homes

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According to a report released today by real estate portal Zillow, nearly a third of U.S. homebuyers who purchased a property in the last two years are now underwater.

A troubling 39 percent of those who bought in 2006 and 30 percent who purchased a home in 2007 have negative equity, largely because home values continue to slide.

During 2007, single-family home values posted a year-over-year decline of 5.5 percent, while condos slid a record 7.4 percent.

To highlight the severity of the problem, only three percent of those who purchased a home in 2003 currently owe more than their homes are worth.

Homeowners were hit hardest in areas like California, Florida, Arizona, and Nevada, where home prices saw the worst declines and borrowers put little to nothing down.

In Las Vegas, home values dropped 13.8 percent year-over-year and 57.6 percent of those who bought in 2007, when the median down payment for the area was 5 percent, and 72.5 percent who bought in 2006 with a median down payment of zero, have negative equity.

“It’s important to remember that value declines and negative equity situations are largely unrealized effects for most homeowners unless they are in a situation where they must sell or withdraw equity immediately,” said said Dr. Stan Humphries, Zillow vice president of data and analytics.

“The decline in values, combined with the recent rate cuts by the Fed should make entering the market more attractive to would-be buyers, but we may not see any effects until the spring when the home shopping season usually kicks off.”

Humphries also noted that despite the recent record declines, the housing market has more room to fall.

“With consecutive declines over the past five quarters, we haven’t seen the housing market bottom yet, and it may very well get worse before things get better,” he said.

“Even many markets that have been largely insulated from recent declines, like some in the Pacific Northwest, reported notable value declines in the fourth quarter.”

(Photo: Lili Vieira de Carvalho)

Source: thetruthaboutmortgage.com

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A new mortgage help plan coined “Project Lifeline” was unveiled today by the Treasury Department and the Department of Housing and Urban Development.

The plan will assist borrowers who are 90 days or more past due on their mortgage, and will not be limited to high-cost subprime mortgage holders like previous plans targeted.

Borrowers with prime loans, Alt-A mortgages, fixed-rate loans, and second mortgages will also be eligible for assistance under the new plan.

Project Lifeline will allow seriously delinquent homeowners to delay foreclosure proceedings for 30 days while lenders attempt to work out new terms to avoid one.

“For many families, Project Lifeline will temporarily pause the foreclosure process long enough to find a way out. Loan modifications may follow. And, this program is not only available to subprime borrowers but to people with any kind of home mortgage,” said HUD Secretary Alphonso Jackson.

“There’ll be homeowners who still take no action and some will still walk away,” Treasury Secretary Henry Paulson said. “But some borrowers facing immediate foreclosures may find solutions.”

Letters will be sent out to homeowners more than 90 days behind on their mortgage, at which point the homeowner has 10 days to respond and provide additional financial information so the lender is able to determine new mortgage payment options.

It will initially involve major mortgage lenders like Bank of America, Citigroup, Countrywide, JPMorgan Chase, Washington Mutual and Wells Fargo, on a pilot basis.

The move comes as banks and lenders continue to take on huge losses related to the recent rise in foreclosure proceedings.

The plan is intended to supplement efforts already in place via programs like FHASecure and Hope Now, which offer some solutions to homeowners but leave many others with few places to turn.

“The sum total of these actions is a powerful correction to the downward spiral of the housing market. It will lead to a reversal of misfortune, saving homes and equity, providing necessary sanity and salvation for many families on the brink of foreclosure,” said Jackson.

It’s good to see that government officials are finally realizing that it’s not just a subprime crisis, but rather a complete overhaul that is needed.

(Photo: Mayr)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

Mortgage rates have been steadily dropping, and they fell even further this week. So far in December, 30-year mortgage rates have been holding steady below 7%. 

On Friday, the Bureau of Labor Statistics released the November jobs report, which showed that the labor market is strong but continuing to normalize.

This is good news for mortgage rates, since it means that the Federal Reserve will likely keep the federal funds rate steady at its meeting next week. Markets even believe we could see some Fed rate cuts next year, which would likely cause mortgage rates to go down in 2024. 

However, the effects of the Fed’s hikes over the past couple of years are still playing out, and inflation remains a bit elevated. As long as inflation and the labor market continue to cool, mortgage rates should as well. But Fed officials have said they are willing to hike rates further if necessary, which could push mortgage rates back up.

“The recent rapid decline in rates – in particular, the mortgage rate is down nearly 80 basis points since the end of October – along with continued job growth are beneficial for homebuyers; however, if labor markets remain this strong, we believe the pace of mortgage rate declines will likely not continue in the near term or may partially reverse,” Mark Palim, deputy chief economist at Fannie Mae, said in an email.

Mortgage Rates Today

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Mortgage Calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

Mortgage Calculator

$1,161
Your estimated monthly payment

Total paid$418,177
Principal paid$275,520
Interest paid$42,657
  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.

Mortgage Rate Projection for 2023

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022.

