News Flash!!

The employment report for the month of December came in a little better than expected BUT, some components of the report were weaker than expected.  As a result rates have improved.  Conforming rates are around 3.75% (depending on credit score and other factors) and some experts are saying rates will drop to 3.5% or lower.

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Customer Satisfaction is Key

Market Matters

Good Signs for Housing in 2015
Source: U.S. News

With job growth and solid economic expansion, household formation experiences a boost and demand for rental and owner-occupied housing increases. As the economy continues to improve, there are promising signs for the housing industry because housing demand creates jobs and in turn fosters additional demand for construction. While prices have continued to rise on average, they have done so at slower rate over the course of 2014, and that trend is expected to continue in 2015. 
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Nearly half of home buyers don't shop for a mortgage

Source: CNBC

 

A report from the Consumer Financial Protection Bureau reveals that almost half of consumers seeking a loan to purchase a home do not shop lenders. Consumers are cheating themselves of the opportunity to have a lower monthly payment, and the borrower with the cheaper loan will also build equity faster. Furthermore, a majority of home buyers seek information on mortgage choices from sources that have a stake in their decision. Just 20 percent said they rely heavily on websites, despite the ready availability of mortgage-related information online.
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Homeowners Win U.S. High Court Clash on Canceling Mortgages
Source: Bloomberg

 
A new ruling from the Supreme Court gives homeowners the ability to cancel their mortgages if lenders don’t provide the required disclosures. The Truth in Lending Act stipulates that borrowers have three days to rescind a mortgage after they receive the disclosures, and that right expires after three years. The justices unanimously ruled that borrowers don’t have to file suit within three years and instead can meet the deadline by sending a letter to lenders.
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FHA fee cut won't help many first time homebuyers in California

Source: KPCC

 

Recently the Obama administration dropped the fees on FHA loans, the mortgages taken out by most first-time buyers. These loans are popular with first-time buyers because they only require a down payment of 3.5 percent with a credit score of 580. The change in fees was applauded by the CALIFORNIA ASSOCIATION OF REALTORS®, and the trade association’s president, Chris Kutzkey, said, “Anything that goes toward assisting buyers getting loans is something that we embrace wholeheartedly.” But there are concerns that the fee cut may not make much of a difference in California for many buyers.
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Happy Valentine's Day!

Market Matters

Millennials still grapple with first-time homebuying Source: HousingWire Tightened inventory, difficulty receiving credit and lower-than-average salaries have kept many of these buyers out of the market, but most economists see that as a temporary setback. Jonathan Smoke, chief economist forrealtor.com, commented, “Millennials are the largest generation of people in the U.S. and represent 60% of first-time homebuyers. They are also more likely than any other group to purchase a home in the next year."   Read the full story

Survey: Many Still Believe Housing Recovery Still Three to Five Years Away Source: DSNews.com   In a survey of real estate experts and economists by Zillow, 40 percent of respondents said it will take another three to five years for the housing market to normalize, based on current home price trends and homebuyer activity. One in five responded that housing has either already returned to normal or will within the next 12 months. Read the full story

Foreign Buyers Are Pumping Up Prices in U.S. Luxury Housing Source: Newsweek   Sales of U.S. homes to foreigners jumped 35 percent, to $92.2 billion, and while that represents only 7 percent of the U.S. market, the buying tends to be concentrated in a handful of markets, namely Arizona, California, Florida, New York, and Texas. Foreign buyers tend to purchase high-end properties and pay cash, which is pushing up the prices on luxury properties. In Manhattan, prices of luxury properties rose faster than the overall market in the third quarter of 2014, according to the real estate firm Douglas Elliman. Read the full story

The Value of a Remodel