Sage Home Loans is reportedly in settlement talks with victims of a data breach, who sued the lender after a hack just five months ago.
The incident in December compromised the personal identifiable information of 27,746 customers, the mortgage company said in a disclosure to the Indiana Attorney General’s office. An unidentified hacker gained access to the company’s network on Dec. 5 and obtained sensitive data on Dec. 19, in what Sage suggested was ransomware attack.
Two affected consumers accused the lender of negligence in separate lawsuits in February and March. The lawsuits are similar to complaints which have followed cybersecurity incidents at other lenders, but unlike other cases one could be rapidly approaching a resolution.
Attorneys for both Sage and a former home loan customer in a South Carolina federal court case filed a joint notice earlier this month suggesting the sides were in settlement talks.
“This motion is made for good cause, as the parties have been actively engaged (in) complex settlement negotiations with the possibility of early resolution for the putative class,” wrote attorneys for both parties.
Sage, formerly known as Lenox Financial Mortgage Corp. was granted a June 3 deadline for an update. The company didn’t respond to requests for comment Monday, while attorneys didn’t immediately respond to inquiries Tuesday morning.
The lender, based in Fort Mill, South Carolina outside of Charlotte, has 49 mortgage loan originators across 8 branches nationwide, according to consumer Nationwide Multistate Licensing System records. Data from S&P Global show Sage originated $145 million in mortgage loan volume last year.
The firm’s public data breach notices to state attorneys general offices reveal few details about the attack. It locked down its network and reset account passwords once the breach was discovered.
Sage also offered identity theft protection services for 12 to 24 months, which included a $1 million insurance reimbursement policy. The deadline to enroll expired May 2.
The South Carolina lawsuit, filed by Massachusetts resident Patricia Burnelle, seeks damages in excess of $5 million. Demands include for Sage to delete prospective class members’ PII, if the company can’t provide reasonable justification to keep it, and for the lender to maintain enhanced cybersecurity controls.
Sage has yet to respond to the second complaint in a California federal court.
A quick resolution would be uncommon among mortgage companies who’ve been hit with a plethora of data breach complaints in the past few years. Many cases stemming from data breaches at prominent industry firms in the past two years remain unresolved, and any settlements are largely undisclosed.
Pet owners spent an average of $491 on veterinary care for their fur kids in 2021, the most recent year for which data was available, according to the U.S. Bureau of Labor Statistics
. But if your pet requires surgery or emergency treatment, vet bills can cost thousands of dollars. Buying pet insurance can help defray these expenses. Your first step is to get pet insurance quotes.
How to get pet insurance quotes
You can get quotes from the best pet insurance companies online, though most companies also give you the option to speak with a human. Note that we’re focusing on how to get pet insurance quotes for dogs and cats in this article. If you want insurance for your iguana, guinea pig, bird or ferret, you’ll need to work with an insurance company that specializes in exotic pets, such as Nationwide.
Key terms in this article
Deductible
The amount of your pet’s veterinary bill that you’ll need to pay before pet insurance kicks in.
Reimbursement level
The percentage of your vet’s bill that insurance will cover after you’ve met the deductible.
Annual limit
The maximum dollar amount your pet insurance company will pay for covered care in a year.
To get a pet insurance quote, you’ll generally need to provide your ZIP code and the following information about your animal:
Species (dog or cat).
Weight (for mixed-breed dogs).
Once you’ve entered your pet’s basic information, you may have the option to customize your quote. For example, if you want to save money on monthly premiums, you could increase your deductible. Or if you’re willing to pay more each month for increased coverage, you could raise the policy’s annual limit or reimbursement level.
Can I insure multiple pets on the same policy?
Some pet insurance companies let you cover multiple animals on the same plan. You may have a single deductible for all covered animals or pay a separate deductible for each pet, depending on the policy.
Even if the insurer doesn’t allow more than one pet to be covered on a policy, you may get a multipet discount if you enroll more than one animal. Many pet insurance companies offer multipet discounts of 5% to 10%.
Types of pet insurance plans
When you get pet insurance quotes, you may be able to choose either an accident-only plan or an accident and illness plan. You may also be able to add a wellness plan to your pet insurance to cover routine vet care. Note that not all carriers offer all types of plans.
Accident and illness plan
An accident and illness plan helps with costs if your animal companion gets sick or injured. It can reimburse you for part of your vet bills if your pet is hurt in an accident or develops an illness such as cancer, thyroid problems or arthritis.
An accident and illness plan usually doesn’t cover pre-existing conditions, which are health issues that showed symptoms before your pet insurance took effect. However, some insurers may help with costs related to a hereditary condition or birth defect if the symptoms didn’t surface until later in life. Other policies offer this coverage as an add-on.
Accident-only pet insurance
An accident-only plan helps you pay for your pet’s care if they’re injured in an accident, but it won’t cover treatment related to an illness. For example, if your furry pal gets hit by a car, is bitten by another animal or swallows a toy, your insurer would typically foot part of the bill. But there’s no coverage if your pet is diagnosed with a condition like hip dysplasia, cancer or a metabolic disorder.
Though the coverage is limited, it’s usually cheaper than more comprehensive plans. Some companies offer accident-only plans to animals that may not otherwise qualify for coverage due to their age.
Wellness plans
Pet insurance covers unexpected veterinary expenses your dog or cat may incur, but a wellness plan helps you pay the expected costs of keeping your pet healthy. Usually purchased as a separate plan or add-on, you can use a wellness plan to help pay for routine care like checkups, vaccinations, dental cleanings, spaying and neutering and microchipping.
🤓Nerdy Tip
Wellness plans may help you budget better for veterinary expenses by spreading them out over a 12-month period, but they may not actually save you money. Before buying wellness coverage, compare the cost of the plan to the cost of the covered services you’ll use in a given year.
What factors affect your pet insurance price?
The type of plan you choose will affect your pet insurance price. Accident-only plans are usually cheaper than more comprehensive accident and illness plans. Other factors that determine how much pet insurance costs include:
Cat vs. dog: Cats live longer than dogs on average, but they tend to have fewer health problems over their lifespans. Many felines are indoor-only cats, so they’re less exposed to accidents and illnesses compared with dogs. Dogs are also more likely to have hereditary problems.
Breed: Purebred animals are often pricier to insure because they’re more prone to breed-specific illnesses than mixed-breed pets. Pet insurance for larger dogs tends to be more expensive than coverage for small dogs, as large-breed dogs have shorter life expectancies and frequently develop more health problems in a shorter timespan.
Age: Older pets are at higher risk of developing health issues, so as your dog or cat ages, you’ll probably pay more for pet insurance.
