Fresh Data On The Way

Volume 14 Issue 6 June 2019

T

he most recent economic data

had indicated that

the economy

was indeed

stronger than we expected.

The stock market was re-

covering nicely from losses

incurred late last year, de-

spite speed bumps in the

road as the trade war with

China heated up once again

after talks stalled.

Jobs data, though volatile, still has

showed that we were adding enough

jobs each month to keep the unemploy-

ment rate historically low. And the

measure of economic growth for the first

quarter exceeded expectations.

Now we will see a fresh batch

of data which will either change

the equation or reinforce what

we have seen thus far this year.

First, we get a revision of the

GDP, the measure of economic

growth for the first quarter. This

will be followed by the numbers

on personal income and spending for the

month of April. The following week will

feature the jobs report which will give

the first reading of the jobs data for

May.

In This Issue P2 Advantage: Home Ownership || P2 How To Be The Most Attractive Homebuyer

P3 Fresh Data On The Way || P4 The Value of Open Houses

Selected Interest Rates

May 23, 2019

30 Year Mortgages——–4.06%

2018 High (Nov 15 %

2018 Low (Jan 4)———–—3.95%

15 Year Mortgages——-3.51%

5/1 Hybrid ARMs——–—–3.68%

10 Year Treasuries—–—–2.32%

Sources—Fed Reserve, Freddie Mac

Note: Average rates do not include fees and points. Information is provided for indicating trends only and should not be used for comparison purposes.

Continued on Page 3

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Did You Know…

If you go by home vacancy data released recently by the Census Bureau, we’re all the way back to 1994. The rate of vacant homes dropped to 1.4%, the lowest level in almost a quarter of a century. The rate measures privately owned homes standing vacant, typically because they’re for sale or because new owners haven’t moved in yet. In 2008, during the foreclosure crisis, it reached a record 2.9%. Source: Reuters

How To Be The Most...

Page Two

“…buyers need to

stand out from the crowd...”

Advantage: Home Ownership

E

ach home selling season tends to flood the housing market with buyers, and in markets

with low inventory lev-els, the competition is stiff. Desirable hous-es are receiving multiple offers and to win the bid, buyers need to stand out

from the crowd.

Since markets are mov-ing fast, experts recommend that sellers have their loan pre-approved and down payment ready before starting their search. “The market is changing,” says Cara Ameer, broker associate and Real-tor at Coldwell Banker Vanguard Real-ty based in Ponte Vedra Beach, Fla. “Inventory is low and demand is high—a buyer needs to know exactly what their parameters are.”

To help you become a homeowner in this competitive market, experts recom-mend the following tips:

Plan Ahead:

“You have to plan four months before you’re going to buy,” says Michael Cor-bett, Trulia’s real estate expert. Check your credit for accuracy and avoid mak-ing any big purchases or taking on any big debt during this time.

“[Debt] brings down your credit score and increases your debt-to-income [ratio] which are two critical things banks look at when qualifying and pre-

approving you for a loan,” says Corbett. If your debt-to-income ratio is too high,

experts recommend pay-ing down as much debt as you can to lower this ratio.

Set Your Home Price:

“Don’t look at a $300,000 home if all you can afford is $250,000,” says Ameer. Less supply

on the market increases the likelihood for multiple offers, and you won’t be able to compete. “If properties are sell-ing at 95% of asking price, don’t think you’ll get a deal at 85% of asking price,” she says.

If you do spot a great deal on a house, don’t wait days to make an offer, warns Corbett. Since time isn’t on your side, learn how to spot a great deal by re-searching an area’s home prices.

Know That Cash Is King:

The more cash you have, the more ap-pealing you are as a buyer. Putting 20% or more down makes you look more financially stable and gives sellers com-fort that you’ll qualify for a mortgage, says Corbett. However, having a pre-

approval issued by a lender can help if you have less than 20% to put down. But the loan must be underwrit-ten and not be merely an opinion of a loan officer. Cash can cover a multitude of problems when you make an offer, whether it’s difficulty with the mortgage

H

omebuyers have

fared better follow-

ing the latest housing

boom than renters,

according to CoreLogic.

