Study: 3 in 4 Mortgage Holders Could Benefit From Refinancing

September 15, 2020

The 30-year fixed-rate mortgage continues to hit new all-time lows practically on a monthly basis. That has dramatically increased the pool of homeowners who could benefit from refinancing and lowering their monthly mortgage payment. In fact, 75% of homeowners—or 19.3 million—could benefit from refinancing, according to data from Black Knight, a software and analytics firm for the mortgage and lending industry. That’s the largest number of potential refinance candidates ever on record, Black Knight says.

The savings could add up. According to Black Knight, the average homeowner could potentially reduce their mortgage payment by $299 a month. More than 7 million refinance candidates could save from $300 to $500 per month. Nearly 2.5 million homeowners could save $500 a month or more, the firm notes.

With savings so great, Bankrate asks: Why on Earth haven’t 19 million homeowners refinanced yet? “The same reason people don’t go to the dentist regularly enough even though they should—it’s no fun,” says Greg McBride, Bankrate’s chief financial analyst.

To refinance, borrowers will need to compile tax returns, bank statements, paychecks, and additional documents. But besides the tedious task of refinancing, many homeowners also may be leery due to interruptions in their incomes from disruptions to their job during the pandemic—or they may even have lost their job. Further, closing costs can add up. Costs range from 2% to 5% of the amount of the loan.

“Refinancing isn’t free, and sometimes it’s tough for people to look past the out-of-pocket costs incurred now for savings that will take years to accumulate,” McBride says.

For homeowners who are eligible and can afford it, the potential to lock in some of the lowest mortgage rates ever could be appealing. The 30-year fixed-rate mortgage reached a new all-time low, average 2.86%, for the week ending Sept. 10, Freddie Mac reported.Source: “Refinancing Could Benefit 3 in 4 Mortgage Holders,” National Mortgage Professional (Sept. 10, 2020) and “Why on Earth Haven’t 19 Million Homeowners Refinanced Their Mortgages Yet?” Bankrate (Sept. 15, 2020)

Just as some housing experts were predicting rates couldn’t get lower, they did. The 30-year fixed-rate mortgage reached a new all-time low, averaging 2.86% this week, according to Freddie Mac. “Mortgage rates have hit another record low due to a late-summer slowdown in the economic recovery,” says Sam Khater, Freddie Mac’s chief economist. “These low rates have ignited robust purchase demand activity, which has been growing at double-digit rates for four consecutive months. However, heading into the fall, it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”Continue… https://magazine.realtor/daily-news/2020/09/11/mortgage-rates-did-it-again-another-record-low

Sweater weather is coming—and you need more than a PSL to get ready for it.

Click the link below to read full article.

https://www.housebeautiful.com/lifestyle/cleaning-tips/a22652916/fall-home-maintenance-checklist/

Backyard space has become a premium for buyers during the pandemic. Be sure to make every square inch of it count in your listings. After all, however small that concrete slab or back deck is, homeowners can still show it off as usable entertaining or relaxation space.
HouseLogic, a home improvement resource, offered up several ideas for living large in a small backyard footprint.
One way to make the space feel larger may seem counterintuitive: Divide it, experts recommend. “Creating a space within a space makes it seem larger because it gives you a separate experience,” Joy Diaz, chief marketing officer at Land Care Inc., told HouseLogic. For example, she recommends a small wood pergola, short trellis, or arbor that can be used to separate a patio table from chair loungers.
Continue…https://magazine.realtor/daily-news/2020/09/09/how-to-make-a-cramped-backyard-appear-bigger

Analyst: Housing Market Can’t Sustain ‘Frenzied Demand’

September 4, 2020

The housing market showed no signs of slowing in August, with homes getting more expensive and selling faster. The national median listing price increased 10% to a new record high of $350,000 last month, and homes are selling at their fastest pace in 15 months, according to a new report from realtor.com®. Meanwhile, the number of homes on the market sank to a record low as housing shortages persist.

“It’s difficult to imagine that the housing market will be able to sustain the frenzied demand we are currently experiencing, but we have yet to see any signs of slowing,” says Danielle Hale, realtor.com®’s chief economist. “Buyer traffic on realtor.com® is outpacing the record levels we saw earlier this year, suggesting that demand will continue to exceed the number of available homes for sale.”

