Cash sales accounted for 36.4 percent of total home sales in November 2015, down 0.7 percent year over year. In November 2014, cash sales totaled 37.1 percent, and month-over-month cash sales increased by 2.5 percent from October to November. The year-over-year decrease was the lowest in almost three years. The elevated cash share for November was most likely related to the new federal mortgage rules that took effect in October 2015. The cash sales peaked in January 2011 at 46.6 percent. Prior to the housing crisis, the cash share of total home sales averaged about 25 percent.
Wednesday, July 27, 2016
Cash sales on homes continue to decline
Source: HousingWire
Cash sales accounted for 36.4 percent of total home sales in November 2015, down 0.7 percent year over year. In November 2014, cash sales totaled 37.1 percent, and month-over-month cash sales increased by 2.5 percent from October to November. The year-over-year decrease was the lowest in almost three years. The elevated cash share for November was most likely related to the new federal mortgage rules that took effect in October 2015. The cash sales peaked in January 2011 at 46.6 percent. Prior to the housing crisis, the cash share of total home sales averaged about 25 percent.
Cash sales accounted for 36.4 percent of total home sales in November 2015, down 0.7 percent year over year. In November 2014, cash sales totaled 37.1 percent, and month-over-month cash sales increased by 2.5 percent from October to November. The year-over-year decrease was the lowest in almost three years. The elevated cash share for November was most likely related to the new federal mortgage rules that took effect in October 2015. The cash sales peaked in January 2011 at 46.6 percent. Prior to the housing crisis, the cash share of total home sales averaged about 25 percent.
Wednesday, July 20, 2016
Average US rate on 30-year mortgage ticks up to 3.64 percent
Source: AP
Global economic anxiety and market turbulence slightly eased, which led average long-term U.S. mortgage rates to rise this week for the first time in two months. The average rate on a 30-year fixed-rate mortgage increased to 3.64 percent from 3.62 percent, according to Freddie Mac. The average rate on 15-year fixed-rate mortgages edged up to 2.94 percent from 2.93 percent. Though markets have stabilized and some economic anxiety has eased, most experts don't expect the Federal Reserve to raise the short-term interest rate it controls anytime soon, following its rate hike in December.
Global economic anxiety and market turbulence slightly eased, which led average long-term U.S. mortgage rates to rise this week for the first time in two months. The average rate on a 30-year fixed-rate mortgage increased to 3.64 percent from 3.62 percent, according to Freddie Mac. The average rate on 15-year fixed-rate mortgages edged up to 2.94 percent from 2.93 percent. Though markets have stabilized and some economic anxiety has eased, most experts don't expect the Federal Reserve to raise the short-term interest rate it controls anytime soon, following its rate hike in December.
Wednesday, July 13, 2016
Wednesday, July 6, 2016
Home 'flipping' exceeds peak in some hot U.S. housing markets
Source: Reuters
Home flipping in 12 active metropolitan areas last year was above a peak set in 2005, just two years before the U.S. mortgage market started to collapse, according to a report by RealtyTrac. The rise in home flipping, which is buying and reselling a home to make a quick buck, has prompted concerns that local housing bubbles could be developing. Profits generated by home flipping also hit a 10-year high, with home flippers netting an average $55,000 per sale before renovation and transaction costs. Profits topped $100,000 in expensive markets such as New York and Los Angeles.
Home flipping in 12 active metropolitan areas last year was above a peak set in 2005, just two years before the U.S. mortgage market started to collapse, according to a report by RealtyTrac. The rise in home flipping, which is buying and reselling a home to make a quick buck, has prompted concerns that local housing bubbles could be developing. Profits generated by home flipping also hit a 10-year high, with home flippers netting an average $55,000 per sale before renovation and transaction costs. Profits topped $100,000 in expensive markets such as New York and Los Angeles.
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