Month: August 2023

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In a new report from First American, Chief Economist Mark Fleming reveals that two of the three key drivers of the Real House Price Index (RHPI), nominal house prices and mortgage rates, dragged affordability lower in June. The 30-year, fixed mortgage rate increased by 0.3 percentage points and nominal house prices accelerated by 0.8% compared with May.

The Three Key Drivers of the RHPI:

  1. Median Household Income is one of the fundamental factors determining the amount of housing a particular consumer can afford. incomes can be tracked over time to demonstrate how rising/falling incomes impact consumer house-buying power.
  2. Interest rates drive how much a home buyer can leverage their median household income to purchase more or less housing. As interest rates fall, consumers are able to purchase a more expensive house due to lower borrowing costs. The opposite is true for rising rates.
  3. House price levels are measured using a weighted repeat-sales house price index that tracks how prices of single-family residential properties rise and fall over time and across numerous geographies.

While household income increased by 0.4%, it was not enough to offset the affordability-dampening impact from higher mortgage rates and prices. Consumer house-buying power declined by nearly $9,000 compared with May and remains $32,000 lower than one year ago. Fleming predicts the outlook for house-buying power to be heavily dependent on the path for mortgage rates, and that path is highly uncertain.

“It’s likely that mortgage rates continue to hover in the 6.5-to-7.5% range for the remainder of the year, which means affordability will remain a challenge for many homebuyers,” said Fleming.

How High Will Mortgage Rates Go?

The RHPI can be referenced to model shifts in income and mortgage rates to see how they impact consumer house-buying power or affordability. Rising incomes and falling mortgage rates each boost house-buying power, while falling incomes and rising mortgage rates each sap house-buying power.

As of mid-August, the average mortgage rate nationally sits at approximately 7%. In June of last year, the average mortgage rate nationally was roughly 5.5%. Holding incomes constant at their June 2023 level and assuming a 5% down payment, the increase in mortgage rates alone reduced house-buying power by nearly $57,000.

An average of several industry forecasts projects that mortgage rates will end the year lower, at 6.1%. If those forecasts are correct and the average mortgage rate decreases from the 7% level to 6.1%, house-buying power increases by nearly $32,000. However, if mortgage rates drifted upward to 7.5%, house-buying power would fall by an estimated $16,000.

Uncertain Outlook for Mortgage Rates

The 30-year fixed mortgage rate is loosely benchmarked to the 10-year Treasury bond. Since the end of the Great Recession, the 30-year fixed mortgage rate has on average remained 1.7 percentage points (170 basis points) higher than the 10-year Treasury bond yield. The spread usually widens during periods of economic or geopolitical uncertainty, as is the case in today’s market.

As the industry forecasts predict, it’s reasonable to assume that the spread and, therefore, mortgage rates will moderate later in the year if the Federal Reserve stops further monetary tightening and provides investors with more certainty. However, it’s unlikely that mortgage rates will revert to the 5.5% levels of 2022 until inflation has moved closer to the Federal Reserve’s 2% target and it begins loosening monetary policy, or there’s a significant economic downturn.

To read the full RHPI, click here.

Source: themreport.com

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Mortgage rates ticked down modestly after job openings data for July came out yesterday, but rates remain elevated. 

Freddie Mac‘s Primary Mortgage Market Survey, which focuses on conventional and conforming loans with a 20% down payment, shows the 30-year fixed rate averaged 7.18% as of Aug. 31, down from last week’s 7.23%. By contrast, the 30-year fixed-rate mortgage was at 5.66% a year ago at this time.

“Despite continued high rates, low inventory is keeping house prices steady,” said Sam Khater, Freddie Mac’s chief economist. “Recent volatility makes it difficult to forecast where rates will go next, but we should have a better gauge in September as the Federal Reserve determines their next steps regarding interest rate hikes.”

Other indices showed lower mortgage rates.

HousingWire’s Mortgage Rates Center showed Optimal Blue’s 30-year fixed rate for conventional loans at 7.07% on Wednesday, compared to 7.22% the previous week. At Mortgage News Daily on Wednesday, the 30-year fixed rate for conventional loans was 7.06%, down from 7.36% the previous week.

