Mortgage Rates Dip as Spring Home-Buying Season Begins

Mortgage rates across the United States have dropped slightly, just as the spring home-buying season has kicked into gear.

The average rate on a 30-year fixed mortgage dipped to 4.34% from 4.41% last week, according to the latest survey from mortgage buyer Freddie Mac. At this time last year—when rates hit record lows—the average was 3.43%.

“Mortgage rates eased a bit following the decline in 10-year Treasury yields.” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement. “Also, the economy added 192,000 jobs in March, which was below the market consensus forecast but followed an upward revision of 22,000 jobs in February. Meanwhile, the unemployment rate held steady at 6.7%.”


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Source: Rachel Stults (www.realtor.com)

Buying A Home Is Now 38% Cheaper Than Renting

Is renting or buying a better financial bet? Every six months, Trulia’s chief economist Jed Kolko runs the numbers to answer that question and help you stay on top of the trends.  So what does Trulia’s Winter 2014 Rent vs. Buy Report tell us? Although the gap between renting and buying is narrowing across the U.S., homeownership is still 38% cheaper than renting.

Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas according to Trulia TRLA -0.67%’s latest Winter Rent vs. Buy report. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally, versus being 44% cheaper one year ago.

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Source: Trulia Contributer (www.forbes.com)

Real Estate Industry Analysis 2014 - Cost & Trends

Real Estate Franchise Industry in 2014 at a Glance

The real estate industry has been under scrutiny in recent years with the mortgage crisis and other current events, but it is still a large field which generates billions or dollars in revenue. There were 165,000 companies operating in the residential brokerage and management field last year, which generated $170 billion in revenue, and there were 25,000 companies operating in the commercial brokerage and management field, generating an annual revenue of $30 billion.

Real Estate Industry Background

Real estate tends to be a particularly cyclical industry, going up and down based on trends in the economy at large such as the fluctuation in interest rates. The story of real estate often mirrors the general story of the American economy. Real estate soared in the post-World War II 1950s, sank in the 1970s, rose again in the early 1980s until the depression at the end of that decade, and was prosperous again at the end of the 1990s. Because of low interest rates in the mid-2000s, residential real estate was booming even when the economy was slow until the mortgage crisis hit and the bubble collapsed. After that point it sank and as of 2011 has yet to truly recover. Brokerage firms have taken on property management divisions in order to diversify their revenue streams and combat poor economic climates.

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Source: Franchise Help (www.franchisehelp.com) 

10 Hottest Housing Markets for 2014

From Oakland, California, to Memphis, Tennessee, these major metro areas are expected to see the biggest increase in home prices this year, according to CoreLogic Case-Shiller's latest home price forecast.

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Source: CNN Money (www.money.cnn.com)

Top 5 Real Estate Changes for 2014

Thinking of buying or selling real estate in 2014?  Here are the top five changes you need to know:

1.  The expiration of the Mortgage Forgiveness Debt Relief Act.  Homeowners who go through a foreclosure or short sale may now have to pay tax on the forgiven debt due to the bill's expiration on Dec 31st.  Congress could still retroactively extend this bill, but as of yet has failed to do so.

2.  Flood map changes and insurance premium increases.  Homes that were  not located in a flood zone may now find they need flood insurance due to recent changes in our flood maps.  In addition, the Biggert Waters Flood Insurance Reform Act resulted in higher premiums for those located in flood prone areas, pricing some buyers out of the market.

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Source: P.Staines (www.jacksonville.com). 

Mortgage Rules Changes Are Coming in 2014

The world of mortgage lending has changed significantly since the housing bubble burst. Mortgage lenders have returned to traditional loan standards that require extensive documentation of income and assets for a loan approval.

Government regulatory agencies also continue to react to the housing crisis, with more adjustments to mortgage requirements set to go into effect in 2014:

Qualified Mortgage Rules

Whether you’re thinking of buying a home or mulling over refinancing your mortgage, Jan. 10, 2014, could be an important date for you to remember. The Consumer Financial Protection Bureau is in the process of implementing regulations to meet goals set forth by the Dodd-Frank Act in Congress, which was meant to correct the errors that led to the housing crisis. The CFPB’s “Qualified Mortgage,” or QM, rules go into effect in January. Essentially, these rules require lenders to prove borrowers’ ability to repay a loan by meeting several guidelines, including a maximum debt-to-income ratio of 43 percent. While many lenders already limit borrowers to a similar maximum debt-to-income ratio, the new rules won’t allow for any compensating circumstances such as significant cash reserves or a large down payment to be considered in order to offset a higher debt ratio.

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Source: Michele Lerner (www.realtor.com)