Tag: New York

When debating whether to rent or buy your next place, the argument in favor of renting usually includes the fact that it’ll be cheaper – especially since you don’t have to pay for closing costs or save for a down payment. However, renting a place isn’t all that cheap these days and, depending on what you’re looking for, prices may be rising even faster than expected. According to recently released data, rental rates are increasing and particularly among two and three-bedroom homes. In fact, rental homes, generally, are climbing in price faster than apartments. Nationally, a typical two-bedroom now costs $1,310 per month and the cost for a typical three-bedroom is up to $1,445. And, depending on your local market, it could be even higher. So why is rent rising faster for homes than it is for apartments? Well, for some of the same reasons home prices are climbing. For one, new, and smaller, apartments are the focus of most rental unit construction, while the supply of single-family homes to rent is mostly fixed. More here.

According to the Mortgage Bankers Association’s Weekly Applications survey, average mortgage rates were up-and-down last week, with rates for 30-year fixed-rate mortgages with conforming loan balances relatively flat and mortgage rates for jumbo loans and those backed by the Federal Housing Administration down from the previous week. Joel Kan, an MBA economist, told CNBC rates are reacting to concerns over trade policy. “Concerns over trade between the US and China persisted last week,†Kan said. “And, these concerns outweighed positive news on housing starts and a generally bullish view on second quarter US growth.†In short, rates didn’t move much last week because positive economic news was balanced by concerns about future changes to trade policy. But despite unchanged rates, buyers retreated from the market, with the MBA’s survey finding a 6 percent decline in the number of Americans requesting applications for loans to buy homes. This could be due to affordability challenges or low inventory in some markets. Whatever the case, applications for loans to buy homes are now just 1 percent higher than they were at the same time last year. More here.

There are many factors that play a role in determining whether you’re able to qualify for a mortgage. Credit standards are one of them. But unlike your income or debts, they aren’t as easy to keep up with. They are important, though, so here’s what you need to know. Credit standards refer to the requirements lenders use to determine whether or not you qualify for a loan. When credit standards are tight – as they were following the financial crisis and housing crash – potential buyers have to reach a higher financial standard in order to be deemed creditworthy. When they loosen, the opposite is true and buyers will have an easier time obtaining a mortgage. Because of the role they play in determining whether buyers are approved or not, Fannie Mae’s Lender Sentiment Survey takes the pulse of lenders across the country to determine whether standards have been loosening or tightening lately. Generally speaking, standards have eased since the financial crisis. The survey’s most recent results, though, show little movement from the previous quarter. More here.