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Home prices continued rising at a restrained pace nationwide, both monthly and annually, but regional breakouts indicate some trouble spots, according to May’s Federal Housing Finance Agency House Price Index report.

For the second consecutive month, values rose by a seasonally adjusted 0.7% compared to the month before, while on a year-over-year basis, they were up by 2.8%.

“U.S. house prices increased moderately in May, continuing the trend of the last few months,” said Nataliya Polkovnichenko, supervisory economist in FHFA’s Division of Research and Statistics, in a press release. “However, house prices in some regions of the country remained below the levels seen one year ago.”

In the Pacific region, prices declined 1.7% from a year ago, although when compared with April, they were 1.7% higher. That was the largest month-to-month growth among the nine regions.

Meanwhile, the Mountain states reported a 2.7% value drop compared with May 2022, although they rose 0.3% over April.

The only region where prices fell in May from April was the New England states, down 0.5%.

The FHFA uses seasonally adjusted purchase data from Fannie Mae and Freddie Mac. Prices rose 1.9% annually for the second quarter, Fannie Mae reported on July 17.

Meanwhile, the CoreLogic S&P Case-Shiller Index for May was down 0.5% compared with May 2022, the second month where nationwide prices were down versus the prior year. But month-to-month, the index was 1.2% higher unadjusted for seasonality; adjusted the gain was 0.7%.

The 20-city composite index was down 1.7% annually in May but up by 1.5% compared with April.

“While the annual decline reflects price drops that occurred in 2022, recent above-average price gains indicate an inflection ahead,” said Selma Hepp, CoreLogic’s chief economist.

“While home sales activity still continues to tell a tale of two markets: one of the West, which is constrained by a lack of existing inventory, and the other of the Southeast and South, where the availability of new homes for sale is creating sales opportunities; home prices are not necessarily following the trend anymore,” she said.

CoreLogic’s own Home Price Index rose 1.4% annually and 0.9% month-to-month in May. It is predicting 4.5% growth in prices through May 2024.

On an unadjusted basis, prices rose in all 20 markets, but there are regional differences, said Craig Lazzara, managing director at S&P Dow Jones Indices.

This month’s league table shows the Revenge of the Rust Belt, as Chicago (+4.6%), Cleveland (+3.9%), and New York (+3.5%) were the top performers,” Lazzara said in a press release. “If this seems like an unusual occurrence to you, it seems that way to me too. It’s been five years to the month since a cold-weather city held the top spot (and that was Seattle, which isn’t all that cold).”

The worst performers were Seattle, down 11.3% and San Francisco, down 11%.

The rise in mortgage rates in early July, with Freddie Mac’s survey coming within 4 basis points of 7% for the 30-year fixed, is likely to plateau any gains in home prices going forward, the CoreLogic S&P Case-Shiller release said. But that will be countered by the inventory shortage.

“Heating of competition among buyers is also reflected in an increasing share of home selling over the asking price again, 39%, compared to an average of 25% pre-pandemic,” Hepp said. “As a result, the median price premium (ratio of sale price to list price) is back to positive, at 1%, after declining since last September.”

Source: nationalmortgagenews.com

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Today the Census Bureau reported that in March 2021, new home sales were at a seasonally adjusted annual rate of 1,021,000. This number beats estimates.

Additionally, major positive revisions were made to the sales number of the previous months. I expect this month’s headline to be revised lower a tad next month, but even considering that, this report was the best new home sales report in over a decade. The headline number was solid, the revisions were all positive, and the monthly supply on a three-month average is below 4.3 months. 

New home sales get impacted much more than existing home sales by movements in mortgage rates. Mortgage rates from 4.75% to 5% created a supply spike in 2018. At that time, we worked from the weakest new home sales and housing starts recovery ever, and sales were not high, historically speaking. My forecast for the bond market was that it would fall in 2019, and if world growth slowed down, the 10-year yield would get below 2%. This would drive mortgage rates much lower than the 5% levels of 2018. 

As you can see below, today’s monthly supply looks much different from what it did at the start of 2020. Demand is better now than any time from 2008-2019. During that period, we never had a monthly supply below 4.3 months with rising sales.

The most critical housing data line to follow in this housing market is the trend in monthly supply for the new home sales market. When the monthly supply is 4.3 months, and below, builder confidence is high. When supply is between 4.4 to 6.4 months, builder confidence is just meh for new construction. As long as new home sales can grow, construction can happen.

When supply is 6.5 months and over, builders will pull back from construction because demand no longer warrants more construction. The baseline supply I use to gauge conditions is a three-month average. We are currently at 3.86 months. For the last three months, supply has been 3.6, 4.4, and 3.6 months. When demand for new homes is really good, the monthly supply should be this low; we didn’t have this from 2008-2019, hence why housing starts grew slowly like how my tortoise moves from room to room. 