What to expect with the Fed ?

At the last Federal Open Market Committee meeting, Federal Reserve Chair Jerome Powell emphasized the importance of July’s core Personal Consumption Expenditure (PCE) Price Index for the Fed’s future path. The results came in today and the PCE price index jumped slightly from year-ago levels but grew at a mild monthly rate, which is more in line with the Fed’s 2% inflation target.

Meanwhile, the labor market is cooling as U.S. job openings dropped in July. However, more robust data points will be required to confidently assert that inflation is moving in the desired direction, said Realtor.com Economist Jiayi Xu.

“Despite mortgage rates hitting 20-year highs, we still expect them to reverse course and trend lower as we gather more solid evidence of inflation improvements in the coming months,” added Xu.

What does it mean for the housing market ?

Incentivized by return-to-office demands, some buyers have adjusted to the higher mortgage rate environment and are moving forward with their home search, according to Realtor.com’s 2023 Hottest Zip Codes report. However, first-time homebuyers are facing greater challenges to make such adjustments.

“Fortunately, new homes remain an option for many, as builders are continuing to add homes with a somewhat greater focus on affordable price points,” said Xu.

What to expect for the fall ?

Last fall when mortgage rates surged, homebuyers adjusted pretty quickly, noted Bright MLS Chief Economist  Lisa Sturtevant. First, they held back a little, only to come roaring back to the market in 2023. However, this time could be different, she said.

Rates above 7% are now coupled with home prices near record highs.

“The desire for homeownership is still strong, but there are going to be more and more prospective buyers for whom the numbers simply don’t pencil out anymore at 7%+ rates,” added Sturtevant.

That said, mortgage applications rose last week in spite of the rates being at a 22-year high. However, economists expect applications will decline significantly in the weeks ahead, bringing a shift in the housing market. 

“As demand contracts, supply will still remain low, so the slower market will not necessarily translate into significant price declines,” said Sturtevant.

Source: housingwire.com

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The Conrad Washington, DC is one of the newest and highest-end Hilton properties in the nation’s capital.

Situated within a short metro ride or 15-minute walk of the city’s prestigious monuments and museums, the hotel offers a combination of easy proximity for those wanting to explore the city and comfortable, modern touches for those preferring to relax on-site.

As part of the American Express Fine Hotels and Resorts portfolio, the property also provides AmEx Membership Rewards members additional perks and savings during their stay, from breakfast and other dining credits to guaranteed late checkouts and room upgrades.

Despite its location in one of America’s most historic cities, the Conrad Washington, DC sits in one of the city’s most modern neighborhoods.

(Photo by Sean Cudahy)

The hotel is within a stone’s throw of CityCenterDC, an outdoor shopping district with high-end shops — think Louis Vuitton, Tiffany & Co. and the like.

Those hoping to use their stay as a jumping-off point for monument and museum visits have a few options. The first is by car.

(Photo by Sean Cudahy)

Our Uber ride from the hotel to the National Mall took five to 10 minutes. If you bring a car with you to the hotel, you’ll pay $60 per night for valet parking.

To avoid traffic and parking fees, you can reach major landmarks by taking the D.C. Metro a stop or two. There are two Metro stops within a short walk of the hotel.

(Photo by Sean Cudahy)

Many landmarks are walkable, too, if you’re able and willing. The Capital One Arena, home to the Washington Wizards and Capitals, is four-tenths of a mile away on foot.

Perhaps the destination most convenient to the hotel is the Washington Convention Center, which is just a couple of blocks away and, in fact, was visible from our hotel room window.

(Photo by Sean Cudahy)

This Conrad property stands out with its black, all-glass look. Upon its opening in 2019, Hilton described it as “architecturally striking,” and that’s not overstating it.

(Photo by Sean Cudahy)

You’ll take an elevator or escalator to reach the front desk. The hotel lets in extensive natural light through floor-to-ceiling windows in many rooms and a skylight in the lobby.

(Photo by Sean Cudahy)

You’ll also find white marble throughout the building, from the floors to the walls.

