As the student loan forbearance program comes to an end, Americans are terrified that resuming payments will force them into greater debt.
That’s according to a new survey of student loan borrowers by digital personal finance company Achieve.
Student loan repayments were put on pause in March 2020 as a response to the pandemic. Payments will resume in October. Nearly half of respondents are extremely or very stressed about resuming their payments, while 28% say they will have to take on new debt to manage their personal finances.
45% of respondents paid down other expenses rather than making advance payments on their student loans during forbearance, with 27% using their extra cash for mortgage or rent payments.
More than 60%…
Mortgage activity dipped in August as rates reached new highs and inventory remained low, according to Black Knight’s latest Mortgage Monitor report.
The 30-year conforming soared above 7.25% last month, its highest level in more than 20 years, before cooling down to 7.07%.
As a result, overall rate lock volumes sank for a third straight month, down 1.5% from July.
“August was another rough month for mortgage borrowers from an interest rate perspective,” said Andy Walden, VP of enterprise research and strategy at Black Knight. “Rates did edge down toward the end of August, but prospective homebuyers still face the least affordable housing market in nearly 40 years.”
The biggest driver was purchase volume, which fell almost a full 2%…
As mortgage rates are locking homeowners in their current houses, many are investing in renovations rather than moving.
A new survey from LendingTree found that 68% of homeowners started or completed a home improvement project in the last 12 months, while 63% plan to begin one in the next year.
Interior painting, landscaping, and bathroom remodeling are the most common projects, but homeowners have diverse reasons for renovating. Of the more than 2,000 respondents, 36% say they need the repairs because their house is aging, 27% say their improvements are relatively small, and 21% say they want to spruce up their home to sell.
Millennials homeowners are poised to take on the most DIY, with 78% engaged in renovation in…
By ERIN FLYNN JAY
Return to the office mandates and the continued desire for a better quality of life are affecting Americans as they decide where to move in 2023.
Companies that allowed employees to work remotely during and immediately after the Covid pandemic are reversing course this year. On Sept. 5, Meta’s requirement that employees assigned to an office show up at least three days a week went into effect.
With the policy change, Facebook and Instagram’s parent company joined Google and other major employers that are pulling the plug on remote work despite advances in technology that allow people to log in from anywhere. Some analysts argue that it is a leadership preference, while others point out that…
Recent home price gains have helped some homeowners with underwater mortgages.
CoreLogic reported that only 2% of homeowners with a mortgage were in negative equity in Q2 2023, 6.3% fewer than in Q1 and on-trend with numbers from the last two years.
Home prices have risen this year after a months-long downturn. Though homeowners lost $8,300 (+5.2%) in equity YOY, their quarterly gains were nearly $14,000. As a result, 75,000 borrowers whose mortgages went underwater are back on dry land.
“While U.S. home equity is now lower than its peak in the second quarter of 2022, owners are in a better position than they were six months ago when prices bottomed out,” said Selma Hepp, chief economist for CoreLogic.
“Also,…
Mortgage rates dipped again last week but remain above the dreaded 7% threshold.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.12%, down from 7.18%. A year ago at this time, the 30-year FRM averaged 5.89%.
This is the second week of declines but the fourth straight week of 7%-plus rates.
The 15-year fixed-rate mortgage slipped to 6.52% from 6.55%. A year ago, it averaged 5.16%.
“The economy remains buoyant, which is encouraging for consumers. Though while inflation has decelerated, firmer economic data have put upward pressure on mortgage rates which, in the face of affordability challenges, are straining potential homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist.
The median U.S. home sale price is up…
Young Americans’ homebuying outlook just keeps getting worse.
Almost one in five Millennials (18%) and 12% of Gen Z respondents to a Redfin survey believe they will never be able to own a home.
They overwhelmingly see affordability as their primary barrier, with half citing high prices as their biggest concern. Just under half of respondents say they can’t save for a downpayment, coming in second.
Notably, just over one-third directly blamed mortgage rates for the state of the market. Other concerns include paying off student loans and being able to make monthly mortgage payments.
“The worsening housing affordability crisis has an outsized impact on Gen Zers and Millennials because they’re much less likely to own a home than older…
Consumer sentiment is stuck in the pits as mortgage rates remain elevated.
Fannie Mae’s Home Purchase Sentiment Index continues skimming its low-level plateau, increasing in August by 0.1 points to 66.9. The HPSI is up 4.9 points YOY.
Half of the index’s six components rose from July while the others stayed stagnant, resulting in a net negative outlook. Only 18% of respondents say it’s a good time to buy a home. The share of respondents who say it’s a good time to sell rose, however, to 66%.
Respondents largely believe that home prices will go up in the next 12 months (41%), though that number decreased by 2% from July.
“Consumers remain pessimistic toward the housing market in general and…
Mortgage applications dipped again after a brief increase last week, despite rates cooling.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 2.9%, drifting down after the week prior’s 2.3% increase.
Applications are now at their lowest level since December 1996. Adjusted purchase applications fell by 2%, while the unadjusted index dipped 5% from the week before and was 28% lower YOY.
The average interest rate for a 30-year fixed loan fell 10 bps to 7.21%.
“Both purchase and refinance applications fell, with the purchase index hitting a 28-year low, as prospective buyers remain on the sidelines due to low housing inventory and elevated mortgage rates,”…
By KIMBERLEY HAAS
Build-for-rent communities have been growing in popularity as the housing landscape changes in the United States.
According to leaders at the National Association of Home Builders, developers are exploring new ways to meet continued housing demand and single-family build-for-rent properties provide a stepping stone between renting and buying for young families, as well as a good downsizing option for aging adults. They say many of the people who choose to live in these neighborhoods are renters by choice.
The concept has been getting national attention as people want the flexibility of renting but the amenities that come with homeownership such as more privacy and backyards. It is estimated that hundreds of build-for-rent communities are coming to the…
