Student loan debt is playing its biggest role in the mortgage process yet, and it doesn’t look like it’s changing anytime soon.
New data from NeighborWorks America’s fourth annual housing survey found that nearly one-third (30%) of Americans know someone who has delayed the purchase of a home because of student loan debt, up from 28% in 2015 and just 24% in 2014.
The data also cited that more than half (53%) of potential home buyers with student loan debt said the debt was somewhat or very much an obstacle to buying a home, down slightly from 57% in 2015, but above the 49% rate in 2014.
As a whole, to help put this perspective, borrowers are carrying the highest level of non-mortgage debt in a decade.
The National Association of Realtors recently released a survey with similar findings as NeighborWorks America, nothing that about 50% of Millennials, and about two-thirds of Millennial non-homeowners who have student debt, are uncomfortable taking on a mortgage. What’s more, this group was less likely to believe they could even qualify for a mortgage.
The vacancy rates among single-family rentals remained relatively flat month-over-month despite a general trend of a rising number of lease expirations. This information is based on the June 2015 Single-Family Research Performance Summary covering all Morningstar- Rated Securitizations.
“Vacancy rates generally remain low, cash flows remain sufficient to cover bond obligations, and the asset class mostly shows performance in line with its recent history,” Morningstar said in this report.
Mortgage rates are higher today, leaving September as one of only 3 months this year with noticeable upward movement.
And today was an exception to that recent trend, but it’s tempered by the fact that yesterday’s gains were the best of the month.
The only downside is that the most prevalently-quoted conforming 30yr fixed rate for top tier borrowers remains 4.25% whereas it would have likely moved to 4.125% if rate went the other direction today.
These movement considerations may be small scale compared to what lies ahead. Several big tickets events are coming up in the second half of this week and they stand a good chance to increase the level of volatility.
The Federal Housing Finance Agency (FHFA) indicated in its report on foreclosure prevention for Q2 2014 released on September 24, that Fannie Mae and Freddie Mac prevented nearly 80,000 foreclosures nationwide in the second quarter, raising the total number of foreclosures prevented since the start of the conservatorship in September 2008 to 3.3 million.
The measures taken by the two GSEs to prevent foreclosures have helped about 2.7 million borrowers remain in their homes in the last six years, with approximately 1.7 million of those borrowers receiving permanent loan modifications. The number of foreclosures prevented is down 10 percent from Q1, when GSE measures stopped almost 89,000 foreclosures.
FHFA reports as well that about 37 percent of those who received permanent loan modifications were able to reduce their monthly payments by more than 30 percent in second quarter.
La Agencia Federal de la Financiamiento de la Vivienda (FHFA) indicó en su informe del 24 de Septiembre que Fannie Mae y Freddie Mac impidieron que alrededor de 80.000 casas se fueran en una ejecución hipotecaria en todo el país durante el segundo trimestre del 2014, elevando la prevención del número total de ejecuciones hipotecarias desde Septiembre de 2008 a 3.3 millones.
Las medidas adoptadas por las dos GSE para evitar las ejecuciones hipotecarias han ayudado a unos 2,7 millones de prestatarios a permanecer en sus hogares en los últimos seis años. 1,7 millones de prestatarios recibieron modificaciones permanentes de préstamo.
El número de ejecuciones hipotecarias prevenidas en el primer trimestre fue del 10 por ciento, cuando las GSE detuvieron 89.000 ejecuciones hipotecarias.
FHFA informa también que alrededor del 37 por ciento de propietarios que recibieron modificaciones permanentes de préstamo redujeron sus pagos mensuales hasta un 30 por ciento en el segundo trimestre.
In an effort to sign more eligible homeowners up for the Home Affordable Refinance Program (HARP), the Federal Housing Finance Agency (FHFA) is holding its third HARP outreach event in October, 2014.
The goal is to get the word out about HARP to borrowers who are current but underwater, and help borrowers who are either delinquent or at risk of losing their home recognize that they too have options.
Borrowers are eligible for a HARP loan if they meet the following requirements:
Their loan must be owned or guaranteed by Fannie Mae or Freddie Mac;
The loan must have been originated on or before May 21, 2009;
LTV ratio must be greater than 80 percent;
Borrower must be current on mortgage payments.
Borrowers who could benefit from HARP are referred to as “in the money” borrowers; they are “in the money” if they meet all the HARP eligibility requirements, have a remaining balance on their loan of greater than $50,000 with more than 10 years left on their term, and have an interest rate of more than 1.5 percent more than current market rates.
As of June 2014, about 3.1 million homeowners have refinanced through HARP since it was introduced by FHFA and Treasury in 2009 as part of the Making Home Affordable Program.
Sales of new single family houses in August 2014 were at a seasonally adjusted annual rate of 504,000, up from July’s printing of 427,000, the fastest rate in six years and the biggest monthly jump since January 1992.
The biggest gains and by far the reason for the big increase were new home sales in the West, one of the two largest housing markets, along with the South.
New home sales in the West were up 50% over July.
The South saw an 8% increase. The South is by far the largest region for new home sales, outdistancing all other regions combined.
The median sales price of new houses sold in August 2014 was $275,600; the average sales price was $347,900.
La venta de casas nuevas en el mes de Agosto incrementó notablemente resultando en una tasa de 504,000, más que en Julio que fueron de 427,000, la tasa más rápida en 6 años y el salto más grande en ventas desde Enero de 1992.
Las mayores ganancias y en gran medida la razón para el considerable aumento fueron las ventas en la región oeste, uno de los dos mayores mercados de vivienda, junto con la región sur.
La venta de casas nuevas en la región oeste era un 50% en Julio.
La región sur vio un aumento del 8%. El sur es la región más grande de ventas, superando todas las demás regiones combinadas.
El precio mediano de las ventas de viviendas nuevas vendidas en Agosto de 2014 fue $275.600; el precio promedio de venta fue de $347.900.
Wealthy home buyers are paying lower average rates on high dollar loans, and in some cases, they don’t even have to worry about a large down payment or mortgage insurance.
For months, lenders of jumbo mortgages have been charging interest rates that are lower than what average borrowers pay. Jumbo loans are mortgages that above $417,000 or $625,000 or more in high-priced markets.
Many lenders also have requiring as little as 10 percent, which is about half the normal rate, waiving the private mortgage insurance, and even lowered their credit standards for jumbo loan originations.
Luxury homes are selling faster than last year, according to data through July from Realtor.com. The median age of listings ranged from 80 days for homes listed at $1 million or more.
Compradores en busca de casas lujosas están pagando tasas de préstamos bajísimas e incluso en muchos de estos casos no tienen que preocuparse por un gran pago inicial o seguro de hipoteca.
Durante varios meses, los prestamistas de hipotecas “Jumbo” han estado otorgando las tasas de interés más bajas que lo que paga el prestatario promedio. Los préstamos Jumbo son hipotecas que van por encima de $417.000 o $625.000 o más en mercados de más alto precio.
Muchos prestamistas ahora requieren tan poco como 10 por ciento, que es aproximadamente la mitad de la tasa normal, excluyen el requisito de seguro hipotecario privado y bajan sus estándares de crédito para otorgar los préstamos jumbo.
Las Casas de lujo se están vendiendo más rápido que el año pasado, según datos hasta el mes de Julio de Realtor.com. El promedio de tiempo del listado de propiedades de $1 millón de dólares o más es de 80 días.