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☆ It’s a terrible time to buy a house. Here’s what to know if you have to do it anyway
▼ + stars: | 2022-11-12 | by ( Anna Bahney | ) edition.cnn.com time to read: +9 min

“It is something I’ve never seen a combination of, this lack of inventory and higher interest rates,” Lafferty said. “If that comes to pass, you can do a refinance and secure a lower interest rate and lower payments. Buy down your interest rate with pointsBorrowers can lower their payments by paying more upfront to buy down their mortgage rate. The downside: While getting a lower interest rate is very appealing, it means shelling out more money up front. In September, when mortgage rates were around 5.75%, Kelly worked with borrowers who were buying a $590,000 house.

☆ No easy fix for China as economy slows more than expected
▼ + stars: | 2022-11-11 | by ( Kevin Yao | ) www.reuters.com time to read: +4 min

China is on track to miss its annual growth target of around 5.5% - the latest Reuters poll forecast 2022 growth at 3.2%. Data on Thursday showed new bank lending in China fell more than expected in October from the previous month while broad credit growth slowed. Underscoring the weakness in domestic demand, factory gate prices for October dropped for the first time since December 2020. But the main near-term headwind remains China's zero-COVID policy, while the longer term drag remains domestic demand. read more"COVID curbs have greatly affected consumption and investment," said Wang Jun, director at China Chief Economist Forum.

☆ Home Buyers Get Creative With Cash Deals to Fend Off High Mortgage Rates
▼ + stars: | 2022-11-11 | by ( Libertina Brandt | ) www.wsj.com time to read: 1 min

By the time he found a 3,000-square-foot townhouse he wanted to buy in September, mortgage rates were significantly higher than they were a year ago. On Sept. 15, Freddie Mac announced that the average rate that week on a 30-year fixed-rate mortgage topped 6% for the first time since 2008. To avoid the rising rates, Mr. Brown, 56, said he bought the three-bedroom home in Littleton, Colo., for $965,000 in cash. To access the capital he needed for the purchase, he tapped into his personal savings and took out a loan using his stockholdings as collateral, receiving an adjustable rate based on the federal-funds rate plus a 2.25% margin. On Nov. 7, the federal-funds rate target was 3.75% to 4%.

☆ Premarket stocks: Wall Street picks hope over reality after inflation report
▼ + stars: | 2022-11-11 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —Stocks surged on Thursday in their best day since 2020 after a key inflation indicator came in softer than expected. Investors broke out their party hats as they interpreted the report to mean that peak inflation may finally be behind us. Crypto-advocates were hoping that rising interest and inflation rates would drive investors away from the dollar and into alternative assets like gold and Bitcoin. Then, central banks started raising rates to fight inflation, and the dollar strengthened significantly, seducing investors as the ultimate safe haven. Mortgage rates have risen throughout most of 2022, spurred by the Federal Reserve’s regime of interest rate hikes.

☆ Home flippers are having a tough time selling to regular people who need a mortgage, so they're offloading their properties to big investors instead
▼ + stars: | 2022-11-08 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +5 min

New data reveals that larger real estate businesses are buying flipped homes from smaller investors. This shift in the market has caused these smaller operators to place their faith elsewhere: In big institutional investors. "Flippers may opt to sell to institutional buyers in today's environment since they can usually close quickly and may not be as rate-sensitive," Thomas said. Exacerbating a housing shortage and high rentsAs institutional investors continue to swallow up homes, they are exacerbating housing shortages in the neighborhoods they occupy. "When a hedge fund comes in and buys up a bunch of single-family properties, those houses are gone," Doug Greene, owner of Philadelphia-based Signature Properties, told Bankrate in August.

☆ One of the richest self-made women in US real estate says it's still a good time to buy and shares the top 5 things that could give a buyer a competitive edge.
▼ + stars: | 2022-11-08 | by ( Laila Maidan | ) www.businessinsider.com time to read: +6 min

She doesn't believe mortgage rates will return to 3% because that is very low. Mortgage rates have just about doubled from where they were this time last year. If you zoom out and look at where interest rates have been, you'd realize that historically, 7% is just about average, she noted. If you're a first-time buyer, you could qualify for a Federal Housing Administration loan (FHA), which requires a lower down payment but could still provide competitive interest rates. This will allow you to readjust when interest rates come back down.

