Last week we saw a noticeable decline in new listings and active inventory was barely positive. Does this mean housing inventory has begun its seasonal decline? Here are the weekly numbers:
Weekly active listings rose by only 343
Mortgage rates rose from 7.08% to end the week at 7.22%
Purchase apps fell 2% week to week
Weekly housing inventory
At first glance, it seems we’re now seeing the seasonal active inventory decline since new listings data fell noticeably and active listings slowed to where we almost had a decrease in active listing growth. However, one week doesn’t make a trend. Yes, we are at the period of the year where we traditionally see a seasonal decline, but we need more confirmation.
Last year, we saw an active listing decline in the same week but then listing growth continued until Oct. 28. However, in 2022, home sales were collapsing in the fastest fashion ever in history, so we must be mindful of comparing this year to last. That said, I hope we extend inventory growth longer before the seasonal decline. Here are the numbers, according to Altos Research:
Weekly inventory change (Sept. 1-Sept. 8): Inventory rose from 508,813 to 509,156
Same week last year (Sept. 2-Sept. 9): Inventory fell from 552,536 to 547,222
The inventory bottom for 2022 was 240,194
The inventory peak for 2023 so far is 509,156
For context, active listings for this week in 2015 were 1,195,099
Inventory growth has been slow this year, especially compared to last year. This is why I tell people to be cautious in reading too much into the negative year-over-year inventory since June 2022 will always be tied to the most significant one-year sales crash in U.S. history.
New listing data is getting interesting: two weeks ago, we had a noticeable decline from the trend and then a weekly rebound. I chalked it up to Labor Day holiday timing, but last week, we had a more noticeable move lower week to week. I am hoping we regain the previous trend next week. Here’s the new listings data since July 21:
July 21: 63,375
July 28: 62,525
August 4: 61,490
August 11: 60,759
August 18: 60,295
August 25: 55,291
September 1: 60,004
September 8: 50,212
We had an orderly, slow seasonal decline for some time, but the last three weeks have been bumpy.
Mortgage rates and the bond market
Last week, mortgage rates caught up with the rise in bond yields and rose as high as 7.33% before ending the week at 7.22%. The one critical level for me since we broke above my peak 4.25% 10-year yield call is whether the 10-year yield can break over 4.34%, which was the intraday high of last year.
So far, three attempts to break that level haven’t panned out, but I am focusing on it because a break above that level could send mortgage rates to a brand-new high for 2023.
Purchase application data
Purchase application data was down 2% weekly, making the year-to-date count at 15 positive, 18 negative prints and one flat week. If we start from Nov. 9, 2022, it’s been 22 positive prints versus 18 negative prints and one flat week.
Higher rates have slowed demand and sent purchase apps back to 1995 levels. But, the bar is shallow here, with the data line back to 1995 levels and we have to remember that purchase apps are very seasonal since total volumes always fall after May. Last year, when mortgage rates fell, we saw demand pick up a bit, but context is key; we are working from deficient levels today.
The week ahead: Inflation week again
We are at that part of the month where we will get the two inflation reports, CPI and PPI data, to give us a sense of where inflation is running. Headline inflation has increased recently with oil prices rising, but core inflation has more downside. The Federal Reserve is more concerned about core inflation data, which should be the key in this week’s CPI report.
Retail sales and jobless claims will also come out this week, so we have some key economic reports that can move the bond market. And of course that could also move mortgage rates since these two have been in a lovely slow dance since 1971.
Inside: Are you wondering is Spirit Airlines safe? While Spirit is a low cost option, are their safety measures up to par? This guide dives into their safety procedures and fleet.
When it comes to flying, safety is paramount.
Meet Spirit Airlines, your go-to American low-cost airline.
This leaves everyone wondering is Spirit Airlines safe.
In this post, we will shed light on a question that might have crossed your mind – Is Spirit Airlines safe?
Spirit Airlines, ranked among the world’s top 20 safest airlines, has been a familiar name in the US aviation industry.
Despite its popularity, misconceptions have led some to doubt its safety quotient due to its low-cost airline status.
Rest assured, in this guide, we will delve deep into Spirit Airlines’ safety records and measures, providing you with comprehensive insights on everything you need to know before choosing them for your journey.
Be it their passenger safety awareness initiatives, effective communication strategies, or impressive safety accreditations, we’re aiming to equip you with data-backed information to help you make an informed decision, allaying any concerns you might have about flying with Spirit Airlines.
Is Spirit Airlines Safe?
Yes, Spirit Airlines is generally safe. It’s just as reliable as any other major US airline, and it has never had a fatal accident since it was founded in 1980.
Spirit Airlines ensures rigorous training for its crew members and pilots to handle various situations efficiently.
Remember, while no airline can guarantee a 100% incident-free flight, Spirit Airlines maintains high safety standards.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Spirit Airlines Safety Record
Maintaining an exceptional safety record is vital to any airline, and Spirit Airlines is no exception. Their commitment to passenger safety is reflected in their pre-flight safety briefings, proactive lines of communication, and strategic safety initiatives. IATA’s assertion that ranking an airline’s safety based on customer reviews is flawed reinforces the credibility of Spirit Airlines.
We delve deep into the safety record of Spirit Airlines, shedding light on their dedication to passenger safety, and the successful strategies they have implemented. A key point here is the absence of significant safety incidents within the past decade.
