More Homeowners, Appraisers Agree on Values

Homeowners and appraisers are seeing more eye-to-eye when it comes to home values. Appraised values in February were, on average, just 0.53 percent below homeowner estimates—the fifth consecutive month where the gap between the two groups has been less than 1 percent, according to the National Quicken Loans Home Price Perception Index.

When shopping for a home—or even refinancing a current mortgage—consumers should always keep the changes in their local market in mind before estimating a home’s value.”

The Home Price Perception Index chart and other data at article source: Quicken Loans

Home Loan Rates Post First Decline of 2018

Following nine consecutive weeks of increases, borrowers finally got some relief this week with mortgage rates. The 30-year fixed-rate mortgage posted its first week-over-week decrease of 2018.

“Tuesday’s Consumer Price Index report indicated inflation may be cooling down; headline consumer price inflation was 2.2 percent year over year in February,” says Len Kiefer, Freddie Mac’s deputy chief economist. “Following this news, the 10-year Treasury fell slightly. Mortgage rates followed.”

Freddie Mac reported the following national averages for the week ending March 15:

  • 30-year fixed-rate mortgages: averaged 4.44 percent, with an average 0.5 point, dropping from last week’s 4.46 percent average. Last year at this time, 30-year rates averaged 4.30 percent.
  • 15-year fixed-rate mortgages: averaged 3.90 percent, with an average 0.5 point, dropping from last week’s 3.94 percent average. A year ago, 15-year rates averaged 3.50 percent.

Source: Freddie Mac

Renovations Homeowners Are Eyeing This Year

Outdoor improvements, including decks, patios, and landscaping, remained highest on owners’ to-do lists for the fifth consecutive year. Interior renovations also are popular: Nearly a third of homeowners say they plan to remodel a bathroom, and more than one in four say they plan to update their kitchen, according to a recent survey by LightStream Home Improvement

65 percent of survey respondents saying they’ll take on at least some of the work. Thirty-five percent of the group say they’ll do the entire project on their own.

Also, budgets for renovations are increasing. Forty-five percent of homeowners who are planning a renovation project say they’re willing to spend $5,000 or more—a record high for the survey. The number of respondents who plan to spend $35,000 or more doubled from 2017.

Source: “Home Improvement Ramps Up in 2018,” The LightStream blog (Feb. 27, 2018)

Household Net Worth Reaches Record High

Americans are feeling richer. Household net worth neared $100 trillion in the final quarter of last year, falling into record territory, according to new data released by the Federal Reserve on Thursday. Rising stock markets and property prices were attributed to the jolt in the fourth quarter. (Household net worth is the value of all of a consumer’s assets, like stocks and real estate, minus any liabilities like mortgage and credit card debt.)

Household net worth increased more than $2 trillion last quarter to a record $98.7 trillion in the final three months of last year, according to the report. Households in the U.S. saw their net worth increase to nearly seven times their disposable personal income in 2017.

More at source: “U.S. Household Net Worth Pushes Further Into Record Territory,” The Wall Street Journal (March 8, 2018) [Log-in required.] and “Stock Market Lifts U.S. Household Wealth to $98.7 Trillion,” The Associated Press/USA Today (March 8, 2018)

Mortgage Rates Tick Up for 9th Straight Week

Borrowers were once again faced with rising mortgage rates this week. The 30-year fixed-rate mortgage continues to be at its highest average in four years.

“The U.S. weekly average 30-year fixed mortgage rate rose 3 basis points to 4.46 percent in this week’s survey, its highest level since January 2014.” explains Len Kiefer, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for the week ending March 8:

  • 30-year fixed-rate mortgages: averaged 4.46 percent, with an average 0.5 point, increasing from last week’s 4.43 percent average. Last year at this time, 30-year rates averaged 4.21 percent.
  • 15-year fixed-rate mortgages: averaged 3.94 percent, with an average 0.5 point, increasing from last week’s 3.90 percent average. A year ago, 15-year rates averaged 3.42 percent.

Source: Freddie Mac

Survey: Home Owners Worried, Buyers Excited

Consumer sentiment is following an unusual trend for a seller’s market: Home buyers are upbeat, but homeowners are less so, according to ValueInsured’s latest quarterly survey of about 1,600 consumers. Why the divergence between buyers and owners? Some homeowners may feel stuck, while buyers are anxious to jump into real estate before home prices and mortgage rates rise further.

Fifty-eight percent of homeowners surveyed say they want to sell but are holding off because they don’t want to purchase again at today’s higher prices. Fifty-nine percent of owners say they believe buyers in their area are overpaying for a home, according to the survey.

Buyers still have plenty of concerns, such as saving for a down payment and eroding housing affordability, particularly in the nation’s hottest housing markets. Some say they are ready to make some sacrifices to afford their first home.

We suggest you view charts and data at: ValueInsured Modern Homebuyer Survey