The Housing Market Is Improving, But There Still Aren't Enough Affordable Homes to Go Around

Source: The Atlantic   Homeownership may be slipping out of reach not just for lower income Americans, but working and middle class people as well, as there is not enough affordable housing inventory to go around in most of the country's large metro areas, according to Zillow. This tightness of supply will continue to have an impact on first-time home buyers, as well as anyone trying to buy a low-end home. Read the full story

Chinese investors remain an X Factor for the US housing market

Source: HousingWire Richard K. Green, director of the University of Southern California Lusk Center for Real Estate, writes that for the first time, the Chinese surpassed Canadians as the top investors in American residential real estate. Investors from China invested $22 billion in the U.S. housing market during the 12-month period that ended in March. He notes that Chinese investors consider the U.S. market and even the coastal cities of California to be relatively inexpensive.  Read the full story

Interest Rate Update

Interest Rate Update

WOW!!! Stock Market is down today over 400 points at 11am. Stocks have been losing ground every day this week and some think this is the big correction. Great for rates

How Will Lower Rates Impact Real Estate Sales?

As interest rates ease it is fairly obvious that more people can qualify for more homes. The affordability index measures the what percentage of people making the average wage can afford the average priced home. As rates ease that number goes up. It will become widely publicized that rates are falling as the government strives to keep the housing market in high gear.

How Does This Affect You ?

This is obviously GREAT news. Nobody can predict how long interest rates will stay under 4.0% but it could be into next year. The housing market has slowed due to recent increase in prices and a slight rise in interest rates above 4.0%. With home prices stabilizing and rates fall-ing below 4.0%, this could be a great opportunity for people to buy again. Get the word out to all your buyers, sellers, and anybody else you can find.

30 Year Fixed up to $417,000	3.625% to 4.0%
30 Year Fixed "Agency" up to $625,500	3.75% to 4.125%
30 Year Fixed FHA up to $417,000	3.25% to 3.75%
30 Year Fixed FHA "Jumbo" up to $729,500	3.375% to 3.875%

Debt-to-income ratio can sink mortgage application

Debt-to-income ratios (DTIs) proved to be the top answer that credit-risk managers at financial institutions across the country cited when declining to fund a loan request, according to a new survey by credit-score giant FICO. Nearly 60 percent of risk managers in the FICO study rated excessive DTIs as their No. 1 concern factor — five times the percentage who picked the next biggest turnoff. So if you’re in the market for a mortgage, work on your debt-to-come ratio to boost your chances of qualifying. Read the full story

Where Can Renters Afford to Own? Interactive Map

Source: Harvard Joint Center for Housing Studies   Harvard’s Joint Center for Housing Studies found that in looking at renters in the age group of 25-34, most would find the monthly costs of homeownership affordable in many metros across the country. Indeed, in 42 of the 85 metros studied, more than half of renters can afford the monthly costs of homeownership. So where are these buyers? Low inventory in many areas, combined with unemployment, income stagnation, and student loan debt have hampered sales. Read the full story

FHA Premium Issue Sure to Challenge New HUD Chief

Source: National Mortgage News Industry calls to lower Federal Housing Administration premiums will be a key issue that Julian Castro, the new head of the Department of Housing and Urban Development, will have to address when he takes the reins. Banking and housing groups have stressed that lowering FHA premiums is crucial to improving loan affordability. Castro’s predecessor, Shaun Donovan, resisted calls to lower premiums.

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