A sign that an economic recovery is slowly getting underway is evident by figures from one of the most deeply impacted industries during the recession — the construction industry. November marked a third consecutive month with construction spending up. Development of new homes, along with an increase in government funding for federal construction projects, is […]
First-Time Buyers Returning to the Market
With interest rates slowly rising, a new report says that many first-time homebuyers aren’t taking any chances, and are looking to buy a home as soon as possible. According to the Housing Pulse survey from Inside Mortgage Finance and Campbell Surveys, the percentage of first-time buyers grew from 34.4 percent in October to 37.2 percent […]
Housing Inventory Drops in November
A new report from ZipRealty shows the supply of homes for sale in November declined by an average of 3.78 percent in 26 major metropolitan areas that the company researched. The report measures inventory from month to month and also compiles quarterly results of the information and covers single family homes, condos, and townhomes. Declines […]
Housing Affordability Remains Very High
Low home prices and mortgage rates combined to bring housing affordability to its second-highest level ever, according to a new report from the National Association of Home Builders. For the third quarter of the year, the association’s Housing Opportunity Index rose to 72.1, indicating the percentage of homes sold that were affordable for those earning […]
Fed’s Cash Injection Likely to Keep Mortgage Rates Favorable
Along with the election results, the big news recently was the Federal Reserve’s announcement that it will attempt to jumpstart the economy by purchasing another $600 billion in long-term Treasury bonds through mid-2011. While this announcement was not unexpected, it has been widely debated whether the plan will actually bandage the economy and raise employment […]
Could We See 0% Mortgage Rates?
Imagine financing a home purchase with a no-interest mortgage. You’d probably never want to move again. Granted, it’s doubtful you’ll ever have that luxury. But if rates continue to drop, as some in the mortgage industry suggest they may — especially after the Federal Reserve’s recent statement that it was prepared for more extraordinary measures […]
Pending Home Sales Rise 4.3% in August
Pending home sales rose 4.3% in August from the month earlier but remain significantly lower than the year ago, and any “sudden rise in mortgage rates could slow the recovery.” The National Association of Realtors said its pending home sales index, which is based on contracts signed, was 82.3 for the month, up from a […]
Refinancing: 5 Things You Need to Know First
If you’re thinking about refinancing an existing mortgage, here are 5 things you need to consider first: A fixed mortgage rate guarantees your monthly payments will not change even if the housing market does. If the interest rate goes up at any given time, you’ll know you’ve been wise since your rate remains the same. […]
Mortgages: How Are Rates Determined?
Mortgage rates are determined by a number of factors, including market conditions, your personal credit history and the size of your downpayment. One of the biggest factors in the mortgage rate you get as a homebuyer is the Federal Funds Rate, an interest rate determined by the Federal Reserve that affects inter-bank loans and transactions. […]
Buying a Home is More Affordable Now
Families that have steered cleared of the housing market may want to reconsider their decision to rent instead of own. A new report from the federal government indicates that U.S. homes are the most affordable they have been in 10 years. The Obama administration’s Housing Scorecard found that a combination of record low interest rates […]