Homeowners Cannot Afford Their Mortgages In Half of U.S. Markets

Sources:

Black Knight’s April Mortgage Monitor: Q1 2017 Originations Fall 34 Percent, Led By 45 Percent Drop in Refinance Lending
CoreLogic US Home Price Report Shows Prices Up 6.9 Percent in April 2017
A Seller’s Market?  Consumers Express Diverging Sentiment on Home Buying and Selling in May
Home Flipping Volume Rises to Nine-Year High in Q1 2017 as Average Flipping Returns Decline for Second Straight Quarter
30-Year Fixed Mortgage Rate Continues to Fall
US household wealth ticks up 1.4 percent to $94.8 trillion
Top 10 Markets With the Highest Hidden Costs of Owning a Home
Americans Are Pouring Money Into Their Homes Like It’s the 1990s
Boomers, Millennials, and the McMansions No One Wants
Coldwell Banker develops its first Amazon Alexa Skill
Utilities Add 25 Percent to U.S. Homeownership Costs According to New Research from ATTOM Data Solutions and UtilityScore

 

Today’s News Synopsis:

Aaron Norris of the Norris Group gives this week’s Norris Group real estate headline roundup.  Homeowners cannot afford to pay their mortgages in over half of the large markets in the U.S. according to Zillow.  Black Knight Financial Services and Fidelity National Financial came to an agreement today over the distribution of shares in common stock with Black Knight Financial.  Fannie Mae just had their latest sale of non-performing loans and announced their top winners.

In The News:

CNBC – “Don’t put your money in a house, says a new report” (6-9-2017)

“If you’re planning on house hunting this weekend, you might want to do a little math first.   Owning a home used to be a great way to build wealth, but that equation is turning. It may, in fact, be more lucrative to invest your money elsewhere.”

Black Knight Financial Services – “Fidelity National Financial, Inc. and Black Knight Financial Services, Inc. Announce Signing of Formal Agreements Related to Previously Announced Tax-Free Plan to Distribute Shares of Black Knight Financial Services, Inc. Common Stock” (6-9-2017)

“Fidelity National Financial, Inc. (“FNFI”) and Black Knight Financial Services, Inc. (NYSE:BKFS) today announced the signing of formal agreements related to the previously announced taxfree distribution (the “Distribution Plan”) in which FNFI intends to distribute all 83.3 million shares of Black Knight Financial
Services, Inc. (“Black Knight”) common stock that it currently owns to FNF Group (NYSE:FNF) stockholders.”

Fannie Mae – “Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale” (6-9-2017)

“Fannie Mae (FNMA/OTC) today announced the winning bidders for its tenth non-performing loan sale.  The sale included approximately 3,400 loans totaling $581.1 million in unpaid principal balance (UPB), divided among three pools.”

Zillow – “Mortgage Payments are Unaffordable in Half of America’s Largest Markets” (6-9-2017)

“Buying the typical home listed for sale in more than half of the nation’s 35 largest markets will require a greater share of income than the median-valued home required historically, according to a new Zillow analysis.”

DS News – “Debt Level Among Top Disagreements for Couple Homebuyers” (6-9-2017)

“The stresses of moving are known to be extremely high, but recent data from LendingHome, a mortgage marketplace lender, says there are ways to relieve it—specifically if your client is moving with a significant other.”

Realtor.com “6 Shocking Money Pits Hiding in Your Home” (6-9-2017)

“When people refer to their homes as “money pits,” it generally conjures up stark and terrifying images of a huge chasm in the floor, sucking down dollars (thanks, Tom Hanks).”

Seeking Alpha “Real Estate Weekly: Digital Realty Becomes A Cloud Computing Giant” (6-9-2017)

“REITs fell 0.3% on the week as the 10-year yield climbed 10 bps. Hotels and retail REITs were the best performers.”

Curbed “Rebranding neighborhoods may land real estate brokers in legal trouble” (6-9-2017)

“What’s in a neighborhood name? A lot, at least when it comes to New York real estate. The practice of brokers giving existing neighborhoods new, ridiculous monikers is not quite as old as time, but it’s close, and New Yorkers are pushing back on it more than ever.”

Business Journals “Real estate professionals can avoid costly mistakes with advanced drive-time analysis” (6-9-2017)

“Every community has a failed site that prominently stands on a corner or next to a grocer. These sites continue to consume resources from land owners without benefit and can hurt neighborhood businesses.”

 

Aaron Norris will be presenting his latest talk Technology Trends and Effects on Real Estate with NorcalREIA on Wednesday, June 14.

Bruce Norris will be speaking at the NSDREI 13th Anniversary Dinner Party on Tuesday, June 20.

Bruce Norris will be presenting his latest talk 10 Life-Changing Days of a Real Estate Investor with the South Orange County Real Estate
Club on Thursday, June 22.

Looking Back:

Freddie Mac reported mortgage rates dropped for the first time in weeks with 30-year rates at 3.60% and 15-year rates at 2.87%.  According to the latest data from Redfin, the top three cities that had the best housing markets were Denver, Seattle, and Portland.  For three years private investors had been receiving part of the credit risk on single-family mortgages from the GSEs, but it was believed there could be risk involved with this.

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6 pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

Tags: , , , , , , , , , , , , , ,

Leave a Reply