Rates have increased even further this year, though they may fall soon as inflation continues to slow. In the last 12 months, the Consumer Price Index rose by 3.2%, a significant slowdown compared to when it peaked last year at 9.1% in June.

For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of the best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.

Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans. 

When Will House Prices Come Down?

Home prices declined a bit on a monthly basis late last year, but we aren’t likely to see huge drops anytime soon thanks to extremely limited supply.

Fannie Mae researchers expect prices to increase 6.7% in 2023 and 2.8% in 2024, while the Mortgage Bankers Association expects a 5.7% increase in 2023 and a 4.1% increase in 2024.

Sky high mortgage rates have pushed many hopeful buyers out of the market, slowing homebuying demand and putting downward pressure on home prices. But rates may start to drop next year, which would remove some of that pressure. The current supply of homes is also historically low, which will likely keep prices from dropping.

Fixed-Rate vs. Adjustable-Rate Mortgage Pros and Cons

Fixed-rate mortgages lock in your rate for the entire life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.

So how do you choose between a fixed-rate vs. adjustable-rate mortgage?

ARMs typically start with lower rates than fixed-rate mortgages, but ARM rates can go up once your initial introductory period is over. If you plan on moving or refinancing before the rate adjusts, an ARM could be a good deal. But keep in mind that a change in circumstances could prevent you from doing these things, so it’s a good idea to think about whether your budget could handle a higher monthly payment.

Fixed-rate mortgage are a good choice for borrowers who want stability, since your monthly principal and interest payments won’t change throughout the life of the loan (though your mortgage payment could increase if your taxes or insurance go up).

But in exchange for this stability, you’ll take on a higher rate. This might seem like a bad deal right now, but if rates increase further in a few years, you might be glad to have a rate locked in. And if rates trend down, you may be able to refinance to snag a lower rate 

How Does an Adjustable-Rate Mortgage Work?

Adjustable-rate mortgages start with an introductory period where your rate will remain fixed for a certain period of time. Once that period is up, it will begin to adjust periodically — typically once per year or once every six months.

How much your rate will change depends on the index that the ARM uses and the margin set by the lender. Lenders choose the index that their ARMs use, and this rate can trend up or down depending on current market conditions.

The margin is the amount of interest a lender charges on top of the index. You should shop around with multiple lenders to see which one offers the lowest margin.

ARMs also come with limits on how much they can change and how high they can go. For example, an ARM might be limited to a 2% increase or decrease every time it adjusts, with a maximum rate of 8%.

Molly Grace

Mortgage Reporter

Source: businessinsider.com

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The Bush Administration has failed to implement a sweeping plan to tackle the ongoing mortgage crisis, according to governors who are in Washington for the annual National Governors Association Winter Meeting.

The group said in a release that the two mortgage aid plans currently extended to struggling borrowers fall short because they are confusing, exclude a large number of homeowners, and don’t have “any reporting system to monitor participation and efficacy.”

“Homeownership is a cornerstone of the American Dream and serves as a basic foundation for our local, state and national economies,” said New York Governor Spitzer. “The federal government has failed to offer a solution that is broad enough and swift enough to aggressively stop this crisis from escalating.”

They noted that the Fed’s aid plans don’t have straightforward guidelines for the types of loan modifications or workouts that would be offered to homeowners, stymieing efforts that would likely lead to a higher success rate.

“I urge the Office of the Comptroller of the Currency ( OCC ) to compel the national banks and servicers to work with state governors and regulators by providing detailed loan information about delinquencies and potential foreclosures so that states and local governments can accurately assess the foreclosure impact on citizens and their communities,” Arizona Governor Janet Napolitano said.

The governors also want the federal government to get involved with the individual efforts set forth by states across the nation to help solve the problem and create a safety net for the future.

“Maryland, like other states, is taking steps to preserve homeownership and protect its families from this national foreclosure crisis,” said Governor Martin O’Malley.

“But Maryland cannot go it alone. We need a strong partnership with our federal government, which includes passage of strong housing legislation, to help us keep our families in their homes and protect our middle class. The federal government has to work with our states to provide the tools necessary to overcome this national crisis.”

We all know that borrowers and mortgage lenders/servicers have a tough enough time connecting, so any added transparency would likely improve matters for everyone involved.

“The crisis in the sub-prime mortgage market has had a devastating impact on homeowners and entire communities across our country,” Illinois Governor Rod R. Blagojevich said. “In Illinois alone, it is possible that up to 70,000 homeowners will face foreclosure this year. A real solution will require lenders, consumers, advocates and public policy makers to all work together.”

Last week, Illinois unveiled the Homeowners’ Assistance Initiative, a program aimed at helping homeowners trapped in subprime adjustable-rate mortages refinance into fixed-rate mortgages by working directly with the lenders.

(photo: nictalopen)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Mortgage interest rates are down over the past week, marking the sixth straight week of rates decreasing. This decline is promising for prospective homebuyers, though interest rates lowering more will depend on Federal Reserve decisions and other economic factors. 

