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How do Recessions Impact Housing?
Some of you have told me that your buyers are concerned with how a recession might impact the housing market. ATTOM Data Solutions, a leading real estate data provider reviewed the impact of the last 5 recessions on the nation’s housing market. Three times home prices continued to increase and only twice did home prices…
Is This a Sign of a Coming Recession?
Two weeks ago the Treasury market officially Inverted when the 10 year yield dropped below the 2 year yield. This has happened 9 times in the last 70 years and each time a recession occurred in the near future, anywhere from 6 to 22 months later. Thus, even more people are predicting a recession soon.…
Are You Ready for Gen Z?
TransUnion reported that Gen Z borrowers (those born since 1995) are starting to close on mortgages. In the second quarter of this year there are 319k Gen Z borrowers who have a mortgage up from 150k a year earlier. In other words at least 169k young adults from Gen Z bought a home in the…
Greenspan Says Treasuries Could Go Below 0%
Last Tuesday on Bloomberg Alan Greenspan the Former Fed Chairman for many years said, “There is NO barrier for U.S. Treasury yields going below zero.” And he said rates being below zero “is not a big deal.” WOW! It was amazing to hear Greenspan to say this. So, what does this mean? First, when an…
Great Changes Coming Soon for Condos & FHA
I read a story on Housing Wire that our country has over 150k condo projects across the country and only 6.5% of them are approved for FHA financing. Hopefully this will begin to change on October 15th when some new rules from FHA go into effect. An individual condo will be eligible for spot approval.…
Denver Home Prices Increase By Over 4%
Here are the stats for the month of July for the 7-county metro area courtesy of SMDRA. Buyers closed on 5,314 properties last month an increase of 4.1% from last July. Sellers listed for sale 6,031 new properties for sale last month, a small 2% increase from last July. But, all-of this increase was with…
Imagine a Mortgage Rate of 0%
Last week Germany’s 30 year bond yield dropped BELOW 0% for the first time! Several more central banks dropped their short-term rates last week too in response to the Fed’s rate cut as they try to keep their currency values. Third, several banks in Denmark have dropped their mortgage rates to 0% or below 0%.…
IBuyers Cost Home Sellers Over $50,000!!!
Collateral Analytics develops real estate analytic products and tools just completed a study of iBuyers and what their fees average for the home seller. iBuyers charge sellers a “convenience fee” of 6% to 9.5% on average nationally PLUS a generous repair allowance.PLUS another 3% to 5% or more to compensate the iBuyer for liquidity risks…
How to Take Advantage of the Fed’s Action Last Week
The Fed as expected cut short-term rates, the Fed Funds Rate, by ¼% last week. Chairman Powell stated, “It’s not the beginning of a long series of rate cuts. I didn’t say it’s just one.” Thus, many people are expecting the Fed will cut short-term rates by ¼% again in September, effectively undoing their two…
New Income Limits from CHFA
CHFA just released their new income limits for their different loans that offer down payment assistance either by grant or loan. Preferred, a conventional loan program has an income limit of $74,200 metro-wide as I predicted earlier. SmartStep, a FHA loan for FTHBs and repeat home buyers has an income limit of $120,100 state-wide. FirstStep,…
Refi Changes from FHA & VA
FHA just announced a rule change on cash out refinances effective with Case Numbers ordered September 1st. FHA’s max loan to value and combined loan to value on cash out refinances will now be 80% instead of 85%. Next Ginnie Mae who issues mortgage bonds for both FHA and VA loans announced that on VA…
Where are Millennials Moving To?
SmartAsset used 2017 Census data to discover where Millennials are moving. Colorado saw the 3rd highest net increase in migration of Millennials with a net total of 21,229 people in 2017. This increase must be really spread out as only CO Springs made the Top 25 city List at #7 with 3,368 net new Millennials…
