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For the Week Ending June 14, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

Both wholesale and consumer inflation data came in as expected this week, showing inflation is not a concern to pressure rates higher in the near future.
The Fed meets next week for its FOMC meeting. No rate changes are expected, but investors will be looking for signs of rate cuts to come in July.
The labor market appears to be losing steam. Last week's jobs data came in weaker than expected, and jobless claims also rose unexpectedly last week.

 

Mortgage applications surged last week as rates dropped. Applications were up 26.8% in just one week, and volume was 41% higher year-over-year.
Refinances led the application surge, jumping a remarkable 47% week-to-week. Purchase applications increased 10% weekly and annually.
Due to tax reforms, renters paid an average of $2,716 less in taxes last year, making it easier to save toward a possible down payment on a home.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


Owning a home is an important part of the American dream and an important part of our way of life. Values such as individuality, thrift, responsibility, and self-reliance are embodied in homeownership.

National Homeownership Month actually started as a week-long celebration of homeownership during the Clinton administration in 1995. In 2002, President George W. Bush proclaimed June as the National Homeownership Month. Here is an excerpt from his proclamation:

“Homeownership is an important part of the American Dream…A home provides shelter and a safe place where families can prosper and children can thrive. For many Americans, their home is an important financial investment, and it can be a source of great personal pride and an important part of community stability.”

“Homeownership encourages personal responsibility and the values necessary for strong families. Where homeownership flourishes, neighborhoods are more stable, residents are more civic-minded, schools are better, and crime rates decline.”

“During National Homeownership Month, I encourage all Americans to learn more about financial management and to explore homeownership opportunities in their communities. By taking this important step, individuals and families help safeguard their financial futures and contribute to the strength of our Nation.”

During National Homeownership Month, Greenway Mortgage wants to raise awareness of homeownership and encourage more people to consider the benefits of owning their own home.

Some benefits of home ownership include:

  • Provides stability.
  • Creates positive environments for families.
  • Improves neighborhoods.
  • Homeowners are more involved in civic affairs, including voting in the last election and knowing their elected officials.
  • Builds wealth.
  • Provides tax benefits.

Is Homeownership Right For you?

  • How much debt do you have? Before you can take on a huge financial responsibility that a home is — you need to pay down, or off, debts you have. Consider consolidating loans and getting rid of credit cards. Perhaps most importantly, you need to make sure that as you reduce debt, you increase your credit score.
  • Do you have a down payment? You don't need a 20% down payment to get a loan. But putting more down can work in your favor. It can help you get better lending rates, beat out the competition in hot housing markets and will lower the amount of interest you pay over the life of a loan. You can get a mortgage with as little as a 3.5% down, but anything less than 20% means paying private mortgage insurance (PMI), which will increase your monthly payment.
  • Is your credit in good shape? You want to get your credit score as high as possible when shopping for a mortgage. The higher the score, the better the lending terms and rates. A credit score of 750 and up is generally considered excellent and will make you the most attractive borrower.
  • Where will you be living in two to five years? If you are planning on being in an area for a short amount of time (less than 2 years), then renting may be a more financially feasible option for you. Buying (and selling) a home comes with fees and costs associated with closing the deal. Your house may not build enough equity in just 2 years for you to justify paying those fees twice. And if your home does appreciate in value quickly, if you live in the residence for under two years, you will probably not be eligible for a capital gains tax exemption.
  • What is the market like in your area? It is important to find out if prices are rising/declining and what the inventory levels are like.

Contact your local lenders at Greenway Mortgage. We’ll make sure you have a more educated, more motivated and more confident home buying experience to make the RIGHT decision for YOU and your FAMILY! (908) 489-4658.


For the Week Ending June 7, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Mortgage rates continue to improve as mortgage bonds reach levels not seen since 2017. The outlook remains good that rates could go even lower this year.
As U.S. trade tensions have increased, so have concerns about a global economic slowdown, helping mortgage rates remain low.
The Fed is starting to signal it is open to easing monetary policy. Recent comments have markets looking for Fed policy rate cuts later this year.

 

Construction spending was flat in April, but home construction spending declined for the 4th straight month.
Kitchen remodel expenditures jumped 27% in the past year. The median cost for upgrades was $14,000, according to a survey of over 140,000 homeowners.
Flipped homes, or homes resold within 12 months after purchase, made up 7.2% of all transactions in the first quarter, the biggest share since the start of 2010.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


For the Week Ending May 31, 2019

Please enjoy this quick update on what happened this week in the housing and financial markets.

Economic growth in Q1 accelerated, but momentum is slowing. Inflation pressures were much weaker than initially thought, supporting lower rates.
Consumer confidence rose in May to its highest level since December 2000, thanks in large part to a healthy job market and rising wages.
However, concerns over a slowing economy and inverted bond yield curves have economists speculating that we could see a recession in the upcoming year.
According to the FHFA, home prices rose 5.1% in Q1 from a year earlier. This is slower growth than in recent years but still a historically healthy pace.
Case Shiller also reported home prices rising at a slower pace, despite falling mortgage rates. This is good news, though, for buyers entering the market. 
Pending home sales fell unexpectedly in April. Compared to a year ago, sales were down 2.0%, marking the 16th straight month of annual decreases. 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


Can I Choose My Own Appraiser for My Mortgage Transaction?

The short answer is No. But neither does the lender. 

Having a home appraised is an important part of the mortgage process where the fair market value of the property is determined by an independent licensed professional on behalf of the lender. Neither the borrower nor the lender can choose the appraiser.

Find out why and learn about the appraisal process, the Home Valuation Code of Conduct (HVCC) and appraisal management companies (AMCs) watch this short video by The Mortgage Expert, Erin Carvelli.

Check out our other posts about appraisals and the mortgage process


Want To Know More About Erin, Her Team and the Mortgage Process?

Check out her All Things Mortgage page!

She's posted tons of useful resources and keeps it updated


Are you ready to take the next step?

It's time to get pre-approved with Erin the Expert!


Additional Resources

 

 

 

 


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