Shasta Association of REALTORS® My Market
The real estate market can be fast paced and ever-changing, like attempting to take a still photograph of a speeding target! With that in mind, we offer My Market! The resources herein are designed to provide you with market information, not just figures, necessary for your home buying or selling decisions. Of course, this information cannot take the place of the knowledge and experience of your REALTOR®, rather it supplements those professional skills to sort through and interpret how those market changes impact you as a buyer or seller.
America’s homebuyers are saving big as interest rates continue to decline
A recent report in HousingWire stated that last week, 53.5% of borrowers received rates under 4.45% and mortgage borrowers who shopped around last week could have saved $42,137 over the life of a $300,000 loan, according to LendingTree’s Mortgage Rate Competition Index.
The index measures the spread in the APR of the best offers available on its website. LendingTree derives that savings claim by comparing the amount a borrower would pay out over the life of a loan at the lowest available interest rate on its site versus the highest available interest rate.
LendingTree indicates that the share of borrowers who received rates under 4.25% rose to 53.5%, with the index retreating 0.89 for the week ending June 9, 2019.
This percentage is moderately up from last week’s 42.3%, and surpasses 2018’s rate when no purchase offers were under 4.25%.
Read the full story.
Source: HousingWire . . . (Article courtesy of California Association of REALTORS®, Market Matters, June 2019)
Student loan debt is driving Millennials to buy fixer-upper homes
88% of homebuyers with student loan debt consider purchasing a fixer-upper. The era of unusually affordable housing has ended, leaving many debt-burdened Americans struggling to afford housing.
This lack of affordability has especially impacted America’s first-time buyers, many who tend to fit in the Millennial category.
With more than $1.5 trillion in student loan debt, new LendingTree research shows an overwhelming majority of first-time homebuyers are considering purchasing “fixer-upper” homes to combat costs.
In fact, 88% of homebuyers that are grappling with student loan debt are now more likely to consider a “fixer-upper” home, according to the online lending marketplace’s data.
“Buyers paying off a student loan balance are more likely to consider purchasing a fixer-upper house than those with other kinds of debt, including personal loans, auto loans, and credit cards,” LendingTree writes. “More than a quarter of homebuyers without debt don’t want to purchase a home that requires renovations or repairs.”
While purchasing a fixer-upper may seem like a good was to save cash, LendingTree indicates that 48% of homeowners have made major home improvements within the last two years.
Notably, Millennial homeowners are the most likely generation to have improved their home, sitting at nearly 58%. But, how can they afford repairs with so much debt?
LendingTree’s data revealed that 25% of Millennial homeowners are using their savings to finance their recent home improvements.
“Another 23% of Millennials used credit cards to fund their renovations and yet another 23% of the age group used cash,” LendingTree writes. “Older generations are most likely to have used cash and savings for improvement projects.”
Last year, data from Buildfax indicated that within the past five years, home remodeling has increased by about 30%.This percentage is expected to increase in the years to come.
Source: HousingWire . . . (Article courtesy of California Association of REALTORS®, Market Matters, May, 2019)