Remember that new home sales and housing starts can vary widely month to month, and those numbers are highly susceptible to revisions, both positive and negative. We are likely to get some negative revisions to the numbers in this report, so it is more helpful to focus on the trend. The trend is your friend.

As long as the monthly supply stays below 4.3 months, like what we had for a good portion of 1996 to 2005, builder confidence will remain high, and they will continue to build. I don’t consider the housing data from before 1996 because too much has changed for those numbers to be relevant to our current economic models. The U.S. economy is more mature and developed than it was from 1960 to the 1990s.

In 2020 to 2024, the biggest tug of war in housing will be between good demographics driving demand and home-price increases suppressing demand when mortgage rates rise. The COVID-19 pandemic has caused the bond market and mortgage rates to be lower than they should be considering current economic conditions. The resulting low mortgage rates have been a blessing for the builders, especially considering the other challenges they face, like skyrocketing lumber prices. 

In the current market, low rates are beating lumber prices in that particular paper-rock-scissors game that we are playing. New home sales aren’t working from the low levels we had from 2008 to 2019. New home sales in the years 2020-2024 are an entirely different ball game. Monthly supply levels will be your best guide to where the market is going.

I believe the hostile impact lumber prices will have on-demand in 2021 are overstated, as we can see in the data in the past few months. Lumber prices are a big issue for the entire housing market — not just for the builders but also rehabbers and flippers. Out of all of these, builders are the most capable of handling the high prices.

Homebuilding may be suitable for the public, but it is not a public service. Those who are in the business of rehabilitating homes for sale or rent are in the industry to make money — and won’t take on these projects if the cost of materials eats all the profits.

It will be a great blessing for lumber prices to come down, but we don’t see hints of that happening just yet. When mortgage rates rise, and lumber prices remain high, builders’ confidence will drop, and we can expect a slowdown in new construction. If we do get a big infrastructure plan, labor costs for construction will also increase, eating even more into the builders’ profits. These are things to look out for in the future because we always want to be mindful of the future but not lose focus in the current moment.

The new home sales sector is much different than the existing home sales sector. New homes have all the bells and whistles and are more costly, so the average new home buyer tends to be older and better off financially than the average existing home buyer. This new home sector can’t compete with the existing home sales market in terms of price, so when mortgage rates increase, it’s more of a significant disadvantage to the new home sales market.  

However, as we can see, this is not the case today or in the past year. This is one aspect that doesn’t get spoken about too often. We did come from the weakest housing recovery ever, so the production of homes and new home sales weren’t working from an overheated speculative market. The demand for new homes and housing starts from 2018-2021 looks nothing like what we saw from 2002-2005. This is also similar to what we see in the existing home sales market, but we have home price gains as if mortgage demand was as hot as 2002-2005. I did talk about that issue on Bloomberg Financial today and wrote about it yesterday on HousingWire.

We just need to be mindful that we are enjoying some real solid economic data without the consequences of higher mortgage rates and bond yields. At some point in the future, this won’t be the case. Until then, let the monthly supply data guide you as it has guided me for many years.

Source: housingwire.com

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Homeowner Marie Cantu, 35, lives just outside of Seattle, and has been looking to buy a single-family home outside of Boston to be closer to her family.

The mom-of-five has been “seriously looking” for three-bedroom homes for the last six months. Cantu is hoping to rent her home in Washington, and move roughly before the school year starts, so that her children can adjust better to the new neighborhood. Cantu, a stay-at-home mother, homeschools her children. 

Higher rates make housing more expensive — and less affordable — for aspiring homeowners. They have also been a major factor in keeping would-be home sellers out of the housing market.

On Wednesday, the U.S. Federal Reserve raised the benchmark rate by 25 basis points in line with most Wall Street economists’ expectations, making it the 11th rate hike among the last 12 Fed meetings. The benchmark rate has now reached a 22-year high of 5.25%-5.5%. 

Cantu is fortunate in that she isn’t in a position where she has to sell her home. Her home, which she bought for $700,000, is fully paid off.

She is looking to buy with cash and a partial mortgage at the prevailing mortgage rate. She said that her “ideal” rate would be 3% to 4%, but acknowledges that those rates were historic lows seen during the pandemic. But Cantu said she has accepted higher rates as the new normal, given that the 30-year mortgage interest rate is now hovering just over 7%, more than double what it was two years ago. 

But the house search recently hit a major speed bump. Cantu told MarketWatch that she put an offer in a couple of weeks ago on a home — the only time she got close to buying a home she really wanted — she was outbid. “It was listed at $699,000,” Cantu said, and she offered $715,000. “And someone outbid us,” she said.

Cantu’s brush with the hot post-pandemic housing market — where inventory has been so low that home buyers are once again competing with each other to buy homes — reveals how mortgage rates have pushed the U.S. housing sector into a fundamental supply-and-demand problem.

Demand continues to remain steady as home buyers adjust to the new normal of higher rates. But housing inventory is at a record low, with under a million single-family homes listed for sale on the market. 

