell to a negative 59 points, while expectations dropped to negative 68.9 points in the month. Habeck pointed to higher interest rates as a key challenge for the economy, explaining that those had led to reduced investments, especially in the construction sector.
Persons: Patrick Pleul, Dominik von Achten, CNBC's, Klaus Wohlrabe, Robert Habeck, Wohlrabe, It's, Achten Organizations: Getty, Heidelberg Materials, Ifo Institute for Economic Research, Hamburg Commercial Bank, PMI, Climate Locations: Germany, Ifo, Heidelberg
That sudden volatility highlights something that we often write about in Before the Bell: the major mismatch between policymaker and investor expectations for interest rate cuts this year. Federal Reserve officials, including Chair Jerome Powell, have repeatedly said they envision at most three rate cuts in 2024. Wall Street, meanwhile, has ignored those warnings and has opted to practice unflinching optimism instead. It’s not the first time they’ve had to learn an important lesson: Don’t fight the Fed. Bad for the markets, good for the Fed: Markets clearly don’t often take kindly to higher-for-longer interest rates, which can negatively impact earnings and stock prices.
Persons: New York CNN —, Jerome Powell, Dow, It’s, they’ve, Don’t, , , Quincy Krosby, Arnim Holzer, José Torres, Chris Zaccarelli, doesn’t, ” Carl Icahn, Carl Icahn, Icahn, Chris Isidore, JetBlue’s, Samantha Delouya, Lyft, Erin Brewer Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Nasdaq, of Labor Statistics, BLS, Treasury, LPL, Fed, Interactive Brokers, CPI, Independent, Alliance, JetBlue, Spirit Airlines, Analysts Locations: New York, December’s, ,
The people of Suffolk County, Long Island, need to start considering it. Like most of the suburbs surrounding New York City, Suffolk County is suffering from a major shortage of homes. In December, New York Governor Kathy Hochul announced she'll send $59 million to Long Island to deal with water contamination and sewer upgrades. “The governor has said she wants to see more housing on Long Island. Last year, Long Island public officials led the charge against Gov.
Persons: , Hunter Gross, , ” Gross, Long, Suffolk County’s, Ed Romaine, Kathy Hochul, you’ve, , Joe, Edmund Smyth, ” Smyth, ” Long, Kathy Hochul’s, who’ve, boomers, can’t, that's, Ian Wilder, Nathan Cummings, ” Cummings, Cummings Organizations: Service, Hamptons, Business, Newsday, Republican, ” Long Islanders, Gov, New, Housing Services, Yale Law Locations: Suffolk County, Long, New York City, Huntington, Suffolk, New York, Huntington , Suffolk County, Levittown, Black, Old Lyme , Connecticut
(Reuters) - First National Bank of Pennsylvania was sued on Monday by the U.S. Department of Justice and the state of North Carolina, which accused it of lending discrimination known as redlining in the Charlotte and Winston-Salem, North Carolina markets. Redlining occurs when lenders deny or discourage mortgage applications and loans in neighborhoods based on the race, color, or national origin of people who live there. The Pittsburgh-based bank's redlining allegedly included locating and maintaining nearly all branch locations and mortgage loan officers outside these neighborhoods, and relying on majority-white areas for referrals and loan applications. The lawsuit seeks restitution to victims, a civil fine, an injunction against further redlining and other remedies. The lender ended 2023 with about $46.2 billion of assets and 350 branches in seven states plus Washington, D.C.(Reporting by Jonathan Stempel in New York, editing by David Ljunggren)
Persons: FNB, redlining, Salem, Jonathan Stempel, David Ljunggren Organizations: Reuters, National Bank of Pennsylvania, U.S . Department of Justice, Charlotte, Housing, Winston, Washington , D.C Locations: North Carolina, Winston, Salem , North Carolina, Pittsburgh, Salem, Washington ,, New York
WHAT ARE LOCAL ‘CRIME-FREE’ OR ‘NUISANCE’ ORDINANCES? Photos You Should See View All 45 ImagesAnti-crime and nuisance ordinances have been around for years and are widespread in their usage. More than 2,000 cities nationwide have enacted such policies since the 1990s, according to the Chicago-based Shriver Center on Poverty Law. Critical studies and lawsuits indicate enforcement of nuisance laws frequently occur in poorer neighborhoods and communities of color. Other area cities have rewritten their ordinances, including Faribault in 2022 as it agreed to pay $685,000 to settle a federal lawsuit over the law.
