Immigration Reform’s Effect on Housing, September 9th, 2017

shutterstock_577904650The mortgage and banking industries are reacting to President Donald Trump’s announcement on Tuesday that he will end the Deferred Action for Childhood Arrivals (DACA) immigration policy, which was enacted during former President Barack Obama’s administration. According to CNN, the program has protected almost 800,000 undocumented immigrants from deportation. While no more applications will be accepted, the President has said that he will allow a 60-day extension to give Congress time to “help them and do it properly.”

On Wednesday, the National Association of Homebuilders (NAHB) issued an official statement supporting legal immigration reform, but staying away from any commentary on the President’s actions.

“President Trump’s call to Congress to find a permanent legislative solution to protect the ‘Dreamers’ underscores the urgent need for lawmakers to pass comprehensive immigration reform. NAHB believes that any comprehensive reform should protect our nation’s borders; include a new, market-based visa program… and provide a workable employment verification system.”

The Bipartisan Policy estimates that immigrant households make up over 16 million households in the United States, which represents 14 percent of all American homes. Their contribution, if removed, could have unknown effects on the economy.

Jamie Dimon, Chairman, President and CEO of JPMorgan Chase released a statement in response to the news, Bloomberg reports. “America is and always has been a country of immigrants. And, when people come here to learn, work hard and give back to their communities, we should allow them to stay in the United States.”

Along the same lines, Wells Fargo also issued an official statement, according to the same report: “Wells Fargo believes young, undocumented immigrants brought to America as children should have the opportunity to stay. DACA is relevant to our team members and the communities we serve.”

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7 Home Maintenance Tasks You Should Tackle in September

Check Yourself: 7 Home Maintenance Tasks You Should Tackle in September #SeptemberTasks

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How Supply and Demand Impacts Real Estate Home Values

KCM Crew, September 9th, 2017

How Supply and Demand Impacts Real Estate Home Values [INFOGRAPHIC] | MyKCM

Some Highlights:

  • The concept of supply & demand is a simple one. The best time to sell something is when the supply of that item is low & the demand for that item is high!
  • Anything under a 6-month supply is a seller’s market!
  • Nationally, there has not been a 6-months inventory supply since August 2012!
  • Inventory levels differ depending on the area of the country and price range, so let’s get together to discuss the exact market conditions in our area.
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Mortgage Rates Hit Another, New Low

10-year Treasury continues to fall

Red house graph down

Mortgage rates continue to hit new lows this year as the Treasury yield reached a new 2017 low for the second consecutive week, according to Freddie Mac’s latest Primary Mortgage Market Survey.

“The 10-year Treasury yield fell nine basis points this week, reaching a new 2017-low for a second consecutive week,” Freddie Mac Chief Economist Sean Becketti said.

Click to Enlarge


(Source: Freddie Mac)

The 30-year fixed-rate mortgage dropped to 3.78% for the week ending September 7, 2017. This is down from last week’s 3.82% but up from 3.44% last year.

The 15-year FRM also decreased, dropping to 3.08%, down from 3.12% last week. This is still up from last year’s 2.76%.

However, the five-year Treasury-indexed hybrid adjustable-rate mortgage increased slightly from last week’s 3.14% to 3.15% this week. This is up from 2.81% last year.

Freddie Mac explained the 30-year fixed-rate mortgage followed in the steps of the 10-year Treasury yield, hitting yet another new low for 2017.

“The 30-year mortgage rate followed, dropping four basis points to a year-to- date low of 3.78%,” Becketti said.

One economist pointed out fears concerning North Korea could be keeping mortgage rates low, according to Greg McBride, senior vice president and chief financial analyst.

“Jitters over North Korea, plus low inflation and the likelihood it keeps the Fed on the sidelines for the remainder of the year continue to push bond yields, and mortgage rates, lower,” McBride said.

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Home Prices Jump 6/7% Annually in July

34 of top 100 markets now overvalued


Home prices increased once again in July, making more than one-third of the top 100 U.S. cities overvalued, according to the latest Home Price Index from CoreLogic, property information, analytics and data-enabled solutions provider.

Home prices increased 6.7% in July annually from July 2016 and 0.9% monthly from June, CoreLogic’s HPI showed.

Click to Enlarge

home prices

(Source: CoreLogic)

CoreLogic also predicted home prices will increase 5% by July 2018 and 0.4% in August, according to the HPI Forecast. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“In July, home price growth in the Pacific Northwest and mountain states led the nation with the highest appreciation rates,” CoreLogic Chief Economist Frank Nothaft said. “The sharp increase in prices in Washington and Utah has been especially striking, with home price growth in both states accelerating by 3% points since the beginning of this year.”

CoreLogic found out of the country’s top 100 metropolitan areas, 34% became overvalued in July, according to its Market Conditions Indicators data. The MCI showed 28% of the top markets were undervalued and 38% were at value.

The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals, such as disposable income.

“Home prices in July continued to rise at a solid pace with no signs of slowing down,” CoreLogic President and CEO Frank Martell said. “The combination of steadily rising purchase demand along with very tight inventory of unsold homes should keep upward pressure on home prices for the remainder of this year.”

“While mortgage interest rates remain low, affordability cracks are emerging as over a third of U.S. top cities are now overvalued,” Martell said.

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10 Upgrades Under $1,000 That Increase Home Values

10 Upgrades Under $1,000 That Increase Home Values via @Trulia#HomeValue #HomeUpgrades

@TRulia, September 7th, 2017

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Homeowners: Do You Know Your Home’s Value?

KCM Crew, September 7th, 2017

Homeowners: Do You Know Your Home’s Value? | MyKCMThe latest edition of CoreLogic’s Home Price Index shows that nationally, home prices have appreciated 6.7% over the last year and 0.9% month-over-month. The release of the report included this headline,

“National Home Prices Now 50% Above March 2011 Bottom”

The real estate market has come a long way since 2011, which is great news for homeowners!

Nearly 79% of homeowners with a mortgage in the US now have significant equity in their homes (defined as over 20%), according to the latest Equity Report. The challenge is that not every homeowner knows how much their home’s value has appreciated.

Homeowners in Denver, CO lead the way with 8.7% appreciation over the last year, while owners in Washington and Utah have experienced a 3% increase in values since the start of this year!

Nationally, CoreLogic forecasts that home values will increase another 5.0% by this time next year.

Bill Banfield, VP of Capital Markets at Quicken Loans, recently explained the importance of knowing the conditions in your area,

“With home values constantly changing, and the rates of change varying across the country, this is one more way to show how important it is for homeowners to stay aware of their local housing market.”

Bottom Line

Do you know what your house is worth? Have you stayed put because you are nervous you won’t have enough equity to buy your dream home? Let’s get together to perform an equity analysis and give you the freedom to achieve your dreams.

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