Nearly 2 Million People STILL Owe More Than Their House Is Worth

Today’s News Synopsis:

Why do underwater homeowners keep paying the mortgage?  Mortgage rates increased to their highest this year with 30-year rates now at 4.47% and 15-year rates at 3.94%.  Home prices saw their biggest increase in four years, having increased 8.9%.

In The News:

Realtor.com“What’s Holding Back New Home Construction?  There’s No One to Build ’em!” (4-19-2018)

“In this blazing-hot housing market of severe home shortages and rapidly rising prices, many buyers around the country have found themselves left shivering in the cold.”

Freddie Mac – “Rates Rise to Highest of 2018” (4-19-2018)

“Freddie Mac (OTCQB:FMCC) today released the results of its Primary Mortgage Market Survey (PMMS®), showing average mortgage rates jumping across the board.”

NAHB – “Remodeling Confidence Remains in Strong Territory Despite Three Point Slip” (4-19-2018)

“The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 57 in the first quarter of 2018, down three points from the previous quarter and back to the same level as the third quarter of 2017.”

CNBC – “Why buying a home can be almost impossible with massive student loan debt” (4-19-2018)

“In the late 1990s, Ed McKinley fell in love with a $65,000 house by a lake in New Hampshire.  The owners let him move in early and pay rent until the buying process was completed.”

Zillow “Mortgage Denial Rates Fall, but Racial Gap Persists: Black Applicants Twice as Likely as Whites to be Denied a Conventional Loan” (4-19-2018)

“A sweeping bill that would have given the state unprecedented power over local development failed in its first committee hearing, crushing the hopes of those who saw it as the key to making housing in the state more affordable.”

Builder – “Realtors Create New Metric To Measure Affordability” (4-19-2018)

“The National Association of Realtors and realtor.com were out Wednesday with a new metric designed to examine affordability at different income levels across all markets nationally, and, not surprisingly, it shows homes are less generally less affordable than they were at this time last year.”

CNBC – “Home prices just took the biggest jump in four years” (4-19-2018)

“Homebuyers, hold onto your wallets. The gains in home prices are getting bigger as the supply of homes for sale gets leaner”

MarketWatch – “Why do underwater homeowners keep paying the mortgage?” (4-19-2018)

“Despite the enormous gains in the housing market, and the rapid surge in home prices in recent years, nearly 2 million people still owe more on their mortgage than their home is worth.”

 

 

Bruce Norris will be presenting Stay Put or Cash Out with Pasadena FIBI on Thursday, April 19.

Bruce Norris will be presenting Stay Put or Cash Out with the OCRE Forum on Wednesday, May 9.

Bruce Norris will be speaking at the 2018 AOA Million Dollar Trade Show and LandLording Conference on Tuesday, May 15.

 

Looking Back:

A recent survey from NAHB showed out of the 75% of adults who knew what career path they wanted, only 3% were interested in a job in construction.  Transactions involving prime jumbo residential mortgage-backed securities increased by twice as much over the past year according to Fitch Ratings.  The Mortgage Bankers Association reported a 1.8% decrease in mortgage applications for the week ending April 14.

 

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.