Persons: , Corey Bernstein, Devon Orland, “ We’ve, ” Orland, Louis, ___ Hanna Organizations: U.S . Department of Justice, Shriver, Poverty Law, Crime Free Association, DOJ, Housing, National Disability Rights, American Civil Liberties Union, New, New York Civil Liberties Union, U.S . Department of Housing, Urban Development, Louis Park Locations: Minneapolis, Chicago, Anoka , Minnesota, Hesperia , California, Georgia, New York, Rochester, Troy , New York, Peoria , Illinois, Cleveland, Los Angeles, Philadelphia, Norristown , Pennsylvania, Maryland, California, Illinois, California , Illinois , Ohio, Pennsylvania, Golden Valley, St, Bloomington, Faribault, Topeka , Kansas
30% of homes in central Florence, Italy, are listed on Airbnb, the Wall Street Journal said. In October, Florence decided to ban all new Airbnb listings in the city center. Florence is not alone in its attempts to limit the reach of short-term rentals. Venice has been lost, but we can still save Florence." Efforts to combat the effects of short-term rentals haven't broken through nationally.
Persons: , David, It's, Dario Nardella, Florence, Linda Sanesi, Nardella, I'm, Massimo Torelli Organizations: Wall Street Journal, Service, Rome's La Sapienza University, Wall Street Locations: Florence, Italy, Rome's, Florence's, Nardella, New York City, Portugal, Venice
The increases in credit card delinquency were the sharpest among borrowers in the range of 30 to 39 years old, according to the New York Fed. Newly delinquent auto loan balances continued to climb, as well, with transitions into serious delinquencies hitting 13-year highs, survey data showed. Still, thanks mostly to higher-quality mortgage loans, overall delinquencies remain below pre-pandemic levels, New York Fed researchers said. Credit card balances, which in the second quarter surpassed the trillion-dollar mark for the first time, continued to grow at historic rates. This year is on pace to have the lowest origination values since 2014, New York Fed data shows.
Persons: , Donghoon Lee, , Mortgage originations Organizations: Minneapolis CNN, Federal Reserve Bank of New, New York Fed, ” New York Fed, Mortgage Locations: Minneapolis, New, New York
The US housing market looks like it's headed for a recession, Wells Fargo has warned. AdvertisementAdvertisementThe Federal Reserve's aggressive interest-rate hikes could be about to trigger a housing-market recession that echoes the slowdown of the 1980s, Wells Fargo has warned. "Although mortgage rates may gradually descend once the Federal Reserve begins to ease monetary policy, financing costs are likely to remain elevated relative to recent norms," they added. Please Lower Interest Rates." AdvertisementAdvertisement"The plea for assistance from housing industry participants, both in the early 1980s and more recently, illustrates the severe impact higher interest rates can have on the residential sector," Dougherty and Barley wrote.
Persons: Wells Fargo, , Charlie Dougherty, Patrick Barley, Freddie Mac, Jackson, Paul Volcker, National Association of Homebuilders, Jerome Powell, Dougherty, Barley Organizations: Service, Federal, Fed, Wells, National Association of Realtors, Mortgage Bankers Association, National Association of Locations: Redfin
Slumping demand and surging mortgage rates are likely to lead to the slowest period for housing sales in 30 years, according to Goldman Sachs. Lurking over all the housing market, though, has been the surge in mortgage rates that have come along with the Federal Reserve's efforts to bring down inflation . Mortgage rates have risen in tandem, rocketing from around 3.8% when the Fed started tightening to more than 7.6% nationally now, according to Freddie Mac data. "We expect this 'lock-in' effect to push existing home sales even lower in the coming months and to limit any rebound next year," Walker wrote. After a robust period in the third quarter, Goldman and most of Wall Street expects GDP growth to slow considerably.
Persons: Goldman Sachs, Goldman, Ronnie Walker, Freddie Mac, Walker Organizations: Federal, Fed Locations: U.S
Black students are far less likely to have access to high school personal finance classes. But high schools with a majority of Black students are less likely to have a guaranteed personal finance course in their high schools. The student debt gapBlack borrowers are disproportionately burdened by student loan debt. Student debt can be daunting, but there are scholarships out there for Black students. 4. Credit discriminationRedlining is a well-known form of credit discrimination , but the issue goes beyond mortgages.
Persons: , Tiffany Aliche, Pell, Biden, There's, Homeownership, doesn't, Aliche Organizations: Service, Finance, The Institute, College, NPR, National Bureau of Economic Research, Housing, Federal Reserve, Civil, Equal, The Association of African American Financial Locations: Brookings, Zillow
Mortgage rates are likely to stay at frightening levels even after the Halloween season is over. But we may finally see 30-year mortgage rates dip back below 7% next year, Fannie Mae says. "With ongoing affordability constraints and rising mortgage rates, much of that activity has essentially been given back. 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 6.89% last week, according to Freddie Mac data.
Persons: Fannie Mae, they've, Fannie Mae's, Doug Duncan, Freddie Mac, it's Organizations: Zillow Locations: Chevron
As businesses implement AI in hiring, they must earn and maintain the trust that these processes are working as they should. In partnership with companies including Amazon, Unilever, Koch Industries and Microsoft, the principles address transparency, fairness, non-discrimination, technical robustness, safety, governance and accountability with the use of AI in hiring. Meanwhile, the protocols specify the criteria for third-party AI vendor certification to promote accountability beyond the employer. He cited the potential implications of a video interview, where AI technology could collect data about a candidate's voice, inflection and eye movements. Ultimately, he says communication and consent for reasonable use are two best practices for AI in hiring that employers shouldn't skip.