Location: Where you live affects the cost of pet insurance because veterinary costs vary widely by location. Since most pet policies reimburse a percentage of vet bills, you can expect your pet premiums to be higher if you live in an area where pet health care is pricey.
Deductibles, reimbursement level and annual limit: If you have a high deductible and a low reimbursement level and annual limit, you’ll pay less in premiums. However, your out-of-pocket costs for vet bills will be higher. Conversely, a low deductible combined with a high reimbursement level and annual limit increases your premiums, but your out-of-pocket expenses will be lower if your pet gets sick or injured.
🤓Nerdy Tip
Pet insurance generally doesn’t cover pre-existing conditions. Your pet’s risk of developing a health issue increases as they get older, so buying a policy early can up the odds that future conditions will be covered.
How to compare pet insurance quotes
Your monthly premium isn’t the only factor to consider when comparing pet insurance quotes. You’ll also need to evaluate how much you’ll pay out of pocket when your pet needs care, as well as what services are covered. Here are some things every pet parent should know before choosing a policy.
Deductibles
You’ll need to pay an out-of-pocket pet insurance deductible before your insurer will cover part of your vet bill. If your policy has an annual deductible, your policy will cover care after you’ve hit the deductible for the year. However, some policies have a per-incident or per-condition deductible that applies when your pet develops a new health condition.
Say you hit your per-condition deductible when your pet developed a bladder infection. If you took them back to the vet a few weeks later for allergy treatment, another deductible would apply since it’s a new condition.
Generally, you’ll pay higher premiums if you choose a low deductible.
Reimbursement rates
Your reimbursement rate is the percentage of covered services your insurer will pay for. But this amount is often applied before the deductible. For instance, suppose you have a policy with an 80% reimbursement level and a $250 deductible. If your pet incurred a $1,000 vet bill, here’s how your pet insurance reimbursement rate might factor in:
$1,000 (vet bill) x 0.8 (80% reimbursement rate) = $800.
$800 – $250 (deductible) = $550 (covered by pet insurance).
$1,000 – $550 = $450 (your out-of-pocket cost).
Annual limits
The annual limit is the maximum amount the policy will pay during a 12-month period. Once you reach the annual limit, you’ll need to pay out of pocket for veterinary care. Many insurers offer an unlimited option.
Waiting periods
A waiting period is a specified amount of time that must elapse before pet insurance kicks in. Many policies have a two-day waiting period for accidents and a 14-day waiting period for injuries. Some specific conditions like orthopedic problems and cruciate ligament issues may have longer waiting periods.
What’s included
Before you buy insurance, make sure you understand what your pet insurance policy covers. Find out how your policy defines pre-existing conditions and whether it pays for things like hereditary conditions and behavioral issues.
How to save money on pet insurance
Pet insurance doesn’t have to break your budget. To save money on pet insurance costs, follow these tips:
Compare quotes. To make sure you’re getting a competitive rate, get quotes from several insurance companies.
Look for discounts. You may qualify for discounts if you’re a member of certain groups, like AAA or the AARP, or if you’re a military member or veteran.
Find out if your employer offers pet insurance as a voluntary benefit. Some employers partner with pet insurance providers to offer discounted plans for workers who are pet parents.
Bundle policies. You may be able to save by bundling policies, e.g., a pet policy and an auto policy, with the same insurer.
Increase your deductible. If you’re willing to pay more out of pocket for an unexpected veterinary bill, increasing your plan’s deductible can save you money on premiums.
Think carefully about wellness plans. If your pet is healthy, has already been spayed or neutered and microchipped, and is up to date on their vaccines, a wellness plan may cost more than you’d pay out of pocket at the vet.
Frequently asked questions
How much does pet insurance cost?
The average pet insurance premium for an accident and illness plan in the U.S. was about $676 for dogs and $383 for cats in 2023, according to the North American Pet Health Insurance Association. That breaks down to a monthly premium of $56 for dogs and $32 for cats.
What’s the best pet insurance company?
Metlife, Embrace and Pets Best are at the top of NerdWallet’s list of the best pet insurance companies. However, be sure to compare several pet insurance companies to find the best policy for your animal’s needs.
What information do you need for a pet insurance quote?
You’ll typically need to provide your pet’s name, sex, species, breed (including size if it’s a mixed-breed dog), age and ZIP code to get a pet insurance quote.
It’s a familiar scenario to most of us: You’re purchasing something at a counter or checking out after a service. Suddenly, you freeze. Wait, you think, do people tip for this? If so, how much? And should you tip in cash or with a credit or debit card? Did you even budget enough for an appropriate tip?
With a little research—starting with this comprehensive guide to tipping—you can avoid any potential social gaffes and master the art of showing your appreciation, whether you’re at a salon or a café. Here’s everything you need to know to give gratuities gracefully.
When to tip
The line between tippable and non-tippable service is blurring. California-based etiquette expert Elaine Swann says, “We’re seeing more requests for tips in places we never did before.”
For example, increasingly, there’s an option to add a tip at a retail counter. Swann says, “If you couldn’t find what you were looking for and someone helped you, if they went out of their way and were very gracious, then sure, show your appreciation. But other than that, you don’t have to tip in a retail store.”
However, you’re expected to tip in plenty of places, and the rules for each scenario vary. Let’s break it down by industry.
Tipping at restaurants
For generations, the standard restaurant tip was always “15% for good service, 20% for great,” Swann says. Now, she observes, the minimum is closer to 15% to 18%, and 20% to 25% for exemplary service.
But Swann cautions to inquire where exactly your gratuity is going. “Often, a restaurant will add an 18% gratuity for large groups. But is that tip going to the server? If you’re unsure, ask management what the fee is for—that way, you can make a more informed decision about how much to tip your server.”
Finally, the consensus is that you don’t need to tip at a fast-casual restaurant (where you order at a counter versus having table service). But if you feel you’ve received exemplary service, it’s appreciated. One notable exception is the coffee shop, where a $1 or $2 tip per drink is standard.
How much to tip food delivery
Tipping for food delivery should be treated like good service at a restaurant: You tip a minimum of 18% to 20%. If you’re ordering a lot, the weather is bad, or the driver is coming a far distance, consider adding a few extra percentage points. And make no mistake: The “delivery fee” on your bill goes to the company, not your delivery person, so don’t lower your tip based on that fee.
How much to tip at bars
The standard at a traditional establishment, where you order and receive your drink directly from the bartender, is about $1 per beer and $2 per cocktail. However, if you’re at an upscale cocktail bar and your mixologist has gone to great lengths, you should tip 20% of the final tab at the end of your visit.
