Millennials — people born between 1981 and 1997 — made up the biggest share of homebuyers in 2016 at 34 percent, according to a recent National Association of Realtors (NAR) study. Eleven percent of those millennial homebuyers purchased new builds.
As a major force in the home buying economy, millennials are changing the game for Realtors.
What’s the difference?
Millennials want a streamlined process, usually see fewer homes than older generations, and are more tech savvy. Some Realtors even report writing up contracts for homes based entirely off text messages.
They do their homework in advance too. With websites like Zillow, Trulia and HomeFinder, millennials tend to come to agents with a list of houses they want to see already weighing all their options. But what’s online isn’t always accurate or updated. That’s where a qualified and professional agent can still help guide the tech savviest of clients.
Reports also indicate that budgeting and financial planning are characteristics of millennial homebuyers. Even though about a third of the generation has debt in the form of student loans, they are good at making budgets and saving for what they need. The NAR study found that 85 percent of millennial homebuyers said their purchase was a good investment.
Times and buyers may be changing but some things – like working with professionals and relying on updated data – likely won’t for a long time to come.
Source: National Mortgage News
Fannie Mae, the government-controlled mortgage giant, is taking steps to make it easier for millions of student loan borrowers to own a home or refinance a mortgage. Student debt has become an increasing concern, amid worries that borrowers burdened by education loans are postponing home buying , causing a drag on the economy. The average undergraduate now leaves college with more than $30,000 in student debt, according to the Institute for College Access and Success.
Fannie Mae, which buys home loans originated by lenders that meet its standards, said Tuesday that it was easing the path for student loan borrowers — and those who may have co-signed such loans — in three ways, said Jonathan Lawless, vice president for customer solutions at Fannie Mae.
Read the source article at The New York Times
Yesterday, interest rates fell to the lowest they’ve been all year! This is great news for those who are ready to purchase a home or are considering refinancing.
Mortgage rates can change at any moment; that’s why it’s so important to strike while the iron is hot.
Rates for home loans fell in line with Treasury yields, nudging mortgage rates to the lowest level of the year, Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 4.08%, down 2 basis points during the week. The 15-year fixed-rate mortgage averaged 3.34%, down from 3.36%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, down one basis point.
The 10-year Treasury yield fell five basis points during the week as investors continue to re-assess the expectations for fiscal stimulus and economic growth that followed the November election even as fresh geopolitical worries flared. The benchmark government bond breached a key technical level, 2.30%, twice during the week.
Mortgage rates generally track the 10-year Treasury, but that relationship faltered briefly
earlier this year.
Read the source article at MarketWatch
The industry is changing and it can be hard to keep track of where we are. Here’s a flyover look at what’s going on in the mortgage industry right now.
A new list from RentRane is out on the top 25 rental markets with the highest average gross yield, with a heavy focus on non-coastal markets. However, for those looking to invest in housing, RentRange does give some extra advice to keep in mind with these markets.
Read the source article at U.S. Housing Finance News
Younger home shoppers are set to become the No. 1 homebuying cohort throughout the coming years, but they’re not opting to buy a home just anywhere. Realtor.com took advantage of its website user data to create a list of the top 10 markets where Millennials are looking for a home. While a chunk of the cities on the list are affordable, it’s not true for all of them.
Outside of being in a market with a lot of similarly aged people, the report also broke out exactly how affordable these markets are, along with the unemployment rate.
Read the source article at U.S. Housing Finance News
Are you looking to go mobile this summer and explore our country living in an RV? If so, there are lots of factors to consider for your new home away from home.
Type of Adventure
Will you be taking the RV out just for weekend trips or do you plans to spend a few weeks at a time on the road? Or could it even be a trip lasting several months? Be sure you think about the type and length of your adventure before considering the type of RV to buy.
Types of RVs
After planning your course, then it is time to determine which type of RV will best fit your needs. Here are the different types:
- Class A Motorhomes – ideal for long distance, bigger families, living in style. Typically include living rooms, sofas, dining tables, TVs, complete kitchens, full bathroom(s), bedroom(s) and closet space. This is the most expensive option with price ranges from $60,000 to more than $1 million.
- Class B Motorhomes – similar in features to the Class A, but in a smaller size. It is ideal for 2-3 travelers and more like driving a large sized SUV.
- Class C Motorhomes – a mix between Class A and B, this type is a popular rental RV. Range from 20-40 feet so the size can be close to the Class A but the amenities are not as plenty. This is a good choice for a long weekend or possibly a week away.
- Travel Trailers – a lightweight, towable option that can sleep up to six people. Sizes range from 12-33 feet and some offer designer-grade interiors. This option is a hit for those who want to leave their trailer on a campsite while exploring surrounding areas with the tow vehicle.
- Fifth-Wheel Trailer – Easier and more stable to pull than a travel trailer. Excellent for long distance travel or a quick trip to the mountains. Range in size from 18-40 feet long.
- Pop-Up Trailer – Smallest and lightest of the trailer options. Most economical too with prices starting at $4000. These can normally be towed safely by a minivan and are easy to park. Considered the “starter” RV because many people purchase these affordably to test the waters with camping and road travel before investing in a full-sized motorhome.
- Sport Utility RV Trailer – This is the newest option of trailer which has a garage area built into the rear to haul motorcycles, quad runners, watercraft, etc. The garage is separated by a solid wall from the rest of the trailer.
- Truck Camper – This option slide into the bed of a pickup truck, can be offloaded and then set up at a camping site. Typically include a bedroom, small kitchen, toilet and shower.
Rent or Buy?
If you’re a newbie to the RV world, most experts suggest that you rent the rig you’re interested in a few times before you buy. Time to get planning a test weekend adventure or two!
If you’re like most RVers, you’ll probably be financing at least part of your purchase. Check to see what type of loan you can obtain before you go shopping.
TAX TIP: Because virtually every motorhome and many trailers feature beds, kitchens, sinks, and bathrooms, the IRS considers them to be homes. And that means that the interest on your loan may be tax deductible as a home mortgage.
As with any type of home, everyone’s tastes and needs are different. Be sure to do your homework before investing in an RV.
Happy trails to you!
Source: Reserve America
Skyline Financial Corp. and its loan officers are not tax advisors. Always consult a tax professional for details.
I know what it feels like to be a first-time homebuyer. There’s so much to think about and so many factors to take into consideration before making the jump to being a homeowner. It can be overwhelming. But staying updated and making an informed decision can help.
In a recent article from HousingWire, housing experts took a look at 2017’s Spring buying season and what we might expect. While rates may be rising and inventory is tight, not all markets are the same.
Find out which markets are expected to be the best and the worst for first-timers in 2017. Read the full article and review the detailed chart which ranks the toughest and easiest states for first-time homebuyers based on five key measures:
- Housing affordability
- The job market for young adults
- Housing market tightness
- Credit availability
- Homeownership among the under-35 crowd
After reading it, do you have questions about your area? I’d be happy to discuss them with you. Give me a call or send me an email anytime! If 2017 is your year to buy, I hope that you’ll give me a chance to help you fulfill that dream.