By CHUCK GREEN
As Baby Boomers age, they are making tough decisions about their living arrangements.
Familiar with every creak in their home’s floorboards and often a friendly face for neighbors, they are coming to grips with the fact that moving on from the place where they raised their kids might be the right thing for them to do.
According to the 2024 Home Buyers and Sellers Generational Trends report by the National Association of Realtors, Baby Boomers accounted for 45% of sellers in 2023.
“Baby Boomers continue to dominate the home-selling market as they make pivotal decisions regarding their retirement living situations, whether it’s right-sizing or moving closer to loved ones,” Jessica Lautz, NAR deputy chief economist and vice…
Americans watching cable news might have been cheered when they saw the latest jobs report: the United States added 303,000 new nonfarm jobs in March and unemployment fell to 3.8%. Both numbers exceeded expectations.
But viewers who are also shopping for a mortgage may have had a different reaction. Economics and housing experts say less unemployment means more pressure on Federal Reserve Chair Jerome Powell to keep interest rates high. And the result has been an uptick in rates.
Powell has made it clear his priority is getting inflation under control. His target number for rising prices is a 2% annual rate. Instead, prices have been rising nearly twice that fast, and the inflation rate has been higher than expected…
Analysis from the Federal Housing Finance Agency finds that, while U.S. mortgage rates are not historically high, the gap between the rates existing homeowners are paying and would-be home buyers are facing has reached a point not seen in decades.
The result is a “lock-in effect” that’s keeping the housing supply extremely tight, a problem that President Joe Biden’s proposed subsidies are unlikely to fix.
The findings are in a March 2024 working paper entitled “The Lock-In Effect of Rising Mortgage Rates” by Ross M. Batzer, Jonah R. Coste, William M. Doerner, and Michael J. Seiler.
“People can be ‘locked-in’ or constrained in their ability to make appropriate financial changes,” the authors write, pointing to obstacles like “being unable to…
By ERIN FLYNN JAY
Home flipping activity is down across the nation as people who work in the industry see reduced returns on investments due to high interest rates and inflation.
Last month, ATTOM released its 2023 U.S. Home Flipping Report, which showed that 308,922 single-family homes and condos in the United States were flipped last year. That was down 29.3% from 436,807 in 2022 and is the largest annual drop since 2008.
The report further revealed that as the number of homes flipped by investors declined, so did flips as a portion of all home sales, from 8.6% in 2022 to 8.1% percent last year.
Rob Barber, ATTOM’s CEO, said high interest rates and inflation have elevated costs for…
By NICOLE MURRAY
People who make their living helping homebuyers and sellers have spent the last two weeks figuring out what the $418 million settlement deal announced by the National Association of Realtors means for them and their clients.
If approved by a judge, under the settlement buyers will be expected to enter into written compensation agreements with their real estate agents starting in mid-July. Sellers may pay a buyer’s agent commission as part of the negotiation process.
They can also opt to pay just their agent. This represents a departure from the current model, where sellers typically pay for their agent, as well as the buyer’s agent, through cooperative compensation.
The Mortgage Note spoke with real estate industry professionals…
Spring is here and the home selling season is getting underway. Writer Nicole Murray spoke with real estate professionals and recent buyers to see what they think about the current market for our latest podcast.
If you would like to participate in future episodes, please email us at [email protected].
Read articles featuring the guests:
To Buy Or Not To Buy? Homeowners Offer Insights
Avoid The Doom And Gloom: How To Survive To 2025
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By ERIN FLYNN JAY
Homeownership rates for Black Americans are lagging and leaders in some cities are taking action to turn that around.
According to a report released by the National Association of Realtors last month, minority groups saw increased homeownership rates in 2022. While Asian and Hispanic homeownership rates registered all-time highs at 63.3% and 51.1%, the Black homeownership rate was 44.1%.
The homeownership rate for white Americans was at 72.3% in 2022.
Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement that the impacts of overall housing affordability affect minority buyers more than white buyers. Minority buyers often pay more of their monthly income in rent, making it harder to save for…
By CHUCK GREEN
In upcoming decades, U.S. homeowners in areas along coastlines could be up the proverbial creek.
Sea level rise, along with changing storm patterns, could result in flooding that severely damages homes in many coastal areas. Especially vulnerable, according to estimates, are the Gulf of Mexico, Florida, the Carolinas, and the Washington, DC, area.
In 2018, the Union of Concerned Scientists hoisted warning flags when it released an interactive map that showed the estimated number of homes at risk for chronic flooding in the coming decades due to sea level rise.
That year, the group reported that burgeoning sea level rise – fueled mainly by climate change – was projected to exacerbate tidal flooding in the country. Within…
By ERIN FLYNN JAY
If you are looking for a home and don’t have 20% to put down, you are not alone.
According to the National Association of Realtors, the typical down payment for first-time buyers is 8%. For repeat buyers, it’s 19%.
And for 38% of first-time buyers, saving for a down payment was the most difficult step in the process.
Sean Moss, EVP of product and operations at Down Payment Resource, says there is no one right answer to the question of how much money to put down when purchasing a home. It’s dependent on the buyer’s financial situation, as well as the loan type they plan to use.
“It’s a common misconception that 20% down is the…
By KIMBERLEY HAAS
Female mortgage professionals are breaking barriers and making strides. As Women’s History Month is celebrated this March, The Mortgage Note asked leaders in the industry and related fields to share their advice with others.
Here’s what they said:
Be kind.
“Always be kind. This is a small pond. You never know who you will work with or for,” said Erica Giorgiantonio, senior director of field services at SingleSource Property Solutions in Canonsburg, Pennsylvania.
Have confidence.
Julia Curran, senior director of product design at SitusAMC in New York City, said, “Don’t be afraid to speak up and assert yourself in meetings and negotiations. Confidence and assertiveness are key qualities for success in our field.”
Gaining that confidence can…