How to tip your movers
Moving can be more expensive than you think, so make sure you factor 20% of your total moving costs as a tip for your movers. If you have, for example, a collection of grand pianos or bowling balls, add a little more for their trouble.
Your moving crew will typically be managed by a leader who handles the paperwork and primarily communicates with you. It’s acceptable to give them the entire tip at the end of the move and explain that it should be shared with the full crew.
Tipping for cabs and ride-shares
The bottom line, Swann says, is that since cab rides customarily conclude with a tip, ride-share trips should, too. Include a tip in the app used to schedule the car service; if you’re wondering how much to tip your ride-share driver, the standard is about 15%.
How to tip a valet
When tipping the valet who parks and retrieves your car, the standard tip is between $3 and $5, depending on the level of service.
Tipping at hotels
Hotels arefull of potential tipping situations, from the person who brings your bags to your room to the housekeeper who keeps it clean. But typical practices break down like this:
Luggage attendants
If you have loads of luggage, stick with $1 or $2 per luggage item. But if you only have a couple of things, tip $5 to make the elevator ride worth their while.
Room service
What’s the best practice when ordering that steak and eggs or late-night hot fudge sundae to your room? Pretend you’re at a restaurant and tip the standard 15% to -20% if there’s not already a room service charge added to the bill.
Housekeeper or hotel maid
Tip the hotel maid between $1 and $5 per day, but don’t wait until the end of your stay, as the staff might change daily. Include a small note with the tip each day to signal the tip is for that day’s service.
Salons and spas
How much to tip your hairstylist
The minimum tip is 15%, but the standard is closer to 20%. Include everyone involved. Tip your hair washer $2 to $5 and give 20% to anyone providing additional services. (For example, tip your hair colorist 20% of that service cost).
How much to tip at the nail salon
The same goes for tipping at the nail salon. Tip between 15% and 20% for each service (or more if the service is exceptional). For example, if you have a separate nail technician and esthetician, tip them separately based on the cost of the service provided.
If you have a regular relationship with your stylist or other personal services provider, a holiday gift is a good idea—generally a gift certificate or cash that’s equal to the cost of one session.
Do you tip a babysitter?
Tipping a babysitter or nanny each time isn’t necessary, but an end-of-the-year gift is a nice gesture. For nannies, the standard is roughly one or two weeks’ pay; for babysitters, it’s about the cost of one evening of babysitting.
Tips at weddings
Factor in the cost of tipping when planning your wedding finances. With so many different services involved in your special day, make sure you’ve budgeted for all of them:
Caterers/reception staff
Tip caterers and reception staff 15% to 20% of the total cost of your food bill, or $5 to $10 per guest, unless gratuity is already included in your contract.
Wedding planner
The standard tip for a wedding planner is less defined, but it tends to fall between 10% and 20% of the wedding cost—or a generous gift, which many newlyweds opt to do.
DJ or band members
Most people offer between $50 and $150 per DJ or between $25 and $35 to each wedding band member.
Makeup artist
The standard 15-25% is the norm for any makeup artists providing services to the bridal party.
Tips you don’t have to give
Swann clarifies that professional service providers—financial advisors, doctors, lawyers, teachers, veterinarians, therapists, or life coaches—should not be offered tips.
Similarly, some workers cannot accept tips. Delivery drivers are discouraged from doing so (so they aren’t targeted for cash), and mail carriers are forbidden from receiving monetary gifts of more than $20, per the USPS. However, Swann says, “a small gift, rather than money, is always appreciated.”
Handling common tipping dilemmas
Knowing when to tip is often complicated by various factors—but there are ways to simplify these scenarios. Here’s how to handle a few common tipping troubles:
Splitting the check
Swann says, “When you sit down at the table, simply say out loud to the group, ‘Are we splitting the check evenly, or are we all paying for ourselves?’” Addressing the problem directly makes the situation more manageable.
You received bad service
If your server treated you poorly, Swann says it’s okay for your “tip to reflect that level of service.” However, “You should always tip a restaurant server, and never less than 10%,” Swann says. “But if you give less than the standard amount, make sure the bad service was truly the fault of the server and not, for example, the chef, busser, or management.”
You don’t have cash on you
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Knowledge is power
Tipping can be a headache if you’re not sure what the situation requires or if you’re uncertain about what’s typically offered. But armed with this extensive guide to tipping, you’ll know the proper protocol, including when to tip, how much, and to whom.
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Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
“The final approval of these settlements by the court was expected,” said Marty Green, principal at mortgage law firm Polunsky Beitel Green. “Although there were some objections that the court had to address, the momentum of the case has been rapidly moving toward a nationwide resolution, and it was very unlikely that the court was … [Read more…]
Holding company Better Home & Finance hired Chad Smith to be the president and chief operating officer of its mortgage business, it announced on Friday. Kevin Ryan, who previously held the position of president, will continue serving the company as chief financial officer.
Before joining Better, industry veteran Smith was the CEO of Mission Loans from December 2020 to May 2024. As of Friday, the online lender had 43 sponsored loan officers and eight active branches, per the Nationwide Multistate Licensing System (NMLS). Meanwhile, Better had 227 sponsored LOs and seven branches, the NMLS shows.
Prior to Mission, Smith held the position of executive vice president for consumer direct and portfolio retention at Caliber Home Loans, a mortgage lender acquired by Newrez in 2021.
Better’s board of directors appointed Smith on May 8. According to filings with the Securities and Exchange Commission (SEC), the executive will receive an annual base salary of $1 million, a minimum performance bonus of $500,000 for the first year of employment, and an annual target bonus opportunity equal to 100% of his base salary.
Smith will also be granted stock units. Better stock closed at $0.43 on Friday, up 3.37% from the previous day. The company went public in August 2023 via a partnership with the special purpose acquisition company (SPAC) Aurora Acquisition Corp, ending a two-year journey.
The deal unlocked $565 million of fresh capital for a company that has narrowed its losses. Better posted a GAAP net loss of $59.5 million in fourth-quarter 2023, down from a loss of $339.4 million in the previous quarter. In Q4 2023, Better generated a funded volume of $527 million across 1,633 loans.
Founder Vishal Garg told HousingWire in February that the company was hiring loan officers, processors and underwriters, and more recently, changing its compensation structure.
“The loan officers we’ve been hiring are industry experts that we’ve been bringing onto our platform, rather than the traditional noncommissioned loan officers that we used to hire in the past and who used to be usually people who had never worked in the industry,” Garg said.
In April, a former top executive voluntarily dismissed with prejudice a lawsuit filed about two years ago against the company and some of its leaders, including claims that they violated labor and securities laws.
