Dec 6, 2022 | Real Estate
If you are interested in purchasing a home, how much money should you put down? This is a difficult question that all potential homeowners need to answer, as it will dictate the size and location of the house you can afford. There are a number of factors to consider, so what do you need to know?
Generally, Putting More Down Is Better
There is a solid chance that a home loan is going to be the largest loan you will ever take out in your life. Therefore, there is some risk involved, and you must make sure you can pay it back. You can reduce the risk you take on by putting more money down. That way, you don’t necessarily have to take out such a large loan, and your lender may provide you with a lower interest rate. This could save you thousands of dollars over the life of the loan.
First-Time Homebuyer Options Are Available
The downside of saving up such a large down payment is that it could take a long time for you to save up so much money. Fortunately, there are programs available for first-time home buyers. For example, if you qualify for an FHA-backed loan for first-time homebuyers, you might be able to qualify for a home loan with as little as 3.5 percent down. This might make it easier for you to afford a house.
Is Your Money Better Served In The Market?
Putting more money down for a house may provide you with a lower interest rate while also reducing your monthly mortgage payments; however, you need to think about where your money will work the hardest for you. You may qualify for a lower interest rate if you put more money down, but will your money generate a higher return if you invested in your retirement? You should answer this question when you decide whether to put more money towards your house or more money in an investment portfolio.
Consider Working With An Expert
How much money should you put down for your house? This is a question that has a different answer for everyone, which is why you should consider working with a professional who can help you.
Dec 5, 2022 | Financial Reports
Last week’s economic news included readings on home prices, inflation, and data on public and private-sector jobs. Weekly readings on mortgage rates and jobless claims were also released.
S&P Case-Shiller Posts Lower Home Prices in September
September home prices fell in all cities tracked by Case-Shiller’s 20-City Home Price Index. Home prices were – 8.7 percent lower year-over-year in September than August’s reading of -10.40 percent. Home price declines showed signs of increasing after a period of rapidly rising home prices sidelined would-be home buyers.
The Federal Housing Finance Agency Home Price Index rose by 0.90 percent in September as compared to home price depreciation of -7.50 percent posted in August. Home prices rose in all 50 states and the District of Columbia between Q3 2021 and Q3 2022. States with the highest year-over-year home price growth were Florida with 22.7 percent home price growth, South Carolina with 18.4 percent home price growth, and Tennessee, where home prices rose by 17.9 percent growth. North Carolina experienced 17.4 percent growth in home prices and Georgia completed the top 5 states with the highest home price growth with 16.7 percent home price growth.
Home prices decreased in two metro areas in California; the San Francisco-San Mateo-Redwood City metro area posted a -4.3 percent decrease in home prices and the Oakland-Berkeley-Livermore metro area where home prices decreased by -0.60 percent.
Mortgage Rates, Jobless Claims
Freddie Mac reported lower mortgage rates last week as the average rate for 30-year fixed-rate mortgages decreased by nine basis points to 6.49 percent. The average rate for 15-year fixed-rate mortgages fell by 14 basis points to 5.76 percent.
225,000 new jobless claims were filed last week as compared to an expected reading of 235,000 first-time claims filed and the previous week’s reading of 241,000 new jobless claims filed. 1.61 million continuing jobless claims were filed last week as compared to 1.55 million ongoing claims filed in the previous week.
The federal government’s Non-Farm Payrolls report for November showed 263,000 public and private-sector jobs added in November; analysts expected 200,000 jobs added based on October’s reading of 284,000 jobs added. ADP reported 127,000 private-sector jobs added in November as compared to analysts’ expectations of 190,000 private–sector jobs added and September’s reading of 239,000 private-sector jobs added. The national unemployment rate was unchanged from the previous week at 3.7 percent.
What’s Ahead
This week’s scheduled economic reports include readings from the University of Michigan on consumer sentiment and consumer expectations for inflation in the next five years. Weekly readings on mortgage rates and jobless claims will also be published.
Nov 28, 2022 | Financial Reports
Last week’s economic reporting included readings on new home sales and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published. No economic data was published Thursday or Friday due to the Thanksgiving holiday.
New Home Sales Surpass Expectations in October
The Commerce Department reported higher-than-expected sales of new homes during October. New homes sold at a seasonally-adjusted annual pace of 632,000 homes sold. Analysts expected new homes to sell at an annual pace of 570,000 sales as compared to the revised annual pace of 588,000 new home sales in September. The supply of available new homes rose by 1.50 percent between September and October and approached a nine-month supply of new homes for sale. Rising mortgage rates affected affordability for first-time and moderate-income home buyers, but average mortgage rates fell last week.
Mortgage Rates Fall, Jobless Claims Rise
Freddie Mac reported lower average mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by three basis points to 6.58 percent and the average rate for 15-year fixed-rate mortgages fell by eight basis points to 5.90 percent. Homebuilders reported rising costs and slowing home sales; some builders added or increased buyer incentives including mortgage rate buydowns and paying buyers’ closing costs.