☆ Consumer confidence in the housing market hits a new low, according to Fannie Mae
▼ + stars: | 2022-11-07 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Rising mortgage rates, high home prices and uncertainty in the overall economy have Americans feeling more pessimistic about the state of the housing market. In October, just 16% of consumers said they thought now is a good time to buy a home, according to a monthly survey by Fannie Mae. Fannie Mae's survey looks not just at buying and selling but tests sentiment about home prices, mortgage rates and the job market. More also believe mortgage rates will rise. By June it crossed 6%, and it's now just over 7%, according to Mortgage News Daily.

Average 30-year fixed mortgage rates are currently the highest they've been in 20 years, according to Freddie Mac. See more mortgage rates on Zillow Real Estate on ZillowToday's refinance ratesMortgage type Average rate today This information has been provided by Zillow. Whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

☆ A housing economist shares estimates of where mortgage rates will be by the end of this year and next — and lists the states that may see the most price corrections.
▼ + stars: | 2022-11-04 | by ( Laila Maidan | ) www.businessinsider.com time to read: +6 min

The majority of forecasters estimate mortgage rates will peak at 6.8 to 6.9%. Idaho, Utah, Nevada, Arizona, and Texas may see the most price corrections in housing prices. The hawkish approach has significantly increased anticipated mortgage rates for this time of year, she noted. The good news is, there's a low probability that mortgage rates will peak above 7%, she said. So I think that is always the one segment of the housing market one has to be a little bit more cautious about."

☆ Home Buyers Are Moving Farther Away Than Ever Before
▼ + stars: | 2022-11-03 | by ( Nicole Friedman | ) www.wsj.com time to read: 1 min

The rise of remote work and the ballooning cost of housing in major metro areas are leading Americans to move much farther away when buying a home. Buyers who purchased homes in the year ended in June moved a median of 50 miles from their previous residences, according to a National Association of Realtors survey released Thursday. That distance is the highest on record in annual data going back to 2005 and follows five straight years in which the median distance moved was constant at 15 miles, NAR said.

☆ First-time homebuyers are being shut out of the market like never before
▼ + stars: | 2022-11-03 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

First-time buyers made up just 26% of all homebuyers in the year ending June 2022, down from 34% the year before, according to NAR’s 2022 report on homebuyers and sellers. The median household income for first-time buyers slipped to $71,000 during the year ended in June, down from $86,500 in the previous 12-month period. “For first-time homebuyers, the lack of affordability is playing a key role in holding them back from homeownership,” said Jessica Lautz, NAR’s vice president of demographics and behavioral insights. “With the rise of rents and how that is hitting first-time homebuyers, it impacts Black buyers more than it would any other group,” said Lautz. Lautz said the research showed buyers faced hard decisions to close the deal on a home they could afford.

☆ Factbox: Highlights from Canada government's fall economic statement
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +2 min

OTTAWA, Nov 3 (Reuters) - Below are some of the key proposals and takeaways from the annual fall economic statement unveiled by Canada's Finance Minister Chrystia Freeland on Thursday. LOWER CREDIT CARD TRANSACTION FEES FOR SMALL BUSINESSTo lower credit card transaction fees for small businesses by negotiating with payment card networks, financial institutions, payment processors, and businesses. To introduce legislation in 2023 to regulate credit card transaction fees if an agreement is not reached with the industry. SUPPORT FOR LOW-EARNERSTo provide C$4 billion over six years starting 2022-23 tolow-income earners by way of advance payment. SUPPORT FOR HURRICANE FIONA-IMPACTED PROVINCESTo set aside C$1 billion in 2022-23 to help provinces hit by Hurricane Fiona under the Disaster Financial Assistance Arrangements.