Demand for second-home mortgages fell twice as fast as mortgage demand for primary homes, as housing costs rose to new heights.
An early look at this year’s data shows that demand for vacation homes hasn’t picked up in 2024; interest in second-home mortgages has been sitting near an 8-year low all year.
Many of the people who did take out mortgages for second homes last year were high earners, white and/or Gen Xers.
Austin and the Bay Area saw the biggest declines in mortgages for second homes in 2023.
U.S. homebuyers took out 90,772 mortgages for second homes in 2023, down 40% from a year earlier and down 65% from the height of the pandemic housing boom in 2021.
For the sake of comparison, mortgages for primaryhomes fell at half that rate; they were down 20% year over year in 2023 and down 35% from 2021.
This is according to a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018 to 2023. The term “vacation home” is used interchangeably with “second home” in this report.
Home purchases fell across the board last year due to low inventory, high mortgage rates, and high home prices; 2023 was the least affordable year on record. Affordability hasn’t improved in 2024; monthly housing costs are at an all-time high. Mortgages for second homes dropped more than mortgages for primary homes for several reasons:
It’s more expensive to buy a second home. The typical second home was worth $475,000 in 2023, versus $375,000 for primary homes. Additionally, the federal government increased loan fees for second homes in 2022, upping the total cost of buying one.
Vacation homes aren’t a necessity the way primary homes are, so when housing costs skyrocket, many prospective second-home buyers back off.
Purchasing a second home for your own use is a less attractive proposition than it was a few years ago because many companies are now requiring their employees to return to the office, meaning there’s less time to spend in vacation homes.
Purchasing a second home to rent it out is also a less attractive proposition than it once was because the rental market has cooled from its pandemic peak, and owners of short-term rentals on sites like Airbnb are generally earning less revenue.
“Soaring prices pushed down demand for vacation homes last year, both for cash buyers and those getting a mortgage–but the latter pulled back even more because high rates exacerbated high prices,” said Phoenix Redfin Premier agent Heather Mahmood-Corley. “There has been a small uptick in interest in second homes this year, mostly from cash buyers who plan to eventually move in full time. People who would need a mortgage are still sitting on the sidelines, waiting for rates to come down–especially because rates are typically even higher for second homes than primary homes.”
Just 3% of all mortgages went to second-home buyers in 2023, down from 5% in 2020
The share of total mortgages that went to second-home buyers also dropped last year: 2.8% of all mortgage originations in 2023 were for second homes, down from 3.6% in 2022 and 5.1% in 2021.
The vast majority of mortgages go to buyers of primary homes: They took out nearly nine in 10 (88.6%) mortgages in 2023, 87.2% in 2022 and 89.2% in 2020. The remainder go to those buying investment properties, with 8.6% of all mortgages taken out in 2023 used for investment properties, compared with 9.2% in 2022 and 5.9% in 2020.
Vacation-home demand hasn’t picked up in 2024
An early look at this year’s data shows that demand for second homes hasn’t picked up in 2024. Mortgage-rate locks for second homes have been sitting near their eight-year low since the beginning of this year, according to a separate Redfin analysis of data from Optimal Blue. They declined 7.3% from a year earlier in April. By comparison, mortgage-rate locks for primary homes declined 1.6%.
Please note that Optimal Blue data is different from the HMDA data used in the rest of this report. Optimal Blue data is a leading indicator because it measures mortgage-rate locks (an agreement between a buyer and a lender that locks in a rate for a period of time; roughly 80% result in home purchases) as opposed to mortgage originations, and it includes a sample of U.S. mortgages rather than all U.S. mortgages.
The people who are buying vacation homes: Affluent, white, Gen X
So, who did buy vacation homes in 2023? We broke the data down by income level, race and age:
High earners: The vast majority of people who took out mortgages for vacation homes in 2023 were–unsurprisingly–high earners. Nearly nine in 10 (86%) second-home mortgages issued last year went to high-income buyers. Just under 3% went to low-income buyers. (The nationwide median household income of home purchasers in the HMDA data is $178,000 for high-income buyers and $65,000 for low-income buyers.)
White people: Nearly four in five (79%) vacation-home mortgages went to white homebuyers in 2023. Asian and Hispanic homebuyers come next, with 6.4% and 6.2% of new vacation-home mortgages, respectively. Buyers who identify as more than one race took out 5.4% of second-home mortgages, and Black buyers took out 2.7%.
Gen Xers: 29.5% of vacation-home mortgages went to 55-64 year olds in 2023, and another 28.6% went to 45-54 year olds (Gen Xers were 43-58 in 2023). Next come 35-44 year olds (21%), 65-74 year olds (11.4%) and people under 35 (6.9%).
Second-home mortgages dropped most in Austin and the Bay Area
Mortgage originations for second homes fell in all major U.S. metros last year. They fell most in Austin, TX, with a 62.5% year-over-year drop in 2023. Austin’s housing market slowed substantially across the board last year as the pandemic migration boom waned and housing costs climbed too high for many locals. The next-biggest declines for second-home mortgages were mostly in expensive coastal cities: San Francisco (-57.6%), New York (-53.9%), Seattle (-53%) and Nashville, TN (-51.3%).
The smallest declines in second-home mortgages were in relatively affordable metros in the middle of the country and on the East Coast: St. Louis (-25.2% year over year), Kansas City, MO (-31.1%), Providence, RI (-31.1%), Montgomery County, PA (-32.1%) and Warren, MI (-32.1%).
Second homes are most common in Florida
Second-home mortgages made up the largest share of all mortgage originations in West Palm Beach, FL, a popular destination for snowbirds and vacationers, in 2023. Just under 7% of all mortgage originations in the West Palm Beach metro last year were for second homes. Next come Orlando, FL (4.1%), Riverside, CA (4%), New Brunswick, NJ (3.9%) and Tampa, FL (3.6%). Even though the share of second-home mortgages was largest in those places of all the major U.S. metros, they were still down at least 37% year over year.
On the other end of the spectrum, second-home mortgages made up a miniscule share (about 0.5%) of total mortgages in Detroit, Montgomery County, PA, Oakland, CA, Cleveland and Dallas.