CoreLogic’s Single Family Rent-

al Index indicates that renters are

more cost-burdened than home-

owners, and that the monthly

cost to rent a single-family home

has increased significantly, while

the typical mortgage payment is

lower. The national rent index

from CoreLogic is up 36% over

the past 13 years, but the typical

home loan payment was down

4% over that period.

During that period, seven of the

12 large metro areas evaluated

by CoreLogic indicated rent in-

creases between 27% and 61%,

while the typical home loan pay-

ment dropped from 3% to 24%.

As of 2017, 27% of homeowners

were “cost burdened,” meaning

30% or more of their income

went toward the monthly loan

payment and other owner ex-

penses, down about 10 percent-

age points from 2007. Mean-

while, 46 percent of renters are

cost burdened as of 2007, up

from 45.6% in 2007... Source: DS News

Page Three

...Attractive Homebuyer

©2019, All rights reserved

The Hershman Group www.originationpro.com

1-800/581-5678

Fresh Data On The Way

Continued from Page 1

All this data will give the Federal

Reserve plenty to chew on when

they meet in a few weeks. While

most are expecting no change in the

rates at the next meeting, weaker

data and a continued escalation in

the trade war could increase calls

for a Fed rate cut in the coming

months.

As of now, the data does not sup-

port a cut. Interest rates continue to

be lower than expected this year.

This represents continued good

news for consumers who are in the

market to make big purchases such

as homes and cars. And those pur-

chases will help the economy as

well....

“…As of now, the data does not support a

cut…”

process or a lower-than-expected ap-praisal. “A buyer can contribute more cash to cover the difference between the appraisal and offer price,” says Blomquist.

If your appraisal is low, don’t expect the appraiser to come up in value, says Ameer. “Appraisers are under scrutiny with the banks and they have to justify everything they do.” They’re required to follow Uniform Standards of Pro-fessional Appraisal Practice (USPAP) guidelines, as well as lender guide-lines.

Get Preapproved Before Your Search:

Getting prequalified for a mortgage gives a ballpark for what you can af-ford to buy and will streamline your search process.

If you’re financing your house with a mortgage, have a pre-approval letter with you and if you’re paying cash, have proof of funds that shows you’re good for it.

Getting preapproved will also help you to compete with an all cash buyer, says Walter Molony, spokesperson for the National Association of Realtors®.

Limit Your Contingencies:

Experts suggest having as few contin-gencies as possible to be an alluring buyer. “Don’t overcomplicate your offer to the seller,” says Ameer. Cer-tain contingencies based on your abil-ity to get a mortgage, the appraisal and home inspection are standard, but pil-ing on more could make the seller less inclined to work with your offer.

Making your offer contingent on you selling your house first will make you a less appealing buyer. If you need to

sell your house before buying a new one, then sell your home first and rent or move in with family or friends while you look for your new home, says Blomquist. “As a seller, you’ll sell that home quickly. Then as a buy-er, you’re much more appealing than a buyer contingent on a sale.”

Add a Personal Touch:

Corbett suggests sending a letter to explain why you want to buy that house. “You become a person who really loves and appreciates the home instead of just a number,” says Cor-bett. Sending a letter is just one extra little thing that will help level the playing field.

Be Flexible With Closing Dates:

“Let the seller know that you would be flexible on the closing timeline,” says Corbett. Find out when the seller would ideally like to close on the house and see if you can match it...

Source: Fox Business

The Value of Open Houses

Address Correction Requested

In This Issue:

Fresh Data On The Way

H

omes that have open houses tend to sell for more money and spend

less time on the market, a new study from the real estate brokerage

Redfin finds. Homes with open houses sell, on average, for $9,046

more and spend seven fewer days on the market than homes with-

out open houses, according to Redfin’s analysis, which compared sales-to-list-

price ratios and times on the market of homes that had an open house within

their first week on the market and homes that never had an open house.

The premium may have more to do with the desirability of the house itself and

the way it is marketed than the open house itself. Regardless, “holding an open

house is an efficient way for sellers to get more eyes on the home, and a bigger

pool of potential buyers can help lead to a higher ultimate sales price,” says

Daryl Fairweather, Redfin’s chief economist. “In many areas, homes that are

already primed for competition tend to be the ones with open houses because

the listing agent knows it will attract a lot of attention and wants to set up a

convenient way for multiple potential buyers to pop in at once instead of mak-

ing several appointments for private tours.”...

Source: Redfin