Young adults with low incomes or poor credit histories may ask their parents to co-sign on their mortgage—and it’s a growing trend. The share of co-signed mortgages rose nationwide from 13.7% in 2015 to 17.4% in 2018, according to ATTOM Data Solutions.But there are risks to being a co-signer. “Whoever is co-signing has to bring substantial income because they have to be able to afford the new payments on top of all of their other debt,” E
The number of homes selling at or above list price is on the decline, returning to historical norms, according to CoreLogic’s Home Price Index. That could be a relief to home shoppers whose budgets have been squeezed in recent years as home prices have soared.The share of homes that sold at or above list price dropped to 31.1% in March—about the same level as in 2000 and 2001. That also represents a big change from a year ago. In the second q
Young adults are all about making sacrifices and lifestyle trade-offs to get them on the path to homeownership, according to a new survey of 1,000 millennials, ages 22 to 38, by Chase Home Lending. Seventy percent of young adults say they’re willing to cut back on weekend activities, such as shopping, going to the movies, and splurging at the spa, at least once a month if it meant they could purchase a home in the next 12 months, the survey sho
For the first time since January 2018, the 30-year fixed-rate mortgage has dropped below 4%.“While economic data points to continued strength, financial sentiment is weakening with the spread between the 10-year and the 3-month Treasury bill narrowing as fears of the impact of the trade war with China grow,” says Sam Khater, Freddie Mac’s chief economist. “Lower rates should, however, give a boost to the housing market, which has been on
Shopping around for a mortgage can provide savings beyond just the interest rate. Borrowers could save thousands in lender fees as well.Borrowers who collect up to five offers from mortgage lenders could save more than $2,000 on mortgage fees, according to a new study from LendingTree of 300,000 loan offers. These extra fees include the costs for a mortgage application, underwriting, origination, appraisals, and up to 16 other fees that
Rents for single-family homes jumped 2.9% year over year in March, according to the CoreLogic Single-Family Rental Index. The index measures rent changes among single-family rental homes, including condos.Rents for lower-priced homes are increasing at a faster clip than those of higher-priced homes. Low-end rentals are defined as properties with rents 75% or less than the region’s median rents.Rents on lower-priced homes rose 3.5% year over yea
Home prices are up nationally, but buyers are finding that values are starting to fall in a handful of areas. One in five metro areas are seeing decreases in home prices compared with half as many a year ago, according to realtor.com®.“In a lot of markets, buyers are hitting an affordability ceiling,” says Danielle Hale, realtor.com®’s chief economist. “Prices just can’t keep rising if buyers can’t keep up. They are dropping out, an
Mortgage rates continue to decline while lowering borrowing costs for home buyers this spring.“Mortgage rates fell for the fourth consecutive week and continued the medium-term trend of lower rates since late 2018,” says Sam Khater, Freddie Mac’s chief economist. “The drop in mortgage rates is causing purchase demand to rise, and the mix of demand is skewing to the higher end as more affluent consumers are typically more responsive to dec
Sixty-five percent of households nationwide view buying a home in their ZIP code as a good financial investment, according to the Federal Reserve Bank of New York’s 2019 Survey of Consumer Housing Expectations. Nearly 72 percent of renters say they would prefer to own instead of rent—if they had the financial resources to do so, the survey found. Renters ages 50 and older were more likely than younger renters to say they prefer to be homeowne
Borrowing costs this year likely will be lower than originally predicted. Freddie Mac recently downgraded its forecast for the 30-year fixed-rate mortgage, projecting it will average 4.3% this year—below last year’s average of 4.5%. Further, Freddie economists predict only a small increase in rates in 2020, with the 30-year fixed-rate mortgage averaging 4.5% next year.The lower mortgage rates likely will be a boon for housing, Freddie Mac not
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