Metro-level summary: Mortgages for second homes, 2023
50 most populous U.S. metros
U.S. metro area
Second-home mortgage originations
Second-home mortgage originations, YoY change
Share of total mortgage originations that were for second homes
Median value of second homes
Anaheim, CA
444
-36.7%
2.9%
$1,335,000
Atlanta, GA
734
-45.2%
1.0%
$435,000
Austin, TX
388
-62.5%
1.1%
$495,000
Baltimore, MD
222
-45.6%
0.8%
$515,000
Boston, MA
428
-43.9%
1.2%
$805,000
Charlotte, NC
454
-42.5%
1.2%
$445,000
Chicago, IL
448
-48.4%
0.7%
$365,000
Cincinnati, OH
181
-41.8%
0.7%
$325,000
Cleveland, OH
119
-39.3%
0.6%
$225,000
Columbus, OH
212
-41.3%
0.9%
$420,000
Dallas, TX
447
-45.9%
0.6%
$485,000
Denver, CO
514
-36.2%
1.3%
$675,000
Detroit, MI
73
-32.4%
0.5%
$245,000
Fort Lauderdale, FL
679
-47.0%
3.5%
$445,000
Fort Worth, TX
215
-45.6%
0.7%
$435,000
Houston, TX
1114
-47.5%
1.4%
$405,000
Indianapolis, IN
254
-32.4%
0.9%
$325,000
Jacksonville, FL
680
-43.7%
2.7%
$475,000
Kansas City, MO
206
-31.1%
0.8%
$335,000
Las Vegas, NV
877
-49.6%
3.1%
$455,000
Los Angeles, CA
512
-51.1%
1.3%
$1,305,000
Miami, FL
602
-46.2%
3.1%
$715,000
Milwaukee, WI
145
-45.7%
1.0%
$355,000
Minneapolis, MN
393
-38.1%
0.9%
$420,000
Montgomery County, PA
91
-32.1%
0.5%
$510,000
Nashville, TN
394
-51.3%
1.4%
$510,000
Nassau County, NY
600
-43.6%
2.8%
$1,725,000
New Brunswick, NJ
858
-45.4%
3.9%
$885,000
New York, NY
865
-53.9%
1.8%
$985,000
Newark, NJ
280
-37.5%
1.6%
$375,000
Oakland, CA
99
-50.5%
0.5%
$995,000
Orlando, FL
1483
-36.9%
4.1%
$445,000
Philadelphia, PA
124
-50.2%
0.7%
$355,000
Phoenix, AZ
2001
-46.5%
3.2%
$535,000
Pittsburgh, PA
181
-38.2%
0.9%
$285,000
Portland, OR
258
-50.0%
1.1%
$605,000
Providence, RI
363
-31.1%
2.7%
$775,000
Riverside, CA
1566
-47.1%
4.0%
$655,000
Sacramento, CA
455
-48.8%
2.1%
$805,000
San Antonio, TX
438
-51.1%
1.3%
$335,000
San Diego, CA
411
-45.4%
2.1%
$1,115,000
San Francisco, CA
112
-57.6%
1.6%
$1,355,000
San Jose, CA
69
-35.5%
0.7%
$1,300,000
Seattle, WA
239
-53.0%
0.8%
$795,000
St. Louis, MO
303
-25.2%
0.9%
$315,000
Tampa, FL
1618
-41.5%
3.6%
$425,000
Virginia Beach, VA
415
-47.5%
1.8%
$525,000
Warren, MI
281
-32.1%
1.0%
$325,000
Washington, DC
436
-46.1%
0.9%
$655,000
West Palm Beach, FL
1081
-37.0%
6.6%
$635,000
Methodology
The 2023 data in this report is from a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018-2023. The term “vacation home” is used interchangeably with “second home” in this report. For this report, the median “worth” or “value” of second homes is the median property value from HMDA data itself, which is reported by the mortgage loan originator as either the home’s appraised value or sale price.
The 2024 data in this report is from a Redfin analysis of mortgage-rate lock data from real estate analytics firm Optimal Blue. Redfin created a seasonally adjusted index of Optimal Blue’s data to adjust for typical seasonal patterns and allow for simple comparisons of second-home demand before, during and after the pandemic. We define “pre-pandemic” as January and February 2020 and set the index for that period to 100. This data is subject to revision. A mortgage-rate lock is an agreement between a homebuyer and a lender that allows the homebuyer to lock in an interest rate on a mortgage for a certain period of time, offering protection against future interest-rate hikes. Homebuyers must specify whether they are applying to secure a mortgage rate for a primary home, a second home or an investment property. Roughly 80% of mortgage-rate locks result in actual home purchases.
Newly increased loan limits for Title I Program supports the Biden-Harris Administration’s efforts to increase the supply and use of manufactured homes as an affordable housing source.
WASHINGTON – Today, the Federal Housing Administration (FHA) announced new loan limits for its Title I Manufactured Home Loan Program. The increased amounts use new methodologies for calculating and updating the program’s limits, which were announced in a final rule published on February 29, 2024. The increases better align with current market prices and are expected to encourage more lenders to offer the program to homebuyers seeking to purchase manufactured homes and the lots on which they sit. This is the first update to the Title I program loan limits since 2008 and supports the Biden-Harris Administration’s efforts to increase the supply and use of manufactured homes as an affordable housing source.
“We are using every tool possible to make affordable housing available for all Americans,” said HUD Secretary Marcia L. Fudge. “Today’s announcement is another positive step toward helping people to buy manufactured homes, an innovative solution to the affordable housing supply crisis.”
“Updating the Title I loan limits was the next critical piece in our ongoing efforts to make the Title I Manufactured Home Loan Program work for lenders and homebuyers for whom manufactured housing offers an affordable way to meet their housing needs,” said Federal Housing Commissioner Julia R. Gordon. “We hope these changes will prompt more lenders to consider using the Title I program to meet the financing needs of consumers purchasing or refinancing manufactured homes.”
Effective for FHA case numbers assigned on or after March 29, 2024, the new nationwide Title I Manufactured Home Loan Program loan limits are as follows:
Combination Loan (Single-section), $148,909
Combination Loan (Multi-section), $237,096
Manufactured Home Loan (Single-section), $105,532
Manufactured Home Loan (Multi-section), $193,719
Manufactured Home Lot Loan, $43,377
FHA will recalculate the program’s loan limits on an annual basis so that they keep pace with home price changes over time.
Last month, HUD announced a first-of-its-kind $225 million funding opportunity to support the affordability of manufactured homes and communities.
Panorama Mortgage Group continues to overcome barriers to homeownership for minority and underserved communities.
LAS VEGAS, May 8, 2024 /PRNewswire/ — Panorama Mortgage Group, LLC (PMG), a leading nationwide independent mortgage bank headquartered in Las Vegas, Nevada, operating under the DBA’s Alterra Home Loans, Vision Mortgage Group, LEGACY Home Loans and Lone Peak Lending, announces the launch of an innovative and proprietary loan program that breaks down the barriers for first-generation, first-time homebuyers with its unique 1% down payment and 2% grant down payment assistance; known as the 1st Generation Homebuyer (1st Gen) loan program.