☆ A Yale economist says a risky type of mortgage that contributed to the 2008 crash could save you money in the long run — if you can stomach uncertainty
▼ + stars: | 2022-11-02 | by ( Jacob Zinkula | Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Most Americans have a fixed rate mortgage, meaning their interest rate stays steady over time. A Yale economist says adjustable rate mortgages can help borrowers save money on interest in the long run. They're less predictable than fixed-mortgages, but are attractive due to their potential to take advantage of times when interest rates are low. "For most people, the adjustable rate mortgage is preferable unless the fixed rate mortgage rate is at a historic low or if you're really stretching your budget to buy your home," Choi said. Ultimately, even if the long-term odds are in the borrower's favor, an adjustable rate mortgage carries its risks.

☆ Here's what the Federal Reserve's fourth 0.75 percentage point interest rate hike means for you
▼ + stars: | 2022-11-02 | by ( Jessica Dickler | ) www.cnbc.com time to read: +7 min

The Federal Reserve raised the target federal funds rate by 0.75 percentage point for the fourth time in a row on Wednesday, marking an unprecedented pace of rate hikes. The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. As the federal funds rate rises, the prime rate does, as well, and your credit card rate follows suit within one or two billing cycles. Still, it's not the interest rate but the sticker price of the vehicle that's causing an affordability problem, McBride said. Federal student loan rates are also fixed, so most borrowers won't be impacted immediately by a rate hike.

Fueled by a post-lockdown buying frenzy, the average UK house price hit a record £275,000 ($315,474) in December, a £27,000 increase on the previous year’s high. UK mortgage rates have been ticking upwards since spring, in line with rising interest rates. UK house prices fell 0.9% between September and October, the first decline in 15 months, according to data from Nationwide. A drop in buying power makes a significant drop in house prices inevitable, according to Andrew Wishart, a senior economist at Capital Economics. When house prices fall, homeowners feel less confident about their personal finances, causing them to cut back on spending and hold off on making additional investments.

☆ The US spent half a trillion dollars last year alone financing its mountain of debt
▼ + stars: | 2022-11-01 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

By 2025 or 2026, the United States may hit a bleak milestone: Federal interest payments could exceed the country’s entire defense budget, according to Moody’s Analytics. The Fed kept interest rates very low to stimulate growth (and encourage inflation) and investors around the world clamored to buy US debt. But White of Moody’s notes that gross interest payments include interest the government pays to itself and said net interest is the more relevant category to watch here. In a best-case scenario, the United States grows its way out of the debt mess, with the economy expanding more rapidly than interest payments. With interest rates going up, the sovereign bond bubble is unwinding,” Boockvar said.

☆ A 27-year-old real estate investor who owns 11 rental units isn't buying property right now: 'The rates are way too high. I can't make money in the way I want to make money.'
▼ + stars: | 2022-10-27 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +4 min

Interest rates are too high for his liking. Mortgage rates are more than double what they were a year ago. Yin is very price conscious and does a detailed analysis whenever he's evaluating a rental property. With the interest rates where they are now, "I can still make money," he explained, "but my margin of error is a lot thinner. The rates on the properties Yin has financed currently range between 3.6% and 4.1%, according to documents viewed by Insider.

☆ Here are tips for buying a home in a cooling market, according to top-ranked financial advisors
▼ + stars: | 2022-10-26 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +5 min

Add in higher mortgage rates, elevated home prices and unrelenting high inflation — i.e., the current home-buying environment — and it may feel decidedly unattainable. This means having a good handle on your current financial situation. While the purchase of a house is a single transaction, affordability is largely about monthly mortgage payments. "Look at your current credit score and see if you need to make improvements," Higgins said. Look at your current credit score and see if you need to make improvements.

☆ Homebuyers are making the biggest down payments in these 5 metros. Here’s how much you actually need for a house
▼ + stars: | 2022-10-26 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

nd3000 | iStock | Getty Images5 metros with the biggest down paymentsIn 2022, these five metros have had the highest down payments based on LendingTree mortgage data from from Jan. 1 through Oct. 10, 2022. A larger down payment means a smaller mortgage, which can "certainly help offset the cost of rising interest rates to a degree," he said. While certain kinds of mortgages allow down payments as low as 3%, you'll have to pay mortgage insurance on loans with less than 20% down, and you may see higher interest rates, Gumbinger said. While smaller down payments mean higher interest rates and mortgage insurance, home buyers may reduce these expenses in the future, she said. When interest rates drop, there may be a chance to refinance, and buyers may remove mortgage insurance once they reach 20% equity in the home, Cohn said.

