property management Bronx Archives

Credit Standards And What They Mean To You

There are many factors that play a role in determining whether youâ€™re able to qualify for a mortgage. Credit standards are one of them. But unlike your income or debts, they arenâ€™t as easy to keep up with. They are important, though, so hereâ€™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 â€“ as they were following the financial crisis and housing crash â€“ 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 Maeâ€™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 surveyâ€™s most recent results, though, show little movement from the previous quarter. More here.

One Way New Homeowners Can Save Money

There are a lot of things you need to set money aside for when youâ€™re getting ready to buy a house. You have to have money for a down payment, closing costs, and moving expenses but you also need to consider how much youâ€™ll need for any future home maintenance. Buying a home means youâ€™re on the hook for any repairs and renovations you need along the way â€“ and you will inevitably run into issues at some point, whether itâ€™s a clogged toilet or a leaky faucet. When it happens, you can pay someone else to fix it or try doing it yourself. Naturally, though, these costs can add up, if you call in a contractor for every loose hinge or minor leak. So itâ€™s a good idea for homeowners to do as much of their own work as possible. And, these days, itâ€™s easier than ever to find how-to videos, tips, and information that can help you become handier around the house. Minor repairs can be surprisingly easy, once you have the right tools and some know-how. So, if youâ€™d like one less thing to save for, start by brushing up on your home improvement skills. More here.

Pending Home Sales Slow Slightly In April

Between the time an offer is accepted and the deal is closed, a homeâ€™s sale is typically referred to as pending. Thatâ€™s because, thereâ€™s a chance, during this period, that the sale wonâ€™t go through, as there are a number of hurdles yet to clear. The buyerâ€™s loan and financing have to be finalized and steps like the home inspection and appraisal can also alter the terms of the deal or end it altogether. In short, buying a home is a major transaction and thereâ€™s usually a few weeks between the contract signing and closing. For that reason, the National Association of Realtors tracks pending home sales each month, as they can be a good indicator of what future home sales will look like. According to their most recent report, pending sales fell 1.3 percent in April, with most regions flat from the month before. The slight decline was mostly due to a drop in the Midwest. Still, the report is an indication that inventory levels in much of the country are holding sales back. With a fewer-than-normal number of homes for sale, buyers are having more difficulty locating the right house and, as a result, the number of home sales has not matched the level of demand. More here.

Average Mortgage Rates Down From Previous Week

Home buyers looking to buy a home this spring have their eye on two things: home prices and mortgage rates. Lately, both have been rising but the latest numbers from the Mortgage Bankers Associationâ€™s Weekly Applications Survey offers some potential relief. Thatâ€™s because the survey â€“ which has been conducted every week since 1990 and covers 75 percent of all retail residential mortgage applications â€“ found average mortgage rates were down last week across all loan categories, including 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, MBAâ€™s associate vice president of economic and industry forecasting, told CNBC rates fell slightly last week due to concerns about the global economy. â€œRates slipped slightly over the week as concerns over U.S. trade policy and global growth sent some investors back to safer U.S. Treasurys,â€ Kan said. In short, the decline may be a temporary break, as long-term trends remain in place. Still, lower rates, regardless of the reason, are good news for buyers. More here.

What Is The Most Prosperous City In The US?

Prosperous is defined as â€œsuccessful in material terms; flourishing financially.â€ And, while money isnâ€™t everything, itâ€™s safe to say we all want to be successful and wouldnâ€™t mind flourishing financially. So where in the country is the best place to live if you want some prosperity? Well, the answer might surprise you. Thatâ€™s because a new study â€“ looking at factors such as population, median income, home values, share of inhabitants holding higher education degrees, poverty rate, and unemployment â€“ determined that Odessa, Texas was the the top city for prosperity, beating out heavy hitters like Washington DC, New York, Los Angeles, Atlanta, and Charleston. So what about Odessa makes it the most prosperous city in America? Well, from 2000 to 2016, the city experienced a 38 percent spike in income growth, home values rose 91 percent, and the poverty rate dropped by 36 percent. Those are some impressive numbers but the story behind the story is that Odessa benefited from a surge in crude oil production, which boosted the cityâ€™s fortunes and lifted it to the top spot on the list. More here.