“We believe in dismantling barriers to homeownership and fostering financial empowerment,” affirms Jason Madiedo, President, and CEO of Panorama Mortgage Group LLC. “Our 1st Gen loan program is a game-changer, designed to bridge the gap and pave the way for underserved communities to build generational wealth through homeownership.”
The 1st Gen program dovetails with overarching homeownership initiatives, and addresses certain challenges faced by borrowers pursuing their dreams of homeownership, which greatly differentiates 1st Gen from prior iterations of first-time homebuyer programs. The program uniquely combines a more expansive definition of eligible borrowers. 1st Gen focuses on borrowers who are the first generation in their family to realize their homeownership dreams; something often seen as unobtainable by prior generations. Another important feature of the program is the 2% grant does not have to repaid by the borrower. Additionally, there are no property location or census tract constraints, which makes the program eligible within PMG’s nationwide footprint.
This first of its kind program heralds a significant shift for families entrenched in the cycle of renting, where current market trends and intrinsic barriers make the pride of homeownership feel out of reach.
For 1st Gen loan program questions please call our dedicated Hotline: (888) 704-1GEN (1436). General information about PMG can be found at www.PMGLLC.com.
About Panorama Mortgage Group, LLC:
Since 2007, Panorama Mortgage Group, LLC (PMG) is a nationwide minority led independent mortgage bank, licensed in forty-three states. PMG focuses on providing innovative mortgage solutions to foster sustainable homeownership and building generational wealth in minority and underserved communities.
The Bank of England has kept interest rates at a 16-year high for at least another month, as governor Andrew Bailey said Threadneedle Street would not bow to political pressure to cut rates.
The BoE’s Monetary Policy Committee (MPC), announced its latest decision at midday on Thursday, opting to keep the current rate of 5.25 per cent – set last August – in a blow to those hoping for the first reduction since 2020.
High interest rates have saddled homeowners with soaring mortgage repayment costs, and are used as a tool to help bring down inflation.
While the rate of Consumer Prices Index (CPI) inflation fell to 3.2 per cent in March, experts had suggested that two key economic indicators – pay growth and services sector inflation – have remained more stubborn.
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In positive news, the Bank improved its forecasts on Thursday to predict that CPI inflation would fall to 2.25 per cent next year and to 1.5 per cent in 2026, and said it expected the UK economy to grow by 0.5 per cent this year and 1 per cent in 2025 – slightly higher than previous predictions.
Key Points
Breaking: Bank of England holds interest rates at 5.25%
Governor Andrew Bailey says Bank will not bow to political pressure
Inflation will fall to 1.5 per cent within two years, Bank forecasts
Pay growth and services sector inflation remain stubborn
Voices: Improving the economy may limit a Tory wipeout, but it won’t save Rishi Sunak
16:02 , Andy Gregory
We’re pausing updates on the liveblog for this evening, thanks for following here.
You can read our latest reporting on the Bank of England’s announcement by clicking here, or else keep scrolling to catch up on the day’s events as we reported them.
Chancellor Jeremy Hunt said the Bank of England’s decision on rates was “finely balanced”.
Asked if he had been hoping rates would be cut ahead of the general election, Mr Hunt said: “I welcome the fact the Bank of England’s obviously thought about this very hard, they take this decision independently.
“And I would much rather that they waited until they’re absolutely sure inflation is on a downward trajectory than rush into a decision that they had to reverse at a later stage.
“What we want is sustainably low interest rates, and I think what’s encouraging is that the Bank of England governor, for the first time, has expressed real optimism that we’re on that path.”
Jeremy Hunt ((Kirsty Wigglesworth/PA))
Bank of England will not wait for US Federal Reserve to cut rates, says Bailey
14:59 , Andy Gregory
The Bank of England will not wait for the US Federal Reserve to move on interest rates before it decides to cut rates in the UK.
Andrew Bailey, governor of the Bank of England, said: “There is no law that the Fed has to go first. Moreover, we have a remit and a target that is related to domestic inflation in the UK.”
He added that the Bank will always “take the rest of the world into consideration”, but only in regard to how it affects domestic inflation.
“But there’s no law which says we can only move after the Fed moves. That is not something that ever gets discussed in the MPC.”
Bank of England ‘getting very close’ to first rate cut since 2020, says economist
14:41 , Andy Gregory
James Smith, ING developed markets economist, said: “The Bank of England is getting very close to its first rate cut. That much is clear from the latest policy statement which, while keeping rates on hold at 5.25%, has a distinctly more optimistic flair.
“It echoes recent comments from governor Andrew Bailey, who has been hammering home the message that the UK’s inflation outlook is quite different to the US.
“We’re still leaning slightly more towards an August start date for rate cuts, though it’s a close call. What isn’t in doubt is that the Bank is comfortable with moving ahead of the US Federal Reserve.”
Bank of England will not bow to political pressure to cut rates, says Bailey
14:22 , Andy Gregory
The Bank of England will not bow to increased pressure from politicians to cut interest rates, its governor has said.
Andrew Bailey said: “We are an independent central bank. We have a very clear remit. It’s our duty to exercise our duty at all times. When we are sitting in a room as the Monetary Policy Committee, we never discuss politics … It isn’t a consideration in that respect.”
It comes amid a period of heightened pressure from some MPs on the Bank to move faster on rate cuts in the run-up to a general election later this year.
When pressed on whether an upcoming election could influence how the Bank makes its decisions on rates, Mr Bailey added: “We will take the decisions at each meeting which are consistent with our remit. That’s our job and we will do our job.”
Inflation to fall before rising slightly before end of year, says Bank
14:04 , Andy Gregory
The Bank of England has predicted that lower oil and gas prices mean that inflation is likely to drop to around 2 per cent in the coming months before rising slightly before the end of the year.
Inflation could fall noticeably below target without rate cuts, says Bailey
13:52 , Andy Gregory
Here are more comments from Bank of England governor Andrew Bailey.
He told reporter: “It’s likely that we will need to cut bank rates over the coming quarters and make monetary policy somewhat less restrictive over the forecast period, possibly more so than currently priced into market rates.
“This will be consistent with ensuring that inflation does not fall noticeably below target at the end point of the forecast.”
Pound falls against the dollar
13:35 , Andy Gregory
The pound fell against the US dollar and euro after the Bank of England signalled growing support for an interest rate cut among policymakers.
Sterling fell 0.3 per cent to $1.246 and was 0.2 per cent lower at €1.161.
Financial markets more pessimistic than Bank of England, Bailey indicates
13:17 , Andy Gregory
Andrew Bailey has indicated that the financial markets are more pessimistic about the path for lowering interest rates than the Bank of England.