Most of the views from the rooms and restaurant are of CityCenterDC and the convention center. If you do manage to catch a glimpse of the Washington Monument or U.S. Capitol from a high floor, it’ll be a distant view.

Food and beverage options

(Photo by Sean Cudahy)

The Conrad’s main restaurant is called Estuary. The seafood restaurant includes a bar, lounge-style seating area and a larger dining room with an open-concept kitchen.

(Photo by Sean Cudahy)

All of Estuary’s ingredients come from the Chesapeake Bay region. Yes, that means you’ll find plenty of seafood-oriented offerings — crab included — on the menu, though there’s a little something for just about any palate.

(Photo by Sean Cudahy)

And that’s a good thing because guests who book through AmEx Fine Hotels and Resorts will want to eat on-site. AmEx Fine Hotels and Resorts guests get a $100 food and beverage credit per stay and a $60 daily credit toward breakfast or brunch.

(Photo by Sean Cudahy)

At our predinner happy hour, my wife and I thoroughly enjoyed the crispy pig ears, ceviche and hush puppies with yuzu aioli and Maryland crab (and come to think of it, we probably didn’t need dinner afterward).

(Photo by Sean Cudahy)

Breakfast is served in the Estuary’s cozier Blue Willow Room. While I had no complaints about my bacon, egg and cheese on a croissant, anyone who doesn’t order the crab Benedict — as my wife did — will have order envy.

Because we visited on a cold night in January, the hotel’s Summit Rooftop bar was closed for the season, but it features appetizers, beverages and great views of D.C.

The hotel also has room service available late into the night, and a more upscale, personalized room and dining experience through its pricier Sakura Club.

Accommodations

(Photo by Sean Cudahy)

(Photo by Sean Cudahy)

I was upgraded to a studio suite, featuring a distinct entryway, living room and sleeping area. Those hoping to watch some TV can sit on the couch or chair next to a floor-to-ceiling window.

(Photo by Sean Cudahy)

There’s also a table for those wanting to get work done or enjoy in-room dining.

(Photo by Sean Cudahy)

The king bed sat across from a second TV equipped with cable, Netflix and YouTube capabilities.

(Photo by Sean Cudahy)

The nightstands are fully outfitted with plenty of USB and AC outlets, and full light controls that control the electronic “do not disturb” light outside the front door.

(Photo by Sean Cudahy)

Featuring two sinks and marble walls, the bathroom included rain-style shower heads and large, bolted-to-the-wall shower products. These larger bottles are a nod to the sustainability initiatives many hotel chains are undertaking to reduce plastic waste.

(Photo by Sean Cudahy)

A favorite touch of mine at higher-end hotel rooms showed up here: Nespresso machines instead of the old-school coffee makers.

The Conrad caters to business travelers and those looking for an exceptionally comfortable place to recharge in between sightseeing. To that end, you won’t find a pool or spa on-site.

(Photo by Sean Cudahy)

However, on top of its top-notch eating and drinking locations, you’ll find expansive meeting space, event rooms and balcony seating areas overlooking CityCenterDC. The balconies are a great place to enjoy a drink or spend time outdoors.

(Photo by Sean Cudahy)

The fitness center is well equipped with treadmills and weights alongside several Peloton bikes, as is now the case at many Hilton properties nationally.

Are dogs allowed at the Conrad Washington, DC?

(Photo by Sean Cudahy)

Count us among the travelers who brought a four-legged friend along for the stay. The Conrad is a pet-friendly hotel, though you’ll have to pay a $75 nonrefundable fee.

Our French bulldog received a water bowl and Conrad-branded bandana for the visit.

Being in the middle of a concrete-dominant city neighborhood, finding pet relief areas wasn’t the simplest experience, but there are grassy spaces within a block or two in each direction.

How to get to the Conrad Washington, DC

The hotel is located along New York Avenue between 9th and 10th streets Northwest.

MetroCenter, the DC Metro system’s central-most station, is just three-tenths of a mile from the hotel. The station connects to Ronald Reagan Washington National Airport (blue line) and, at long last, Washington Dulles International Airport (silver line).