1. Airline Safety Rating
Safety ratings reflect an airline’s safety record and compliance with aviation standards – they’re pretty crucial when choosing who to fly with.
For Spirit Airlines, the rating is impressively high!
Certification: Spirit holds an Air Operator Certificate from the FAA (source).
Safety record: Even though they’ve had a few emergency landings, Spirit has had no fatal accidents in its history (source).
Remember, though, safety isn’t the entire story. Where Spirit excels in safety, the experience is defined by customer satisfaction and services.
2. Safety of the Spirit Airlines Fleet
The Spirit Airlines fleet is composed completely of Airbus aircraft, with the Airbus A319, A320, and A321 among them.
Modern and reliable, the average age of the aircraft Spirit utilizes is merely six years old with their 200th plane just delivered. This relatively youthful fleet is one reason why Spirit is counted among the top 20 safest low cost airlines worldwide.
Additionally, Spirit Airlines is constantly investing in new technology to augment the safety and efficiency of its aircraft. This commitment to safety and innovation is proven through regular inspections, diligent maintenance, and strict adherence to the manufacturer-recommended service schedules.
3. Flight Safety Protocols
Spirit Airlines, a certified member of IATA, takes passenger safety quite seriously despite its low-cost status.
Here are some of the key safety protocols they follow:
The Spirit team is trained for various emergency situations, including necessary medical measures.
For urgent support, passengers can reach out to an agent using the free mobile app developed by Spirit Airlines. This assures on-the-go assistance.
In adherence to FAA rules, Spirit Airlines provides each passenger with a life vest stowed under the seat or between armrests.
Prior to each flight, passengers are made aware of vital safety instructions through pre-flight briefings such as proper usage of safety equipment and emergency actions.
In-flight safety cards are utilized as visual aids to facilitate a better understanding of these safety guidelines.
Spirit Airlines encourages passengers to report potential safety issues for a quick resolution.
Thus, flying with Spirit Airlines is indeed quite safe.
Note that Spirit Airlines operates under stringent rules set by leading regulatory bodies such as the International Civil Aviation Organization (ICAO) and the Federal Aviation Administration (FAA).
4. Safety Training of the Crew
When it comes to air travel, safety is king! One crucial aspect is the training of flight crews.
As such, Spirit has a rigorous training program for pilots and cabin crew. Their focus? Emergency procedures, handling tricky weather, and managing complex flight situations.
Let’s see how Spirit Airlines ensures its crew is well-prepared for any scenario:
Regular simulator training keeps the pilot’s skills sharp. Flying virtual skies means quicker, smarter decisions in the real world.
Spirit doesn’t just hire anyone. They’ve got strict criteria, ensuring only qualified, experienced folks join the team.
Continuous evaluations keep the crew’s performance top-notch. Spirit never stops improving its safety standards.
Onboard safety protocols. Crew members undergo safety classes, learning how to respond during emergencies.
Real-life simulated scenarios are part of the training. Fires, water landings, you name it. Spirit’s crew is ready for action!
That’s Spirit Airlines – keeping you secure, one flight at a time!
5. Pilot Qualifications
Pilot qualifications at Spirit Airlines are stringent to ensure safety and operational efficiency.
Each pilot is required to have a minimum total of 1500 hours in fixed-wing aircraft, however, they prefer 2500 hours. They must possess a current FAA First Class Medical Certificate, an unrestricted Airline Transport Pilot License, and an FCC Radio Telephone Operator Permit. This consolidates their hands-on expertise, their medical fitness for flight duties, and their understanding of complex flight communications.
This rigorous screening guarantees that passengers are in the hands of highly skilled professionals capable of managing various flight scenarios.
Also, the good news, they have increased their pilot pay, which attracts higher-quality candidates!
6. Emergency Landing Procedures
Emergency landing procedures are rigorously implemented and followed to ensure the safety and well-being of Spirit passengers.
In the event of an unforeseen complication or hazard, such as equipment failure, bird strikes, or detection of smoke or unknown odors on the aircraft, an emergency landing may be necessitated. Emergency landings can also happen due to severe weather turbulence that can potentially lead to risks during a flight.
Spirit Airlines has a commendable safety record, often resorting to these emergency landings as a safety measure to keep the passengers safe.
Despite having to make a few emergency landings over the past thirty years, it is noteworthy that Spirit has not faced any fatal accidents or crashes during this period.
7. Safety Checks of the Airplanes
Safety checks are the lifeline of any airline industry, making sure your travel from point A to B is as safe as can be.
When you’re traveling with Spirit Airlines, these safety measures are taken to a whole new level.
First and foremost, seasoned mechanics inspect the Spirit aircraft from top to bottom. They check every little component – inspecting engine performance to the seat pitch, ensuring everything functions as it is supposed to.
Moreover, they keep a keen eye on the boarding processes, ensuring the necessity and safety protocols are met to precision. These inspections are not just occasional but happen on-ground prior to every takeoff. This allows any issues spotted during preflight checks to be rectified before the plane leaves the ground.
No stone is left unturned when it comes to the training of Spirit’s staff. The staff undergoes intensive training sessions to equip them with the aptitude to handle unexpected in-flight situations promptly and efficiently. It’s the people behind the scenes who add to your safety during a flight after all.
Remember, when flying Spirit, your safety isn’t just a priority, it’s their mission.
