Blog


Housing Market Update

 

The National Association of Realtors (NAR) has released their monthly Pending Home Sales report for the month of March.  This report was partially pre-coronavirus, but the data showed that contracts for existing, single family homes, condominiums and co-ops have slowed.  They were down 20.8% in March and down around 16% compared to last year.  But, there is a silver lining.  NAR’s Chief Economist Lawrence Yun said, “The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listings and new contracts. As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listings and buying activity will resume, especially given the record low mortgage rates.”  He added, “Due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high,” Larry also projected that the national median home price will increase 1.3% for the year.

 

As the coronavirus continues to affect the market, we will be seeing many economic reports worsen. At the same time, window of opportunity is opening for those looking to take advantage of temporary period of discounted homes.  Also, as the virus dissipates, the housing market should rebound and repair its losses and finish the year at new pricing record highs.

 

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

 

Sources:

https://on.mktw.net/2VRaExj


30-Second Update:  Zillow Reports Large Online Spike in Viewer Traffic

Due to Covid-19, there are obvious challenges to both people looking to sell and buy homes. In normal times, sellers would be looking to take advantage of the typically robust spring housing market.  Home buyers would be looking to capitalize on the current ultra-low interest rate environment, coupled with the presumed flood of new homes listed for sale.  While that may not be how the spring market of 2020 is shaping up as of yet, Zillow has just reported that there are actually more homebuyers actively looking for homes online than a year ago.  For the week ending April 13th, home search views have increased by 13% compared to last year.  Clearly the demand to buy is still there, and home buyers are looking to enter into the market. 

Believe it or not, now may be the perfect time for home sellers to list their home and capitalize on this demand, as well as home buyers to continue to take advantage of the interest rates remaining low and look for bargains on homes that remain on the market!  Reach out to your Advisors Mortgage Loan Officer today to discuss all your home buying and selling questions!

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Source: https://bit.ly/2W55H2z


 

The Coronavirus Effect on Housing

2020 started as the healthiest year for home sales in history.  We’ve relayed the great appreciation rates coming from CoreLogic, where they even indicated annual forecasts of appreciation near 4-5%, showing more strength going forward.   Since the Coronavirus has continued, we are now seeing a slight drop in home buyer demand.  Some models of the virus’s spread are showing a housing market declining from now until August, and others are showing the declining market from now until October.  There is light at the end of this tunnel, however, and we have to play this intelligently.  With either model, there is most likely going to be declining prices in many areas of the country. 

So how do we handle this intelligently? Sellers should still price correctly and know that your crop of buyers is going to be smaller over the next few months during this period, but it will come back soon.  Again, some experts are predicting a bounce-back of the market in August.

For buyers, they should stay in the game and push to purchase a home at a 3-12% discount as some experts are saying.  Combining the fact that interest rates are still very low, with homes potentially selling at a discount, affordability has just increased for home buyers.  This is going to be a bumpy road, but it will be temporary, and if you are looking to purchase, this may be one of the best windows you have to capture a great opportunity before housing comes roaring back.

 

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

 

Sources:

CoreLogic


30-Second Update:  Conventional Loans with ONLY 3% Down

As an alternative to Federal Housing Authority’s (FHA) 3.5% down payment minimum requirement program, Fannie Mae and Freddie Mac have their own low, down payment loan products requiring only a 3% down payment.  Fannie Mae’s 3% down program is called Home Ready, and Freddie Mac’s version is Home Possible.  These programs are great for first time home buyers, as well as anyone looking to purchase a home with as little as 3% down.  You do not, however, need to be a first-time homebuyer to utilize these programs.  In addition, both programs allow for the possibility to refinance current mortgages with as little as 3% equity in the property.  Adding to the flexibility of minimal down payment, these products also both offer lower mortgage insurance requirements versus standard conventional products. 

To learn more about these products and the advantages they offer, please reach out to your Advisors Mortgage Group Loan Officer today!

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

https://bit.ly/34BJ366

https://bit.ly/3b7Eend

 

 


Jobless Claims and Loan Forbearance

The initial Jobless Claims report came out last week, indicating almost 10 million individuals claimed unemployment over the last two weeks.  Sadly, we know that this number will continue to grow as the coronavirus continues its impact on businesses across the country. 

To try to help with these unemployment rates, the federal government passed the CARES Act which allows borrowers who are unable to repay their mortgage to enter a forbearance period with their loan servicer.  Essentially borrowers can contact their servicer and request a “pause” or a forbearance period where they will not be penalized for any missed payments.  Despite this “pause”, borrowers will have to make up for their missed payments, which is handled differently from servicer to servicer. Some have announced that the missed payments will be tacked onto your outstanding loan balance, others have said that the full amount of missed payments will be due after the forbearance period has ended. 

The most important thing to keep in mind with payment forbearance is that it does NOT happen automatically. Borrowers MUST speak with their servicers to determine their options.  This forbearance period can be very helpful for those affected by income loss or other financial hardship, but if you do not need to use this tool, then it is advised to continue making your payments.

 

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com


Showing results 21 - 25 of 144