The lack of homes is due to the fact that the vast majority of homeowners currently have a 30-year mortgage — well below today’s rate of 7%. They have little reason to sell, as doing so may require them to purchase another home with a much higher mortgage rate. 

“‘I don’t think people should expect mortgage rates to go back to the 3% range. We have short-term memories when it comes to where rates were before COVID.’”


— Melissa Cohn, regional vice president at William Raveis Mortgage.

The 30-year was averaging at 7.04% as of Wednesday morning, according to Mortgage News Daily. Mortgage purchase applications, which gives insight into how many people bought a home with a mortgage, fell 2.5%, according to the Mortgage Bankers Association. 

According to the Atlanta Fed, high rates and home prices across the nation have pushed the cost of homeownership up sharply since the same period last year. For a family earning a median annual income of around $76,000, purchasing a median-priced home of $357,000, they would have to spend 41% of their income on housing, the Fed calculated.

Experts advise home buyers to forget what they saw during the pandemic when it came to rates. “I don’t think people should expect mortgage rates to go back to the 3% range,” Melissa Cohn, regional vice president at William Raveis Mortgage, told MarketWatch. “We have short-term memories when it comes to where rates were before COVID.”

For those who are keen to sell their home or buy three years after a pandemic pushed rates to record-low levels, they should temper their expectations. “We’re not going to see mortgage rates back down to 3% ever in our lifetimes — it’s simply not in the cards,” Lisa Sturtevant, chief economist at Bright MLS, told MarketWatch. “Unless something catastrophic happened again.” 

The good news: rates are expected to fall over the next few years, just not to the most recent low of 2.71% in December 2020. In its July housing forecast, Fannie Mae said it expects the 30-year to go below 6% at the end of 2024. While many homeowners and homebuyers may feel discouraged by that forecast, experts said people will likely acclimatize to a higher interest-rate environment, as people’s circumstances change and selling becomes more imperative. 

What’s a ‘normal’ mortgage rate for home buyers?

Just how low do rates need to go to push people to get back to the property market? 

Americans will have to adjust their expectations, Cohn said. “A buyer will say to you that the rate has to be 3% — but that’s not the reality,” she added. “We have to take the rate during the pandemic out of the equation in order to go back to a healthy real-estate market.” 

A healthy real-estate market would look much like the U.S. housing market between 2015 and 2019, she added, when rates were between 3% and 5%. “That was at a point when rates were low enough that people were like, ‘It’s a good deal. I can afford this,’” Cohn explained.

A more realistic range for the 30-year fixed rate that could be helpful for home buyers would be between 4.75% to 5.25%, Matthew Ricci, a Rhode Island-based home-loan specialist at Churchill Mortgage, told MarketWatch. Within this range, “you will start to see an increase in inventory,” he added.

Recent research suggests that the 30-year falling to a “magic” rate of 5.5% would be enough to push more home buyers to purchase homes, according to John Burns Real Estate Consulting in April.

The company surveyed over 1,300 homeowners and renters, and found that 71% of prospective buyers who plan to buy their next home with a mortgage said they are not willing to accept a rate of over 5.5%. In fact, 62% said that they believe a “historically normal mortgage rate” is less than 5.5%.

What mortgage rate will encourage homeowners to sell — and buy again?

On the flip side, what will it take for homeowners — who are not going to buy another house with all-cash — to sell their homes and for the number of new listings to increase? 

Sturtevant said that a fixed rate below 6.5% for the 30-year could tempt homeowners to start selling, particularly if they are leveraging the significant rise in house prices over the last three years and using equity in their home to reduce the size of their next mortgage.

Many homeowners who sell may be able to tap the proceeds from the sale of their current home to pay for a new one. A first-time buyer, on the other hand, will have to borrow a six-figure mortgage at 7%.

So as rates approach 6%, “I think we’re going to start to see new listing activity begin to increase here in the second half of the year,” she added. 

Sturtevant noted that homes — like Cantu’s home in the Seattle metro area — have appreciated considerably in value over the last few years. Homeowners can, therefore, use that equity if they choose to sell. 

“‘Nobody’s going to be thrilled about trading in their super low mortgage rate for something above 6%, but their home buying and selling is about more than just finances.’”


— Lisa Sturtevant, chief economist, Bright MLS

What’s more, finances and interest rates are just part of the equation. “Nobody’s going to be thrilled about trading in their super low mortgage rate for something above 6%, but their home buying and selling is about more than just finances,” Sturtevant said.

“There are a lot of families and individuals out there living in homes right now that just aren’t right for their families,” she added. Empty nesters, for example, are more likely to be focused on retirement, and may want to downsize to a smaller property with a small mortgage or, indeed, no mortgage at all. In that case, selling up might make sense. 

Others, like Cantu, are renting their current home and buying another, Cohn said. Some “have very low rates, so they can make a very good margin on rental income,” she added.