My Experience Flying Spirit Airlines
Flying with Spirit Airlines may be a basic experience, but it’s honestly not all bad. It’s an unpretentious, no-frills airline that delivers exactly what you’re paying for–a cost-effective flight.
Personally, I don’t get why Spirit gets a bad rap because every flight I have taken with Spirit Airlines has always been a good experience.
The cleanliness and modern simplicity of the newly operated Airbus are clean, but the seats remind you of any lack of luxury. Punctuality was another impressive aspect, as both my flights arrived right on schedule, if not a bit earlier.
Many people complain about the absence of an in-flight entertainment system, but it doesn’t affect me as my kids and I were well-prepared with my personal entertainment on my phone and a book as a constant companion – one of my many travel essentials.
Most importantly, Spirit Airlines offers the advantage of budget travel, making it possible to explore more without a steep dent in the wallet.
Personally, I never pay for the extras like seat assignments and carry-on items, so being aware and planning ahead saves you from any surprises.
More often than not, I will purchase the Savers Club as the price to join lowers the airline ticket cost by more than the membership.
Also, I love that Spirit Airlines flies into the newer and much larger terminal at San Diego International Airport!
Pros And Cons of Flying Spirit Airlines
Looking for a cost-effective alternative for your air travel? Spirit Airlines might be the right choice.
Pros of Flying with Spirit Airlines:
Cons of Flying with Spirit Airlines:
– Budget-friendly fares – offers some of the lowest fares in the industry. – Booking is made easy through both Spirit.com and Spirit mobile app. – It owns one of the youngest, most fuel-efficient fleets in the U.S. – Has commendable safety ratings. – Offers the ability to choose your seat for a fee. – Spirit Airlines generally runs on time. In fact, sometimes you may find flights landing slightly early. – Plane hygiene is one area where Spirit does not compromise. They use mostly new Airbuses, ensuring clean and modern interiors. – Most travelers have spoken favorably about the ground and flight crews of Spirit Airlines. They seem to go above and beyond to make passengers comfortable.
– Extra charges apply for baggage. Remember, due to their low-cost model, Spirit encourages minimal luggage. – Upgrading your seat doesn’t offer any additional services. – No free meals or drinks are provided during the flight. You will need to purchase these. – Seats may be uncomfortable for some passengers. – Limited free flight cancellation or rescheduling options. – Lack of legroom could potentially hamper your comfort, especially if you’re tall or traveling long distances. – No inflight entertainment systems. – Overhead space may be limited, and you might have to pay extra for more significant carry-ons.
Finally, if budget is a priority, Spirit Airlines has you covered. The airline offers highly economical options for both domestic and international travel.
You may come across mixed customer reviews regarding Spirit’s customer service. Make sure you come with the right expectations for a budget airline.
Why is Spirit so cheap?
Why is Spirit Airlines so cheap, you ask? The answer lies in their unique business strategy.
Non-ticket revenue: They adopt a budget-friendly strategy by charging extra for add-ons like seat selection, carry-on bags, and in-flight food and beverages. According to their 2022 financial reports, over half of Spirit’s total revenue per passenger comes from these non-ticket avenues.
Streamlined fleet: Unlike other airlines operating different types of aircraft, Spirit keeps it simple with just one family of aircraft – the Airbus. This significantly cuts down on training and supply chain expenses.
Save on Baggage: You can easily skip checking a bag if you pack everything in your carry-on. Or invest in my favorite seven-pound luggage to save on checked baggage fees!
It’s this clever business model that helps Spirit offer those unbeatable low fares.
FAQ
Yes, it is safe to fly with Spirit Airlines. They have a solid safety record and have never had a fatal incident in their history.
They use modern, digitally enhanced aircraft which provide risk-free journeys.
Despite minor concerns, overall Spirit Airlines offers a safe and affordable travel option. Most people flying Spirit Airlines may not be concerned with how much cash can you fly with!
Both Spirit and Delta Airlines are reputed for their robust safety measures and procedures, each being FAA-certified and upholding the safety standards set by the Federal Aviation Administration.
Spirit ranks among the world’s top 20 safest airlines, while Delta, with its long-standing history of nearly 100 years, may be perceived as marginally safer due to its established stature.
However, it’s important to note that both airlines are committed to ensuring passenger safety and regularly maintain their fleets to guarantee this.
No, Spirit Airlines doesn’t have a bad safety record.
Spirit Airlines has never had a fatal accident in its history.
It was ranked as one of the safest low-cost airlines globally by JACDEC.
Conclusion: Is Spirit Airlines Safe?
In conclusion, your concerns about Spirit Airlines’ safety may be a bit exaggerated.
Spirit Airlines ranks among the top 20 low cost safest airlines.
Over the past decade, Spirit has demonstrated a strong safety record, showing its dedication to passenger safety.
Safety protocols and equipment are prioritized, with crew members undergoing rigorous training to handle diverse scenarios.
Spirit operates with newer aircraft, a move applauded by travel professionals as a cost-effective safety measure.
There have been some criticisms, like limited flight options and cancellations, which should be taken into account in travel planning.
Thus, while no airline can promise absolute safety, Spirit certainly takes measures to ensure passenger well-being.
Don’t forget to get your Amazon travel must haves before your flight!
About Spirit Airlines
Originally established in 1980, Spirit is based out of Miramar, Florida, making the world a little smaller with 60+ destinations across the U.S., Central America, South America, and the Caribbean.
They have established themselves as the low-cost, no-frills airline.
