Monthly Archives September 2021

Mortgage Rates Respond to Fed, Average Rises Above 3%

By Kerry Smith After weeks of little movement in the 2.88% range, the average 30-year, fixed-rate mortgage rose to 3.01% this week. Economist cites “many factors” pushing the increase. MCLEAN, Va. – The average 30-year, fixed-rate mortgage has fluctuated little over the past few months, hovering somewhere around the 2.88% range. However, it rose to 3.01% this week, breaking the psychological 3% barrier. “Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June,” says Sam Khater, Freddie Mac’s chief economist. “Many factors led to this increase, including the Federal
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Study: Credit Scores Rebound Quickly After Home Purchase

By Kerry Smith Nationwide credit scores fall about 20 points in the months following a home purchase, but they bounce back fully in less than one year. In four Fla. cities included in a LendingTree study, the full credit-score rebound ranged from 332 days in Miami to 387 in Jacksonville. WASHINGTON – Credit scores take a hit after a homebuyer takes out a mortgage, but a study from LendingTree shows credit scores rebound within a year. Credit scores are unlikely to fall no more than 20 points, on average, in the four and a half to six months after getting
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What’s Holding Back Commercial RE’s Tech Adoption?

By Stacey Moncrieff “Sharing data helps all of us,” said a speaker at NAR’s recent C5 Summit. But many commercial brokers avoid technology and keep info “close to the vest.” CHICAGO – If commercial real estate lags behind residential in adoption of technology, it’s not due to a lack of investment in the sector. In the first half of 2021, equity and debt investment in U.S. proptech (technology that optimizes researching, renting, buying, selling and managing property) totaled $8.5 billion, surpassing the total amount of capital invested in 2020, according to GCA, an adviser in the proptech market. “The biggest
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Without Action, a Government Shutdown Could Start Tomorrow

By Rick Rouan No two shutdowns are the same, but the IRS would likely stop verifying homebuyers’ Social Security numbers and income. That created backlogs in earlier shutdowns. NEW YORK – As the federal government teeters near the edge of another shutdown, you might wonder what it could mean for you if the slow gears grind to a halt. Congress hasn’t adopted any appropriations bills before the new fiscal year, which starts Oct. 1. If it doesn’t meet the deadline by midnight Sept. 30 – or adopt a continuing resolution to buy more time – a shutdown is likely. That
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NAR August Pending Home Sales Bounce Back by 8.1%

By Kerry Smith NAR Economist Yun credited “rising inventory and moderating price conditions” for bringing more buyers back to the market. A separate realtor.com survey found three Fla. metro areas to be “hottest markets,” including the areas around Orlando, Tampa and Jacksonville. WASHINGTON – Pending home sales rebounded in August, recording significant gains after two prior months of declines, according to the National Association of Realtors® (NAR). Each of the four major U.S. regions tracked by NAR mounted month-over-month growth in contract activity. However, each territory was also down in year-to-year pending-sale comparisons, with the Northeast down a double-digit 15.8%.
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Buyers Consider Disaster Risk in Purchase Decisions

When creating a list of must-haves and would-likes, three out of four homebuyers include some consideration of disaster risk, according to a realtor.com study. CHICAGO – About three in four recent homebuyers say they factored natural disasters into their decision when choosing a location for their new home, according to a new survey of about 3,000 consumers conducted by realtor.com. Nationwide, 75% of recent home buyers say they’re concerned about the threat of natural disasters. The natural disasters that have them most concerned are: Tornadoes (39%) Severe Cold Or Winter Storms (38%) Floods (35%) Hurricanes (29%) Earthquakes (21%) Wildfires (17%)
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Part III: Loan Approval Period and Possible Pitfalls

By Laura Gomes Buyers who want to make their offer more appealing sometimes consider changes to the contract’s “Loan Approval Period.” Of the possible changes they can choose to make their offer more appealing, this one may carry the highest risk. ORLANDO, Fla. – Part three of a three-part series on buyers’ offers: The series focuses on potential pitfalls in relation to buyers’ attempts to make their offers “more appealing” in today’s market. The Loan Approval Period may be the riskiest clause to change due to all the potential issues that may pop up later. Some buyers choose to submit
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Cooperating Compensation: ‘My Seller Must Offer More?’

By Joey Sale Listing brokers determine cooperating compensation, either an amount or percentage. However, the issue has been a frequent topic of discussion in today’s market of thin listings and high buyer demand. Dear Joey: How does cooperating compensation work? ORLANDO, Fla. – Dear Joey: I recently encountered a buyer’s agent who refused to show my listing unless I increased the offer of cooperating compensation. I was told to “tell my seller to raise the compensation.” – Curious One Dear Curious One: We’ve been seeing your question more frequently in this historic market. Cooperating compensation is determined by the listing
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Deem and Waive: The Legal Vocabulary Definitions

By Joel Maxson It’s important for buyers and sellers to fully read a contract and ask about any words that confuse them. In the Far/Bar AS IS contract, “deem” appears 10 times and “waive” 12 times, but some Florida Realtors Legal Hotline callers seemed confused about their definitions. ORLANDO, Fla. – One reason people struggle to understand contracts is that they contain words that aren’t a part of everyday conversation. Before signing a significant contract, it’s important for both parties to slow down and read every word. If they find a word they don’t understand, they should look up what
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New Record: Home Prices Rose 19.9% in July

By Christopher Rugaber A price increase of almost 20% year-to-year is unheard of – until now. Home prices hit record highs in 19 of the 20 cities included in monthly Case-Shiller reports. WASHINGTON (AP) – U.S. home prices soared in July by a record amount from a year earlier as buyers desperate for homes bid up prices amid a limited supply. The S&P CoreLogic Case-Shiller 20-city home price index surged 19.9% in July compared with a year ago, the largest gain on records that date back to 2000. In 17 of the 20 cities, prices rose more quickly in July
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