Housing Outlook Sees Gradual Gains Ahead

The housing market has been in a bit of a holding pattern lately. While there is a high level of home buyer demand, there are a lower-than-normal number of homes for sale. That means, though sales should be booming right now, they are only making modest gains. But things can change. And, if more houses become available for sale, it could begin to reverse home price trends, making it easier for interested buyers to find and buy homes. So what is likely to happen in the coming months? Well, according to Fannie Maeâ€™s most recent Economic and Housing Outlook, things will grind forward, but we shouldnâ€™t expect major changes in market fundamentals anytime soon. â€œHousingâ€™s upward grind should continue, despite a lackluster first quarter,â€ Fannie Maeâ€™s chief economist, Doug Duncan, says. â€œWe expect home sales to post modest gains both this year and next, as prices rise and affordability declines amid low for-sale inventory.â€ For buyers and sellers who may be waiting for conditions to change before making a move, this means the market isnâ€™t likely to be significantly different in the coming months. More here.

Changes Come To The Luxury Home Market

The high end of the real estate market has followed a different path since the financial crisis and housing crash. But while the luxury home market was able to avoid some of the ups-and-downs the rest of the market has endured, things are beginning to change. In fact, one recent analysis shows the number of homes for sale priced at or above $1 million dollars fell significantly during the first quarter of this year, as compared to the year before. And, if inventory continues to drop, the luxury home market could see some of the spiking prices and competition for available homes that buyers have found in more affordable price ranges. However, those this may be true, the effects have, so far, been far more muted than in the overall market. For example, the average luxury home was on the market for 82 days during the last quarter. Thatâ€™s faster than the same time last year but much longer than the overall average. For comparison, the National Association of Realtorsâ€™ most recent numbers show the typical existing home was on the market for just 30 days, with 50 percent of homes sold in less than a month. More here.

Mortgage Rates Little Changed From Week Before

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, mortgage rates showed little movement last week and were virtually unchanged from the week before. Rates for 30-year fixed-rate mortgages with conforming loan balances and FHA loans fell slightly, while rates for 15-year loans were flat from the previous week. Jumbo loans saw an increase from one week earlier. But though rates were steady, demand for mortgage applications fell. In fact, both refinance and purchase activity were down from the week before. The week-over-week drop puts demand for loans to buy homes 4 percent higher than at the same time last year. But, despite the improvement, analysts say application demand should be much higher, as the number of interested home buyers has grown. One explanation is that, though there are many buyers active in the market, they are having a harder time finding homes to buy, which has depressed demand for loans. As more homes become available to buy, the numbers will begin to catch up with the current level of interest in buying a home. The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.

How Builder Confidence Affects Home Prices

If you’re considering becoming a buyer in today’s housing market, you’re likely wondering what’s happening with home prices. Well, the primary factor driving values upward is a lack of available homes for sale. Simply put, there are more buyers than homes in many markets. This, of course, means home sellers can get a higher price for their house but it also means buyers can expect competition for the best available properties. So will this dynamic ever change? Well, one good indicator of where home prices are heading is new home construction. If new homes are being added to the stock of homes for sale, home prices will begin to moderate. That’s why the National Association of Home Builders tracks builder confidence each month. If builders are optimistic about the market for new homes, they will build more, which will help boost inventory. According to the most recent results of the NAHB’s Housing Market Index, there is reason for encouragement. That’s because, builder confidence rose in May and is now at 70 on a scale where any number above 50 indicates more builders view conditions as good than poor. In short, home builders are feeling positive about their prospects, which could mean a more balanced market. More here.

The Feature Millennials Are Most Willing To Go Without

Unless youâ€™re having a house built to your exact specifications, the house you end up buying will likely be a feature or two short of what youâ€™d been fantasizing about. Thatâ€™s because, youâ€™re going to be choosing only from the homes that are on the market during the time youâ€™re shopping. So the odds of finding each and every thing on your wish list in one home are pretty slim. In other words, youâ€™re going to have to compromise. But how willing you are to compromise may have something to do with your age. In fact, according to one new study, millennial home shoppers are more willing to compromise on home and neighborhood features than Gen X buyers or baby boomers. Among respondents, 89 percent of millennials said theyâ€™d be willing to give up a neighborhood feature for their ideal home and 84 percent said theyâ€™d be willing to sacrifice a home feature to live in their preferred neighborhood. So what is the feature young home buyers are most willing to forgo? Well, garages top the list, with 34 percent saying theyâ€™d be willing to give up having one to live in the right neighborhood. More here.