What can you expect when flying with Spirit?
It offers a “Free Spirit” frequent flyer program where you can rack up reward points and exchange them for perks like seat selection and baggage check-ins.
Different seating options to suit your comfort; you can pick Economy Class, Big Front Seats, or Exit Row Seats.
They got your in-flight hunger covered with a variety of snacks and drinks for purchase.
Always stay connected with their Wi-Fi services on specific aircraft.
When flying with Spirit, you can expect strict adherence to their baggage weight and size policies. It’s crucial to be familiar with these restrictions and pack accordingly to prevent any airport hassles.
Got a problem? Their customer support is just a call or email away, round the clock.
So, grab your ticket today and experience a journey filled with comfort, convenience, and cost-efficiency.
Know someone else that needs this, too? Then, please share!!
In a bid to perhaps stay relevant, though in the FHA’s own words, to continue “its commitment to fully evaluate borrowers who have experienced periods of financial difficulty due to extenuating circumstances,” borrowers may now be eligible for an FHA loan just one year after experiencing a short sale, foreclosure, or even a bankruptcy.
The news came via a new mortgagee letter (13-26) posted on HUD’s website Friday.
While it sounds completely irresponsible and crazy, especially seeing that we’re just a year or two out of the worst mortgage crisis in recent history, they do have some standards in place to ensure not just anyone can get a mortgage again.
Did You Experience an “Economic Event?”
In order to get approved for an FHA loan just one year after experiencing such a massive credit hit, you must prove it was due to an “Economic Event,” otherwise known as unemployment or a “severe” reduction in income.
Of course, by severe reduction they’re only talking about a minimum 20% reduction in household income for a period of at least six months.
The last time I checked, it’s pretty common for individuals to see their income fluctuate like that. And the FHA is even allowing those with seasonal or part-time employment to qualify under these new rules.
However, there are a few more checks and balances. The lender must analyze the borrower’s credit to determine that they were a sound borrower before the Economic Event took place, and that their credit only went downhill after the incident.
Additionally, borrowers must re-establish “Satisfactory Credit” for a minimum of 12 months prior to receiving their FHA loan.
In other words, your credit report should be clear of any late housing or installment payments during the past 12 months, or any major derogatory events on revolving lines of credit.
Additionally, a year must have passed since the date of the foreclosure, deed-in-lieu, short sale, or bankruptcy.
[Getting a mortgage after a short sale with no waiting period.]
Lastly, participants in this initiative must receive homeownership counseling or a combination of homeownership education and counseling.
The minimum requirement is a single hour of one-on-one counseling from a HUD-approved housing counseling agency, and they must address the cause of the Economic Event and steps taken to overcome and avoid reoccurrence.
It must be completed at least 30 days before submitting a loan application, but no more than six months prior. Counseling can be conducted in person, over the phone, or even online.
To sum it up, in order to qualify you must:
[checklist]
Prove the negative credit event was the result of a loss of employment or significant loss of income
Prove that you have recovered and re-established satisfactory credit
Apply at least 12 months after the negative event took place
Complete housing counseling to avoid similar missteps in the future
[/checklist]
The loan must also meet all other applicable FHA eligibility and policy criteria.
So all in all it appears to be a pretty darn accommodating new rule to help former homeowners qualify for a mortgage.
Interestingly, the FHA has seen its market share take a hit thanks to new rules aimed at shoring up its reserves, such as requiring mortgage insurance for the life of the loan and increasing annual insurance premiums.
But I suppose the FHA’s original mission is to serve the underserved, so it makes sense that they would be the ones to allow this type of loan program.
The rule change applies to FHA loans with case numbers assigned on or after August 15, 2013 through September 30, 2016. It works for purchase money mortgages in all FHA programs aside from Home Equity Conversion Mortgages (reverse mortgages).
If you’re interested to see if you qualify, find a lender that specializes in FHA loans so they can guide you through the process and increase your odds of approval. You’ll want to submit an airtight application to avoid any hiccups.
Hawaii, with its lush landscapes, volcanic terrains, and mesmerizing beaches, offers a unique backdrop for the real estate market. The home inspection process here isn’t just routine—it’s essential. For prospective buyers, a home inspection not only reveals a property’s interaction with the unique Hawaiian environment but also offers a comprehensive view of its overall condition and potential challenges. Sellers, on the other hand, find value in providing clarity about their property’s strengths and vulnerabilities.
So whether you’re buying a home in Honolulu or selling a home in Waipahu, this Redfin article has everything you need to know about getting a home inspection in Hawaii, along with insights from local home inspectors themselves. Let’s get started.
ejs9 via Getty Tmages
Why should you get a home inspection in Hawaii?
“A Home Inspection initiated by the seller will increase the confidence of the buyer, reduce the time on the market, and lower the unknown risks faced by the buyer,” shares Inspect Hawaii.”A good analogy is the game of poker versus chess. In poker, cards are hidden from both parties to enable bluffing and guessing as part of the game. In chess, all the chess pieces of both parties are on the chess board and there is full transparency of information. A seller’s inspection is like playing chess instead of the current process which is akin to playing poker.”
“Buying a home in Hawaii, which is one of the most expensive and competitive places to live, can be a very emotional and difficult process,” shares Building Specs Hawaii. “Hiring qualified professionals, like an experienced home inspector, can help to alleviate some of the stresses and uncertainties that often arise. A professional home inspection provides valuable insight into a home and its components allowing buyers to better understand their potential new home and to best determine if it is the right one for them.”