MetroCenter is also just a few stops from Union Station, serviced by Amtrak and commuter trains, including those arriving from Baltimore/Washington International Thurgood Marshall Airport.

Is the Conrad Washington, DC a good hotel?

While the Conrad Washington, DC’s proximity to D.C. landmarks and comfortable accommodations make it a great option for any visitor to the U.S. capital, the value we enjoyed as an AmEx Fine Hotels and Resorts guest made the stay stand out.

Add in complimentary premium Wi-Fi and and a guaranteed 4 p.m. checkout that allowed us some morning museum visits before leaving town, and there’s no doubt the perks add up.

(Top photo courtesy of Sean Cudahy)

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com

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A Mediterranean-inspired mansion in Southlake, Texas — a suburb of Dallas/Fort Worth known for its high quality of life and affluent resident base — has recently hit the market, reminding us all that everything is bigger (and better) in Texas.

Priced at $1,899,900, the custom-built home is the epitome of modern elegance, and offers plenty of space, a sleek design, and luxurious finishes. Frank Capovilla with Coldwell Banker Realty’s Southlake office holds the listing.

While a budget of under $2 million will buy you little in a crazy expensive real estate market like Los Angeles, in Southlake, TX — if this property is any indication — you get 4 bedrooms, 4 full baths and 1 half-bath, a stately great room with 25-foot ceilings, and a 2-car garage.

Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty
Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty
Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty
Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty

This, of course, has not gone unnoticed.

The mass Cali exodus of the past few years has seen some of the biggest celebrities move to Texas, with household names in sports, entertainment, and arts now calling the Lone Star State home.

The Southlake house also comes with an expansive gourmet kitchen and an executive home office, offering the perfect balance of style and convenience.

Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty
Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty
Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty
Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty

The primary suite steals the show with its jaw-dropping Chanel-like master closet, a haven for fashion enthusiasts.

Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty
Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty
Photo credit: Photo credit: Shoot2Sell Photography courtesy of Coldwell Banker Realty

Outside, a fireplace patio provides a perfect spot to enjoy the picturesque views of the Greenbelt ranch and serene pond. There’s also plenty of space for future owners to add a pool and create their own backyard oasis.

Other notable features include 2 balconies, 2 outdoor patios, an oversized sun deck, an outdoor kitchen with a gas grill BBQ, a game room with a wet bar and wine fridge, and smart everything: oven, refrigerator, HVAC, sound system, garage door system and more.

More Texas homes

Joe Rogan’s house in Austin is a $14.4M lakeside retreat (PHOTOS)

Mark Cuban’s million-dollar-mansions are the definition of luxury living

See inside Jensen Ackles’ house in Austin, a dreamy lake-side retreat

Source: fancypantshomes.com

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Bright, airy, all-white spaces have certainly had their moment in the sun, but as summer creeps toward fall, we’re noticing design trends take a darker turn. Just take Behr Paint Company’s pick for color of the year: a soft, sophisticated shade of black called Cracked Pepper. They’ve got the data to back up this pick, too. According to the press release, more than half of Americans say black tones give a home fresh energy and an updated vibe.

It’s not hard to see why this dark color is poised to overtake its brighter alternatives as the neutral du jour. Black has the same timeless, goes-with-anything appeal as lighter neutrals like white or beige—but without any of the danger of looking bland or boring. It’s sleek, dramatic, and a sure-fire way to punch up any color scheme.

Painting your walls jet-black is one way to try out this trend, of course. But if you’re not quite ready to dive in headfirst, these black home decor picks will help you dip your toes into darker waters:

7 Fall Home Trends You’re Going to See Everywhere This Season, According to Designers

Source: theeverygirl.com

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The Offer

Direct link to offer

  • Barclays is offering 100,000 miles on the Lufthansa Miles & More when you spend $3,000 and pay the annual fee within the first 90 days


