Friday , 29 July 2016
Home » Author Archives: Steve Cook

Author Archives: Steve Cook

Today’s Mortgage Borrowers Mean Business

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In the glory days of the housing boom, “pulse loans“ were popular.  (If you had a pulse, you could get a loan.)  Since those days, mortgage approval rates to buy a home have stayed roughly the same; in 2004, some 14.4 percent of purchase loan applications were turned down compared to 13.2 percent in 2014.[1] One might assume that access ... Read More »

Summer Sales Slow as 2016 Heads for ‘Moderation”

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The first analysis of June market data confirms forecasts that sales peaked in the first half of the year and will hold on to make 2016 a moderating, normalizing housing market like those preceding boom, at the turn of the Millennium. Clear Capital forecasted between sales growth at 1% to 3% in January and is sticking a with the same forecast, which ... Read More »

Apartment Demand Surged in Second Quarter

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  Demand for apartments surged during the second quarter, gaining momentum after a sluggish performance in the first three months of the year and outstripping new units completed during the quarter. The occupied apartment count across the nation’s 100 largest metros increased by 127,402 units in the secone quarter, topping 2015’s second quarter demand volume by 23 percent. Demand surpassed ... Read More »

Consumers Underestimate Cost of Low Credit Scores

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A new national survey sponsored by the Consumer Federation of America found that consumers greatly underestimate the cost of low credit scores and a significant minority do not know that credit scores are used by non-creditors. Only about half (53%) know that electric utilities may use credit scores (for example, in determining the initial required deposit), while only about two-thirds ... Read More »

New Study: Abolishing The Mortgage Interest Deduction Would Lower House Prices by Nearly 20 Percent

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Abolishing the mortgage interest deduction would decrease the amount that homeowners would be able to pay for their homes by 17.65% and lower house prices by 19.94%, according to a new study recently accepted for publication in the Journal of Housing Economics. The study by three Belgian economists found that the MID is one of the several reasons why income ... Read More »

Soaring Entry-tier Values and Weak Credit are Closing the Doors to Homeownership

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Shortages, soaring prices, and credit histories significantly weaker than past generations are closing the door to Millennials’ dreams of homeownership.  The latest market data and analysis paint a bleak picture of the hurdles facing young buyers today. At 8 percent a year, entry-level home values rose at double the rate of top-tier homes over the past year, reaching $104,600 in ... Read More »

Rental Cost Crisis Worsens as Ownership Improves

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The percentage of renters paying more than 30 percent of their income on housing costs is increasing while cost-burned homeowners are decreasing, according to the 2014 State of the Nation’s Housing report released yesterday by the Harvard Joint Center for Housing Studies. On the owner side, the number of households facing cost burdens has fallen steadily as high foreclosure rates ... Read More »

All You Need to Know to Master Market Literacy

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  Perhaps the most valuable lesson that real estate consumers learned from the housing crash was that home values can fall as well as rise.  More than seven million families lost their homes to foreclosures and short sales; a brutal wake-up calls that though homeownership is safer than most investments it still involves risk.  Today’s buyers are very aware that ... Read More »

Five Good Reasons to be Cool Over Higher Interest Rates

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One of strongest drivers of demand in today’s housing markets is buyers’ fear that interest rates will rise, and they will never again see rates as low as they are today.  That’s one reason the first-time buyer volume of government-guaranteed mortgages, low down payment loans like FHA and Freddie Mac’s Home Possible Advantage program surged 18 percent in April.[1] Buyers ... Read More »

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