How much does student-loan debt impact buyers? A three-year NAR study calls for reform, noting that millennials are “drowning in student loan debt.” WASHINGTON – Experts from the housing and higher-education fields joined policy thought leaders from the National Association of Realtors® (NAR) last Wednesday to discuss the current student loan debt crisis and how it affects the economy, housing market and debt holders. The event explored the findings of NAR’s September report, The Impact of Student Loan Debt. For the past eight years, NAR has been collecting and examining research to measure the impact of student loan debt on
Read More

FHA, VA and other government-backed loans are often favored by first-time and low-income buyers. But in bidding wars, cash offers or conventional financing seem less problematic to sellers. As a result, low-income buyers face yet another hurdle if they hope to become owners. WASHINGTON – Government-backed loans can offer buyers lower down payment requirements and can help some of them purchase a home. However, those loans often come with several extra requirements that may slow the process and put some at a disadvantage in a fast-paced offer situation. That unknown detail – whether or not the government will step in
Read More

By Kerry Smith The Oct. builder sentiment index rose 4 points higher to 80. Any 50-plus score indicates optimism, so today’s hot market still overshadows supply-chain worries. WASHINGTON – Strong consumer demand helped push builder confidence higher in October despite growing affordability challenges stemming from rising material prices and shortages. Builder sentiment in the market for newly built single-family homes moved four points higher to 80 in October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). When everything is going wrong, the index can be as low as 0. If everything is going right,
Read More

By Kerry Smith In the U.S., closing costs, including taxes, were up 10.5% year-to-year, and almost $7K for an average price home. In Fla. it’s a bit higher: $8.5K for the average home. SAN DIEGO – In the first half of 2021, average closing costs for buying a single-family U.S. property were $6,837 including taxes (up 12.3% year-to-year), and $3,836 excluding taxes (up 10.5% year-to-year). Refinancing costs increased marginally to $2,398 – a 4.87% change from the reported 2020 average of $2,287, according to ClosingCorp, a provider of residential real estate closing cost data and technology. Since ClosingCorp based its
Read More

By Jennifer Warner Florida Realtors economist: Real estate’s residential side has been on fire since summer 2020. How has the commercial side fared? It’s hot – and it’s not. It depends on where you look. The delta variant of COVID-19 slowed the office market even as it relit a fire under other commercial sectors. ORLANDO, Fla – How has the pandemic – and its delta variant resurgence – impacted the U.S. commercial real estate market? The National Association of Realtors Research Group recently published their latest “Commercial Market Insights – September 2021” report. The insights come from NAR’s Quarterly Commercial
Read More

By Jim Saunders and Tom Urban The head of Citizens Property Insurance calls losses among all state insurers “absolutely staggering.” He blames the marketplace itself, saying it impacts every company. TALLAHASSEE – Pointing to a “sea of red ink,” the head of the Florida-backed Citizens Property Insurance Corp. described a private insurance industry in the state that is losing gobs of money while homeowners face soaring rates and trouble finding coverage. “The consistency of loss across the entire marketplace is absolutely staggering,” Citizens President and CEO Barry Gilway told the Florida Legislature’s House Insurance & Banking Subcommittee. “It’s not a
Read More

By Kerry Smith The U.S. will increase loan caps for multifamily housing by 11.4% next year, and 50% of the $156B total ($140B this year) must go to “mission-driven affordable housing.” WASHINGTON – The Federal Housing Finance Agency (FHFA) announced 2022 multifamily loan purchase caps for Fannie Mae and Freddie Mac will rise to $78 billion, or an 11.4% increase over 2021 caps. In 2022, the Enterprises will have a combined $156 billion cap, up from $140 billion this year ($70 billion each). FHFA says the amount is based on future projections for overall growth in the multifamily sector. If
Read More

By Kerry Smith Average mortgage rates continue to hover around 3%, but they’ve slowly ticked higher. This week, the 30-year, fixed-rate mortgage averaged 3.05%. MCLEAN, Va. – At 3.05%, this week’s average, 30-year mortgage rate rose to a level unseen in six months, according to Freddie Mac’s weekly survey. “The 30-year fixed-rate mortgage rose to its highest point since April,” says Sam Khater, Freddie Mac’s chief economist. “As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing.” Temporary inflation might have little effect on mortgage rates, but expectations for
Read More

By Kerry Smith In response to the Surfside condo collapse, Fannie Mae says its condominium loan decisions after Jan. 1 will include a stronger look at the overall condo building. Loan decisions will consider current or planned special assessments and any deferred maintenance issues. WASHINGTON – It might become more difficult to get a condo mortgage loan after Jan. 1, 2022, if appraisers cite potential safety problems with the building, notably potential special assessments or safety issues. According to Fannie Mae, the new requirements apply to mortgages it purchases, a standard most lenders follow. According to Fannie Mae Director, Single-Family
Read More

By James McCarten Officials say Canadians can start returning in early Nov. if they’re fully vaccinated. One twist: It’s unclear if that includes Canadians who got two different vaccines. WASHINGTON – A motley coalition of elected officials, bilateral business leaders and travelers-turned-lobbyists briefly cheered the coming reprieve from restrictions at the Canada-U.S. border Wednesday before confronting their next challenge: the question of mixed-dose vaccinations. The plan for early November, spelled out by senior Biden administration officials as well as Homeland Security Secretary Alejandro Mayorkas, was short on key details, most notably whether the U.S. will consider the many Canadians who
Read More