From our friends in KCM
If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market in 2024. In 2023, higher mortgage rates, confusion over home price headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But what’s on the horizon for the new year?
The good news is, many experts are optimistic we’ve turned a corner and are headed in a positive direction.
Mortgage Rates Expected To Ease
Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with affordability challenges. Mark Fleming, Chief Economist at First American, explains how they may continue...
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By Jillian Pretzel | REALTOR.COM
Something about the word “tax” makes even the most ardent financial wizard’s eyes glaze over. We get it: It’s no fun to think about the money you have to hand over to Uncle Sam.
Yet, when it comes to real estate, understanding your tax basis is like knowing the rules of the game. Your tax basis is a fundamental factor that can significantly affect your finances when it comes time to sell your property.
However, tax basis is more important to some homeowners than others. Read on to find out everything you need to know.
What is a tax basis?
Tax basis, also known as cost basis,...
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By Margaret Heidenry | REALTOR.COM
Homebuyers have a lot to be joyful for right now as mortgage rates have dipped below 7%—the first time they’ve done so since August.
For the week ending Dec. 14, rates for a 30-year fixed-rate home loan averaged 6.95%, according to Freddie Mac.
And odds are, mortgage rates will continue their long-awaited downward trend, providing some much-needed relief on the affordability front to homebuyers.
“Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the target rate next year, we likely will see a gradual thawing of the housing market in the new year,” says Sam Khater, Freddie Mac’s chief economist.
In...
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By Melissa Dittman Tracey | Realtor Magazine
Home sellers reveal why they decided to bypass professional representation—and the mistakes they made without a trusted adviser.
Homeowners who decline to use a real estate agent to sell their property are twice as likely to say they weren’t satisfied with the selling experience, according to a new survey from Clever Real Estate(link is external) of 1,000 home sellers in 2022 and 2023. Survey respondents say they realize they likely made less money on their home sale and faced more stress by not having a professional representative.
Those who didn’t use a real estate agent said before their transaction that they think pros are overpaid...
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By Clare Trapasso: REALTOR.COM
Inflation is finally falling, according to a government report released on Tuesday, and mortgage rates might be close behind.
Over the past year and a half, the U.S. Federal Reserve has been hiking its short-term interest rates to combat inflation. This has helped to push up mortgage rates, which are separate from the Fed’s rates but have been moving in a similar direction.
The Fed’s aggressive moves now appear to have been working. Inflation fell to 3.2% year over year in October, down from a 3.7% year-over-year increase in September, according to the consumer price index released on Tuesday.
That could lead the Fed to hold rates steady and...
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By our friends in KCM
If you’ve been following the news recently, you might have seen articles about an increase in foreclosures and bankruptcies. That could be making you feel uneasy, especially if you’re thinking about buying or selling a house.
But the truth is, even though the numbers are going up, the data shows the housing market isn’t headed for a crisis.
Foreclosure Activity Rising, but Less Than Headlines Suggest
In recent years, the number of foreclosures has been very low. That’s because, in 2020 and 2021, the forbearance program and other relief options were put in place to help many homeowners stay in their homes during that tough time.
When the moratorium ended, there was an...
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By Rob Chrisman, Senior Advisor
If we’ve learned anything from 2022 and 2023, it is that they are not 2020 and 2021. Volumes and margins have dropped, as have profits. The number of lenders and originators have dropped as well. And those originators, whether they are brokers, IMB loan officers (LOs) or bank and credit union LOs, have had to adapt to a changed environment where they not only can’t sit at their desk waiting for the phone to ring but must go out and actively look for new business.
Where can LOs find the elusive purchase borrower? Many lenders have originators who are looking for leads in unconventional places....
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Received an email from our friends in KCM and here are my thoughts about this:
Thinking about using your 401(k) to buy a home can be a big decision. While it may seem like a quick fix to achieve your dream of homeownership, it's important to weigh the pros and cons before making any moves. Below are some factors to consider:
Pros:
- Access to funds: Using your 401(k) can give you quick access to a large sum of money for your down payment.
- No credit check: Unlike with traditional loans, borrowing from your 401(k) doesn't require a credit check.
- Interest paid back to yourself: When you borrow from your...
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From our friends in KCM:
The idea of owning a home has always been a big part of the American Dream. It’s a symbol of stability, independence, and having a place to truly call your own. But for Gen Z, the “Zoomers” born between 1997 and 2012, making that dream a reality can feel like quite the challenge today with higher mortgage rates and rising home prices.
But achieving that goal of owning your first home can still be attainable, even today, with some strategic planning and resourcefulness.
Explore Down Payment Assistance Options
With prices rising all around you, it can be hard to save up for a home. If you’ve been struggling to...
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From our friends in KCM
Are you considering buying your first home? If so, it can be helpful to know what led other people to make that decision. According to a recent survey of first-time homebuyers by PulteGroup:
“When asked why they purchased their first home recently, the answer was simple: because they wanted to. Either the desire to stop renting or recognition that homeownership is a smart financial investment was the main motivator for 72% of respondents.”
While that survey looked specifically at first-time homebuyers buying newly built homes, the same sentiment is true for just about anyone buying their first home. Here’s a bit more information to help you think about those two...
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