Mortgage rates, to some extent, are reactionary. And so, as the economy grows stronger, rates increase. That's been the story so far this year and, according to the latest results from the Mortgage Bankers Association's Weekly Applications Survey, last week was no exception. That's because, rates were up 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, MBA's … [Read more...]

Choosing a house to buy is an important decision. After all, you're committing a lot of money and several years of your life to a particular property. And so, home buyers tend to know what they want, whether it be a large kitchen, an appealing outdoor space, or an ample amount of storage. But surprisingly, large majorities of home buyers spend too little time paying attention to the neighborhood surrounding the home they're considering. And, make no mistake, the neighborhood you move to will play an important role … [Read more...]

These days, just about everyone has some debt. It's almost more remarkable not to carry a balance of one type or another. In fact, a report last year found that 73 percent of consumers died with unpaid debts and, among them, the average owed was $62,000. That's a lot. But accruing debt over a lifetime is different than starting one already in the hole. And, unfortunately, many young Americans today find themselves in that situation. For the most part, student loans are responsible for the money millennials owe, but … [Read more...]

It's said that there are two sides to every story. But there are also two sides to the calculations potential home buyers undergo when deciding whether or not it's a good time for them to look for a new house. After all, buyers have to take into consideration the cost of homes in the areas they're looking to live but also their own financial security. That's why Fannie Mae's most recent Home Purchase Sentiment Index is encouraging. Because, though Americans have concerns about housing affordability, they are … [Read more...]

When calculating how much house you can comfortably afford, there are a few commonly cited rules that can be used. Among them, the one that says your home's price shouldn't be more than three times your annual income is popular. Of course, there are many other factors that play a role, including the amount of debt you have, your retirement goals, other expenses, etc. However, as a simple rule, it can be a good way to quickly come up with a ballpark price range before you work out the fine details. Using a variation … [Read more...]

This year, home buyers hoping to find smaller, more affordable homes have had a harder time than those shopping at the high end of the market. Partly, this is because there are fewer entry-level homes available for sale than is typical. But, according to the Mortgage Bankers Association's Weekly Applications Survey, there may be evidence that first-time buyers are beginning to find their way into the market. That's because the average loan size has fallen to its lowest level since last December, which indicates … [Read more...]

There are many different factors that play a role in the housing market's health. When home buyers and sellers decide that its time for them to make a move everything from their job security to the global economy has an effect. For example, economic instability half way around the world can move mortgage rates, which will affect how much house you can afford. But what you can afford is also affected by how much you earn and how secure you feel in your job. In short, there's a lot to keep an eye on. That's why it … [Read more...]

If you're in the market to buy a home, you'll be choosing a house from those listed for sale in your area, unless you hire a builder and architect to construct a home to your exact specifications. That means, to some extent, your choices are limited. In today's market, that's especially true, since there are a lower-than-normal number of homes available for sale. In other words, not only do low inventory levels cause prices to increase, they can also make it less likely that you'll quickly locate a home that fits … [Read more...]

Following the housing crash and financial crisis, there was talk that Americans may stop aspiring to homeownership and would no longer see the housing market as a sound investment and reliable creator of wealth. After all, homeowners who saw the values of their homes plummet might become leery and those who hadn't yet bought a home may've considered themselves lucky. And yet, a decade down the road, the market has largely recovered and demand from buyers is running high. Lawrence Yun, the National Association of … [Read more...]