The 30-year fixed mortgage rate is 7.03% for the week ending December 7, 2023, according to data from Freddie Mac. This represents a decrease of -0.19% from a week ago.

The 15-year fixed rate mortgage stands at 6.29%. That’s -0.27% lower than a week prior. At that rate, you’ll pay $860 per month in principal and interest for every $100,000 you borrow. 

The rate you’ll actually receive will vary based on the price of the home you’re buying, your credit history, and the size of the down payment you’re making. You can compare the offers below to find your best rate.

High interest rates are sticking around as central banks around the world, including the Fed, battle stubbornly high inflation with a series of aggressive interest rate hikes. These efforts to rein in prices have also slowed global economic growth and fueled recession fears. 

Geopolitical tensions stemming from the ongoing war in Ukraine and conflict in the Middle East have further clouded the economic outlook. 

As the Fed asserts that more rate hikes are likely needed to tame inflation, analysts expect mortgage rates will continue trending upward in the near term. This could place even more affordability pressure on the housing market, especially impacting first-time homebuyers.

Why shop around for mortgage rates?

Getting the lowest mortgage rate possible can save you tens of thousands of dollars over the lifetime of your home loan. With rates on the rise in 2023, it’s more important than ever to understand the factors impacting mortgage rates, strategically shop for the best deal, and meet lenders’ requirements to qualify for the lowest rate. 

This guide will cover everything you need to know about today’s mortgage rates, from how they’re determined to where experts expect them to go in the months ahead.

What impacts mortgage rates

Mortgage rates tend to follow the direction of long-term government bond yields, especially the yield on 10-year Treasury notes. Here are some of the key factors that can influence fluctuations in these yields and mortgage rates:

  • Federal Reserve policy: When the Fed raises its benchmark federal funds rate, it often leads to higher borrowing costs across the economy, including mortgage rates. The Fed began aggressively hiking rates in 2022 to combat high inflation, causing mortgage rates to soar. Further Fed rate hikes are expected through 2023.
  • Economic growth and inflation: Strong economic growth and rising inflation generally lead to higher mortgage rates, while slower growth and disinflation place downward pressure on rates.
  • Geopolitical events: Global conflict or political turmoil often spur investors to move money into safe haven assets like Treasury bonds, lowering yields and mortgage rates. 
  • Investor demand: Strong demand for mortgage-backed securities from investors leads to lower mortgage rates. When demand falls, rates tend to rise.
  • Employment trends: A strong job market can fuel economic growth and push rates higher. Conversely, weak hiring data or increased unemployment tend to cause lower yields and rates.
  • Housing market trends: When housing demand is high, rates tend to rise as lenders face increased demand for mortgages. But lower demand for homes often correlates with declining mortgage rates.

Tips for finding the lowest mortgage rate

When shopping for a home loan, following these tips can help ensure you lock in the lowest possible mortgage rate:

  • Check rates from multiple lenders: Rates vary by lender, so comparing quotes from several lenders ensures you don’t overpay. Online rate comparison sites can give you a quick overview of prevailing rates.
  • Improve your credit score: Work on raising your credit score to at least 740, which will qualify you for the best mortgage terms. Pay down debts, correct any errors on your credit reports, and avoid taking on new debt before applying for a mortgage.
  • Lower your debt-to-income ratio: Lenders look closely at your existing debts in relation to your income. Paying down credit cards and other debts before applying for a mortgage can help lower your DTI and qualify for better rates.
  • Make a sizable down payment: Down payments of 20% or more of the home’s purchase price result in the best mortgage rates and eliminate the need to pay private mortgage insurance.
  • Compare quotes for 15-year and 30-year terms: In general, 15-year mortgage rates are lower than those on 30-year mortgages. But the higher monthly payment on a 15-year loan may not fit your budget.
  • Lock in your rate: Rates fluctuate daily. Once you find the rate you want, lock it in by completing most of the mortgage application paperwork. This protects you if rates rise further before closing.

Minimum requirements for common mortgage types

Mortgage lenders weigh many factors when reviewing applications, but most have basic requirements borrowers must meet to qualify for certain loans. Here are typical minimum standards for popular mortgage types.

Mortgage rates over the past three years

Mortgage rates have seen significant fluctuations over the past few years:

  • 2020: Historic lows due to the COVID-19 pandemic. The average 30-year fixed rate mortgage fell below 3% by the end of 2020. 
  • 2021: Rates remained very low early in 2021, then began to rise in the spring. By December 2021, rates returned to pre-pandemic levels around 3.5%.
  • 2022: The Fed’s rate hikes and inflation drove mortgage rates dramatically higher throughout 2022. Rates soared above 7% in late 2022 from around 3% at the beginning of the year.
  • 2023: Rates are projected to remain elevated in 2023 compared to the past decade. Further Fed rate hikes could push averages above 8%.

The chart below shows average rates for the 30-year and 15-year fixed rate mortgages over the past three years.