Ricci said the majority of his clients are either first-time home buyers, people relocating for work, or landlords who are cashing out. “Most people aren’t going to sell unless they have a need to sell,” he said. “Or they’re in a situation where they have multiple properties.”

Cantu, the homeowner from Washington, bought her current home with her husband — who passed away in 2021 — for $700,000. She said that real-estate brokerages estimate that her house is now worth close to $1.2 million. But she still isn’t keen on selling. 

“I don’t want to just cash out to a developer for $1.2 million. I would love to just rent my house for a reasonable price to a family who needs it,” Cantu said. What kind of tenant would she like to get? “Someone who is just priced out of here because it’s gone crazy the last four years,” she said.

But being outbid on her first offer forced Cantu to reckon with the tough housing market. “It was a little crushing because I realized I’m probably gonna have to get a place that needs some work,” she said. 

“It was discouraging,” Cantu said, ‘but I’m going to keep looking.” 

Source: marketwatch.com

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Mr. Cooper’s chairman and CEO, Jay Bray, said the company delivered “strong margins in both servicing and operations, while Xome generated higher sales this quarter.”

Bray said Mr. Cooper is working on three strategic initiatives: drive further reductions in costs, which will help to generate greater operating leverage and deploy capital to portfolio growth; improve the direct-to-consumer platform contribution to the overall profitability, exploring new products; and grow the subservicing business, which provides incremental income, including gain on sale from recapture without tying up capital or liquidity. 

The company’s servicing portfolio ended the second quarter with a pretax operating income of $182 million, compared to $157 million in the previous quarter. Based on these results, executives said Mr. Cooper raised its full-year guidance for operating income by 17%, from $600 million to $700 million. 

Mr. Cooper had 4.3 million customers and $882 billion in unpaid principal balance (UPB) at the end of June, compared to $853 billion at the end of March. The servicing portfolio grew because of Rushmore’s special servicing platform acquisition, which brought about 300 employees to Mr. Cooper. 

Other deals may bring the servicing portfolio to $957 billion, including $83 billion from the acquisition of Home Point Capital and $25 billion in pending bulk acquisitions, executives said. 

The Home Point deal is expected to close in the third quarter, with loans onboarding in late 2023 or early 2024, executives told analysts. On Monday, Heisman Merger Sub, Mr. Cooper’s subsidiary, extended the expiration date of its offer to acquire all of Home Point’s outstanding shares of common stock for $2.33 per share. 

“We continue to see a buyers market for MSRs, with plenty of attractive pools trading at unlevered pretax yields in the low double digits for conventional loans, and even higher for Ginnie Mae, which is exactly what we guided you to expect when we shared our proprietary forecasts late last year,” Chris Marshall, vice chairman and president, told analysts. 

According to Marshall, “We’re now seeing a sharp increase in regional banks bringing MSR pools to market,” and one of the reasons is the expected new capital requirements for these financial institutions. 

Regarding its subservicing business, Mr. Cooper is in the process of launching an MSR Fund. “We’re expecting our acquisition of the platform company to close in the third quarter subject to regulatory approval, positioning us to begin a fundraising campaign in the fourth quarter,” Marshall said. 

Mortgage originations 

Mr. Cooper’s origination business, which focuses on acquiring loans through the correspondent channel and refinancing existing loans through the direct-to-consumer channel, delivered $38 million in pretax operating income, compared to a $23 million net income in the previous quarter.

“During the quarter, we saw continued outstanding execution by our DTC platform and somewhat more rational competition in the corresponding channel,” Marshall said. “However, with mortgage rates hovering at 7%, we’re going to keep our guidance unchanged at $20 to $30 million [net income] per quarter.”

Mr. Cooper’s funded volume increased to $3.8 billion in the second quarter of 2023 from $2.7 billion in the previous quarter. 

Direct-to-consumer originations reached $1.6 billion, compared to $1.4 billion in the previous quarter. Meanwhile, according to executives, the correspondent channel was responsible for $2.2 billion in Q2 2023, compared to $1.3 billion in Q1 2023, due to more rational pricing. 

Mr. Cooper had strong second-quarter earnings, said a team of equity analysts at Jeffries. 

“While volumes in the originations segment improved, ancillary revenues in servicing primarily drove the beat,” the Jefferies analysts wrote in a report. “As COOP is now occupied with closing the HMPT acquisition, we anticipate the company taking a step back from the bulk market in the N/T.” 

At BTIG, analysts said it was a “good quarter,” reflecting the benefit of slow prepayment speeds and significant operating leverage.

“We think earnings visibility has strengthened as the company has further scaled its servicing portfolio, and the expense load appears relatively well-calibrated for the current interest rate environment. We also see enough liquidity to support additional bulk MSR purchases, as banks, in all likelihood, will be net sellers of servicing over the foreseeable future.”

To support its acquisition mode, Mr. Cooper said it has strong liquidity. The company had $2.2 billion in liquidity at the end of June, including $517 million in unrestricted cash.

