Hurricanes put a dent in hew home construction, Single family housing starts fell, mortgage rates unchanged

October 18, 2017

Hurricanes Harvey and Irma put a dent in new home construction in Florida and southern Texas. The Commerce Department reported that total September Housing Starts fell 4.7% from August to an annual rate of 1.127 million units versus the 1.160 million expected. It was the lowest level since September 2016; however, from September 2016 to September 2017, starts were up 6.1%.

Single family Housing Starts fell 4.6% percent from August, although they were up 5.9% from September 2016. Multi-dwelling starts with five or more units, saw a drop of 6.2% from August and a 7.9% rise over September 2016. Overall, the South saw a 9.3% decline in September, while gains were seen in the Northeast, Midwest and West. Building Permits, a sign of future construction, fell 4.5% from August to an annual rate of 1.215 million units, just below the 1.225 million expected.

Mortgage rates were essentially unchanged in the latest week as reported by the Mortgage bankers Associaiton (MBA). The 30-year fixed-rate mortgage with conforming loan balances ($424,100 or less) decreased to 4.14% from 4.16%, with points remaining unchanged at 0.44. The MBA’s Market Composite Index, a measure of total mortgage loan application volume, rose 3.6% in the latest week. The refinance index rose 3%, while the purchase index was up 4%.

Mortgage Calculator Showing Purchase Of Home Loan

October 10, 2017

Fannie Mae reported its September Home Purchase Sentiment Index (HPSI) on Monday revealing overall housing confidence is up on rising renter optimism. The Fannie Mae HPSI increased 0.3 points in September to 88.3, matching the all-time high set in June. Americans who feel that it is a good time to buy a home rose last month. Renter respondents also showed increased optimism on purchasing a home. “The biggest driver for the increase in the HPSI is the rebound in the good time to buy sentiment, which outweighed the largest drag—a sizable reduction in the net share of consumers expecting home prices to rise over the next year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.

The NFIB Index of Small Business Optimism fell in September from 105.3 to 103.0, led by a big drop in sales expectations, not just in the storm-affected states, but across the nation. Within the report it showed that the number of small business owners who expected better sales plunged a net 12 points last month. Owners who think that it’s a good time to expand dropped a net 10 points. The NFIB says that the index remains very high by historical standards.

Analytics firm CoreLogic reports that the U.S. foreclosure rate remained at a 10-year low in July as the housing market continues to improve. The report showed that in July 2017, 4.6% of mortgages were delinquent by at least 30 days or more including those in foreclosure. That is below the 5.5% rate in July 2016. In addition, as of July 2017, the foreclosure inventory rate was 0.7% lower from 0.9% in July 2016.

Barber in barbershop

March 24, 2016

Credit Score:

9 Things That Surprisingly Won’t Affect Your Credit

If you are wondering about your credit score and the items that might affect it, read this article for some helpful information.

March 23, 2016

Many people rent even though buying is ultimately cheaper. Many factors can play into this scenario and why someone decides to buy or continue renting. The following article provides some insight into why this happens and what plays into the decision making process rent or buy. http://www.mpamag.com/news/buying-is-cheaper–so-why-do-so-many-rent-29667.aspx

March 11, 2015

Reminder: Mortgage Insurance is Tax Deductible.

February 06, 2015

By Roy Sperr, MLO
Equity Source Mortgage, Inc.

ROGERS, MN – Each year, millions of Americans move into the home of their dreams. As
time goes by, families expand, kids grow older, and suddenly that home isn’t quite so perfect anymore. Or perhaps you still love your home, but you really want a gourmet kitchen and a larger master bedroom. Should you start looking for a new house? Or would it be better to stay where you are and remodel instead?

Both options involve a significant investment of time and money, so it’s important to take your time and make an informed decision. You’ll also want to be sure to consider both the financial and the emotional sides of the equation. Let’s begin by examining the financial factors involved.

Moving: A good local real estate agent should be able to assist you with estimates on these numbers.
How much will it cost to purchase a home that will meet your needs?
How much could you sell your existing home for? Don’t forget to subtract the agent’s
commission from this total.
What will it cost to move? According to real estate consultant and best-selling author of
Remodel or Move, Dan Fritschen, a typical move costs 10% of the value of your home.
How much will your property taxes increase as a result of the move?

Remodeling:
What projects do you want to have done and how much will they cost? An architect or
general contractor will be able to assist you with these figures.
How much will the improvements add to the value of your home, also known as the
“payback”? A local real estate agent can assist with this as well.
If the decision about whether to renovate or move were purely a financial one, then it would be quite easy to look at the numbers and come to the right conclusion. However, there are also emotional factors that come into play, and they have a value as well. Let’s consider some examples.

Reasons you may want to move:
 If you relocate to a new neighborhood, your children could attend superior schools.
 You would like to reduce your commute or have better access to local amenities, such as
restaurants and shopping.
 You’re not particularly fond of your current neighborhood.
 Your yard is too small, and you cannot expand it.

Reasons you may want to stay and remodel:
 You’re happy with your location. It’s convenient, you love your neighbors, and the
schools are either excellent or are not a factor.
 You love the layout of your home.
 All you need is a little more space, and your home will be perfect.

Of course only you know what is truly important for your happiness, so try to use these
questions as a starting point. Create a list of the pros and cons of each scenario and leave it
someplace accessible, so that you and your spouse can add to it as you think of additional
factors. You may also want to consider attending open houses and visiting new housing
developments to see what is available and how your home compares.

Once you’ve completed your list and your financial assessment, it’s time to draw some
conclusions. Are the numbers and the emotional factors pointing you in a clear direction? If you’re still feeling unsure and would like some additional assistance, you may want to read Dan Fritschen’s book, Remodel or Move, or visit his website at www.remodelormove.com.

Both contain a calculator that will assist you with the difficult task of quantifying the
ramifications of your decision. In addition, you can learn tips to assist you with the next step, after you’ve determined what it will be.

If you choose to remodel, then you’ll need to have a clear idea of what you want to accomplish before finalizing any details with the contractor or architect. One of the most expensive things you can do is change the project midstream.

If you decide to move, then there are low-cost improvements you can make to your existing home that will help it to sell more quickly. The kitchen and the bathrooms provide the biggest return on investment in this area.

Whether you decide to remodel or buy a new home, it’s important to ensure that you have proper financing in place prior to moving forward. If you decide to purchase a home, a mortgage originator will help you to determine how much you can afford, as well as which loan package works best with your overall financial plan. In the case of remodeling, you should meet with a mortgage professional before any construction takes place. Otherwise you may severely limit the type of financing options available to you.

Additional Resources:
Remodel or Move?: Make the Right Decision, by Dan Fritschen