Market Matters

A third of mortgage holders don't know their rate Source: CNBC While the mortgage interest rate governs Americans’ single-largest monthly expense, more than a third don’t know the rate that they’re paying. Bankrate.com surveyed a national sample of 1,000 adults and found that 35 percent did not know their mortgage interest rate. One in seven mortgage holders were either "not too confident," "not at all confident," or had no idea about their rate. Most borrowers know the general range, but a half and a quarter percentage point variance can translate into meaningful savings, especially in today's changing lending environment. Read the full story   U.S. Homeownership Rate Falls to 20-Year Low Source: Wall St. Journal   At the end of 2014, the U.S. homeownership rate fell to its lowest level in 20 years. According to the Commerce Department, some 63.9 percent of U.S. households owned their homes in the fourth quarter, a level last recorded in the third quarter of 1994. The homeownership rate hasn’t fallen below that level since 1988. Just last year the homeownership rate stood at 65.1%. Data shows that household formation increased by 1.66 million from a year earlier, with 2 million more renter households and 350,000 fewer owner households. The homeownership rate was at its highest in 2005, when it peaked at 69.2%. Read the full story Overseer of Fannie and Freddie Takes Cautious Steps to Strengthen Housing Source: New York Times   Mel Watt, director of the Federal Housing Finance Agency, gave his first on-the-record meeting with reporters and indicated that he would not seek any major transformation in the government’s role in the housing economy. He deflected criticism of a plan that allows down payments as low as 3 percent of the purchase price for buyers who are short on cash by noting that credit counseling and other measures would keep buyers on track with payments. In light of expectations that the plan will attract only a small number of people, the New York Times describes his other ideas for helping homeowners as “similarly modest.” Read the full story      It's a great time to buy a home: Fannie Mae Source: Yahoo! Finance   The 2015 housing outlook from Fannie Mae forecasts a 5.8 percent increase in home sales for 2015. Its economists revised previous GDP estimates to 3.1%, up from 2.7%, and said that the economy would “drag housing higher,” meaning that both the economy and housing will pick up speed this year, but the economy will improve at a greater pace. According to Fannie Mae’s chief economist, 2015 will only be a breakout year if millennials feel that their incomes are secure enough and mobility is less of an issue. Read the full story Starbucks could jolt home values Source: Union-Tribune San Diego Homes located near a Starbucks appreciate much faster than homes farther away from the coffee giant, according to new analysis from Zillow. In the online portal’s new book Zillow Talk, it is noted that the average home near a Starbucks appreciated from $137,000 in 1997 to $269,000 in 2014, a 96 percent gain. Homes not near a Starbucks were up 65 percent over that same time period to $168,000. However, some critics of this thesis say the appreciation has more to do with where Starbucks chooses to locate, in up-and-coming neighborhoods. Read the full story Urban Institute: 3 predictions for mortgage lending Source: HousingWire  The Urban Institute and CoreLogic hosted a panel of four experts from the government, private, and non-profit sectors to address a range of issues related to mortgages, and three predictions were made during the discussion. One, the new rules for Private Mortgage Insurers (PMIs) won’t raise mortgage insurance prices much. Secondly, the guarantee-fees charged by Fannie Mae and Freddie Mac could be reduced. Thirdly, whatever the resolution on remaining issues, borrowers should benefit as the FHA, the GSEs, and PMIs recalibrate as they try to find the new industry equilibrium over the coming months. Read the full story