Card Details

  • Annual fee of $89 (waived for Senator and HON Circle Members, as long as they maintain their Senator or HON Circle Member status)
  • Free annual companion ticket after annual fee is paid and on card anniversary
  • Card earns at the following rates:
    • 2 miles per $1 spent on all miles & more integrate partners
    • 1 mile per $1 spent on all other purchases
  • Free FICO score 
  • No foreign transaction fees
  • Two Lufthansa Business Lounge vouchers annually (note despite the name Business is their lowest class of lounge, senator is higher and 1st is their highest class of lounge)
  • 0% Introductory APR for 15 months

Our Verdict

Previous best was 80,000 points. This is an extra 20,000, surprised to see such a big jump. If you have a use of Lufthansa miles then this is definitely worth considering if not applying for, although I’d want to make sure I could use them ASAP to avoid any devaluation. We will add this to our list of the best credit cad bonuses. If you’re going to apply for this card then I’d also recommend reading our post on things you should know about Barclays before applying.

Hat tip to Philip

Source: doctorofcredit.com

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Well, it looks as if a foreclosure moratorium has made its way to the Sunshine state, though it’s not as cut and dry as similar proposals.

The program is voluntary, and relies on the member institutions of the Florida Bankers Association and the Florida Credit Union League to hold off on foreclosures and foreclosure sales for 45 days on primary residences.

At this point, it’s too early to tell who will be onboard, but it’s likely to get good support considering all the related action by larger lenders and individual states nationwide over the past few weeks.

Last week, ING Direct offered to suspend foreclosures until March, following similar action by Chase, Citi, and a number of other large mortgage lenders.

Fannie Mae and Freddie Mac have also put the freeze on foreclosures through the holidays, which should allow about 16,000 families to stay in their homes, at least in the short term.

Florida is one of the hardest hit states in terms of foreclosure activity, ranking third in rate of foreclosure (1 in every 157 homes) and second in number of foreclosure filings (54,324 in October), just behind California.

Default filings have plummeted in California thanks to a new piece of legislation that makes if more difficult for lenders to foreclose on borrowers.

The new law, SB 1137, requires lenders to spend more time and effort on making contact with at-risk borrowers before serving foreclosure papers.

It still remains to be seen whether any of these initiatives will have a lasting and meaningful impact, though a low mortgage-rate environment coupled with a bit of extra time could allow some to get into more affordable mortgages.

(photo: delta407)

Source: thetruthaboutmortgage.com

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Foreclosure filings were reported on 279,561 U.S. properties in October, a five percent increase from the previous month and a 25 percent increase from the same period a year earlier, RealtyTrac reported today.

However, thanks to recent legislation, foreclosure filings have dropped precipitously in key states, most notably, California.

In the Golden State, overall foreclosure activity was down by double-digit percentages for the second straight month, and default filings were a whopping 44 percent below year-ago levels.

Despite this, October marked the 34th consecutive month foreclosure filings have risen, with one in every 452 U.S. households receiving a notice during the month.

However, that streak may soon come to an end, as evidenced by the growing number of foreclosure prevention initiatives being carried out by both individual mortgage lenders and the government.

“While the intention behind this legislation — to prevent more foreclosures — is admirable, without a more integrated approach that includes significant loan modifications, the net effect may be merely delaying inevitable foreclosures,” said James J. Saccacio, CEO of RealtyTrac, in a release.

“And in the meantime, the apparent slowing of foreclosure activity understates the severity of the foreclosure problem in these states.”

As usual, Nevada, Arizona, and Florida posted the top state foreclosure rates, and each saw both a double-digit month-to-month and year-over-year increase, largely because no legislation is in place to artificially slow the pace.

Webster Bank Extends Foreclosure Moratorium

Webster Bank has become the latest mortgage lender to freeze foreclosures, placing a 90-day moratorium on Webster-owned mortgages and expanding its mortgage assistance program to carry out more loan modifications.

The bank will temporarily suspend foreclosure activity for a minimum of 90 days for all qualified borrowers who are more than 30 days in arrears as of November 4, who own their home as a principal residence and are able to document income to support an affordable mortgage payment.

Webster joins a growing number of banks and lenders who have recently pledged similar support, including both Citi and Chase, who initiated like programs over the past week and change.

(photo: johncohen)

Source: thetruthaboutmortgage.com