Are there any specialized inspections that Hawaii buyers should consider?
In Hawaii, the tropical paradise known for its diverse landscapes and unique ecosystems, home buyers should be aware of specialized inspections that cater to the islands’ distinct conditions. Given Hawaii’s proximity to the ocean, a salt mist assessment can be valuable, as salt-laden air can accelerate corrosion on properties, especially metal components. Homes located in areas prone to volcanic activity might benefit from a geothermal risk evaluation. Additionally, given the high humidity levels, checking for mold or moisture damage is vital, particularly in enclosed spaces like basements.
“A home inspection in Hawaii is of paramount importance due to the unique environmental factors that affect properties in this tropical paradise,”says Square One Home Inspections. “The state’s high humidity levels can lead to hidden issues like mold and mildew, which may go unnoticed by the untrained eye. It is highly recommended that a home buyer to also complete a proper mold inspection.”
The state’s tropical climate can lead to pests like termites, making a comprehensive pest inspection critical.
“Termites are insidious. They can infest a house for months without being detected. In Hawaii there are two types of termites, similar in appearance but completely different in how they become established, the type of damage they do, the extent of the damage and how quickly the damage occurs,” shares Entomologist, Jamie Neely.
“Indications of infestations that are in their infancy are subtle and it takes an experienced eye to notice. Some types of construction are much more prone to infestation. Some areas of the islands have greater levels of infestation. Some high-rise buildings are more susceptible to infestation based on the design.”
“Termites are insidious. They can infest a house for months without being detected. In Hawaii there are two types of termites, similar in appearance but completely different in how they become established, the type of damage they do, the extent of the damage and how quickly the damage occurs,” shares Entomologist, Jamie Neely.
“Indications of infestations that are in their infancy are subtle and it takes an experienced eye to notice. Some types of construction are much more prone to infestation. Some areas of the islands have greater levels of infestation. Some high-rise buildings are more susceptible to infestation based on the design.”
Are home inspections required in Hawaii?
“I have been Inspecting properties on Oahu for over 20 years and you wouldn’t believe the flaws I have come across. I highly recommend home buyers hire a Home Inspector before their purchase although Hawaii does not require it,” recommends Akamai Home Inspection.
How much does a home inspection cost in Hawaii?
The cost of a home inspection in Hawaii can vary depending on several factors, including the location, size, and age of the property, as well as the specific services included in the inspection. On average, home inspections in Hawaii typically range from $400 to $800 or more. It’s essential to obtain quotes from qualified home inspectors in your area to get a precise estimate tailored to your property’s unique characteristics and the level of inspection detail you require. Keep in mind that while the upfront cost may vary, a thorough home inspection is a valuable investment in ensuring the condition and safety of your prospective home.
Can you sell a house in Hawaii without an inspection?
“You can sell your home in Hawaii without having a home inspection, but should you? It depends on many factors but we would recommend having a pre listing inspection to reduce the anxiety that comes with not knowing the outcome during the contingency period,” shares Architect Inspection Systems, Inc.. “It also gives you the opportunity to stand out as a seller by handing the buyers a detailed report on the condition of the home upfront, showing the confidence you have in your offer for sale.”
Hawaii home inspection: the bottom line
In the unique environment of Hawaii, home inspections take on special significance. At the heart of it, a thorough home inspection in Hawaii is not just about ensuring a sound investment; it’s about understanding and respecting the delicate balance of nature and construction in this tropical haven.
If you’re at all tuned in to economic and financial news, you’ve probably heard the the phrase “data dependent” more than a few times recently. It refers to the outlook for the Fed’s monetary policy and interest rates in general. If the data shows less growth and inflation, the Fed will set friendlier policies and rates will move lower. If the data is stronger and inflation is higher, rates will remain high or move higher.
Today brought the week’s only true top tier economic report. You may have never heard of the ISM Non-Manufacturing Index, but it’s the most closely watched version of a class of economic indices (PMIs or “purchasing managers indices) that are highly regarded by financial markets. All that to say, if the ISM Non-Manufacturing PMI comes in much higher or lower than expected, the market tends to react.
Today’s version was higher than expected across the board (there are multiple sub-indices that factor into the overall headline). Of particular note, the “prices paid” index rose for the 2nd straight month and is now back in line with the highest levels since March/April.
The market isn’t too worried about the outright levels of that price index, but the trajectory matters. Today’s increase gives the impression of the first legitimate bounce in service sector inflation since the price index began a serious downtrend in mid-2022.
Who cares? Mortgage rates! Rates are high due to inflation. If it looks like inflation is bouncing, rates will have a hard time moving lower. Today’s reaction was fairly small in the bigger picture, but it nonetheless took the average lender back up to the highest rates in more than a week.
From here, the next critical update from economic data is a full week away in the form of the Consumer Price Index (CPI)–an even bigger report than today’s ISM data.
In the picturesque landscapes of Connecticut, from vibrant cities like Hartford to scenic towns like Mystic, the real estate market thrives on details that span centuries of architectural evolution. Navigating this market, especially the home inspection phase, becomes a crucial endeavor for both buyers and sellers. For buyers, a home inspection can illuminate potential issues, ensuring they make a well-informed investment. For sellers, it provides a transparent platform to address any concerns and validate their asking price.