Housing demand is more intense than it normally is this late into a buying season, Hale says. “Given the strong demand, sellers will return in the driver’s seat for the foreseeable future.”

Inventory dropped 36% in August compared to the year prior. The largest drop in housing inventories in August occurred in Indianapolis-Carmel-Anderson, Ind. (down 55.9%); Riverside-San Bernardino-Ontario, Calif. (down 55.5%); and Providence-Warwick, R.I.-Mass. (down 51.7%).

The lack of homes for sale continues to press on home prices. The Northeast led in listing price gains annually, up nearly 19% in Philadelphia, 14.7% in Boston, and 12.2% in Providence-Warwick, R.I. On average, homes nationwide are selling in 56 days—five days faster than a year ago, according to realtor.com®.

Source: realtor.com®

Mortgage rates were mostly flat this week, remaining below 3%. “However, there are some interesting compositional shifts, as the 10-year Treasury rate has increased modestly over the past month while mortgage spreads have declined,” notes Sam Khater, Freddie Mac’s chief economist. “Spreads may decline even further, but the rise in Treasury rates will make it difficult for mortgage rates to fall much more over the next few weeks.”
Ultra-low mortgage rates are prompting existing- and new-home sales to increase to pre-pandemic levels, the National Association of REALTORS® reports. Mortgage rates have plunged nearly 80 basis points since the beginning of the year, which translates to a decrease in monthly mortgage payments of $120 for the typical American, NAR reports.
Continue…https://magazine.realtor/daily-news/2020/09/04/freddie-mortgage-rates-won-t-move-much-lower

In the absence of another coronavirus federal stimulus relief bill, states are rushing to take part in a weekly unemployment benefits program to try to get more funds to the jobless. Authorized by President Trump through an executive order in August, the Federal Emergency Management Agency is charged with allocating the funds through the Lost Wage Assistance program.
Since the $600 weekly supplement benefit from the initial stimulus package expired at the end of July, the program extends federal benefits to people who have lost their jobs due to the COVID-19 pandemic. FEMA will provide grants to participating states and the District of Columbia. Eligible unemployed can receive up to an extra $300 a month in the program in participating states.
So far, 44 states have been approved to allocate benefits, according to FEMA’s website. States have until Sept. 10 to apply for the funds.
Continue… https://magazine.realtor/daily-news/2020/09/03/fema-program-offers-extra-payments-to-the-jobless

Young prospective home buyers in their 20s and 30s who were once reluctant to purchase are now driving the housing market recovery during the pandemic, The Wall Street Journal reports.
Even prior to the pandemic, millennial buyers were starting to increase in number, accounting for more than half of all new-home loans early last year. They have consistently stayed above that level in the first months of this year, too, realtor.com® data shows.
Continue…https://magazine.realtor/daily-news/2020/08/31/millennials-are-fueling-housing-s-rebound

Contract signings posted another big jump in July, the National Association of REALTORS® reported Thursday. This marks three consecutive months of growth as markets continue to roar back after facing initial closures from the COVID-19 outbreak this spring.

Pending home sales are now up 15.5% year over year. Each of the four major regions of the U.S. saw increases in pending home sales, both month over month and annually. And NAR Chief Economist Lawrence Yun said there are no indications that contract activity will wane anytime soon, particularly in the suburbs.

Continue… https://magazine.realtor/daily-news/2020/08/27/homes-are-going-under-contract-in-record-time

Behr Paint Co. unveiled 21 versatile colors on Monday to make up its Color Trends 2021 Palette. The colors include neutrals mixed with some lavish bolds to create “energizing, yet comforting” focal points in a home, Behr says.
“This has been a year of unpredictability and 2020 has significantly changed our relationship with home,” says Erika Woelfel, vice president of color at Behr. “When our color team began exploring a palette for the coming year, we knew it needed to be grounded in what we’ve been craving: comfort and personalization. A new, ‘elevated’ articulation of ‘comfort’ goes beyond traditional beige, gray, and green hues and embraces color in a way that can redefine and enhance any type of space inside or outside the home.”
Continue… https://magazine.realtor/daily-news/2020/08/25/behr-announces-2021-color-forecast