Housing investors now reveal their worst mistakes – This mistake costs many people Housing articles 1.3. 16:44
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U.S. mortgage rates rose for the fourth straight week to their highest level in two months, dealing a major blow to housing affordability.
The 30-year fixed-rate mortgage increased and averaged 6.94% as of Feb. 29, according to data released by Freddie Mac FMCC,
+0,92%
THURSDAY.
This is an increase of 4 basis points from the previous week – one basis point is one hundredth of a percentage point.
A year ago, the 30-year rate averaged 6.65%.
The average 15-year mortgage rate was 6.26%, up from 6.29% last week. The 15 year was at 5.89% a year ago.
Freddie Mac’s weekly mortgage rate report is based on thousands of inquiries received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage loan.
Separate data from Mortgage News Daily shows the 30-year fixed-rate mortgage rate averaged 7.15% as of Thursday afternoon. The Mortgage Bankers Association survey found the 30-year interest rate was 7.04% as of Feb. 23.
What Freddie Mac said: “The recent boomerang in rates has dampened already hesitant homebuyer momentum heading into spring, a historically busy season for home buying,” Sam Khater, chief economist at Freddie Mac, said in a statement. .
“While sales of newly constructed homes are trending in a positive direction, high interest rates and prices continue to pose affordability challenges that could leave potential buyers behind,” he added.
What do they say? “Higher-than-expected inflation and employment data maintain upward pressure on mortgage rates,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement.
“And an insufficient volume of existing homes for sale in many markets makes it even more difficult for many potential buyers to enter the market,” he added.
2024-02-29 17:55:00
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My husband and I can’t decide between selling our house or renting it. We live in Northern California, in an area we don’t like. The house is cute, we have a 2.5% interest rate, and we have $262,000 left on our mortgage. The Redfin estimate for our house is currently $550,000.
We took in a child last year and it’s not an area we want him to grow up in as the schools aren’t good and it’s not the safest area. A good friend in another state said we could move in with her rent-free for a year until we worked things out.
My husband and I are ready to move, but we are unsure if we should rent our house until we find another area we would like to settle in, or sell and buy a new house this year since prices are increasing in all the countries.
I was laid off last year and I’m thinking of going back to school, which makes things complicated. Our current monthly mortgage payment is $1,700 and we could rent the house for up to $3,000 per month. We think too much about it and can’t make a decision.
Undecided
‘The big move‘ is a CNET column that examines the ins and outs of real estate, from finding a new home to applying for a mortgage.
Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at TheBigMove@CNET.com.
Dear Undecided,
Focus on your long-term financial goals and ask yourself if your home will help you achieve them. I have a few questions for you: Do you want to leverage your home now and graduate debt-free? Or do you want to keep the home as an asset that you can leverage as a lifeline?
You have a mortgage rate of 2.5%, which only requires a monthly mortgage payment of $1,700, and you can make a net profit of $1,300. Current mortgage rates are more than double that amount. On this basis, do not sell. Renting your home seems to be the most optimal route.
Continuing your education, especially after being laid off, requires money. You also don’t like the school district or your current neighborhood, and safety is a concern. For these reasons, I understand why you think it makes sense to profit from the house.
At the same time, you’ll also be living rent-free – just make sure the deal is solid so you don’t have any drama with your friend later. You’re essentially saving tens of thousands of dollars in rent, and you’ll also enjoy a steady stream of rental income.
Uncertainty versus instability
You have a year to figure things out. I know uncertainty can feel like instability and you may feel anxious about the situation during the year, but you live rent free for a year which gives you plenty of time to decide if you really need to sell.
Plus, a lot of things change in a year. What if you decide you don’t like living in another state and prefer the stability of your own home in Northern California? If you keep the house, you will still have a safety net.
And don’t worry too much about real estate prices rising or falling. The market does not appear to be heading for a crash, if economic indicators are to be believed. Supply is low and demand is high. Mortgage rates are high, but the market is short on inventory.
You’ll likely get a good price for your NoCal home when you sell it. The longer you hold on to it, the more likely your home will increase in value. Please don’t sell because you feel the need to. Only sell if you think the calculations make sense.
By emailing your questions, you agree to have them posted anonymously on CNET. By submitting your story to Dow Jones & Company, CNET’s publisher, you understand and agree that we may use your story, or versions of it, across all media and platforms, including through third parties..
2024-02-24 10:56:14
#house #mortgage #rate #dont #neighborhood #selling #CNET
22 Feb 2024 at 00:00
Prices of existing owner-occupied homes were again 1.8 percent higher in January than a year earlier. For the second month in a row, the price rose on an annual basis. As a result, the highest house prices ever are once again in sight.
