New FHA Condo Rule Poised to Turn FHA Financing on its Head

Less than 10,000 condo projects out of the estimated 150,000-160,000 such projects across the country are approved for FHA financing. In the light of this stat, any guideline that opens up 20,000 to 60,000 condo units for FHA financing each year is a guideline worth getting ecstatic about. Precisely why the FHA’s longed-for condominium rules update (the Final Rule)- coming into effect on 15th October 2019- is happy tidings. Now certain specific individual condominium units can benefit from FHA financing (through spot approval) even if the condominium complexes or buildings in which the…continue reading →

Mortgage Rate Recap and Outlook for the Week Ending October 30, 2019

Manufacturer sentiment has grown in October according to ISM's October Manufacturing Index but the reading of 48.3, despite being an uptick on September's 47.8, is still below 50 (chief wreckers being weak global growth cues, appreciated dollar and trade skepticism). This, though, spells good tidings for the mortgage market. With over a decade of following economic expansion, one expects the labor market to rally. And while the October percentage may not be as good as recent times, adding 128,000 new jobs and posting 3.6% unemployment rate is applaudable (and, in fact, beyond expectation),…continue reading →

California Association of Realtors monthly data for the San Francisco Bay Area

The California Association of Realtors’s (CAR) housing market statistics reveal that the San Francisco Bay Area has had a mixed September when it comes to median sold prices of existing single-family homes. While Alameda, Marin, Napa, and Santa Clara are closing in the green, Counties Contra Costa, San Francisco, San Mateo, Solano, and Sonoma have not been equally lucky. In terms of the percentage decline of median prices, Sonoma has suffered the most. On the other side of the spectrum, Napa has done exceedingly well, followed on its heels by Marin. Counties showing…continue reading →

Mortgage Rate Recap and Outlook for the Week Ending October 23, 2019

Call it the rise of the Planet Automaton, or simply, lack of productivity but wage growth (and it has foxed economists) is sluggishly seen in the light of the low unemployment rate. This is the exact opposite of how the cookie is supposed to crumble in times of expansion.    Federal spending (up by 8% for Fiscal ‘19’) has overrun an increase in revenue (up by 4%), leaving our country with a shade under a $1 trillion fiscal deficit. Never in the last 7 years has the budget gap been so wide. The…continue reading →

Mortgage Rate Recap and Outlook for the Week Ending October 16, 2019

The US economy added 140,000 jobs in September, thus keeping the unemployment rate hovering around the acceptable 3.7% mark. And so, though job growth has cooled, we are still at a point where the layoffs are not going out of hand- a possible turnabout that could compromise the US expansion project. Exports are weak, thanks to the trade war. The manufacturing industry is unquestionably in a state of contraction and the service sector has been carried away in its slipstream. And while the US, nobly, is not transferring tariff costs to the end-consumer…continue reading →

Austin Real Estate Market: Housing Demand Encouraging, Inventory Stretched

Play it any way you like it but Austin is not in a real estate bubble. Its property market is encouragingly poised. Housing demand is just where you would like to see it and inventory is pretty stretched. While the Austin market is not as big as Houston or Dallas, it has witnessed a near 100% spurt in home prices over the last 10 years. Austin Board of Association of REALTORS data Based on data plucked from the Austin Board of Association of REALTORS, HomesUSA.com has conducted an analysis that says new homes…continue reading →

Existing Home Sale Report for the Month of August

Existing-home sales in the Northeast, the Midwest, and the South have registered second consecutive month of growth, says the National Association of Realtors’s (NAR) housing stat. Only the West has exhibited a decline in the number of existing homes sold in August. Total existing-home sales (single-family homes, townhomes, co-ops and condos) rose from 5.42 million in July to 5.49 million in August (calculations based on seasonally adjusted annual rate). Year-over-year overall sales have seen a spike of 2.6%. Despite looming economic certainty, buyers are finding the prevailing interest rates irresistible, if the statement…continue reading →

Freddie Mac Announces CHOICERenovation Loan to Finance Home Renovations

With the Remodeling market size expected to touch a massive $269 billion by 2025, it was time for Freddie Mac to jump into the Renovation loan marketplace. Especially given that the Federal Housing Administration and Fannie Mae have this kind of loan in place for, what, years now. Freddie Mac’s CHOICERenovation mortgage offers borrowers the opportunity to purchase a fixer-upper and get it remodeled with a single loan, thus cutting out the need for a cash-out refinance. Borrowers can also procure the loan for their existing homes for improving their properties. The CHOICERenovation…continue reading →

As Demand Cools Down, Housing Inventory Shoots Up in the Bay Area

There is an interesting insight into the homes on the market in the South Bay area. For the Santa Clara County, between the years 2014 and 2018, 90 out of 100 homes on the market in April and first half of May got sold. Compare this to 2019, when for the same period, only 33 out of 100 homes on the market sold. We are talking a drop of some 63%. No mean stat! Just goes on to prove that buyers have become choosy. They are not averse to waiting and while it…continue reading →

Can you Increase your FICO Scores with Timely Rent Payment?

Renters have outnumbered homeowners in more than 20 big cities. Between the year 2006 and 2016, the number of renters has shot up by 8.7 million (data based on Pew Research Center). These are not numbers to be sneezed at. With renters becoming hot property, it is only significant that timely rental payments get their due recognition in credit reports. Timely rental payment can boost credit score We have all witnessed how our credit scores get a boost when we pay our mortgage dues on time. Same is the case with credit card…continue reading →