Rising Mortgage Rates Chipping Away Affordability

Today’s News Synopsis:

Mortgage payments require largest share of income since 2009.  ATTOM Data Solutions released their latest data on home prices, which showed they are now at their least affordable level since the third quarter of 2008.  According to Freddie Mac, mortgage rates decreased again, putting 30-year rates at 4.57% and 15-year rates at 4.04%.

In The News:

ATTOM Data Solutions – “U.S. Home Prices at Least Affordable Level Since Q3 2008” (6-21-2018)

“ATTOM Data Solutions, curator of the nation’s premier property database, today released its Q2 2018 U.S. Home Affordability Report, which shows that the U.S. home prices in the first quarter were at the least affordable level since Q3 2008.”

Curbed“How the housing market has become harder since 1988” (6-21-2018)

“Millennials facing today’s difficult housing market, and the challenges of buying their first home, can wistfully look back to the ‘50s and dream of a time when government policy and growth made buying a home easier for much of the population.”

Realtor.com “Saving for a Rainy Day: Your Home Repair Emergency Fund Should Have This Much Cash” (6-21-2018)

“A home repair emergency fund can save you from financial disaster. While it’s easy to believe your house is in great shape, you never know when you’ll have to deal with an expensive plumbing bill or a flooded basement.”

Freddie Mac – “Mortgage Rates Retreat” (6-21-2018)

“Freddie Mac (OTCQB:FMCC) today released the results of its Primary Mortgage Market Survey (PMMS®), showing that mortgage rates inched back over the past week and have now declined in three of the past four weeks.”

Zillow – “Mortgage Payments Require Largest Share of Income Since 2009” (6-21-2018)

“The combination of rising rates and strong home value appreciation led to one of the largest recorded quarterly increases in the mortgage burden for homebuyers since the Great Recession.”

Wall Street Journal – “Why Home Prices Have Nowhere to Go But Up” (6-21-2018)

“There are a lot of people who would like to buy a house, and plenty of them can afford to. Finding a house to buy? That is another issue.”

Inman – “A luxury condo tower is giving residents Tesla vehicles to share” (6-21-2018)

“A new luxury tower in Chicago is trying out an innovative concept: giving its residents a garage of Tesla vehicles to drive.”

HousingWire – “Appraisal Foundation drastically reduces requirements to become an appraiser” (6-21-2018)

“The Appraiser Qualifications Board of the Appraisal Foundation announced it is drastically reducing the requirements to become an appraiser.”

 

Bruce Norris will be speaking at the Stay Put or Cash Out with LA South REIA on Monday, July 9.

Bruce Norris will be speaking at the ThinkRealty Irvine Conference & Expo on Saturday, July 14.

Bruce Norris will be speaking at the Stay Put or Cash Out with LA REIA on Tuesday, August 7.

 

Looking Back:

The latest home sales and price report from the California Association of Realtors showed existing home sales increased 5.4% month-over-month and 2.6% year-over-year.  CoreLogic was expected to announce the following week how they did financially in the second quarter.  GoBankingRates released a list of the few places left where home prices actually decreased despite prices overall increasing.

 

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