This Redfin article is designed to illuminate the significance of home inspections in Connecticut and offer invaluable expert insights to prospective homebuyers and sellers. Let’s delve into the essential factors you should keep in mind.
DenisTangneyJr via Getty Images
Why should you get a home inspection in Connecticut?
In Connecticut, a state rich in architectural history and diverse in its landscape, obtaining a home inspection is paramount for both buyers and sellers. The state is home to properties that range from historic colonial estates to modern builds, each with its unique set of attributes and potential concerns. Given the region’s varied weather patterns, homes may be subjected to conditions that can affect their structure, from heavy snowfall to coastal storm surges.
“Home inspections have unbelievable value. A good home inspection provides the consumer a detailed report on what systems are working well and which ones are not, without the interest of selling a contracting service. Whether it’s an ‘as is’ or full contingency inspection, it’s the best opportunity to really understand the pros and cons of your investment,” recommends JPL Inspectors.
“Conducting an inspection with a licensed property inspector can potentially save a buyer tens of thousands of dollars with the information provided,” recommends Compass Property Inspections.
Are there any specialized inspections that Connecticut buyers should consider?
In Connecticut, given its mix of old and new properties and unique environmental factors, buyers should consider several specialized inspections. Older homes might need a thorough structural assessment to pinpoint age-related issues or outdated construction techniques. Coastal or flood-prone properties can benefit from a flood risk evaluation. Given the state’s climate, checks for mold or moisture, particularly in basements or attics, are valuable. Homes with wells should undergo water quality tests.
“An issue we do encounter relatively often in Connecticut is high radon. Radon is a tasteless, odorless, invisible radioactive gas naturally released from rocks and soil into the home. A radon test should always be offered during the home inspection. Most home buyers choose to test, just to be safe,” suggests Mark’s Inspections. “Something else you always want to look out for is evidence of an underground oil tank. Buyers will not be able to transfer a sale if there is an underground oil tank present.”
Are home inspections required in Connecticut?
“While a home inspection is not required legally or mandated in the state of Connecticut, it is an essential step in the whole home buying process and should be performed as soon as you are ready to put an offer in. A good home inspector can help you avoid the costly mistake of buying a property in need of expensive repairs,” shares Sonic Home Inspections.
“A home may look good to a buyer but only a home inspection can uncover some costly issues that may not be so readily visible to an untrained eye,” continues Sonic Home Inspections. “The most frequent issues found in homes in Connecticut have to do with some sort of moisture intrusion. Whether it’s issues in the foundation due to moisture intrusion or perhaps issues in the attic due to leaky roofs moisture intrusion is the most common issue found in homes in CT.”
“While you aren’t necessarily required to do a home inspection when buying or selling a home in Connecticut, it’s a financially smart thing to do to insure your safety and comfort,” National Property Inspections.
“For example, if you move into your new house and the HVAC system fails, you have to pay for the repairs out of your pocket. If you conducted an inspection and found out the HVAC system needs repairs, you could have saved thousands by either requesting a price credit for the issue, or have the seller make repairs before the closing at no cost to you.”
How much does a home inspection cost in Connecticut?
“Home inspection costs can range anywhere from $300 for a small coop to thousands, it really depends on the property being inspected. On average though, a home inspection should cost between $600-$700 for a single family home,” says Mark’s Inspections.
Can you sell a house in Connecticut without an inspection?
Yes, in Connecticut, you can sell a house without an inspection. A home inspection is primarily for the benefit of the buyer, giving them a clear understanding of the property’s condition before finalizing the purchase. It’s worth noting that while a seller might not initiate an inspection, a buyer will likely request one as a condition of the purchase agreement. If significant issues are discovered during the buyer’s inspection, it could lead to negotiations or even the buyer backing out of the deal. Therefore, some sellers opt for a pre-listing inspection to identify and address potential problems beforehand, ensuring a smoother sales process.
“With a highly-competitive housing market driven by high-demand and limited inventory, waiving home inspections has become a trend to make buyer’s offers more appealing. This is a high risk for buyers to take, and is something I do not recommend due to the liability and risks it brings,” advises Prime Home Inspecting. “Skipping an inspection is like buying a car without looking under the hood or taking it for a test drive. It’s simply a matter of you don’t know what you don’t know.”
Expert advice for Connecticut buyers before they get a home inspection
“A septic system replacement is one of the costliest repairs a homeowner can incur, so skipping a septic system inspection when buying a home is not advised. Although not required, we strongly suggest pumping out the tank at the time of the septic inspection to properly check for any cracks, leaks, or deterioration in the septic tank. The extra dollars spent on the septic pumping could save you thousands if any issues are present,” says Skips Wastewater Services.
Connecticut home inspection: the bottom line
Buyers and sellers alike must be mindful of the specific conditions, from coastal influences to the state’s varying climate, that can impact a property’s integrity. Ultimately, a comprehensive home inspection isn’t just a procedural step in Connecticut—it’s an essential tool that ensures transparency, trust, and a smooth transaction.
Waiting for the impending federal student loan bubble to burst has homebuyers anxious. Who wants to think about balancing mortgage payments with monthly deposits toward a student loan?
In 2015, the National Association of Realtors published a report that unpacked some of the fears of homebuyers, chief among them student debt. According to the report, a massive 68% of buyers in 2015 were millennials (those born between 1980 to 2000). In that age group, a staggering 54% claimed that student loans were a main factor preventing them from buying a home.
