Whether to rent or buy is a common debate for Americans looking for a new place to live. The arguments are well known. Renters say it's cheaper, if only because there are no upfront expenses like a down payment or closing costs. Homeowners, on the other hand, will point to the long-term financial benefits of owning a home, including equity and wealth creation. Ultimately, what you choose will be determined by factors specific to your life, goals, and finances. But, according to a new survey from Freddie Mac, on one … [Read more...]

New numbers from the National Association of Realtors show contracts to buy homes were 1.1 percent higher in May than the month before. Improvement was seen in three of the four major regions, with only the West seeing a slight decline. Lawrence Yun, NAR's chief economist, says favorable mortgage rates have motivated home buyers. “Buyers, for good reason, are anxious to purchase and lock in at these rates,” Yun said. “The Federal Reserve may cut interest rates one more time this year, but there is no guarantee … [Read more...]

In order to gauge how affordable it is for you to buy a home, you have to factor in a number of different variables. How much money you've saved and how much you earn are part of the equation, as are current mortgage rates. But home prices may be the most important factor. Home prices are an easy-to-understand indicator of where things are headed in the housing market and how it might affect your buying options. So what do home prices look like today? Well, one way to get an accurate read of where prices are is to … [Read more...]

Part of shopping for a house to buy is calculating whether or not you'll be able to comfortably afford the monthly mortgage payment. Nobody wants to buy a house that causes them financial stress. So figuring out your approximate payment and how that fits into your monthly budget is key to choosing a house that's right for you. Of course, having a steady job and a consistent income will help make your mortgage payment easier to manage. Which is why the improved job market is among the reasons credited for new … [Read more...]

Sales of previously owned, single-family homes increased 2.5 percent in May, according to new numbers from the National Association of Realtors. The gains follow two months of declines and are evidence that home buyers are responding to improved affordability conditions. Lawrence Yun, NAR's chief economist, says, purchase power is up. “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,” he said. But though favorable buying conditions are good for potential … [Read more...]

The number of homes for sale is lower than normal in many markets. So, any indication that relief may be on the way is good news for potential home buyers. That's why the results of a recent survey conducted by the National Association of Realtors are encouraging. The survey found a significant increase in the number of respondents who said they believe now is a good time to sell a home. In fact, 46 percent of participants said they thought so – up from 37 percent in the first quarter. What's driving the boost in … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates increased last week following six consecutive weeks of declines. And, while the increase was slight, it was enough to cause a drop in overall mortgage application demand. Joel Kan, MBA's vice president of economic and industry forecasting, said refinance activity was particularly affected. “After seeing a six-week streak, mortgage rates for 30-year loans increased slightly, which led to a pullback in overall refinance … [Read more...]

Obviously, there's a link between the economy and housing market. When the economy isn't doing well, it tends to affect people's money and confidence. And, if people aren't feeling financially secure, that can lead them to put off making a major purchase like buying a home. After all, no one wants to buy a home right before the economy tanks and prices crash. But, according to the most recent outlook from Fannie Mae's Economic and Strategic Research Group, there are also times when that link isn't as direct. For … [Read more...]

Naturally, when there are more home buyers than homes for sale, prices and competition increase. That's why, the fact that there are a lower than normal number of homes for sale ranks high among the main issues affecting today's home buyer. But what are the factors causing for-sale inventory to lag in markets across the country? Well, one of them is that an increasing number of homeowners have decided that, rather than moving, they'd prefer to renovate or remodel the home they have. In fact, according to Harvard's … [Read more...]

Buying a home involves more than just finding a house you like, making an offer, and moving in. There are many steps along the way and each has an important purpose. Take the inspection, for example. After you've had your offer accepted, the home will need to be professionally inspected. This serves a couple of different purposes. First, it provides the home buyer with necessary information about the health of the home and what it'll take to maintain it. An inspector looks at things like the roof, structural and … [Read more...]