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Monthly Archives: June 2014

Millennial generation continues to avoid housing market

The most recent week in real estate showed a marked decrease in both purchase and refinancing applications, according to Reuters.

The recent statement from the Mortgage Bankers Association indicates that the demand for home purchase or financing adjustment dropped by a whole percent this past week. This decline in interest for a wide demographic to become homeowners, industry professionals speculate, is in large part due to non-participation of millennials in the housing market.

Acquisition of apartments on the rise

According to the most recent report from Reuters, the demand for refinancing and home purchasing has decreased among consumers.

The report says that the Mortgage Bankers Association recorded a 1.0 percent decrease in mortgage or refinancing applications for the week ending with June 20th. In large part, the inability of millennials to purchase their own homes is to blame for this decline, according to industry professionals.

Costs too high for millennials in house hunt

In a recently released statement from the National Association of Home Builders, the organization reported that nationwide housing production was down 6.5 percent in May. These numbers may seem staggering, but National Public Radio (NPR) suggests that this significant decrease could be the result of “missing households.”

While it may sound mysterious, these missing households are the nickname for the 20- and 30-somethings who are unable to purchase a home of their own and, instead, elect to live with family or roommates. These individuals, NPR says, have had an especially difficult time since the recession. Even with the economy coming back, many young people simply can’t afford rent, food, utilities and student loans on the wages they are earning at entry-level or mid-level positions.

America’s middle class: still among the poor

According to CNN Money, America’s middle class ranks 19th in terms of wealth on a global spectrum.

In general, American citizens rank fourth on the Credit Suisse Global Wealth Report, with an estimated average of $301,000 per adult. But, CNN says, that middle class America has a median wealth average of $44,900, meaning that half have more than that number and half have less.

Mortgage rates stabilize following global announcements

Following the release of the European Cwntral Bank’s stimulus plan and the most recent U.S. Employment Report in early June, the mortgage rates for 30-year fixed-rate loans stabilized this week.

A fixed-rate loan is one in which the rate of interest is consistent for the life of the loan, meaning that if you enter into a 30-year mortgage with a fixed rate of 4 percent, barring a refinancing of the loan, that rate will remain your interest rate for the duration of the loan.

Why you should get pre-approved for a home loan

Shopping for a new home can be so exciting that sometimes people jump into the search prematurely. Many potential buyers start looking at open houses, consulting with a realtor and narrowing down criteria before they even know their price point.

Most people cannot pay out of pocket for their home outright and as a result have to take out a loan or mortgage. But in order to do that, you have to be approved by a lender. If or when you are approved, that lender will tell you how much you will receive through the loan.

Understanding your mortgage options

Purchasing your own home is a huge step for anyone, but jumping into a mortgage is a long-term commitment. Make sure you understand your loan options before choosing one that might not be right. While there are many financing options for your home, here are two types of loans that are most commonly used.

How do I know when to refinance?

Being a homeowner is liberating, exciting and a little bit scary. But a big part of owning a house is crunching numbers.

Having a mortgage, and being responsible for loans and equity can be taxing if you don’t know what you’re doing or how to keep track of everything. This is especially true if you are looking to refinance.

Most Americans struggle to finance their homes

What happens when your home costs more than you can afford? It doesn’t take a genius to realize that it’s not a good thing, and can lead to personal sacrifices that are dangerous and ill-advised.

In a recent survey commissioned by the John D. and Catherine T. MacArthur Foundation, Hart Research Associates discovered that 52 percent of surveyed Americans had gotten a second job, put off saving for retirement, cut back on healthcare or had moved to a less safe neighborhood in order to cover their rent or mortgage in the last three years.

Nation’s top beach house markets evaluated

Buying a home on the beach may seem like a pipe dream for some, but affordable single-family houses on lucrative beach-front property don’t have to be unaffordable. RealtyTrac recently published an assessment of the top 20 beach town housing markets, taking average temperature, crime rates and the quality of sunny, summer days into account, as well as the average price of homes in these locales.

According to the report, median estimated home values in these markets range from the extremely affordable, sub-$200k range to nearly $1 million, but the ranking of quality compared to price may come as a surprise. The No. 1 beach town housing market on RealtyTrac’s list was Hobe Sound, Florida, with 64 percent of the year bright and sunny and 98 percent of the year having excellent air quality, with an average temperature of 76. What sets Hobe Sound apart from other locations on the list like Waianae, Hawaii, and Dana Point, California, is the impressively low crime rate in Hobe Sound - as well as the median home price of only $191,189.