This is evident from figures from statistics agency CBS. The peak in house prices was in the summer of 2022, when home buyers paid an average of more than 445,000 euros for an owner-occupied home. Then prices fell until June last year. On a monthly basis, house prices are already on the rise.
The average sales price has now risen to more than 433,000 euros. If house prices continue to rise as in recent months, a new peak will be reached in March or April.
Also according to the CBS price index, the highest house price ever is approaching. House prices are now 30.5 percent higher than in 2020. In July 2022 this was still 32.9 percent. The price index takes into account quality differences between owner-occupied homes sold in that month.
More homes sold
It is also striking that the number of home sales has increased considerably. In January, 14,452 owner-occupied homes changed hands. That was 10 percent more than in January 2023. Since the spring of 2021, this was only the fourth month in which the number of home sales increased.
This may be due to the fact that a year ago there was an energy crisis and high inflation, so potential buyers held back for a while at the beginning of 2023.
Furthermore, since January, a group of people have been able to borrow more to purchase a home due to broader lending standards and you are more likely to qualify for the National Mortgage Guarantee, which protects home buyers against a residual debt in the event of forced sale. “These things can indeed play a role, but it is difficult to pinpoint one cause,” says CBS economist Luuk Hovius in a response.
Image: ANP
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Housing marketEconomy
2024-02-21 23:00:24
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15 Feb 2024 at 00:01
The number of permits for new homes fell last year to the lowest point since 2016. Permits have been granted for only 55,000 homes. That is 15 percent less than a year earlier.
This is the second year in a row that there has been a decline, according to figures from statistics agency CBS.
The number of permits granted is an indication of how many homes will be built in the coming years. The average time between the permit and the time of delivery of a house is about two years.
The government wants to build 100,000 houses every year until 2030. With 55,000 permits it will be difficult to achieve that goal. Although houses can also be realized through transformations, such as converting offices, this often only results in around ten thousand homes per year.
Previous CBS figures also made it clear that the target of 100,000 new homes per year is not being achieved. The statistics agency recently reported that 73,000 new houses were completed last year.
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For the first time, more rent than purchase
Of the 55,000 permits granted last year, 28,400 were for rental properties. The rest are for owner-occupied homes. For the first time since Statistics Netherlands started measuring in 2012, more permits have been granted for rental properties than for owner-occupied houses. For a long time, two-thirds was intended for owner-occupied homes.
Most permits were issued in South Holland: eleven thousand. This means that one in five permits has been granted in that province. It is no coincidence that South Holland is also the province with the most inhabitants. With only 688, the smallest number of permits have been granted in Zeeland.
Beeld: Getty Images
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2024-02-14 23:01:52
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By our economics editors
09 Feb 2024 at 16:32
A landlord in Rotterdam has been struck back by the judge due to an unjust rent increase. The landlord had increased the price equal to inflation, plus 3 percentage points. But the judge thought that was too harsh.
A rent increase may not be higher “than is justified on the basis of a reasonable assessment of the market”, the subdistrict court in Rotterdam decided. He thus declared the intended rent increase invalid.
The ruling explains that a rent increase that goes beyond inflation plus 1 percentage point is not necessarily unfair. But in that case, the landlord would have to prove that rents elsewhere in the market are also rising as sharply.
But the latter was not the case here. Landlord Altera Vastgoed has discussed the average rent increases in Rotterdam in recent years. According to the judge, these figures show that rents increased by an average of 2.5 percent, with inflation of about 1.5 percent.
Ultimately, the tenant in this case was charged 874.71 euros too much in rent over a period of more than a year. But the tenant will not receive that money back, because in this case there is a large rent arrears. The excess rent charged will therefore be deducted from the outstanding amount that the tenant still owes to Altera Vastgoed. According to the judgment, this amounts to more than 15,000 euros.
Woonbond sees exorbitant rents more often
According to tenant interest group the Woonbond, the case is not an isolated case. Several lawsuits have now shown that landlords have implemented unjustified rent increases, a spokesperson explains. He points out that many of the cases have been adjourned. This is because the Amsterdam court decided in two cases at the beginning of October to ask additional questions about the subject to the Supreme Court.
“With the answers from the Supreme Court, we will find out, among other things, whether the annulment of the rent increase clause may lead to a statute of limitations.” So it remains to be seen whether all Dutch people who feel that they are dealing with extortionate rents will soon be able to claim money back.
The House of Representatives will soon also discuss a bill by outgoing Minister Hugo de Jonge (Home Affairs) that should protect tenants in the private sector against excessively high rents.
2024-02-09 15:32:43
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