Persons: Josh Millet, Google's Bard, Eric Reicin, Reicin, Millet, China's iTutorGroup, they're Organizations: Center for Industry, Amazon, Unilever, Koch Industries, Microsoft, BBB, Healthworks, California Supreme, National Bureau of Economic Research, U.S, Commission, Reuters Locations: New York, California
Housing trade groups urged the Federal Reserve to stop hiking interest rates immediately. The NAHB, MBA, and NAR warned that a hard landing is likely, unless the Fed takes two "simple steps." AdvertisementAdvertisementThe Federal Reserve needs to take two "simple steps" to assure that it sticks a soft landing in the economy, according to three housing industry trade groups. AdvertisementAdvertisementThe trade groups pointed out that housing activity accounts for an estimated 16% of GDP in the US. "We urge the Fed to take these simple steps to ensure that this sector does not precipitate the hard landing the Fed has tried so hard to avoid," the letter concluded.
Persons: , Jerome Powell Organizations: Federal Reserve, NAR, Fed, Service, Reserve, National Association of Home Builders, Mortgage Bankers Association, National Association of Realtors, Treasury, MBS
The storied and fragile lagoon city is not alone in its struggle to manage an onslaught of tourists in the low-cost flight era. But the stakes are particularly high this week as the UNESCO World Heritage Committee decides whether to add Venice to its list of endangered world sites. Critics charge that the tax was rushed through to impress the UNESCO committee that the city is acting to curb mass tourism. The recommendation to downgrade Venice cites not only management of mass tourism, but also the impact of climate change. Venice is one of six sites, including two in war-ravaged Ukraine, that the committee may officially declare to be in danger.
Persons: ’ ’, Michele Zuin, Saint Organizations: UNESCO World Heritage Committee, UNESCO, Venice Locations: VENICE, Italy, Venice, Rome, St, Ukraine, Ukraine’s, Kyiv, Lviv, Nessebar, Bulgaria, Turkey, Kamchatka, Russia’s
US furniture retailers like RH and Williams-Sonoma are struggling to sell products in a tight housing market. The unaffordable housing market is stretching wallets and making new furniture less of a priority for buyers. A slew of furniture brands have reported weaker earnings in the most recent quarter. Furniture retailers have reported weaker sales as Americans, who are struggling to break into the housing market, aren't buying the usual amount of couches, tables, and home goods. "A housing shortage and the over 20-year high on fixed mortgage rates has slowed down housing activity.
Persons: RH, Hooker, Jeremy Hoff Organizations: Williams, Service, Bloomberg, San Francisco Federal Reserve Bank Locations: Sonoma, Wall, Silicon, Williams, Elm, Virginia
"We're one gust of wind away from recession," Kelly said. While he hasn't seen any cracks in that industry recently, he's wary of dismissing that as a risk, especially if interest rates climb further. The smartest investments to make now are in Europe, Japan, and emerging markets excluding China, Kelly said. But emerging markets are where many of the most tantalizing opportunities are, in Kelly's opinion. An exception within emerging markets is China.
Persons: JPMorgan's David Kelly, Kelly, David Kelly, Kelly inched, It's, hasn't, homebuilding, it's, he's Organizations: Asset Management, Fed, Federal, JPMorgan Asset Management, 19.9x, Japan's Nikkei Locations: Europe, Japan, China
The week ahead will "revolve around three things," Infrastructure Capital Management CEO Jay Hatfield remarked on the week ahead. "Nvidia's earnings, Nvidia's earnings and, to a lesser degree, Jackson Hole." Nvidia earnings Many investors expect Nvidia will beat expectations for the second quarter when it reports results next Wednesday . More commentary from Jackson Hole If Nvidia is the key microeconomic event next week, Jackson Hole will dominate macroeconomic discussion. Powell delivers his address at the annual central bank forum hosted by the Kansas City Fed next Friday morning.
Persons: Jerome Powell, Jay Hatfield, Jackson, Management's Yung, Yu Ma, Hans Mosesmann, Hatfield, Powell, Ross Mayfield, Ray Farris, Fed Governor Bowman, Michael Bloom Organizations: Federal, Infrastructure Capital Management, Dow, Nasdaq, Treasury, Fitch, Federal Reserve, BMO, Nvidia, Rosenblatt Securities, Infrastructure Capital Management's, Kansas City Fed, Fed, Infrastructure Capital, Credit Suisse, Richmond Fed, Federal Reserve Bank of Chicago, PMI, New, Body, Devices, Autodesk, Chicago, . Kansas City Fed Manufacturing, Intuit, Ulta Locations: , Wyoming, China, Infrastructure Capital Management's Hatfield, Powell, . Kansas, Michigan
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