Mr. Cooper’s share was trading at $57.17 on Wednesday around noon, up 5.73% from the previous closing. The firm’s board of directors has authorized stock repurchases of $200 million. 

Source: housingwire.com

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Following a short breather with a pause last month and after 10 consecutive rate hikes, the Federal Reserve instated its eleventh increase since March 2022. The decision was announced after its two-day Federal Open Market Committee (FOMC) meeting.

Fed officials, in a unanimous — and much expected — July 26 decision raised interest rates by 25 basis points, taking the benchmark borrowing costs to their highest level in more than 22 years, as CNBC reported.

“Inflation remains elevated,” the Fed declared in a statement. “The Committee will continue to assess additional information and its implications for monetary policy.”

This new hike will have several consequences for consumers, many of whom have been facing financial pressure on several fronts.

One such consequence is a likely effect on mortgage rates, as questions arise as to what this new development means for homebuyers.

Home Prices Are Rising, Purchasing Power Is Declining

The combined impact of higher rates and higher home prices has driven the cost of financing the typical listed home up more than $250 (or 12.4%) from a year ago. Further, the cost of financing that home is up more than $1,100 from June 2020, nearly doubling the cost in three years, per Realtor.com chief economist Danielle Hale.

Hale said that higher mortgage rates cut into homebuyer purchasing power and have been an important brake on existing home sales, falling from a more than 6.5 million unit pace in early 2022 to the 4.2 million unit pace in recent months.

“Perhaps more importantly, higher mortgage rates change the trade-up calculation for existing homeowners and are keeping as many as one in seven out of the market because they don’t want to give up their existing low rate,” said Hale.

“As a result, I expect the number of homes for sale to decline this year, and continue to be a damper on home sales. Limited inventory is also keeping prices high even though housing affordability has deteriorated significantly in the past three years.”

Soaring Mortgage Rates Lock Would-be Sellers in, Triggering Increased Short Supply

Mortgage rates are double from where they stood a couple years ago. As of July 26, the current average 30-year fixed mortgage interest rate is 7.12%, according to The Mortgage Reports’ daily rate survey.

As Ted Rossman, senior industry analyst at Creditcards.com, said, at the end of 2021, that figure was just 3.27%. Further, during this rate-hiking cycle, mortgage rates have eclipsed 7% a few times, something we hadn’t seen since 2002 — akin to a 33% rise in home prices.

“And speaking of home prices, they have remained stubbornly high in large part because of low inventory. A lot of people aren’t moving because of the ‘golden handcuffs’ of a 3% or 4% mortgage rate they secured a few years ago,” said Rossman.

Rossman added that mortgage rates probably need to go below 5%, if not even lower, to stimulate a meaningful change. He noted, however, that there is also an element of “be careful what you wish for,” since a rapid drop in mortgage rates would probably only be caused by an economic downturn.

“The housing market will likely need to adjust to a ‘new normal’ of rates in the 6-7% range for a while, gradually coming down to 5-6%,” he concluded.

This analysis comes amid an already difficult market for homebuyers. Earlier this month, a Redfin report found that just 1% of the nation’s homes have changed hands this year — translating into prospective homebuyers having 28% fewer homes to choose from than they did before the pandemic upended the U.S. housing market.

When Will the Real Estate Market Turbulence Change Course?

Dottie Herman, vice chair and former CEO of Douglas Elliman, echoed the above sentiments. She said homeowners are not going to move and pay the current mortgage rate, which is around 7%, when they locked in at a much lower rate during the pandemic. Yet, Herman believed there will be some movement in 2024 as rates come down and people start to buy again.

“Millennials in particular believe in home ownership and are just waiting for a more favorable time to buy. Since the pandemic existing home prices have gone up 40% but recent homebuilder confidence has boosted new construction 20% since last year,” said Herman.

All in all, the rise in mortgage interest rates will continue to put pressure on affordability for would-be homebuyers.

However, given the lack of housing inventory, many will either adjust their budgets, search for lower-priced homes or remain renters, said Haseeb Rahman, portfolio manager at Palisades.

“Some homebuyers will have to decide whether to buy their dream home today and absorb the higher interest rates in hope of refinancing if rates decline in the future (i.e., ‘marry the house and date the rate’) or wait out the current market environment for lower rates and, perhaps, higher prices,” added Rahman.

A Silver Lining?

According to Michele Raneri — vice president and head of U.S. research and consulting at TransUnion — while the mortgage market may continue to be slow, it remains to be seen whether cooling inflation may help motivate consumers who had been holding off due to increasing cost of living.

“This remains an unpredictable market when it comes to mortgages,” said Raneri.

“Mortgage rates are, in fact, high, but at the same time, we have continued to see an improvement in other metrics such as unemployment, which lends to optimism. Ultimately, even as mortgage rates remain higher than we have seen in recent history, consumers may well become impatient as they wait on buying their first, or their next, home, and may re-engage with the market sooner than later.”

