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Home Affordability is Up, but On its Way Down

Black Knight Financial Services took a close look at trends in home affordability and the recent surge in cash-out refinances, as it applies up through the end of December. According to the data they gathered, there have now been a total of forty-three consecutive months of annual appreciation in home prices. Further, through the use of national medians of home prices and household incomes, they found that the ratios of mortgage payment-to-income remain favorable, according to historic standards.

When the group looked at the median principal and interest payments for October of the last fifteen years, they observed that such payments consumed fully 26% of a median household’s income in 2000, rising to a peak of 33% in 2006, and then falling all the way down to 18% in 2012. In October of 2015, this figure was at 21%, below the median of 26% for the past fifteen years and within the realm of reasonable affordability.

Unfortunately, the trend seems to be upward. The group is projecting that median principal and interest payments will reach 24% of median income in 2016, and surpass the median in 2017

Delinquent Mortgages Down, Prepayment Up

The good news about the past year’s real estate market continues to come in. According to Black Knight Financial Services, the past twelve months brought us a substantial improvement in mortgage performance. It would appear that there was a 22% decrease in foreclosure inventory nationwide, and a 15% decrease in the number of delinquent mortgages.

The number of mortgage loans that were at least thirty days past due, but not in foreclosure proceedings. At the end of the year, there was a total of 2.41 million delinquent mortgages, representing a drop of about 425,000 from the end of 2014. Meanwhile, there was a total of 689,000 properties in the middle of foreclosure proceedings at the end of the year, representing a drop of about 9,000 from November and 192,000 from the end of 2014.

Black Knight also tells us that the rate of prepayment is also on the rise. In December, this metric was higher than it was in the end of 2014.

Mortgage Rates at Lowest Since April

This year started out strong and, despite an exceptionally strong jobs report, the trend for mortgage rates has remained favorable. In fact, rates have been plummeting at their quickest pace recently, to the point where most brokers are offering quotes that are approaching seven month lows.

Current downward movement can be attributed to the heavy losses being seen in stocks and oil prices. Investors are currently reacting to the higher risks associated with these assets by taking money out of them. When this happens, they are generally putting their money into the relatively safer bond markets, which results in a dip in mortgage rates.

The big question to ask right now is whether we can expect stocks to bounce back soon, sending mortgage rates up again, or if this is the beginning of an even bigger sell-off, like the ones we saw following the peaks in 2000 and 2007. Since this is difficult to predict, it make it hard to decide whether to float or lock. However, with rates where they are, it’s hard to argue that it’s a good time to be in the market.

Looking Back at Mortgage Rates of 2015

Looking back at the last year, we can see that 2015 was an interesting year for the mortgage market. Going into the year, nearly everybody was expecting a move towards higher rates. However, Europe’s new bond buying program and various other factors made conditions right to instead see strong, long-lasting moves downward. Later on, the market saw some more turbulent moves in anticipation of the Fed’s rate hike.

The final word is that, on average, 2015 was a stronger year for mortgage rates than 2014. However, compared to 2014, 2015 saw more of an upward trend. Part of this can be attributed to the fact that 2014 ended on the very lowest rates of the year, while 2015 ended on rates that were close to the year’s highest.

We can likely expect rates to continue to rise for a while until the economy starts to show signs of stagnating. This could very well take months, or even years. Fortunately, any upward movements should be less dramatic than they have historically been.

Foreclosures Up for Much of the Nation

Looking back at January, we can see that the rate of foreclosures was down on a month-over-month basis. Unfortunately, completed foreclosures showed a significant upturn on an annual basis.

According to RealtyTrac, there was a total of 95,186 filings in January. This includes foreclosure starts, notices of default, and completed foreclosures. This number represents the lowest figure since July of 2006, as well as an 8% decrease from December and an 11% decrease from January of 2015. Further, completed foreclosures alone were down by 26% from December, but up 32% from January of 2015.

Some states showed worse figures than the national average. Twelve states and the District of Columbia experienced an increase in foreclosure starts, with Oklahoma leading the nation with a whopping 289% increase. Meanwhile, completed foreclosures were up in 34 states and the District of Columbia; New York saw the worst increase with 263%, followed by Texas, New Jersey, Georgia, and Maryland.

Affording Your House without Fear

Then and Now

Many 20-something and even 30-something young Americans are already in the zone of house- dreaming. Maybe you’re one of those in the zone who’s paying rent or paying off student loan and wondering if it would ever happen that you’d get to own a house. It looked somewhat easy for your folks to procure their first house, some 40 years ago, when they were in their late 20’s. While by historical standards the mortgage rates per month have been kept low, the prices of homes have soared and that makes down payments tougher to cover these times.

If your intention is to establish your first home in an expensive neighborhood, then you should start saving early and for longer for the down payment. Money down for great locations fetch as high as 24% of the purchase price. However,do look around at more affordable locations that will not stretch your budget too far. It will also allow you to establish roots sooner than later. Also, shop around for first-time homeowners’ programs as in government-sanctioned companies that offer easy down payments.

Affording Expert Help in Lynnwood

Helping young people, like yourself, on the goal towards home ownership is one of Dave Haley’s expertise. Many first-time homeowners come in with just their dream and maybe a lot of savings for the down payment and very little else. When it comes to home loans, you must arm yourself with its intricacies, like available options, fixed and adjustable rates, monthly interests, and loan terms.

If you’ve found your target home anywhere in Lynnwood, Bothell, or in Mill Creek region, where communities are lovely and homes are affordable, David can surely find you the best alternatives that will work in your particular circumstance. Let David make mortgage easy for you with a payment plan within your means that allows you to keep your home and your credit score for years ahead.