The takeaway is that mortgage rates shift constantly in response to economic or political factors. Staying informed and timing your purchase to lock in a lower rate can make a huge difference in how much home you can afford. Casting a wide net when shopping for lenders pretty much guarantees you’ll secure the most competitive rate on your loan.

Methodology

Mortgage rate data comes from Freddie Mac, a government-sponsored leader in the housing industry that tracks average mortgage rates. We considered average rates for both the 30-year fixed rate mortgage and 15-year fixed rate mortgage. Freddie Mac rates exclude additional fees and points. 

Average rates are reported weekly on Thursdays and updated accordingly.

This article is not intended to be financial advice. Before making significant financial decisions, you can review your options with a financial advisor or credit counselor.

Source: qz.com

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Portland just might be the perfect place for you.

The current state of the housing and rental markets in Portland, Oregon, reflects a mix of trends, with varying dynamics across different areas and types of housing. From high-cost suburbs to affordable enclaves, this comprehensive guide covers everything you need to know to buy or rent in Portland with confidence.

Housing market in Portland

The Portland housing market is somewhat competitive, with an average house price of $500,000 as of October 2023. This represents a decrease of 4.9% compared to the previous year. Homes in Portland typically sell after 20 days on the market.

  • Downtown Portland: In Downtown Portland, the housing market has seen a significant decline. Home prices in July 2023 were down 16.7% year-over-year, selling at a median price of $290,000. Homes in this area were on the market for an average of 40 days.
  • Multnomah County: Contrasting the general trend in Portland, Multnomah County experienced a 1.0% increase in home prices year-over-year as of September 2023, with the median price at $505,000. Homes in this county sold after an average of 22 days on the market.
  • Pearl District: In the Pearl District, home prices in 2023 were down 6.2% from the previous year, with a median price of $507,000. The average selling time for homes in this area was notably longer at 106 days.
  • South Portland: Experiencing a dramatic decline, South Portland’s home prices dropped 21% to a median of $415,000, with homes taking an average of 47 days to sell.
  • Northeast Portland: Homes in Northeast Portland sell in about seven days, but the median sale price fell by 11.3% to $635,000. The price per square foot also saw a slight decrease.
  • East Portland: In July 2023, the median home price in East Portland was down 3.0% to $430,000, with homes selling in about nine days.
  • Northwest Portland: The Northwest Portland market is less competitive, with homes taking around 40 days to sell and the median sale price dropping 12.0% to $488,000
  • Overlook: The median sale price in Overlook experienced a significant decrease of 24.8% to $459,000. The price per square foot decreased as well.
  • North Portland: Homes in North Portland receive three offers on average and sell in about eight and a half days. The median sale price decreased by 8.1% to $485,000.
  • Homestead: The Homestead market is very competitive, with a notable decrease in the average house price by 52.3% to $406,000.

Rental market in Portland

  • Average rent prices: The average rent for apartments in Portland ranges from $1,217 for a studio to $1,795 for a two-bedroom apartment.
  • Year-over-year trends: Oregon, including Portland, experienced a significant 9.32% year-over-year price decline in rents.
  • Rental price peaks and declines: After peaking at $2,053 in August 2022, rents declined to $1,937 in February 2023, a change of -5.65%. However, they rose again by more than 5% since February.
  • National context: Nationally, the median rent price dropped to $2,029 by July 2023, which is 1.17% less than the peak in August 2022.
  • Recent trends: In October 2023, rent levels dropped for the first time in six months, indicating an encouraging monthly decrease.
  • Longer-term trends: Over two years, rents have increased by 18.41%, showing a longer-term upward trend despite recent fluctuations.

Market analysis

  • Neighborhood trends: Each neighborhood in Portland has its characteristics and trends, with some areas like Homestead showing price increases, while most others experience declines. This diversity suggests that local factors heavily influence housing prices.
  • Rental market fluctuations: The rental market in Portland has experienced significant fluctuations over the past year, with a general trend towards decreasing prices. This could be indicative of market corrections and adjustments to the post-pandemic world.
  • Comparative market dynamics: The contrast between the housing and rental markets in Portland highlights the complexity of real estate dynamics. While the housing market shows moderate competitiveness with varying neighborhood trends, the rental market is adjusting with more pronounced price decreases.

Portland’s perfect for you

The housing and rental markets in Portland present a complex picture with distinct trends based on location and property type. The data suggests a period of adjustment and variability, likely influenced by broader economic factors and local market conditions.

Ready to settle down in Portland? You’ve come to the right place to locate your perfect home or apartment for rent.

Source: rent.com

Apache is functioning normally

Mortgage interest rates are down over the past week, marking the sixth straight week of rates decreasing. This decline is promising for prospective homebuyers, though interest rates lowering more will depend on Federal Reserve decisions and other economic factors. 

The 30-year fixed mortgage rate is 7.03% for the week ending December 7, 2023, according to data from Freddie Mac. This represents a decrease of -0.19% from a week ago.