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Source: gobankingrates.com

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Another day, another affordable home loan program launches, this time “OneDown” from Guaranteed Rate.

As the name implies, you only need to put 1% down when purchasing a home, which is about as close to zero as it gets.

If you’re wondering why lenders are offering such mortgages, it comes down to affordability, or a lack thereof.

Home prices remain at or near all-time lows, despite some pullback a few months back.

And mortgage rates remain stubbornly high, with the 30-year fixed close to 7%.

Guaranteed Rate OneDown: Their 1% Down Home Purchase Loan

If you’re in the market to buy a home, despite those pesky high interest rates (and home prices), you might be feeling a little stretched.

To alleviate some of that burden, Guaranteed Rate has joined other lenders in launching a 1% down mortgage, which they call OneDown.

As you may or not know, Fannie Mae and Freddie Mac offer loans with just 3% down, such as HomeReady and Home Possible.

But apparently that is still too much for some buyers, so Guaranteed Rate is chipping in an additional two percent contribution towards that down payment.

They will provide 2% or up to $2,000 (whichever is lower), meaning you’ll probably get the full $2,000 in most cases unless you’re buying a sub-$100,000 home? I don’t think those exist anymore.

On top of that, OneDown also provides borrowers with a $1,000 contribution toward their lender fees, such as underwriting, processing, origination fee, etc.

So you can reduce your cash outlay at closing via a smaller down payment and fewer closing costs.

Who Qualifies for Guaranteed Rate OneDown?

If the program sounds interesting, let’s talk about qualifying.

Like many other homebuyer assistance programs, this is geared toward first-time home buyers.

That means you can’t currently own a home, and it must have been three years since you owned a home in the past.

And while no geographic restrictions apply, there are income limits. Your area median income (AMI) must be under 80%, which you can look up here.

Additionally, the loan must be for the purchase of a primary residence. No second homes or investment properties.

The property itself must be a single-family residence or condo/townhouse. It’s unclear if multi-unit properties are permitted.

You must also contribute a minimum of 1% down payment from your own funds, and you’ll likely need at least a 620 FICO score.

Lastly, at least one borrower (assuming there are multiple) must complete a homebuyer education course if all occupying borrowers are first time home buyers.

I believe the $3,000 ($2k down payment and $1k closing costs) comes via a grant and lender credit, meaning it doesn’t need to be paid back.

But always verify with the company itself before moving forward.

Tip: You may be able to combine this offer with a seller paid temporary buydown as well to lower your monthly payment too.

Is Guaranteed Rate OneDown a Good Deal?

While it’s nice to get some financial assistance, Guaranteed Rate isn’t alone here. There are several other lenders offering similar deals.

For example, Guild Mortgage 1% Down Payment Advantage is basically the same deal, but with up to $5,000 in down payment assistance. That’s up to $3,000 more than Guaranteed Rate.

The difference is they offer a 1% temporary buydown instead of the 1% lender credit toward closing costs.

Then there’s Rocket Mortgage ONE+, which comes with a 2% grant as well and mortgage insurance at no cost to the borrower.

Another possible winner is the new U.S. Bank Access Home Loan, which offers up to $12,500 in down payment assistance and a lender credit up to $5,000. But it has geographic restrictions.

You also find similar deals in your local city or state that provide a non-repayable grant. So be sure to check those options as well.

Ultimately, if you plan to use Guaranteed Rate anyway, this is a bonus $3,000 in value assuming you max it out.

And that could make the dream of homeownership a little bit easier, especially with mortgage rates and home prices so high at the moment.

Just always take the time to compare options, and consider the big picture, including mortgage rate, lender fees, and so on.

It might be possible to find a different lender that charges less, thereby saving you money a different way.

Source: thetruthaboutmortgage.com

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Inside: Want to know what is a rack of money? You are in the right place. Learn the slang to rack, stacks, and bands. Plus tips to have your rolling in the money.

Have you ever wondered how much money is in a “rack” or what a “band” or “stack” of cash actually is?

If so, you’re not alone.

These terms are often used in movies and TV shows to describe large sums of money, but they can be confusing if you’re not familiar with them.

In this post, we’ll demystify some of the most common slang terms for money so that you can sound like a pro next time someone asks you how much a “rack” is worth.

Also, we will give you tips to make sure you are making 1000 a day.

What is a Rack of Money?

Simply put, a rack typically refers to $1,000.

Picture this: you’ve got ten $100 bills neatly stacked and bound together. That’s a rack.

Now, if a friend tells you, “I need three racks for a down payment on a car,” they’re saying they need $3,000. Easy to grasp, isn’t it?

Just remember, song lyrics might’ve switched things up a bit, but in real-world slang, a rack is a cool grand.

So next time you hear “rack,” you know it’s all about that thousand-dollar action.

How Much Is a Rack of Money?

“A rack” is a popular slang term for $1,000, usually in the form of ten $100 bills bundled together.

