The Federal Reserve left borrowing costs at record lows on Wednesday, while acknowledging there’s still a long way to go as the nation’s economy heals from the COVID-19 outbreak.The key rate acts as a benchmark for borrowing and savings. Interest rates will remain at 0% to 0.25%, which they have since March. The Fed’s benchmark rates do not have a direct influence over mortgage ratesbut can influence them. Mortgage rates have been reaching
2020 marks the biggest year in the history of lending at the U.S. Department of Veterans Affairs, Chris Birk, director of education at Veterans United Home Loans, told Bankrate.com.The volume of mortgages backed by the VA has drastically increased: VA loan volume nearly doubled from 2019 to 2020. This also marks the first time that the VA has issued more than 1 million loans in one year.“This was truly a historic year,” Birk says.VA loans onc
Renters who desire more space as they ride out the pandemic are increasingly looking to upsize into single-family homes. Since the COVID-19 pandemic began, single-family rental prices have for the first time outpaced their pre-pandemic growth rate.National rent increases for single-family rental homes increased 3.1% year over year in October, according to CoreLogic’s latest reading, published in its new Single-Family Rent Index.This spring and
The work-from-home trend may be translating into a need-a-new-home trend. The COVID-19 pandemic has prompted more people to work remotely, and as more people hunker down at home, they’re looking at real estate for a move.Forty-five percent of consumers recently surveyed by Homes.com say they would move if given the chance to continue working remotely. Twenty percent of respondents also indicated that remote work was the reason why they moved wi
While many Americans want to upsize in the COVID-19 pandemic, others are still embracing a tiny home lifestyle, whether as a full residence or just a home office, finds a new survey from IPX1031, a 1031 tax exchange resource. There’s enough desire that investors still think it’s a lucrative investment, too.Tiny homes are often considered to be 500 square feet or less.Seventy-two percent of 2,000 Americans, surveyed in November by IPX1031, sai
All-cash deals are rising in certain areas of the country, comprising about 36% of the market nationwide, according to data from realtor.com®. Buyers who can pay all in cash are finding themselves in a prime position in the competitive housing market, as sellers tend to favor those who can. Meanwhile, buyers who must rely on financing are struggling to compete.Cash sales are climbing the most in the Northeast and West, up 3 and 2 percentage
Over the next decade, expect more clients to ask about a home or building’s ventilation and clean air systems. Some of the nation’s largest developers told The Wall Street Journal that they believe air purifying systems will be commonplace in homes by 2030.For example, indoor sensors can detect when air quality has dropped and automatically increase ventilation. These systems mitigate pollution or smoke entering the home and remove
Demand may fall for homes in areas at high risk of natural disasters, such as flooding and wildfires, which could cause price growth to slow. A new realtor.com® analysis shows that properties in such areas will likely see 5% less price growth in 2021 than homes in similar areas at low risk of natural disaster.This trend is already rising. Homes in high-risk flood areas have seen a sales price growth of 5 percentage points lower than similar home
Mortgage financing giant Fannie Mae announced it would be extending some of its flexible lending standards into 2021 due to the COVID-19 pandemic. The extensions include allowing verbal verification of employment and power of attorney flexibilities, as well as some appraisal alternatives to ensure that transactions don’t get delayed. The extensions also require more checks on payment histories of self-employed borrowers.The temporary measures w
Homeowners are building wealth as property appreciation surges to its highest level since 2014. In the third quarter, the average homeowner had gained about $17,000 in equity year over year, according to CoreLogic’s latest Home Equity Report. Owners in Washington State saw the largest annual increase in home equity at $35,800, followed by California at $34,000.“The housing market has remained a strong pillar in an otherwise tumultuous ec
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