The U.S. Treasury Department’s Internal Revenue Service announced Monday that it was sticking with the July 15 tax-filing extension deadline for 2019 returns.
Those unable to meet that deadline are encouraged to file for an extension to Oct. 15. The form for filing for an extension is at IRS.gov.
The IRS had postponed the original tax filing deadline from April 15 due to the COVID-19 pandemic. Some states may have initiated different deadlines. USA Today has compiled a list of those tax deadline extensions, broken out by state.
Continue…https://magazine.realtor/daily-news/2020/06/30/irs-stands-firm-on-july-15-tax-deadline-for-2019-returns

5 Tips for Buyers in a Tight Housing Market

May 12, 2017Media Contact: Jane Dollinger 202-383-1042Working With Buyers

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WASHINGTON (May 12, 2017) – When inventory is low, home prices tend to go up. Attempting to purchase a house in this type of market can make the already complex process of buying a home even more overwhelming. To help buyers successfully get through the buying process in a tight inventory market with as little stress and difficulty as possible, the National Association of Realtors® has these five suggestions and an infographic.

1. Determine and stick to a budget. Before beginning the house hunting process, prospective homebuyers should receive preapproval from one or more lenders to verify the amount of money they are qualified to borrow. Then, after taking into account additional costs of ownership such as taxes, utilities and insurance, buyers should determine a final budget they can comfortably afford. When listings are scarce, bidding wars can drive up prices, so buyers must be prepared to walk away if the asking price surpasses their budget.

2. Identify desired neighborhoods and home wants versus needs. When housing inventory is tight, buyers may need to compromise on what they believe they want from a home. Certain wants, such as stainless appliances or hardwood floors, can be added later. However, if a buyer wants to be in a specific school district or have a decent sized backyard, those cannot be addressed later and must be taken into account during the house hunting process.

3. Be ready to make a decision quickly. In a seller’s market, homes rarely stay on the market long, so when a house that is in their budget and checks off all of their needs come along, buyers should not hesitate. Buyers should be ready to submit an offer quickly, or they may risk missing out on the home altogether.

4. Bid competitively and limit contingencies. It is tempting to submit a low offer as a starting bid, but in a seller’s market buyers need to put forward their highest offer from the very beginning or they are likely to lose out on the home. It is also important to remember that in multiple bidding situations it is not always the highest offer that is most attractive to the seller but the one with the fewest contingencies. Removing restrictions related to the sale of a current home and being flexible with things like the move-in date can make a bid stand out to a seller.                               

5. Work with a Realtor®. All real estate is local, so it is important to work with an agent who is a Realtor®, a member of the National Association of Realtors®, and who is familiar with the areas and neighborhoods the homebuyers are considering. Realtors® are the most trusted resource for real estate information and have unparalleled knowledge of their communities; they can give buyers the competitive advantage needed in a tight market.  

For more information on buying a home in a seller’s market, visit NAR’s comprehensive website for homeowners, www.houselogic.com/buy(link is external). 

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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Mortgage Rates Drop to Another All-Time Low

June 19, 2020

The 30-year fixed-rate mortgage set a new record again this week as rates averaged 3.13%, the lowest average rate in Freddie Mac’s records, which date back to 1971.

The previous low for the 30-year fixed-rate mortgage was set just a few weeks ago at the end of May, averaging 3.15%.

“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many home buyers in the buying mood.”

That said, Khater cautions that it will be difficult to sustain the momentum in demand as unsold inventory is at near record lows entering the pandemic and has dropped even lower since then.

Freddie Mac reports the following national averages with mortgage rates for the week ending June 18:

• 30-year fixed-rate mortgages: averaged 3.13%, with an average 0.8 point, falling from last week’s 3.21% average. Last year at this time, 30-year rates averaged 3.84%.
• 15-year fixed-rate mortgages: averaged 2.58%, with an average 0.8 point, falling from last week’s 2.62% average. A year ago, 15-year rates averaged 3.25%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.09%, with an average 0.4 point, falling from last week’s 3.10% average. A year ago, 5-year ARMs averaged 3.48%.

Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining a mortgage.Source: Freddie Mac

A majority of real estate investors in the U.S. say they’re optimistic about the strength of the housing market, despite the nation caught in a recession caused by the pandemic. A new survey from LendingHome, a resource for investors, reflects 600 respondents among three investment segments: house flippers, landlords of single-family rental homes, and real estate investment mortgage brokers.
Eighty percent of the investors surveyed say they believe the impact of the pandemic on their business will be short. Forty-two percent say they expect the pandemic to influence their business for one to six months, and 12% said it would not impact them at all.
Continue…https://magazine.realtor/daily-news/2020/06/24/real-estate-investors-feel-bullish-ready-to-jump-back-in

Mortgage Rates Drop to Another All-Time Low

June 19, 2020

The 30-year fixed-rate mortgage set a new record again this week as rates averaged 3.13%, the lowest average rate in Freddie Mac’s records, which date back to 1971.

The previous low for the 30-year fixed-rate mortgage was set just a few weeks ago at the end of May, averaging 3.15%.

“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many home buyers in the buying mood.”

That said, Khater cautions that it will be difficult to sustain the momentum in demand as unsold inventory is at near record lows entering the pandemic and has dropped even lower since then.

Freddie Mac reports the following national averages with mortgage rates for the week ending June 18:

• 30-year fixed-rate mortgages: averaged 3.13%, with an average 0.8 point, falling from last week’s 3.21% average. Last year at this time, 30-year rates averaged 3.84%.
• 15-year fixed-rate mortgages: averaged 2.58%, with an average 0.8 point, falling from last week’s 2.62% average. A year ago, 15-year rates averaged 3.25%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.09%, with an average 0.4 point, falling from last week’s 3.10% average. A year ago, 5-year ARMs averaged 3.48%.

Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining a mortgage.Source: Freddie Mac

Mortgage Applications Surge to 11-Year High

Home buyers are reemerging, and here’s the proof: Mortgage applications to purchase a home reached the highest volume in more than 11 years. Record low mortgage rates are tempting more buyers into the market.Mortgage applications to purchase a home are 21% higher than the same week a year ago, the Mortgage Bankers Association reports. Applications for home purchases ticked up 4% week over week.

Continue…https://magazine.realtor/daily-news/2020/06/18/mortgage-applications-surge-to-11-year-high

Buyers Aren’t Reading the Paperwork

June 17, 2020

The homebuying process can be complex—especially if you don’t read the documentation along the way.

The paperwork may be too cumbersome for some, according to a survey conducted by Porch.com, a home remodeling website, of nearly 1,000 recent home buyers. More than three in four homeowners said they didn’t completely understand the terms of their mortgage. Thirty percent of homeowners admit to reading none or only some of their mortgage documents and say they have regretted not reading them entirely. Fifty-seven percent of homeowners say their family advised them through the mortgage process, not a lender or financial planner.

Many have similar regrets about not researching their home insurance policy. Nearly 37% of homeowners read none or only some of their homeowners insurance policy before signing it. The same percentage also said they didn’t completely understand what their homeowners insurance policy covers.

Home buyers are relying on others to double-check items for them throughout the process. Sixty-one percent of homeowners said they usually asked another person to read over their important home policies before they signed them.

But the lack of due diligence as they read the fine print, or their decision to rely on others, may be making buyers less confident. First-time home buyers are more than three times as likely as previous homeowners to say they feel unprepared to buy a home, according the survey.

“Whether you’ve bought 10 homes or zero, research, not experience, is crucial for home buying,” the study notes. “Regrets and expensive financial mistakes were not often due to inexperience, but instead not taking the time to consult experts or research better options.”Source: “Where Did You Find It?” Porch.com (2020)

Real estate continues to rank at the top of the list of the best long-term investments for Americans, according to the latest annual poll from Gallup. About 35% of Americans picked it as their favorite investment, which has been the case since 2013.Meanwhile, Americans are less likely to view stocks or mutual funds as the best long-term investment, particularly waning after the COVID-19 pandemic struck the economy this spring. Twenty-one percent of Americans picked stocks as the best investment, down 6 percentage points from a year ago and at the lowest reading since Gallup started collecting such data in 2012.
Continue…https://magazine.realtor/daily-news/2020/06/16/real-estate-continues-its-streak-as-favorite-investment

The 30-year fixed-rate mortgage continued to hover near its all-time low this week, averaging 3.21%, Freddie Mac reports.
“The rebound in home buyer demand continued this week, driven by mortgage rates,” says Sam Khater, Freddie Mac’s chief economist. “This turnaround in demand, particularly by those who have higher incomes than the typical household, also reflects deferred sales from the spring.”
Continue…https://magazine.realtor/daily-news/2020/06/12/mortgage-rates-remain-low-for-buyers-who-can-qualify