“With the progress we’ve made, to make sure inflation stays around the target, it is likely that we’ll need to cut bank rates in the coming quarters, possibly more so than is currently priced into markets,” he said.
The Bank governor said the committee has “no preconceptions” about how far and how fast it can lower interest rates, and it make a judgment based on the economic data it sees before each meeting.
(EPA)
Visualised: How have interest rates changed over time?
12:58 , Andy Gregory
The below graph shows how interest rates have changed over the past decade:
(Bank of England)
Bank has not ruled out cutting rates next month, says governor
12:49 , Andy Gregory
The Bank of England has not ruled out cutting rates at its next Monetary Policy Committee decision.
Andrew Bailey, governor of the Bank, said that upcoming economic data would be key to helping the MPC decide whether to cut rates on 20 June.
He said: “Before our next meeting in June, we will have two full sets of data – for inflation, activity and the labour market – that will help us in making that judgement afresh.
“But, let me be clear, a change in bank rate in June is neither ruled out nor a fait accompli.”
Full report: Bank of England holds base rate for ninth consecutive month
12:20 , Andy Gregory
The Bank of England has kept interest rates on hold at 5.25 per cent for the ninth month in a row.
My colleague Jane Dalton has more in this report:
Bank of England holds interest rates at 5.25% despite hopes of cut
Inflation will fall to 1.5 per cent within two years, Bank of England forecasts
12:14 , Andy Gregory
The Bank of England has projected that inflation will fall more than previously thought over the coming years – dropping below its 2 per cent target to 1.5 per cent in 2026.
Headline CPI inflation is expected to fall below the Bank’s 2 per cent target between April and June, but rise again to 2.6 per cent in the second half of this year as the impact of recent drops in energy prices fades.
In the longer term, the Bank dropped its projections for CPI inflation to 2.25 per cent for 2025 and 1.5 per cent in 2026, down 0.25 and 0.5 percentage points respectively on the Bank’s February estimates.
The projection came in the Bank’s May Monetary Policy Committee (MPC) report, which signalled optimism from recent falls in retail inflation. The report said persistently high interest rates had helped push headline inflation down.
Bailey signals optimism that Bank could soon cut rates
12:10 , Andy Gregory
Governor Andrew Bailey has signalled optimism that the Bank of England could soon cut rates.
The Bank’s Monetary Policy Committee voted by a majority of seven to two to keep rates unchanged – with members Dave Ramsden and Swati Dhingra voting to cut rates by 0.25 percentage points.
Mr Bailey said: “We’ve had encouraging news on inflation and we think it will fall close to our 2 per cent target in the next couple of months.
“We need to see more evidence that inflation will stay low before we can cut interest rates. I’m optimistic that things are moving in the right direction.”
The MPC indicated it is still looking for more progress on factors including services inflation and wage growth, which have remained persistently high at about 6 per cent, before cutting rates.
Andrew Bailey, governor of the Bank of England, said there had been encouraging news on inflation (Justin Tallis/PA)
Bank of England expects economy to grow by 0.5% this year
12:08 , Andy Gregory
The Bank of England said it expects the UK economy to grow by 0.5 per cent this year and 1 per cent in 2025 – slightly higher than previous predictions.
Breaking: Bank of England holds rates at 5.25 per cent
12:01 , Andy Gregory
The Bank of England has opted to keep interest rates at a 16-year high of 5.25 per cent – confounding hopes of the first base rate cut since 2020.
We’ll bring you more updates here as we get them.
BoE chief unlikely to give clear signal on when interest rate cut could come, economist predicts
11:08 , Andy Gregory
Bank of England chief Andrew Bailey is unlikely to give a clear signal on exactly when the bank’s first interest rate cut since 2020 might come – but focus will be on what guidance he does give and if more than one member of the Bank’s Monetary Policy Committee votes for a cut this time around, according to Pimco economist Peder Beck-Friis.
“We know from history that policy meetings may create some volatility,” Mr Beck-Friis said.
“What is also interesting is that we have come from a few years where monetary policy has been very correlated globally … but as the pandemic shocks fade I think it is natural that we see some divergence,” he added – pointing to how Sweden and Switzerland had already cut rates while the US may need to wait longer.
Pound falls against US dollar
09:23 , Andy Gregory
The pound edged lower against the US dollar this morning ahead of the Bank of England’s policy meeting, with the central bank expected to hold rates steady but flag when it intends to lower the cost of borrowing.
According to LSEG data, money markets are pricing in an almost 95 per cent chance that the Bank will hold its benchmark interest rate at 5.25 per cent – the highest since 2008. But investors will be watching for signs of when the first interest rate cut in four years will come as inflation falls.
Markets now see a 56 per cent chance of such move in June – when the European Central Bank has already signalled it will reduce borrowing costs, and a greater chance of 72 per cent of a BoE rate cut in August.
London stocks waver ahead of Bank of England announcement
08:40 , Andy Gregory
London stocks wavered this morning as investors turned cautious ahead of the Bank of England’s interest rate decision – while energy shares gave a boost to the benchmark index.
As of 7:17am, the blue-chip FTSE 100 edged up 0.1 per cent at 8,357.85, hovering below its record high of 8,365.28 points. The mid-cap FTSE 250 edged lower by 0.1 per cent.
The pound slipped against the US dollar and the UK’s benchmark 10-year gilt yield was at 4.155 per cent ahead of the decision.
Investors avoided big bets ahead of Threadneedle Street’s interest rate decision due at 11am, where the central bank is widely expected to keep borrowing costs steady.
Bank of England to shed more light on its predictions for the economy today
06:00 , Maryam Zakir-Hussain
The Bank of England will shed more light on its predictions for the economy and the path of interest rates when it publishes the latest Monetary Policy Report alongside the rates decision today.
Meanwhile, the central bank in the US, the Federal Reserve, said on Wednesday it was keeping its key interest rate at the same level and noted a “lack of further progress” towards lowering inflation.
It means rates could stay higher for longer until there is firmer evidence of price rises easing, its chairman Jerome Powell suggested.
04:00 , Maryam Zakir-Hussain
Andrew Goodwin, chief UK economist for Oxford Economics, said: “The data published in mid-April for services inflation and private sector regular pay growth has likely extinguished any remaining hopes of a move in May.
“Though both measures have continued to fall, progress has been slightly slower than the MPC anticipated, and they are currently running marginally higher than the forecasts published in February’s Monetary Policy Report.”
He said it is likely to be a “close call” on whether the MPC decides to cut rates in June or August.
02:00 , Maryam Zakir-Hussain
Higher interest rates are used as a tool to control inflation, which has fallen sharply in recent months.