The 15-year fixed rate mortgage stands at 6.29%. That’s -0.27% lower than a week prior. At that rate, you’ll pay $860 per month in principal and interest for every $100,000 you borrow. 

The rate you’ll actually receive will vary based on the price of the home you’re buying, your credit history, and the size of the down payment you’re making. You can compare the offers below to find your best rate.

High interest rates are sticking around as central banks around the world, including the Fed, battle stubbornly high inflation with a series of aggressive interest rate hikes. These efforts to rein in prices have also slowed global economic growth and fueled recession fears. 

Geopolitical tensions stemming from the ongoing war in Ukraine and conflict in the Middle East have further clouded the economic outlook. 

As the Fed asserts that more rate hikes are likely needed to tame inflation, analysts expect mortgage rates will continue trending upward in the near term. This could place even more affordability pressure on the housing market, especially impacting first-time homebuyers.

Why shop around for mortgage rates?

Getting the lowest mortgage rate possible can save you tens of thousands of dollars over the lifetime of your home loan. With rates on the rise in 2023, it’s more important than ever to understand the factors impacting mortgage rates, strategically shop for the best deal, and meet lenders’ requirements to qualify for the lowest rate. 

This guide will cover everything you need to know about today’s mortgage rates, from how they’re determined to where experts expect them to go in the months ahead.

What impacts mortgage rates

Mortgage rates tend to follow the direction of long-term government bond yields, especially the yield on 10-year Treasury notes. Here are some of the key factors that can influence fluctuations in these yields and mortgage rates:

  • Federal Reserve policy: When the Fed raises its benchmark federal funds rate, it often leads to higher borrowing costs across the economy, including mortgage rates. The Fed began aggressively hiking rates in 2022 to combat high inflation, causing mortgage rates to soar. Further Fed rate hikes are expected through 2023.
  • Economic growth and inflation: Strong economic growth and rising inflation generally lead to higher mortgage rates, while slower growth and disinflation place downward pressure on rates.
  • Geopolitical events: Global conflict or political turmoil often spur investors to move money into safe haven assets like Treasury bonds, lowering yields and mortgage rates. 
  • Investor demand: Strong demand for mortgage-backed securities from investors leads to lower mortgage rates. When demand falls, rates tend to rise.
  • Employment trends: A strong job market can fuel economic growth and push rates higher. Conversely, weak hiring data or increased unemployment tend to cause lower yields and rates.
  • Housing market trends: When housing demand is high, rates tend to rise as lenders face increased demand for mortgages. But lower demand for homes often correlates with declining mortgage rates.

Tips for finding the lowest mortgage rate

When shopping for a home loan, following these tips can help ensure you lock in the lowest possible mortgage rate:

  • Check rates from multiple lenders: Rates vary by lender, so comparing quotes from several lenders ensures you don’t overpay. Online rate comparison sites can give you a quick overview of prevailing rates.
  • Improve your credit score: Work on raising your credit score to at least 740, which will qualify you for the best mortgage terms. Pay down debts, correct any errors on your credit reports, and avoid taking on new debt before applying for a mortgage.
  • Lower your debt-to-income ratio: Lenders look closely at your existing debts in relation to your income. Paying down credit cards and other debts before applying for a mortgage can help lower your DTI and qualify for better rates.
  • Make a sizable down payment: Down payments of 20% or more of the home’s purchase price result in the best mortgage rates and eliminate the need to pay private mortgage insurance.
  • Compare quotes for 15-year and 30-year terms: In general, 15-year mortgage rates are lower than those on 30-year mortgages. But the higher monthly payment on a 15-year loan may not fit your budget.
  • Lock in your rate: Rates fluctuate daily. Once you find the rate you want, lock it in by completing most of the mortgage application paperwork. This protects you if rates rise further before closing.

Minimum requirements for common mortgage types

Mortgage lenders weigh many factors when reviewing applications, but most have basic requirements borrowers must meet to qualify for certain loans. Here are typical minimum standards for popular mortgage types.

Mortgage rates over the past three years

Mortgage rates have seen significant fluctuations over the past few years:

  • 2020: Historic lows due to the COVID-19 pandemic. The average 30-year fixed rate mortgage fell below 3% by the end of 2020. 
  • 2021: Rates remained very low early in 2021, then began to rise in the spring. By December 2021, rates returned to pre-pandemic levels around 3.5%.
  • 2022: The Fed’s rate hikes and inflation drove mortgage rates dramatically higher throughout 2022. Rates soared above 7% in late 2022 from around 3% at the beginning of the year.
  • 2023: Rates are projected to remain elevated in 2023 compared to the past decade. Further Fed rate hikes could push averages above 8%.

The chart below shows average rates for the 30-year and 15-year fixed rate mortgages over the past three years.

The takeaway is that mortgage rates shift constantly in response to economic or political factors. Staying informed and timing your purchase to lock in a lower rate can make a huge difference in how much home you can afford. Casting a wide net when shopping for lenders pretty much guarantees you’ll secure the most competitive rate on your loan.