Learning How to Manage Your Debt-to-Income Ratio.
A common fear about student loans is that they will bring down an applicant’s debt-to-income ratio (DTI), which lenders review to see if you qualify for a mortgage. The DTI is comprised of two factors:
–Front-end ratio: The percentage of yearly income consumed by would-be mortgage payments. (Lenders want a number lower than 28%)
–Back-end ratio: The percentage of yearly income eaten up by all debt burdens. (This number can be as high as 43% in some cases, but it is generally better to keep your number lower than 30%.)
For potential buyers with large student loans, the DTI can look like an obstacle, even with a perfect FICO Score. There are, however, ways to move around your debt and restructure loans so that your DTI number is not so significantly affected. The quickest way to lower your DTI is to lower the monthly amount you spend on student loans. Additionally, federal student loans allow you to choose an income-driven payment plan that generally takes 10% of your discretionary income. Refinancing student loans will also help net you a more competitive interest rate that will lower your long-term debt.
When looking to refinance your student loans, it is important to look at the greater financial picture, to look into savings, planning, and family support.
Affording a Down Payment.
Another huge worry, especially for first-time homebuyers, is not having enough money for a down payment. Here, savings are key and most professionals recommend saving around 20% of a home’s price. There are (like always) a few exceptions to this rule. An FHA Loan can help first-time buyers and senior citizens alike to lower down payments to as low as 3.5% of the purchase price. And if you are a veteran, the federal government offers a VA loan that can essentially extinguish the cost of a down payment to 0% of the purchase price.
The Big Picture.
When it’s all said and done, no one wants to be house poor, funneling the majority of earned wages into a home without any money to spend elsewhere. Many first-time homebuyers receive monetary gifts from family members to afford their first homes, which can help improve your chances at a purchase. Ultimately, though, student loan interest rates are relatively low and less threatening than other type of loans.
In case you’re still thinking about whether or not to refinance your student loan, here is a quick list of decision making points:
Does your DTI look good?
Are you able to save up for a down payment or get it reduced?
Can you handle the additional costs of home ownership such as utilities and repair?
Do you know where you want to be for the next 5 to 10 years?
A significant portion of the millennial generation now believes they will not have the opportunity to be a homeowner, indicating that mortgage originators may need to provide more education as part of their marketing.
Affordability remains the big hang-up, a Redfin survey found. But it’s not just millennials that are being impacted; besides the 18% of this cohort no longer thinks they will buy a house, 12% of the up-and-coming Gen Z, one already described as the largest and most diverse to enter the housing market, believe similarly.
First-time buyers already have a significant share of purchases this year, Zillow previously reported.
Breaking the list of affordability-related responses down further, high home prices, which have endured even as the U.S. economy has slowed, was the most cited reason why both groups felt this way.
A separate Redfin report issued on Thursday found that home prices gained 4.5% year-over-year for the four-week period ended Sept. 3.
As a result, the typical monthly mortgage payment of $2,612 is $18 below the all-time high set in May.
“If folks can figure out a way to buy instead of rent, they will,” Redfin agent Niko Voutsinas said in the home price release. “Some buyers are cutting back on other expenses to up their housing budgets because they believe home prices are only going to increase.”
Negative perceptions about their ability to save enough to make a down payment was cited by 46% of millennials and 33% of Gen Z. More than a third of both groups said mortgage rates are currently too high.
Meanwhile paying off student loan debt will take precedence for 21% of Gen Z and 16% of millennials over the purchase of a home, the survey found.
Of those survey participants that are planning to buy in the next 12 months, 36% of millennials and 41% of Gen Z members are working a second job in order to fund the down payment.
A cash gift from a family member is expected to help contribute to the down payment from 23% of millennials and 28% of Gen Zers.
Over 20% of both groups said they will tap into their investment portfolios by selling stock, while 15% will divest cryptocurrency.
“Many young people don’t have a choice between renting and buying,” said Daryl Fairweather, Redfin chief economist, in a press release. “They’re renting their home because even though rent payments have increased, too, it’s still more affordable than buying in much of the country–and renters don’t need a down payment.”
In turn, with private mortgage insurance, consumers can get a conforming loan with only 3% down. For first-time and other buyers, various forms of down payment assistance programs are available. Yet awareness of these alternatives has been lacking among the target audience.
“We’re very proud of the fact that we can enable people to buy a home with less than 20% down, we’ve been doing that for a long time,” Radian Group CEO Rick Thornberry said in an interview. “But it’s also something that we feel a strong corporate purpose to do, not just for the sake of volume, but to do it responsibly and sustainably from a borrower perspective.”
The Redfin survey was conducted in May and June; this portion of the study just concentrates on responses from 1,340 Gen Z and 1,973 millennial participants.
As of the end of the second quarter, it was cheaper for households to rent versus owning both on a nationwide basis and in 27 of the top 50 U.S. markets, a First American Financial analysis found.
But there’s no blanket answer to this challenge.
“Given current dynamics, more young households may choose to rent in the near term as the cost to own, excluding house price appreciation, has unequivocally increased,” a posting from First American Economist Ksenia Potapov said. “Yet, once you factor in house price appreciation, or depreciation in some markets, to the cost of homeownership, the decision to rent or buy will depend on local real estate market dynamics, which will determine if a home is likely to cost more or less in the near future.”
