How Much Income Do Homebuyer's Need

How Much Income Do Homebuyers Need?

How much income do homebuyers usually come to the table with? The median household income in America is about $68,000, according to the Census Bureau — but that may not be enough to help you buy a house these days. Half of buyers had household incomes of at least $100,000, the survey reported, while nearly 7 in 10 earned more than $75,000, the survey found. (Note that NAR also reports that "for households earning $75,000 to $100,000, there’s one affordable listing available for every 65 households – a  stark decrease in availability from one affordable listing for every 24 households in 2019 for this income group. And indeed data from MBA found that the national median mortgage payment applied for by those hoping to get a mortgage was $1,653 in February, up from $1,526 in January, $1,383 in December 2021.

Florida Property Insurance Company Goes Under

Florida Property Insurance Company Goes Under

Florida property insurance company goes under, leaving policy holders scrambling. State regulators ordered the liquidation of Avatar on March 14. THE COMPANY ALSO SAYS INFO ABOUT UNCASHED CLAIMS WILL GO TO THE FLORIDA INSURANCE GUARANTY ASSOCIATION. Avatar's website says their account with Bank of America is frozen. Just this year, two Florida property insurance companies are liquidating. Florida's already shrinking property insurance market is about to get a little smaller, with fewer options for homeowners to insure their home. Since 2017, WESH 2 investigates found out that a total of six Florida property insurance companies have gone into receivership. Roof replacements and litigation have impacted a lot of companies who either pass those rising costs on to their policyholders or stop operating in the state.

75% Of Successful Buyers Have Regrets

75% Of Successful Buyers Have Regrets

75% of Successful Buyers Have Regrets! Today’s successful buyers are happy they got a home, but some who made trade-offs to win a bidding war have regrets after they move in. Zillow’s survey finds three-quarters of those who successfully purchased a home in the past two years say they have at least one regret about the home they bought (75%). Most successful buyers (74%) wish they had done at least one thing differently during the shopping process, with 38% wishing they had spent more time searching for a home or weighing their options. "Buyers can get distracted by a pretty kitchen or great staging when they should concentrate instead on a home's two biggest factors: its layout and location. Buyer burnout has become increasingly common amid rapid home price appreciation. Nearly 60% of successful buyers say they took a break from their home search (59%), while 72% of prospective buyers say they have done the same.

Homebuyer Sentiment Hits Record Low

Homebuyer Sentiment Hits Record Low

Homebuyer Sentiment Hits Record Low Consumer Pessimism Regarding Direction of Mortgage Rates Hits New Survey High.  69% of Respondents Expect Mortgage Rates to Go Up in Next 12 Months The Fannie Mae (Home Purchase Sentiment Index® (HPSI) decreased by 2.1 points to 73.2 in March, as consumers continue to express pessimism regarding the trajectory of mortgage rates and homebuying conditions generally. Only 24% of consumers believe it’s a good time to buy a home, with similar levels of pessimism expressed by nearly all of the demographic groups surveyed," Palim continued: "This month, we also saw a survey-high share of consumers expecting their financial situations to worsen over the next year; this was especially true among current homeowners.  These concerns, together with the run-up in mortgage rates since the end of 2021, will likely diminish mortgage demand.

Mortgage Payment To Income Ratio Getting Into Pre-Meltdown Territory

Mortgage Payment to Income Ratio Getting Into Pre-Meltdown Territory

Mortgage Payment to Income Ratio Getting Into Pre-Meltdown Territory Black Knight's latest Mortgage Monitor report was released this morning and it provided more timely insight on home price appreciation We already know that mortgage rates moved higher at a fairly brisk pace in January, but it was either too little or too late to make a difference in February's price appreciation. Notably, the annual growth rate was at least 10% in all of the nation's 100 largest markets for the first time on record, with the top five slots (Tampa, Austin, Raleigh, Phoenix, Nashville) all over 30%. One of the two key pieces of additional data is the average mortgage payment associated with the average-priced home. As the chart suggests, this ratio was only ever higher for a few years leading up to the mortgage meltdown and financial crisis of 2008.

Purchase Applications Remain Surprisingly Resilient

Purchase Applications Remain Surprisingly Resilient

Purchase Applications Remain Surprisingly Resilient You can't spend too much time reading/watching the news recently without being well aware of the relatively unprecedented surge in mortgage rates seen so far in 2022. In this week's Mortgage Application Survey from the Mortgage Bankers Association (MBA), refis dropped another 10 percent, and are now 62 percent lower than the same week last year. The purchase market remains a different story. While purchase applications also declined last week, they are only 9 percent below the same week last year and still higher than most of the past decade before the Covid. Average conforming 30yr fixed rate on the week = 4.9% up from 4.8% (daily rates have since risen above 5% per MND data)

Home Prices Moved Up Despite Higher Mortgage Rates

Home Prices Moved Up Despite Higher Mortgage Rates

Home Prices Moved Up Even Faster in January Despite Higher Rates There's a friendly debate among economists and housing experts on the implications of 2022's massive spike in mortgage rates. According to others, home prices are almost exclusively concerned with supply and demand, regardless of rates.   While rising rates have rarely resulted in home prices dropping, the big spikes do eventually tend to show up in the form of deceleration. Any time the lines are above zero, prices are increasing. In other words, the highlighted mortgage rate spikes resulted in prices decelerating (not decreasing).

Park Square Homes Build-To-Rent Townhomes

Park Square Homes Build-To-Rent Townhomes

Park Square Homes plans build-to-rent townhome community for Ocoee A 232-unit build-to-rent townhome community is in the works in Ocoee as a local developer looks to get a foothold in the growing business. Orlando-based Park Square Homes is developing the Kimaya Ocoee Village community on the nearly 24-acre site on the north side of Ocoee.  Vertical construction on the townhomes should begin in May, with a phased roll out that could see residents moving in as soon as October or November of this year, he added. The project is near the intersection of East Fullers Cross Road and North Lakewood Avenue and roughly a half-mile from State Road 429’s interchange with West Road/Clarcona Ocoee Road. Meanwhile, the build-to-rent business is just getting going in the U.S. A study by RentCafe expects nearly 14,000 new units to come online across the nation in 2022.

Pending Homes Sales Dwindle 4.1% In February

Pending Home Sales Dwindle 4.1% in February

Pending Home Sales Dwindle 4.1% in February Pending home sales slipped in February, marking four consecutive months of transaction decreases. The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, waned 4.1% to 104.9 in February. Consequently, home sellers cannot simply bump up prices in the upcoming months, but need to assess the changing market conditions to attract buyers." As of February 2022, higher mortgage rates and sustained price appreciation has led to a year-over-year increase of 28% in mortgage payments. "The surge in home prices combined with rising mortgage rates can easily translate to another $200 to $300 in mortgage payments per month, which is a major strain for many families already on tight budgets."

Mortgage Rates Flirt With 5%

Mortgage Rates Flirt With 5%

Uneventful Start This Week as Rates Flirt With 5% Last week's big news was the rapid jump in rates. In fact, it was right in line with the worst week in decades in terms of the total increase in the average 30yr fixed rate. The bond market held its ground nicely and even managed to improve slightly in the afternoon. While this isn't the first time we've seen such things in 2022, it's one of only 3 days of improvement since March 4th. In more specific terms, the average lender is effectively unchanged when it comes to top tier 30yr fixed scenarios with quotes currently ranging from 4.875 to 5.125% in a majority of cases.