Affording Your House without Fear

Then and Now

Many 20-something and even 30-something young Americans are already in the zone of house- dreaming. Maybe you’re one of those in the zone who’s paying rent or paying off student loan and wondering if it would ever happen that you’d get to own a house. It looked somewhat easy for your folks to procure their first house, some 40 years ago, when they were in their late 20’s. While by historical standards the mortgage rates per month have been kept low, the prices of homes have soared and that makes downpayments tougher to cover these times.

If your intention is to establish your first home in an expensive neighborhood, then you should start saving early and for longer for the down payment. Money down for great locations fetch as high as 24% of the purchase price. However,do look around at more affordable locations that will not stretch your budget too far. It will also allow you to establish roots sooner than later. Also, shop around for first-time homeowners’ programs as in government-sanctioned companies that offer easy down payments.

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Affording Expert Help in Lynnwood

Helping young people, like yourself, on the goal towards home ownership is one of Dave Haley’s expertise. Many first-time homeowners come in with just their dream and maybe a lot of savings for the downpayment and very little else. When it comes to home loans, you must arm yourself with its intricacies, like available options, fixed and adjustable rates, monthly interests, and loan terms.

If you’ve found your target home anywhere in Lynnwood, Bothell, or in Mill Creek region, where communities are lovely and homes are affordable, David can surely find you the best alternatives that will work in your particular circumstance. Let David make mortgage easy for you with a payment plan within your means that allows you to keep your home and your credit score for years ahead.

Increase House Buying is Increase in Mortgage Debt

Prosperity on the Rise

The Seattle Times reports more Americans are buying homes during these times of high-priced houses. Indeed, recovery of the housing industry is well on its way as more and more households experience the boost in income and lifestyle. Stock portfolios, mutual funds, pension plans, and savings and checking accounts also are soaring.

In the second quarter this 2016, mortgage debt rose 2.5 percent at a seasonally adjusted annual rate. It was the biggest gain in a quarter in more than eight years. More people are taking on loans with the rush of household wealth, buying themselves homes, hence, driving up market sales which reached a nine-year high this June. Ownership equity now equals 57.1 percent of the value of Americans’ homes. It’s the highest level since 2006.

With more confidence and financial freedom, Americans were observed cashing -out on their home equities and refinancing their mortgages. The additional gains are used for more spending, like home improvements. We are actually seeing affluency on the come-back.

Thinking of Cash-out Refinancing in Lynnwood

Are you really committed to refinancing your housing loan? Certainly you would want to get more on a second loan to be able to spend more. You want savings and you want to know all your options to get the best out of an otherwise sticky situation. Come to Lynnwood and consult with one of the wizards in refinancing. David Haley has been a friend and confidant in many cases of loan refinancing. What you’ll know from David is a ton of help and that’s only with our mortgage company in Lynnwood.

Home Prices on the Rise in Seattle

Eager House Buyers and Housing Shortages

Metropolitan areas where home-buying is on the rise have contributed to the spiking of prices of homes across the US. Seattle WA, together with Portland and Denver, registered gains in real estate transactions and also paved the way for increased house prices.

There are housing shortages in some markets that drove home prices still higher. The limited inventory is said to be caused by not enough new homes being built since recovery from recession, sellers (like the elderly) refusing to part with their properties and opting to stay. There are homeowners who have to shell out money to settle an old loan, hence couldn’t sell and those who couldn’t sell their old homes because they couldn’t find a new one. Also, you’d find an increasing number of people who opt to stay put where they have been living and will not want to relocate even if they’ve got new jobs in other places. These are seen in both new and existing homes, in spite of low mortgage rates and in spite of eager buyers.

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Mortgage Expertise in Lynnwood

If you are a homebuyer, prospecting for that house of your dreams and finding difficulty of locating one in Seattle, try looking not too far north and you might find one in Lynnwood. Lynnwood is a lovely mix of urban, suburban and small city to many professionals working in Seattle. Nonetheless, you need the expert assist of an experienced and trusted mortgage company that knows the intricacies of housing loans. With David Haley of Fairway Mortgage in Lynnwood, learn how acquiring the best loan options is made very easy. Many Washingtonians have come to rely on David for expert speedy resolution of loan applications.

Mortgage Rates on the Decline

Is it the best time to buy?

According to the Seattle Times, mortgage companies are keeping track of the average for the 30-year fixed-rate mortgage which declined to 3.48 percent from 3.50 percent in mid September this year. Even the 15-year fixed mortgage rate eased to 2.76 percent from 2.77 percent. On the average, there is a 0.5 point difference – corresponding to fees paid to a lender equal to 1 percent of the loan amount – which translates to savings for the home buyer. As the markets calm, home loan rates are stabilizing.

While the US mortgage rates are historically low, the recent developments made impressions on both the buyer and seller markets in the single family residential real estate sector. It’s telling you that this is a good time to go house-hunting and finding yourself a trusted and sturdy mortgage company to set you along your way.

However that we are seeing the scenario of job markets improving together with low mortgage rates, it looks like the number of properties on sale does not meet the eager demands of house- hunting clients. Even so, you would need advice from those who know the ins and outs of the market.

Take your case to David Haley

You might be one of those enthusiastic home buyers having difficulty finding a property for sale. But are you really ready for the purchase? We invite you to come to see David Haley of Fairway, your mortgage company in Lynnwood.

Many would-be buyers come to David for advice in home-buying and find his expertise a great boost in the right direction. As a mortgage expert, he advises those who are still searching for their ideal property on the complexities of loan applications, the best options, and all the sources of eligibility, upgrades, savings,and others. Let David help navigate your way through stress-free home ownership.

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