Methodology

Mortgage rate data comes from Freddie Mac, a government-sponsored leader in the housing industry that tracks average mortgage rates. We considered average rates for both the 30-year fixed rate mortgage and 15-year fixed rate mortgage. Freddie Mac rates exclude additional fees and points. 

Average rates are reported weekly on Thursdays and updated accordingly.

This article is not intended to be financial advice. Before making significant financial decisions, you can review your options with a financial advisor or credit counselor.

Source: qz.com

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Today we’ll take a look at another home builder’s lender, K. Hovnanian American Mortgage.

They are the affiliated lender of K. Hovnanian Homes, which is a top-15 home builder nationally.

Like other builders, they created their own financing division to streamline their new home sales.

And to better control the customer experience from start to finish.

The biggest perk to using them is the financing specials you likely won’t find elsewhere. Read on to learn more.

K. Hovnanian American Mortgage Fast Facts

  • Affiliated mortgage lender for K. Hovnanian Homes
  • Provides home purchase loans for new home buyers
  • Founded in 2002, headquartered in Boynton Beach, FL
  • Parent company is one of the largest home builders nationwide
  • Licensed to do business in 14 states and the District of Columbia
  • Funded more than $1.1B in mortgages last year
  • Most active in the states of Arizona, California, Delaware, Texas, and Virginia

As noted, K. Hovnanian American Mortgage is the lending division of K. Hovnanian Homes, a top U.S. home builder.

Their parent company Hovnanian Enterprises, Inc. is a publicly traded company (NYSE:HOV), currently valued at nearly $1 billion dollars.

They’ve been around since 1959, and operate 128 residential communities across 14 different states.

Those states include Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, West Virginia, and Washington, D.C.

These are the places where K. Hovnanian American Mortgage is licensed to lend as well, since they only exist to serve their home buyer customers.

In fiscal year 2022, they delivered more than 6,000 homes to buyers across all markets, putting them in the top-15 largest homebuilding companies in the United States.

The lending unit got its start way back in 2002 and is headquartered in Boynton Beach, Florida. At present, they have 36 licensed mortgage loan originators working at the company, per the NMLS.

Because they are a home builder lender, they only offer home purchase loans. No mortgage refinances are available.

But they also operate a full-service title company called Eastern National Title Agency and Hovnanian Insurance Agency.

So you can get your new home, mortgage, title insurance, escrow services, and even homeowners insurance all from one umbrella company.

Of course, it can pay to shop around, so don’t overlook savings for convenience.

How to Apply for a Loan

To get started, you can visit a new home sales office or visit their website. Either way, you’ll be put in touch with a licensed loan officer.

They’ll be able to discuss pricing and loan options with you. If you like what you hear, you can proceed to the loan application.

It’s a digital app powered by ICE Mortgage Technology that can completed from any device, including a computer, tablet, or smartphone.

It allows you to link bank accounts and other financials, upload key documents, and eSign disclosures on the fly.

Once submitted, you’ll be able to check loan status 24/7 to determine what outstanding items still need to be completed. And you can get in touch with your lending team whenever you have questions.

Ultimately, they make it easy to apply for a home loan thanks to the latest tech, but also have a human lending team standing by.

Note that loans are sold off to a third party after closing because they are not a loan servicer.

Loan Programs Offered by K. Hovnanian American Mortgage

  • Home purchase loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate loans: 30-year fixed, 15-year fixed
  • ARM loans: 5/6 ARM, 7/6 ARM
  • Buydown loans: 3/2/1 and 2/1 buydowns
  • State bond loans

Despite being a home builder lender, K. Hovnanian American Mortgage offers a good variety of loan programs, including conforming loans backed by Fannie Mae and Freddie Mac and jumbo loans.

They also offer all the major government-backed mortgages, including FHA loans, VA loans, and USDA loans.

In addition, you can get either a fixed-rate loan, such as a 30-year or 15-year fixed, or an adjustable-rate mortgage, such as a 5/6 ARM or 7/6 ARM.

Given the recent rise in mortgage rates, they also offer buydown loans, including a 3/2/1 buydown that discounts the rate a full three percentage points in year one.

You might also be able to get your hands on some homebuyer assistance via select state bond loans that offer lower down payments and government subsidies.

K. Hovnanian American Mortgage Rates

While some mortgage companies post their daily mortgage rates online, K. Hovnanian American Mortgage does not.

With regard to how their interest rates are, they simply say, “There is no way to accurately and honestly answer this question without first evaluating your individual situation and financing needs.”

In other words, mortgage rates vary by customer, based on loan parameters such as credit score, down payment, loan program, and so on.

The good news is they may offer special financing offers to their new home buyers, as is often the case with affiliated builder lenders.

Because builders often buy forward commitments in bulk, they can apply special discounts that are often hard for outside lenders to beat/match.

