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. 
Read the full story

 

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.
Read the full story

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.
Read the full story
 

 

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.
Read the full story