Last week’s first-time jobless claims were higher than expected with 240,000 new claims filed as compared to the expected reading of 225,000 initial claims filed and the previous week’s reading of 223,000 new jobless claims filed.
Consumer sentiment fell to an index reading of 56.8 in November according to the University of Michigan’s consumer sentiment survey. November’s reading reflected consumer concerns about inflation and a potential recession and was markedly lower than October’s index reading of 59.9 and the October 2021 reading of 73.6. Consumer sentiment about economic conditions in the next six months was also lower at an index reading of 55.6. Readings over 50 indicate that most consumers have a positive view of economic conditions.
What’s Ahead
This week’s scheduled economic news includes readings on home prices, pending home sales, and inflation. Weekly readings on mortgage rates and jobless claims will also be released.
Nov 28, 2022 | Financial Reports
Last week’s economic reporting included readings on new home sales and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published. No economic data was published Thursday or Friday due to the Thanksgiving holiday.
New Home Sales Surpass Expectations in October
The Commerce Department reported higher-than-expected sales of new homes during October. New homes sold at a seasonally-adjusted annual pace of 632,000 homes sold. Analysts expected new homes to sell at an annual pace of 570,000 sales as compared to the revised annual pace of 588,000 new home sales in September. The supply of available new homes rose by 1.50 percent between September and October and approached a nine-month supply of new homes for sale. Rising mortgage rates affected affordability for first-time and moderate-income home buyers, but average mortgage rates fell last week.
Mortgage Rates Fall, Jobless Claims Rise
Freddie Mac reported lower average mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by three basis points to 6.58 percent and the average rate for 15-year fixed-rate mortgages fell by eight basis points to 5.90 percent. Homebuilders reported rising costs and slowing home sales; some builders added or increased buyer incentives including mortgage rate buydowns and paying buyers’ closing costs.
Last week’s first-time jobless claims were higher than expected with 240,000 new claims filed as compared to the expected reading of 225,000 initial claims filed and the previous week’s reading of 223,000 new jobless claims filed.
Consumer sentiment fell to an index reading of 56.8 in November according to the University of Michigan’s consumer sentiment survey. November’s reading reflected consumer concerns about inflation and a potential recession and was markedly lower than October’s index reading of 59.9 and the October 2021 reading of 73.6. Consumer sentiment about economic conditions in the next six months was also lower at an index reading of 55.6. Readings over 50 indicate that most consumers have a positive view of economic conditions.
What’s Ahead
This week’s scheduled economic news includes readings on home prices, pending home sales, and inflation. Weekly readings on mortgage rates and jobless claims will also be released.
Nov 21, 2022 | Financial Reports
Last week’s economic reporting included readings on U.S housing markets, housing starts, and building permits issued. Data on sales of previously-owned homes were released along with weekly reports on mortgage rates and jobless claims.
Builder Sentiment on Housing Markets Declines in November
November’s National Association of Home Builders Housing Market Index fell five points to an index reading of 33; analysts expected a reading of 36. November’s reading was the lowest since June 2012 except during the pandemic.
All three indices contributing to the Housing Market Index were lower in November than in October. Homebuilder sentiment regarding current sales conditions fell six points to an index reading of 39; by comparison, this reading was 83 in November 2021. Builder confidence in home sales conditions over the next six months fell four points to 31. Homebuilder confidence in prospective buyer traffic in new single-family developments fell five points to an index reading of 20.
Homebuilders were less confident about housing market conditions in the four regions tracked by the NAHB. Builder sentiment in the Northeast fell six points to an index reading of 41. Builder sentiment in the Midwest fell two points to 38. Builder confidence in the South fell seven points to 42. Builder sentiment was five points lower in the West at 29. Index readings of less than 50 indicate that most builders lack confidence in housing market conditions.
Builders continue to experience rising materials costs and regulatory expenses associated with developing land and home construction. Rising home prices and resulting affordability concerns compelled builders to ask lawmakers to reduce regulatory costs connected with developing land and building homes.
Mortgage Rates, Jobless Claims
Freddie Mac changed the format of its Primary Mortgage Market Survey to include only average rates for 30 and 15-year fixed-rate mortgages and the survey no longer reports average discount points. The average rate for 30-year mortgages fell 47 basis points to 6.61 percent. Rates for 15-year mortgages averaged 5.98 percent and four basis points lower than in the previous week. 222,000 initial jobless claims were filed last week. Analysts expected 225,000 new claims filed as compared to the previous week’s reading of 226,000 first-time claims filed.
What’s Ahead
This week’s scheduled economic reporting includes readings on new home sales, minutes of the most recent meeting of the Fed’s Federal Open Market Committee, and weekly readings on mortgage rates and jobless claims. Financial markets will be closed on Thursday and Friday for the Thanksgiving holiday.