The conundrum about the housing market in general is recorded in Fannie Mae’s Home Purchase Sentiment Index for August, which at 66.9 is 0.1 higher than it was in July. Compared with August 2022, the HPSI was up 4.9 points.
“The overall HPSI is maintaining the low-level plateau set a few months back, and we don’t see much upside to the index in the near future, barring significant improvements to home affordability, which we also don’t expect,” Fannie Mae Chief Economist Doug Duncan said in a press release. “While renters are slightly more pessimistic than homeowners, for two years now a large majority of both groups have told us that it’s a bad time to buy a home, and they’ve continuously cited affordability concerns as the primary reason.”
Only 18% of those surveyed said August was a good month to buy a home, unchanged from July. But those that called it a good time to sell increased by two percentage points to 66%.
Ironically, the shares of respondents that believe rates will go up in the next year increased by 1 percentage point to 46%, while those that think they will move lower gained two percentage points to 18%.
That is because fewer respondents, 34% versus 38% in July, now think rates will remain unchanged.
FundingShield, the fintech provider of plug-and-play solutions to manage risk, compliance and fraud prevention, has partnered with Tata Consultancy Services (TCS), a technology services and consulting company.
The partnership comes amid an increase in wire and title fraud risk. FundingShield and TCS aim to protect more lenders, homebuyers, sellers from wire and title fraud, both companies said.
“The safest way to verify information is through automated, real-time, source-data verification, which is FundingShield’s expertise. We look forward to bringing our automations to more of the top US banks, GSEs, and to numerous other sectors where TCS has deep domain knowledge and experience,” Ike Suri, CEO of FundingShield, said in a statement.
FundingShield’s API driven fitnech services allow lenders, investors, homebuyers and title companies to confirm wired funds are going to intended recipients and transactions are free of impact from cyber fraud, phishing, business email compromise, or title fraud.
The company uses source data in real-time to confirm that documents are valid, vendors are compliant with regulations and insurance coverage protecting lenders, real-estate investors and consumers is enforceable.
“Wire fraud prevention has become a mandatory capability as part of any mortgage solution, protecting lending institutions from multi-million dollar risks to the third-party closing, title, and settlement entities,” Santhosh Ananthakrishnan, global head of mortgage strategic initiatives at TCS, said in a statement.
Wire and title fraud risk were on the rise in Q2 compared to the same period in 2022, according to a report from FundingShield that did an analysis of a $68 billion portfolio of real estate closings.
The fraud prevention solutions company saw a 12.6% jump in the number of loans with issues, 6.5% rise in closing protection letter-related errors and a 4.7% increase in issues with proof of insurance in Q2.
Email phishing continued to be “one of the fastest and most effective ways that fraudsters scam parties in a real estate transaction,” the report said.
Business email compromise scams related to real estate were $446.1 million in 2022, marking a record for dollar losses, according to the Federal Bureau of Investigation (FBI).
A total of 2,284 complaints were received in 2022, the second most ever, after an all-time high of 2,593 in 2018.
The last couple of months have been rough, real rough, assuming you work in the mortgage industry.
Sure, things aren’t terrible, but I’ll assume most participants would prefer to be living in May 2013, as opposed to August 2013.
After all, mortgage rates have surged, rising from around 3.375% in early May to closer to 4.5% today.
So it’s not just industry folk who are hurting, but also homeowners across the country (and prospective buyers) that can afford less house and save fewer dollars via a refinance.
Still, those purchasing homes today should be fairly happy to snag mortgages with rates at current levels, seeing that they’re quite attractive historically.
Whether the asking price is right is another question, but I digress.
Before Recent Rate Increase, 80% Had Above-Market Mortgage Rates
The much-feared dashed line is making its way to the right…
To put in perspective just how massive the recent interest rate spike has been, consider the fact that 80% of mortgages had above-market rates prior to the run-up, according to the August MarketPulse report from CoreLogic.
In other words, the recent rise in rates slashed the share of outstanding mortgages with above-market rates by 25 percentage points.
Of course, this isn’t to say that all of those borrowers could have benefited from a refinance before rates jumped.
In fact, a much smaller share is actually “in the money,” per CoreLogic, which assumes average closing costs of $3,000 and minimum monthly payment savings of $200.
They don’t go by interest rate reduction alone because smaller loans won’t realize comparable payment savings, even though the closing costs could be similar to that of a larger loan.
[The Refinance Rule of Thumb]
Anyway, using that calculation, CoreLogic said only 29% of borrowers remain “in the money” now that mortgage rates are much higher.
Long story short, it doesn’t make sense to refinance for the vast majority of borrowers out there, whether they believe it or not (or are told otherwise).
This is particularly startling considering how low mortgage rates continue to be historically.
In effect, it means the refinance market could get really ugly in the future if mortgage rates return to more modest levels around 6% or higher. At that point, very few would benefit from a refinance.
This could hurt the cash out market as well, with fewer borrowers willing to tap equity if it means giving up their ultra-low mortgage rate.
Perhaps an alternative will be an uptick in home equity line lending, thus keeping the first mortgage intact.
While it might suck to be a loan originator in the not-too-distant future, assuming purchase activity doesn’t pick up most of the slack, it could bode well for housing in general.
If we get to a point where most mortgages have interest rates that are below market rates, it could lead to lower default levels, foreclosures, and the like.
After all, if everyone has a nice, low fixed rate mortgage, a new crisis should be years away.
Tip: Make extra mortgage payments instead of refinancing.