Millennials are becoming a powerhouse in the real estate market, accounting for 84 percent of closed loans in January. And they’re increasingly turning to Federal Housing Administration loans, those that offer low down payment options, to achieve homeownership.In January, 35 percent of millennials used an FHA loan, according to Ellie Mae’s Millennial Tracker.“As the purchase market heats up, we will continue to watch the FHA purchase trend
Wells Fargo & Company says its new initiative aims to help at least 250,000 African-Americans become homeowners over the next decade.The bank giant says its initiative is directly in response to the lower homeownership rates among the African-American community. Wells Fargo will devote $60 billion to qualified African-American consumers for home purchases by 2027. It also will devote $15 million to support several initiatives that promote fin
Mortgage rates broke a month long holding pattern and inched lower this week."The 10-year Treasury yield remained relatively flat this week, while the 30-year mortgage rate fell 6 basis points to 4.1 percent,” says Sean Becketti, Freddie Mac’s chief economist. “Since the beginning of the year, the 10-year Treasury yield has covered a 22 basis point range. The range of movement for the 30-year has been half that, just 11 basis points."Freddi
A slight decline in mortgage rates sent total mortgage application volume up 5.8 percent last week on a seasonally adjusted basis compared to the previous week, the Mortgage Bankers Association reported Wednesday. Applications for home purchases, a gauge of future homebuying activity, rose 7 percent, while refinance applications increased 5 percent, reaching the highest level since December.Still, applications should be much higher, the MBA note
More borrowers are choosing non-banks—financial institutions that only issue loans and do not offer savings or checking accounts—to get a mortgage, The Washington Post reports. It's a major shift in borrower behavior. In 2011, 50 percent of all new mortgage loans originated from the three largest banks: JPMorgan, Bank of America, and Wells Fargo. However, in September 2016, that share plunged to 21 percent.During that time, non-banks emerged
With the cost of building materials jumping 25 percent year over year, according to the National Association of Home Builders' NAHB/Wells Fargo Housing Market Index, builders are increasingly concerned about how this will affect home buyers in the new-construction market. In 2016, builders ranked the cost of building materials low on their list of concerns—but now it's one of their top five.The increased cost of lumber is a chief catalyst. "Neg
All-cash sales are on the decline, accounting for 32.4 percent of total home sales in November 2016, down 4.5 percentage points year over year, according to CoreLogic's most recent housing data. That's a significant drop from January 2011, when cash sales were at their peak: a whopping 46.6 percent of all home sales nationally. CoreLogic experts predict cash sales will fall to a historical norm of about 25 percent by mid-2017.Cash sales are most
Parents are having a tough time saving money. Fifty-one percent of parents recently surveyed say their mortgage was having a “major impact” on their ability to save, according to Bankrate’s Money Pulse survey for February.“It’s probably not as much about the mortgage as it is that stage of life,” says Jonathan Smoke, realtor.com®’s chief economist.Homeowners with children are likely to be in their early 30s to mid 50s and have many
Billionaire and renowned investor Warren Buffett has seen mammoth appreciation for a getaway home he owns in Laguna Beach, Calif. He purchased it in 1971 for $150,000. Now Buffett is selling the six-bedroom, 6.5-bath home for $11 million.Are there any lessons from Buffett’s savvy investment that others can draw from who are looking for high appreciation over time? Realtor.com® spotlights a few.Distinguish between price and value.Buffett first
Mortgage rates continue to defy expectations, with the 30-year fixed-rate mortgage rate barely budging for the fourth consecutive week.Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 23: 30-year fixed-rate mortgages: averaged 4.16 percent, with an average 0.5 point, rising from last week’s 4.15 percent average. Last year at this time, 30-year rates averaged 3.62 percent. 15-year fixed-rate mortga
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