Don’t be overwhelmed, it’s just street language for stacks of hundred-dollar bills.

So, whether you’re saving for a dream vacation or splurging on a new gadget, just remember to play it cool and count those racks!

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What is a band of money?

Ever heard of the term “band” and wondered what it means in the context of money?

Well, a band is simply slang for $1000 in cash, usually bundled together with a rubber band. Here’s a breakdown:

  • It originates from the band used to hold a stack of cash together.
  • The term is also widely used in pop culture, specifically in rap songs to signify wealth.
  • If the band contains more than $1,000, it’s prefixed with the amount. For instance, a “10G band” means $10,000.

So if you stumble upon a phrase like “He’s flaunting a lot of bands”, it just means he’s flashing quite a stash of cash, probably in the club or jamming along to a hit rap song.

how much is a stack?

Ever heard someone saying they’ve got a ‘stack’? Let me break it down for you.

In the world of ‘money slang’, a ‘stack’ literally refers to a bundle of cash. Specifically, it’s a colloquial term for $1,000.

Here’s a quick bullet-point breakdown for clarity:

  • A ‘stack’ is slang for $1,000, typically in cash.
  • The term has its roots in the practice of actually stacking cash, but today, it’s used mostly in an abstract sense.

To give you an example: if you made a quick $5000 from a side gig, you’d casually say, “I made five stacks on my gig last week.” Now there you have it, you’re one step closer to mastering ‘money slang’!

Now, time to make 5000 dollars fast yourself.

Picture a real stack of money in hand

Now, let’s go on a visual imagination and bring those money affirmations to real life.

Let’s start…

  • You desire a real-life “rack” of money. Or maybe even 10 racks in your life.
  • Your eyes are drawn to a thick bunch of crisp $100 bills, bound together by a clean, white currency strap.
  • Meeting your gaze, shining under the light, are the majestic portraits of Benjamin Franklin galore, symbolizing the high-value of the stack.
  • Held firmly in hand, the image invokes feelings of prosperity, power, and accomplishment.
  • Each detailed texture and precise print on the bills reiterate authenticity, and the sequential serial numbers on the top bill tell a story of fresh prints.
  • This tidy, impeccably stacked rack, with ten $100 bills, effortlessly communicates, “Hello, I’m $1000!”

The first step to achieving financial independence is believing you can.

Make sure you put your stack of money as one of your vision board pictures.

How much does a rack cost versus a band?

Hey there, let’s talk about racks and bands. You probably heard these razzle-dazzle slang terms in music or pop culture, right?

Well, when it comes to costs, they’re actually identical.

A rack equates to $1,000. In equivalent terms, a band is also $1,000, often bundled up in crisp bills.

Let’s take a peek at a comparison chart to make things clearer:

Term Cost Equivalent
Stack of Money $1,000
Rack $1,000
Band $1,000

See how they match up? Next time you hear these terms, you’ll know exactly what’s up!

Learn how much cash should I have on hand.

How to Make a Rack Quickly

While this post focuses on various slang terms for money, Money Bliss is known for providing solid ideas to make money based on my expertise and experience in finance and the economy.

Most people enjoy learning how to make money online as a beginner.

Here are a few methods you could employ:

  • Sell Unwanted Items: If you have unused goods at home, consider selling them on online platforms like eBay or Facebook Marketplace. This could be anything from clothes and accessories to furniture and electronics. Check out Flea Market Flipper.
  • Freelance Work: Websites such as Upwork or Fiverr provide a marketplace for freelancers with varied skills. If you have proficiency in fields such as writing, graphic design, programming, or marketing, you could find plenty of work here.
  • Trading Stocks: Making money in the market is something people have done for many years! When buying stocks, the basic objective is to buy when the price is low and sell when the price is high. The value of stocks is typically influenced by a variety of factors including financial performance, economic indicators, and market sentiment. Check out this investing course.
  • Trading Options: Trading options can be risky but potentially profitable if done correctly, as investors can leverage a small amount of money to control a larger amount of stock. Potential investors should elaborate on their comprehension of the trading world before venturing into it which includes understanding the different types of investment products, their individual risks, and potential rewards. Learn how fast you can make money with stocks.

Are you passionate about words and reading? 

If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.

Check out this free workshop!

Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.

Find out TODAY if this is THE business you’ve been looking for.

  • Selling printables is a profitable venture that entrepreneurs can tap into. These digital products, including anything from calendars to artwork, offer a low-overhead business model since they require minimal materials and can be created once and sold repeatedly. It’s an efficient way to harness one’s design skills to provide value to customers while generating a promising income stream. Learn more about selling printables.
  • Gig Economy: Apps platforms like Uber, Lyft or DoorDash offer an opportunity to make money fast based on the time you are willing to invest.
  • Tutoring and Teaching: If you’re well-versed in a subject, offer tutoring services or consider teaching an online course. Websites like Chegg Tutors make it easy to start.
  • Be a Virtual Assistant: As a virtual assistant with no experience, you can anticipate managing various administrative tasks from a remote location, such as data entry, scheduling appointments, and even aiding with digital marketing efforts. This career path offers flexibility, the possibility to work from home, and the chance to work with entrepreneurs from different sectors. Use this virtual assistant checklist to get started.
  • Rent out Your Space: If you have an extra room or a property, consider listing it on Airbnb or a similar property rental site. This can become a significant source of income with small investments in the upkeep of the property.