But these deals are often limited to certain homes in specific developments, and the funds are subject to running out.

They are also time-limited, meaning you must get under contract and/or close by X date to use these special funds.

When you speak to a new home buying rep or loan officer, be sure to inquire about deals such as permanent or temporary rate buydowns.

This may come in the form of a closing cost credit, which can be applied to a mortgage rate buydown.

These can make or break your decision to use the home builder’s lender or an outside bank/lender.

K. Hovnanian American Mortgage Reviews

There aren’t a ton of reviews for the lending arm of K. Hovnanian. But they do have a few kicking around.

They’ve got a 4.3/5-star rating from six reviews on Redfin, and a perfect 5/5 on a separate Redfin page from five reviews.

Meanwhile, their parent company has a 4.3/5 from nearly 4,000 reviews on NewHomeSource, which is a much better sample size.

And given the fact that most of the parent company’s home buyers are likely also mortgage customers, these should be relevant.

Of course, it’s not all perfect. Over at ConsumerAffairs they have a much more questionable 1.4/5 from over 250 customer reviews.

So a bit of a mixed bag, though some reviews may have to do with the properties themselves, not the mortgages.

Be sure to take the time to read through the reviews to determine potential hiccups that you might be able to avoid.

Lastly, they are an accredited company with the Better Business Bureau (BBB) and currently hold an ‘A+’ rating based on complaint history. Speaking of, they have zero complaints on file.

To sum things up, K. Hovnanian American Mortgage seems to offer a good mix of technology, a full loan menu for home buyers, and decent customer reviews.

They also have the huge advantage of offering below-market mortgage rates like other home builder lenders.

But always gather more than a single mortgage quote. While K. Hovnanian American Mortgage may offer the best pricing, there might be better deals out there.

And if you have competing quotes, they may be more willing to negotiate with you on rate and/or closing costs.

K. Hovnanian American Mortgage Pros and Cons

The Pros

  • Can apply for a home loan online
  • Digital mortgage application powered by ICE Mortgage Technology
  • Plenty of loan programs to choose from
  • Offer mortgage rate specials for home buyer customers
  • Lots of excellent customer reviews
  • A+ BBB rating, accredited company
  • Lots of free mortgage calculators on their website
  • Extensive mortgage glossary explaining key terms

The Cons

  • Only offer home purchase loans
  • Aren’t licensed in all states
  • Do not publicize mortgage rate or lender fees
  • Some mixed reviews for parent company
  • Do not service loans after closing

Source: thetruthaboutmortgage.com

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Deck the halls, literally.

As the crisp air becomes infused with the spirit of the holidays, our homes undergo a remarkable transformation into havens of warmth and joy. Beyond the festivity of decorations and the joyous gatherings that mark the season, the holidays possess a unique ability to craft indelible memories. Whether it’s the delightful scent of freshly baked treats wafting through the air or the enchanting glow of twinkling lights in every corner, each tradition contributes to the magical ambiance that defines this special time of year.

In the heart of our homes, our small entryways emerge as a canvas for expression, setting the tone for the celebrations within. It becomes a space where the magic of the season is unveiled to everyone who crosses its threshold. Adorning the entryway isn’t just a decorative pursuit; it’s a proclamation of the joy and festivity that awaits within. As we embark on the enchanting journey of holiday decor, let our entryways evolve into portals, calling loved ones with open arms.

Elevate your entryway: Transform your space with the best small entryway ideas

Embracing the holiday spirit involves reimagining your entryway with a touch of magic. From ingenious organizational solutions to heartwarming personal touches, the following ideas are thoughtfully crafted to make your home’s entrance a delightful prelude to the season’s joy.

Wall hooks for organization and style

Wall hooks serve as more than functional fixtures in a small entryway—they seamlessly combine functionality with style. Opt for damage-free hooks for a renter-friendly solution, ensuring your wall space remains pristine. Use these hooks to hang purses, backpacks, keys and coats, transforming the space into an impeccably organized and clutter-free zone.

A gallery wall of family photos for personalized warmth

Expressing your unique personality is effortlessly achieved with a gallery wall next to the front door. Arrange an assortment of pictures featuring cherished moments with loved ones. This straightforward decor idea not only adds visual warmth but also serves as a captivating accent wall, sparking joy and conversation with its personalized touch.

Holiday-themed entryway tree or greenery for a touch of festive elegance

Consider introducing small indoor holiday trees for a touch of greenery and festive cheer. Position them next to a charming wooden bench to enhance the inviting atmosphere. These miniature arboreal displays bring nature indoors, creating a warm ambiance that resonates with the holiday spirit. The scent of evergreen further heightens the sensory experience, especially in a smaller space.

Statement mirror for the illusion of space

A statement mirror in the entryway serves more than a functional purpose; it imparts a sense of spaciousness to the area. Opt for a full-length mirror to achieve a sleek design while maximizing the reflection of natural light. This seemingly minimalistic decor idea transforms the space, creating an illusion of grandeur with minimal effort.

