this week in the housing and financial markets

what's happened this week in the housing and financial markets. Recent economic data showed signs of underlying inflation. Combined with strong housing and labor markets, this could contribute to higher mortgage rates. However, the latest Fed commentary urged caution, sharing intent to raise policy rates but not until later this year. This could help near term to keep rates steady. Another factor that could help keep rates low is recent retail sales. February's weak sales could signal weakness in the economic outlook, helping rates. Housing starts hit a 5 month high in February as builders ramped up construction. Single-family housing projects surged 7.2% to the highest pace in over 8 years. Building permits were down slightly from January to February, but still up 6.3% over the previous year. Permits for single-family homes rose 0.4% to 731,000. Builder confidence in housing remains strong, noting a continued demand for new inventory. Builders are struggling with enough labor and land to meet the demand. O'Reilly is walking through a graveyard when he comes across a headstone with the inscription, "Here lies a politician and an honest man." "Faith now," exclaims O'Reilly, "I wonder how they got the two of them in one grave!" Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

David Sharp
MiMutual Mortgage
Loan Officer
NMLS# 280482
(314) 260-4360
dsharp@mimutual.com
www.mimutual.info/dsharp
Click Here to Review Comments from Past Clients on Zillow

 

10 trendiest, but still affordable, cities

From the article by Yuqing Pan on realtor.com:

Our data team mixed up a large batch of kale smoothies and set out to find the next hipster meccas sprouting up across the U.S. We took a deep dive into the 500 largest cities in the country in search of those that combine a fun, young, culture-rich urban experience with affordability for the long haul.

Criteria for the list included: Number of foodie hot spots, bike shops, yoga studios, cultural outlets, an increase in the population of 25- to 34-year-olds from 2013 to 2014, and an increase in the percentage of people shopping for a home on realtor.com.

After this, realtor.com ran the acceptable cities through an affordability check.  

This is what was left.

Here are the 10 trendiest U.S. cities that you can still afford to live in:

10. Charleston, South Carolina

Median home price: $325, 200

9. New Orleans, Louisiana   

Median home price: $245,000

8. St. Louis, Missouri

Median home price: $145,000

7. Cincinnati, Ohio

Median home price: $138,000

6. Ann Arbor, Michigan

Median home price: $349,450

5. Minneapolis, Minnesota

Median home price: $251,000

4. Pittsburgh, Pennsylvania

Median home price: $149,900

3. Asheville, North Carolina

Median home price: $350,000

2. Richmond, Virginia

Median home price: $170,000

1. Salt Lake City, Utah

Median home price: $355,000

Source: realtor.com

HARP Loan Program - reduce mortgage, interest - no appraisal, no minimum credit score

About HARP®

What is the HARP Program?

When you have little equity in your home, or owe as much or more on your mortgage than your home is worth, it can be difficult to find a lender willing to help you refinance. But for borrowers who have remained current on their mortgages, and have loans owned by Fannie Mae or Freddie Mac, there is hope. It’s called HARP.

Introduced in March 2009, HARP enables borrowers with little or no equity to refinance into more affordable mortgages without new or additional mortgage insurance. HARP targets borrowers with loan-to-value (LTV) ratios equal to or greater than 80 percent and who have limited delinquencies over the 12 months prior to refinancing.

Significant changes have been made to HARP since the program was first introduced. For example, in 2011 the LTV ceiling was removed, property appraisal requirements were waived in certain circumstances, certain risk fees for borrowers selecting shorter amortization terms were eliminated, and certain representations and warranties were waived. In 2013, the eligibility date was changed from the date the loan was acquired by Fannie Mae or Freddie Mac to the date on the note, increasing the pool of eligible borrowers.

HARP has also been extended several times and will now expire on December 31, 2016.

Through HARP, you can get a lower interest rate (which means less out-of-pocket costs each month), get a shorter loan term, or change from an adjustable to fixed-rate mortgage. There’s no minimum credit score needed, either.

And now that HARP guidelines are simpler, even people who were formerly turned down may now be eligible for HARP refinancing.

HARP Frequently Asked Questions (FAQs)

Read more about the history of HARP

How can HARP help me?

If you are current on your mortgage; have a mortgage that is owned by Fannie Mae or Freddie Mac, and owe as much or more than your home is currently worth, you may be eligible for HARP refinancing. That can mean significant savings by: 

• Lowering your monthly payment
• Reducing your interest rate
• Securing a fixed-rate mortgage that won’t change over time
• Building equity faster—shorter term options may be available
• Lower closing costs because an appraisal is not usually required

HARP program includes:

• No underwater limits
  Borrowers will now be able to refinance regardless of how far their homes have fallen in value. Previous loan-to-value limits were set at 125 percent.
• No appraisals or underwriting
  Most homeowners will not have to get an appraisal or have their loan underwritten, making their refinance process smoother and faster.
• Modified fees
  Certain risk-based fees for borrowers who refinance into shorter-term loans have been reduced.
• Less paperwork
  Lenders now need less paperwork for income verification, and have the option of qualifying a borrower by documenting that the borrower has at least 12 months of mortgage payments in reserve.
• Program Deadline
  The end date to get a HARP refinance is December 31, 2016.