Pappas, 27, an aspiring actress, says it is not the dividend young people hoped for after a ravaging debt crisis and a decade of austerity. He attributes the surge in rents mainly to "an overly depressed market during the (debt) crisis." Loan-to-values on mortgages have dropped to 70-75%, from more than 100% before the debt crisis. Banks' caution underpins financial stability but could also keep young working people off the property ladder for decades. Officials expect about 10,000 young couples aged 25-39 will benefit from the programme offering 1% interest on loans up to 150,000 euros.

☆ Canada's Ontario ups foreign home buyers speculation tax to 25%
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +1 min

Oct 25 (Reuters) - The Ontario government said on Tuesday it was raising the real estate speculation tax for foreign buyers to 25% from 20% under a plan to tackle a housing crisis in Canada's most populous province. "For too many Ontarians, including young people, newcomers and seniors, finding the right home is still too challenging," provincial Housing Minister Steve Clark said in a statement. Ontario, home to Canada's financial capital of Toronto, is projected to have more new households than new homes by 2030, according to Canada's national housing agency. The 25% tax rate would be applicable across the province and is designed to discourage foreign speculation in Ontario's housing market, the provincial government said in the statement. To curb speculation, the federal government has also put in place a temporary ban on foreign buyers starting in January.

Average two-year and five-year fixed rates hit 6.65% and 6.51% on Thursday, according to Moneyfacts, the highest since 2008. FALLING PRICESA drop in gilt yields following Rishi Sunak's victory in the Conservative Party leadership race could potentially feed through to lower mortgage rates. But the number of loans available for first-time buyers remains at less than half those on offer before the mini-budget, according to Moneyfacts. NEW FIXESAs well as first-time buyers, brokers are dealing with thousands of people whose fixed rate mortgages are due to expire in the coming months. Redmond, who has had an offer accepted in east London, said it felt as though every turn of political event only made the fixed interest rate higher.

☆ China new home prices fall for second month in September
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Tingshu WangSummary Sept new home prices fall 0.2% m/m, down for second monthNew home prices down 1.5% y/y, fastest pace since Aug 201554 cities out of 70 report price declinesBEIJING, Oct 24 (Reuters) - China's new home prices fell for the second straight month in September, as its property sector grappled with a mortgage boycott, a heightened debt crisis and COVID-19 restrictions that dimmed the economic outlook. China's property sector has been beset by multiple headwinds after regulators clamped down on excessive borrowing since mid-2020. Property investment fell 12.1% from a year earlier, slightly narrowing from a 13.8% fall in August. China reiterated its "housing is for living, but not for speculation" in the full work report of the Communist Party Congress. Analysts from Nomura said in a note that a comprehensive solution to the property sector might not be introduced until after March 2023, when Beijing's political reshuffle is fully completed.

☆ China new home prices fall 0.2% m/m in September
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +1 min

Residential buildings are pictured near a construction site in Beijing, China April 14, 2022. Picture taken April 14, 2022. New home prices in September fell 0.2% month-on-month from a 0.3% drop in August, according to Reuters calculations based on National Bureau of Statistics (NBS) data released on Monday. New home prices in September declined 1.5% year-on-year, compared with a 1.3% decline in August. China has rolled out a flurry of policies to revive the embattled sector, including relaxing on mortgage rates and refunding individual income tax for some home buyers.

☆ A 20% crash in the housing market is possible as mortgage rates continue to surge higher
▼ + stars: | 2022-10-21 | by ( Matthew Fox | ) www.businessinsider.com time to read: +7 min

There's a flashing red warning sign hitting one of the biggest segments of the US economy: the housing market. This is all a recipe for disaster, and it could ultimately lead to a 20% decline in housing prices, according to Pantheon Macro's chief economist Ian Shepherdson. The housing market is in free fall with "no floor in sight." Pantheon Macroeconomics' chief economist Ian Shepherdson is sounding the alarm on the housing market, warning that home prices could fall as much as 20%. The price movement has some scratching their heads, given that demand for lumber is largely tied to the housing market, which can't get out of its own way due to soaring mortgage rates.

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