Antique table for functionality and style

Infuse character into your small entryway with conversation-starter pieces, such as antique furniture. These timeless pieces, traditionally made of dark wood, not only add style but also offer functionality. Use the furniture as a display surface for trinkets or a practical spot for stacking your favorite books, elevating the decor to new heights. Antique tables, with their rich history, become more than decor — they are pieces that tell a story and make a big impression.

Menorah display for holiday traditions

Showcasing your unique holiday traditions involves placing a menorah on a floating shelf or a small table. This elegant display adds a touch of cultural significance to your entryway, sharing a glimpse of the meaningful traditions practiced within your home. It becomes a beacon of tradition, sparking conversations and bridging cultural connections.

Twin table lamps or sconces for warm lighting

Brightening up the often dim entryway with the soft glow of table lamps, twin lamps, or strategically placed wall sconces goes beyond mere illumination. These lighting options create an inviting atmosphere, welcoming friends, family and guests with a warm embrace. The play of light and shadows adds a layer of sophistication to the entryway, setting the stage for a cozy welcome.

Elevate your entryway and embrace the season’s greetings

Incorporating these thoughtfully curated small entryway ideas will not only leave a lasting impression but also provide a warm and inviting welcome to guests and loved ones. Whether you opt for a minimalist approach with a statement mirror or indulge in a more elaborate decor featuring antique furniture and gallery walls, seize the opportunity to transform your small space into a memorable entrance, setting the stage for creating cherished holiday memories.

If you’re still in search of the perfect rental to bring your festive vision to life, explore and find your ideal apartment or home for rent here first. A space thoughtfully adorned with the spirit of the season becomes more than a home; it becomes a haven of joy and celebration, embracing the essence of the holidays throughout the year.

Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.

Source: rent.com

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With trends like “soft start” morning routines and cozy cardio becoming increasingly popular, I think it’s safe to say we’re all feeling the desire to slow down a little more and hustle a little less. Especially as the year comes to a close and we start spending more time inside, it’s only natural to want to settle into a calmer headspace, and that often starts with our homes. Enter: the blue home decor trend that’s poised to be huge in 2024.

Paint companies including Dunn-Edwards and Sherwin-Williams have selected soft, steely blues as their picks for the 2024 color of the year. According to the experts at Dunn-Edwards, these cool tones represent a collective desire to “achieve balance and tranquility in the year to come.” Similarly, Sherwin-Williams’ color of choice was intended to reflect that sense of peace found when you “slow down, take a breath, and allow the mind to clear.” All in all, it sounds like the perfect trend to try as we gear up for our annual New Year’s resolution-setting.

Interested in hopping on this tranquil trend? Read on for five ways you can incorporate blue into your home for a more calming, energizing space.

How to Try the Blue Home Decor Trend in Your Home

Source: Bria Hammel Interiors

1. Mix and match patterns and textures

Some say there’s no such thing as too much of a good thing. When it comes to color, though, I have to disagree. Repeating the same color throughout your home without any variation will quickly make your home feel too matchy-matchy. The secret to bringing in color without going too monochromatic? Incorporate a variety of textures and patterns in your decor. Instead of adding multiples of the same solid blue pillow to your couch, for example, mix in a patterned pillow that’s accented with blue, or layer on one with a shaggy texture. This will create visual interest and prevent the room from looking too one-note while still maintaining a cohesive look.

2. Use different shades of blue

While Dunn-Edwards and Sherwin-Williams both selected muted shades of blue for their 2024 colors of the year, that doesn’t mean you can’t play around with other blue tones. Mix and match bold hues like deep navy and bright cerulean, or keep it muted with shades of slate blue and denim. Blue comes in so many different shades that you can easily create a whole palette using just this section of the color wheel. Whatever variations bring you the feeling of tranquility, lean into these shades as you refresh your home for 2024.

3. Start with small accessories

If you’re not ready to paint all your walls blue, start by dipping your toes in with subtle changes. You can’t go wrong with small accessories like candles, vases, and throw pillows to quickly and inexpensively try out a new color trend. Especially if your existing decor scheme is fairly neutral, these new pieces will fit in seamlessly.

4. Swap out artwork

One of the easiest ways to keep your home feeling fresh is to swap out your artwork. If you aren’t sure where to start, there are plenty of retailers on Etsy that sell digital prints you can download and print inexpensively yourself. Pro tip: Invest in high-quality frames that’ll make any kind of artwork look good, then find creative ways to save on the art itself.

5. Try out wallpaper

This may sound extreme when it comes to trying out a new home decor trend, but with so many peel-and-stick options on the market, it’s easier than ever to swap out your wallpaper or try it out for the first time. Wallpaper is a fun way to add texture, color, and pattern to an otherwise blank space. If you’re a renter, it’s also a great alternative to painting your walls since the paper will easily peel off when it’s time to move out.

Shop Our Favorite Blue Home Decor Picks:

Source: theeverygirl.com