The latest official figures showed that Consumer Prices Index (CPI) inflation slowed to 3.2% in March, as it edges closer to the Bank’s 2% target.
But economists think the Bank’s policymakers will want to hold out until they are more convinced that inflationary pressures have eased.
Mapped: Which areas worst hit by mortgage rate hikes as homeowners ‘forced to move’
Thursday 9 May 2024 00:00 , Maryam Zakir-Hussain
Homeowners coming off fixed rate mortgages faced huge rises in their monthly payments, latest figures have revealed, with the costs severely biting into household disposable income.
With the Bank of England base rate rising to 5.25 per cent in the summer of last year, families faced soaring mortagage rates with the average two-year fixed rate reaching 6.9 per cent.
The new rates meant many homeowners, especially those with large mortgages still to pay, faced challenging increases in monthly payments.
Mapped: Areas worst hit by mortgage rate hikes as homeowners ‘forced to move’
Bank of England not yet ready to cut UK interest rates, experts say
Wednesday 8 May 2024 21:57 , Maryam Zakir-Hussain
UK borrowers eager for costs to come down may have to wait a little longer before interest rates take a dip.
The Bank of England’s Monetary Policy Committee (MPC), which sets the level of UK interest rates, will announce its latest decision on Thursday.
However, economists are widely expecting the committee to keep rates at the current level of 5.25 per cent, which it has been held at since August last year.
Bank of England not yet ready to cut UK interest rates, experts say
Wednesday 8 May 2024 19:18 , Maryam Zakir-Hussain
Philip Shaw, chief economist at Investec, said: “This broad direction illustrates that collectively the committee is moving gradually towards a rate cut.
“It seems unlikely though to be ready to bite the bullet just yet and the Bank rate looks set to remain on hold at 5.25% for the sixth consecutive meeting.”
He added that it is possible that a second member of the MPC will switch to the “easing camp” and vote for a cut on Thursday.
‘Too early’ for economists to cut rates, economists predict
Wednesday 8 May 2024 17:30 , Maryam Zakir-Hussain
Economists think the Bank of England’s policymakers will want to hold out until they are more convinced that inflationary pressures have eased.
Laith Khalaf, head of investment analysis at AJ Bell, said: “It is almost certainly too early for the Bank of England to pull the trigger on a rate cut right now, especially against the backdrop of a more hawkish US central bank.”
The US Federal Reserve said last week it was keeping its key interest rate at the same level and noted a “lack of further progress” towards lowering inflation.
It means rates could stay higher for longer until there is firmer evidence of price rises easing, the Fed’s chairman Jerome Powell suggested.
Mr Khalaf said the Bank is also likely to be influenced by the European Central Bank, which is widely expected to cut rates in early June.
“The other important factor is more inflation readings for April and May, where CPI could get very close to, or possibly even hit, the Bank’s 2% target,” he added.
“The closer the inflation dial gets to 2%, the greater the pressure on the Bank of England to take its foot off the brake and cut rates.
“Markets currently think it’s a coin toss whether we get a UK rate cut in June, but this rises to a three in four chance priced in by August.”
The housing market has turned – so what does that mean for buyers and sellers waiting to make a move?
Wednesday 8 May 2024 16:29 , Maryam Zakir-Hussain
House prices are down and mortgage costs are up, writes James Moore. So how long will buyers and sellers need to wait before the market shows signs of life?
Britain’s housing market has turned hostile again, at least for sellers. The latest Nationwide index showed a surprise 0.4 per cent fall in April, the second month-on-month decline in a row.
A rival index produced by Halifax recorded a 1 per cent month-on-month fall in March, with the next update due next week. These indices can be volatile, but another fall would now be the betting favourite.
Read more here:
House prices are falling – but what does it mean for the future market?
Improving the economy may limit a Tory wipeout, but it won’t save Rishi Sunak
Wednesday 8 May 2024 15:47 , Maryam Zakir-Hussain
Thanks to the Liz Truss mini-Budget disaster, the Conservatives can no longer claim to be the party of economic competence, writes Andrew Grice. But an election campaign based on the economy is still their best hope of avoiding annihilation:
Improving the economy will not save Rishi Sunak
Pay growth and services sector inflation remain stubborn
Wednesday 8 May 2024 15:45 , Maryam Zakir-Hussain
Interest rates are used as a tool to help bring down UK inflation, which has fallen sharply from the highs hit in 2022 when energy costs spiked and the cost-of-living crisis was at its peak.
The rate of Consumer Prices Index (CPI) inflation fell to 3.2 per cent in March, according to the latest official figures.
But experts suggested that two key economic indicators for the Bank of England – pay growth and services sector inflation – have remained more stubborn.
Average wages continued to increase faster than the rate of inflation last month.
Bank of England not yet ready to cut UK interest rates, experts say
Wednesday 8 May 2024 15:43 , Maryam Zakir-Hussain
UK borrowers eager for costs to come down may have to wait a little longer before interest rates take a dip.
The Bank of England’s Monetary Policy Committee (MPC), which sets the level of UK interest rates, will announce its latest decision on Thursday.
However, economists are widely expecting the committee to keep rates at the current level of 5.25 per cent, which it has been held at since August last year.
This means that there could still be some time before the pressure of the cost of living begins to ease.
Bank of England not yet ready to cut UK interest rates, experts say
Nonbank lender Panorama Mortgage Group (PMG) launched a new program that allows first-time homebuyers to take out a loan with a 1% down payment, the company announced on Wednesday. The new offering, known as the 1st Generation Homebuyer program, also includes a 2% grant to reach the conventional down payment minimum of 3%.
“We believe in dismantling barriers to homeownership and fostering financial empowerment,“ Jason Madiedo, president and CEO of Panorama Mortgage Group, said in a statement. “Our 1st Gen loan program is a game-changer, designed to bridge the gap and pave the way for underserved communities to build generational wealth through homeownership.”
The 1st Generation program focuses on borrowers who are the first member in their family to purchase a home. The borrower is under no obligation to repay the 2% grant. Additionally, there are no property location or census tract constraints, making the program accessible within PMG’s nationwide footprint.
PMG offers platforms for human resources, finance, technology, legal and compliance services to its group of lenders.
Founded in 2007 in Las Vegas, Panorama originated from Alterra Home Loans, which carved out a niche by catering to first-time Hispanic homebuyers. In 2019, PMG added two brands, one of which was Legacy Home Loans, which focuses on increasing the Black homeownership rate in America.
In 2022, it added Lone Peak Lending. As a minority-led independent mortgage bank, it is licensed in 43 states.