Uncategorized
Housing affordability, rent costs impact voter decision
Mendon Capital Advisors President and CIO Anton Schutz says once the Fed starts cutting rates, they’ll have to ‘keep cutting.’
Voters are focused on the housing affordability crisis as the contentious 2024 presidential election heats up.
More than half of homeowners and renters, 53.2%, admitted that housing affordability will impact who they vote for in November, according to a recent survey from Redfin.
To gather data, the survey, which was conducted by Qualtrics, was fielded on roughly 3,000 U.S. homeowners and renters in February.
MORTGAGE CALCULATOR: SEE HOW MUCH HIGHER RATES COULD COST YOU
“Housing affordability is top of mind for voters because elevated mortgage rates and home prices, along with an acute housing shortage, have pushed the dream of homeownership out of reach for many Americans,” Redfin Chief Economist Daryl Fairweather said in a statement.
Fairweather argued that “while the economy is strong on paper, a lot of families aren’t feeling the benefits because they’re struggling to afford the house they want or already live in.”
A home for sale in Los Gatos, California, on Wednesday, Feb. 7, 2024. (Photographer: Loren Elliott/Bloomberg via Getty Images / Getty Images)
Last week, the average rate on the benchmark 30-year fixed mortgage dropped to 6.88%, down from 6.94% in the prior seven-day period, according to Freddie Mac’s latest Primary Mortgage Market Survey.
Mortgage rates started to rise in early 2022 after the Federal Reserve increased interest rates to combat inflation. Rates reached as high as 7.79% by the end of October 2023. Since then, they have hovered around the 7% range.
REAL ESTATE EXPERTS SAY ‘CHALLENGES’ TO BUYERS AND SELLERS ARE THE ‘GREATEST EVER’
Sellers who purchased when rates were 2.5% to 3% did not want to sell as borrowing rates increased. The result was a growing number of buyers and sellers feeling sidelined from the market. In turn, supply dried up and increased home prices as buyers competed for fewer options.
Redfin CEO Glenn Kelman said the U.S. will have “a tough 2023” in the real estate market on “The Claman Countdown” on Tuesday, August 15, 2023. (Photo by Stephen Brashear/Getty Images for Redfin / Getty Images)
According to the survey, about 64.2% of homeowners and renters say the current environment around housing affordability makes them feel negative about the economy.
Just last week, President Biden unveiled a slate of initiatives to try and improve affordability as he seeks re-election.
Part of his efforts include calling on Congress to pass a mortgage relief credit that would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years. He is also calling on Congress to provide a one-year tax credit of up to $10,000 to middle-class families who sell their starter home.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
This proposal to “unlock inventory of affordable starter homes” is estimated to help nearly 3 million families, the Biden administration said.
The Biden administration is also calling on Congress to pass legislation to build and renovate more than 2 million homes to close the housing supply gap and lower costs for renters and buyers.
Product Name: Urgent Money Miracle – $2+ EPC! Get Instant 90% Commission Bump
All orders are protected by SSL encryption – the highest industry standard for online security from trusted vendors.
Urgent Money Miracle – $2+ EPC! Get Instant 90% Commission Bump is backed with a 60 Day No Questions Asked Money Back Guarantee. If within the first 60 days of receipt you are not satisfied with Wake Up Lean™, you can request a refund by sending an email to the address given inside the product and we will immediately refund your entire purchase price, with no questions asked.
Product Name: NEW! Christian Wealth Manifestation – Highly Targeted For Christians!
All orders are protected by SSL encryption – the highest industry standard for online security from trusted vendors.
NEW! Christian Wealth Manifestation – Highly Targeted For Christians! is backed with a 60 Day No Questions Asked Money Back Guarantee. If within the first 60 days of receipt you are not satisfied with Wake Up Lean™, you can request a refund by sending an email to the address given inside the product and we will immediately refund your entire purchase price, with no questions asked.
As we look ahead to 2024, many homeowners and prospective buyers are wondering what to expect when it comes to mortgage rates. The landscape of the housing market is constantly changing, so it’s important to stay informed about trends and predictions. In this blog post, we will discuss some factors that could impact mortgage rates in 2024 and what homeowners and buyers can expect.
One factor that could impact mortgage rates in 2024 is the overall state of the economy. If the economy is strong and growing, we may see higher mortgage rates as the Federal Reserve looks to combat inflation. On the other hand, if the economy is stagnant or in a recession, we may see lower mortgage rates as the Fed looks to stimulate growth. It’s important to keep an eye on economic indicators such as GDP growth, unemployment rates, and inflation to get a sense of where mortgage rates may be heading.
Another factor that could impact mortgage rates in 2024 is Federal Reserve policy. The Fed plays a key role in setting interest rates, and their decisions can have a ripple effect on mortgage rates. If the Fed decides to raise interest rates in response to inflation, we may see an increase in mortgage rates. Conversely, if the Fed decides to lower interest rates to stimulate growth, we may see a decrease in mortgage rates. Keeping up with the latest news and announcements from the Fed can give homeowners and buyers a sense of where mortgage rates may be heading.
In terms of specific cities and local mortgage companies, it’s important to note that mortgage rates can vary depending on location and lender. For example, in a city like New York City, where real estate prices are high, mortgage rates may be higher compared to a city like Indianapolis, where real estate prices are lower. Additionally, local mortgage companies may offer competitive rates and terms compared to national lenders. For example, in New York City, local lenders like Quontic Bank and CrossCountry Mortgage may offer specialized products and services tailored to the needs of local buyers.
It’s important for homeowners and buyers to shop around and compare rates from multiple lenders to ensure they are getting the best deal. Websites like Bankrate and LendingTree can be helpful resources for comparing rates and terms from multiple lenders. Homeowners and buyers should also consider working with a mortgage broker who can help them navigate the lending process and find the best mortgage product for their needs.
In conclusion, predicting mortgage rates in 2024 is not an exact science, but there are several factors that could impact rates. By staying informed about economic indicators, Federal Reserve policy, and local market trends, homeowners and buyers can make informed decisions about their mortgage. Shopping around and comparing rates from multiple lenders is key to ensuring you are getting the best deal on your mortgage. Whether you’re looking to refinance your existing mortgage or buy a new home, it’s important to stay informed and be proactive in managing your mortgage.
-
Reverse Mortgage8 months agoHow Reverse Loans Can Provide Financial Relief in Retirement
-
Mortgage Rates8 months agoComo puedo comprar una casa a crédito si no se nada?
-
Reverse Mortgage8 months agoThe Pros and Cons of Using a Reverse Mortgage for Retirement Planning
-
Mortgage Rates8 months agoNiro Loan App 2024 || Niro App Se Loan Kaise Le || New Loan App Best Instant Loan App Without Cibi
-
Reverse Mortgage8 months agoExploring the Myths and Realities of Reverse Mortgages for Seniors in 2024
-
Reverse Mortgage8 months agoUnlocking Your Home’s Value: Everything You Need to Know About HECM Loans
-
USDA Mortgage6 months agoMaking Your Dream of Country Living a Reality: FMHA Rural Home Loans in Focus
-
Reverse Mortgage8 months agoIs a HECM the Right Choice for You? Exploring the Pros and Cons