By Melissa Lambarena Many people see “four easy monthly installments” as a smarter financial option than a charge card. But if trying to build credit scores to buy a home, go with the plastic. NEW YORK – At first glance, a “buy now, pay later” plan’s promise of no interest or upfront fees can seem more appealing than a credit card’s terms. Dividing a transaction into, say, a pay-in-four installment plan sounds straightforward and manageable. Unlike credit cards, though, these plans lack certain consumer protections and are sometimes unpredictable. In this way, credit cards can be superior to buy now,
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By Kerry Smith In July, insurance-company rater Demotech threatened the existence of many Fla. insurers. But in a rare bit of industry good news, Fla.’s back-up proposal was approved. WASHINGTON – Insurance companies rely on positive ratings to survive, and in July, Demotech – an insurance firm rating company – suggested it was going to lower the grades for a number of state-based insurers. The problem: Federal companies that buy mortgages from local lenders – The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) – mandate high ratings if homebuyers and owners want
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By Jennifer Warner Florida Realtors economist: The RE market changed rapidly this year, and the frenzy to buy-sell faded as more owners and renters decided to just stay where they are. ORLANDO, Fla – What really unleashed demand for housing over the last few years more than Covid-related remote-work policies? Record low interest rates that expanded all buyers’ purchasing power. First-time buyers in particular didn’t have the benefit of existing equity to make a down payment, and they were able to get into the game as affordability and low-borrowing costs combined to make deals a sudden reality. It created a somewhat
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By Marla Martin Go global: Join the Dubai Trade Mission, Feb. 12-15, 2023, part of the International Property Show at the Dubai World Trade Center. Special hotel rate now ends Dec. 31. ORLANDO, Fla. – Florida Realtors®, in partnership with the Miami Association of Realtors®, is presenting a Dubai Trade Mission for Realtors® to network and learn more about opportunities in Dubai in early 2023. The Dubai Trade Mission will take place Feb. 12-15, 2023, as part of the International Property Show at the Dubai World Trade Centre. “This opportunity is available to all Florida Realtors members – start planning to
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By Jim Turner The Fla. Legislature is expected to address attorney fees in property insurance cases – a change supported by Florida Realtors – during next week’s special session. TALLAHASSEE, Fla. – Expect changes to attorney fees as one step in next week’s special legislative session to address Florida’s troubled property-insurance system, House Commerce Committee Chairman Bob Rommel said Wednesday. Florida Realtors®’ has focused on attorney fees as one way to address the state’s property insurance challenges. Members previously approved initiatives to: Support legislation to repeal one-way attorney fees and reign in other litigation abuses in property insurance claim disputes,
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By Matt Ott Recession-skittish investors moved more money into 10-year Treasury notes, pushing rates for 30-year, fixed-rate loans to move lower. In Nov., the rates hit 7.08%. WASHINGTON (AP) – The average long-term U.S. mortgage rate fell for the fourth consecutive week and has dropped more than three-quarters of a point since hitting a 20-year high last month. Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate dipped to 6.33% from 6.49% last week. A year ago the average rate was 3.1%. The average long-term rate sat at 7.08% in early November, but has since
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By Melissa Dittmann Tracey The iBuyer business model wasn’t made for a slowing RE market. iBuyers still in business seem to complete fewer purchases and make less enticing offers. CHICAGO – Tech firms offering instant cash to home sellers touted simpler, quicker transactions. But the model is floundering in the housing downturn. When iBuyers emerged a few years ago, they made bold promises to revolutionize the homebuying and selling process with instant cash offers and a pick-your-closing-date transaction model. But many of these iBuyers are facing setbacks amid a slowing housing market. Some are pulling back and pivoting their business
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Jacksonville By Kerry Smith What U.S. cities will see home prices and/or sales rise? Realtor.com feels optimistic about smaller fringe metros, with few Fla. cities near the top of its ranking. SANTA CLARA, Calif. – Mid-sized markets with local industries tied to manufacturing, education, healthcare and government with do best in 2023 for home prices and sales, according to Realtor.com’s 2023 Top Housing Markets forecast. They’re poised to grow in homes sales and listing prices, and “up to this point have seen lower price increases (and) a relatively smaller affordability crunch than other markets across the U.S.” In the list
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By Kerry Smith HUD says large investors are “impossible to compete with” and sees them as a threat to homeownership – a “much bigger problem” that needs to be addressed. WASHINGTON – On Tuesday, the U.S. Department of Housing and Urban Development (HUD) Office of Policy Development & Research (PD&R) held its quarterly update meeting to discuss issues around institutional investors – specifically their impact on housing markets across the United States. “Institutional investors have access to resources that make them impossible to compete with,” says HUD Secretary Marcia L. Fudge. “This is especially true for minority first-time homebuyers, who
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By Kerry Smith Reserves and National Guard called to active duty can get interest rate reductions, including for their mortgage. But a CFPB study found that few request it. WASHINGTON – U.S. Reserve and National Guard members called to active duty are missing out on $9 million in interest savings every year because they aren’t getting interest rate reductions – their right under the Servicemembers Civil Relief Act (SCRA). According to a study released by the Consumer Financial Protection Bureau (CFPB), the SCRA gives servicemembers on active duty the right to request interest rate reductions on outstanding loans during the
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