Remember, it’s vital to choose an option that aligns with your skills and interests to ensure it’s not only a source of quick cash but also a sustainable and enjoyable endeavor.

You need to consider the legality and ethicality of the ways you choose to make money fast.

This is the perfect side hustle if you don’t have much time, experience, or money.

Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.

If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!

This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch. 

Time to Bring in Your Stacks of Money

Now that you know the lingo for money, you can impress your friends with your knowledge. Plus, you can use this new information for future reference.

In summary, the terms band, stack, and rack are used to represent these same amounts of money, particularly in slang context.

Usually, they signify $1,000 in cash, and the presence of more numbers indicates a multiple interest in this monetary sum.

Now, how many racks do you have? What are you doing to make money?

These are important aspects if you want to become financially independent.

Remember, keeping your money organized isn’t just tidy, it’s smart!

Next, up learn how much is 10 figures!

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

Apache is functioning normally

Lawmakers in Oregon are on the verge of signing into law new legislation that would impose statewide rent controls on landlords in the state.

The proposed bill is reportedly quite controversial, with numerous bodies coming out in opposition to it, including the National Multifamily Housing Council and the National Association of Realtors. They fear that rent controls could have a negative impact on housing markets, especially if other states follow suit.

“[The bill] will worsen the imbalance between housing supply and demand by allowing for rent control across the state,” Doug Bibby, president of the National Multifamily Housing Council, told USA Today. “While the intent of rent control laws is to assist lower-income populations, history has shown that rent control exacerbates shortages, makes it harder for apartment owners to make upgrades, and disproportionately benefits higher-income households.”

As for the NAR, it has become a vocal opponent of the legislation. It argues that the new law would infringe on private property rights, and says a better way to protect the rental market is through local and state zoning laws.

“NAR encourages states and municipalities to adopt zoning laws and building codes, or other legislation that encourage the construction of rental dwellings,” it said in a statement.

But the bill has plenty of supporters too, including Oregon Governor Kate Brown, who has vowed to sign the new rules into law. The bill passed Oregon’s senate last week, and will cap annual rent increases at 7 percent. The idea is to allow landlords to raise rents somewhat, while preventing them from price gouging, USA Today reported.

Supporters say that rent control is essential to address a lack of affordable housing in the state.

“With this historic vote, Oregon lawmakers have recognized that basic protections for renters are essential as the state and local communities work to increase the supply of housing for people with moderate and low incomes,” Patty Wentz of Stable Homes for Oregon Families told USA Today.

Oregon isn’t the first state to consider such measures, although the rules would differ across states. For example in New York, officials there say they’re considering extending New York City-style rent control measures to upstate residents. Meanwhile in California, although there is no statewide mandate, lawmakers do enforce limitations on local governments that want to enact rent control laws. Illinois is also considering repealing laws that currently prohibit rent control.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
Latest posts by Mike Wheatley (see all)

Source: realtybiznews.com

Apache is functioning normally

I’ve invested a significant amount of my personal capital (all of it..) into my own startups. But, never someone else’s company. Until a couple of months, that is.

I’m excited to announce I’m an angel investor in Resident Ventures, a company that hosts bespoke culinary experiences in unique, residential spaces.

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The back story: At CREtech New York last year, I met Brian Mommsen, the founder, and was instantly drawn to the blend of community, real estate, and hospitality — the three things I’ve spent my 15-year professional career obsessed with. It just so happened that the GEM was an enterprise community that could benefit from a next-gen networking experience. So, I proceeded to become a customer of theirs to produce a founders VIP dinner in NYC at the end of January. I was so blown away with the food + experience and raving feedback by attendees that not only is there another GEM founders dinner in the books (NYC Feb 2021, here we come)…. but I went on to make my very first angel investment in the company.

Further thoughts on Resident’s concept can be found here.

If you’re interested in reviewing the deck and/or discussing further, the round is still open. Looking for strategic real estate asset owners to participate, and/or anyone with a passion for food, hospitality, community & real estate.

Source: geekestateblog.com

Apache is functioning normally

Northwestern Mutual Leads Industry on Latest Forbes’ “Top Financial Security Professionals” and Best-in-State Lists MILWAUKEE, July 26, 2023 /PRNewswire/ — Northwestern Mutual announced today that an industry-leading 489 of its advisors earned a spot on Forbes‘ annual lists of top financial security professionals – the company’s strongest showing on this prestigious ranking since it debuted … [Read more…]