Archive For: Market Overview
Among borrowers using FHA loans, which come with low down payments, more than 26% tap relatives for financial help. That’s up from 22% in 2011.
Rising home prices are sending first-time buyers to their parents for help with mortgage down payments.
More than 26% of mortgage borrowers who used Federal Housing Administration-insured loans got assistance from a relative to make the down payment in the 12 months through September, up from about 22% in 2011, according to data released late last year as part of the agency’s annual report.
The FHA, an arm of the Department of Housing and Urban Development, insures lenders against losses on the sometimes riskier loans they make. Borrowers taking out FHA loans are predominantly buying homes for the first time and often have weaker credit profiles that make it more difficult for them to get a conventional loan. It makes sense these borrowers might need to ask for financial help, but the FHA is keeping an eye on whether the share doing so keeps rising.
While conventional mortgages can require buyers to put down as much as 20% of the purchase price upfront, FHA buyers can pay as little as 3.5%. Such loans make up about a 10th of all U.S. home-loan originations, a share that has declined in recent years.
All in the Family
Share of Federal Housing Administration insured borrowers receiving help with down payments.
- Family Assistance
- Other assistance
Though the pace of home-price growth has slowed, prices are still consistently rising year over year, and higher mortgage rates are making buying more expensive. What’s more, many who missed the chance to purchase homes at modest prices are waiting for a pullback to jump in.
That has created a difficult situation for first-time buyers, many of whom are struggling to stockpile the cash for down payments. Factors including student debt and lackluster wage growth have made it difficult for many to keep up with rising home prices. The homeownership rate among those younger than 35 has fallen 8 percentage points since 2004 to 35% in 2017, according to Freddie Mac.
Is a National Housing Crisis Brewing?
If one is, what actions can be taken to head it off? This article was originally posted here on www.sfgate.som Housing is sputtering. Home sales, home-building and homeownership have gone flat, and the rise in home prices threatens to stall out. Things aren’t likely to get better soon, particularly for ... Read More
Mother-In-Law Apartments Approved!
What Does This Mean For You?Join us on Facebook Live Friday @1:30 to discuss this ordinance and how it effects you. The Salt Lake City Council on Tuesday approved an ordinance to allow accessory dwelling units, also known as mother-in-law apartments, citywide. “We have spent an enormous, an amazing amount ... Read More
Will the housing market survive the next economic slowdown?
The economic expansion that began in 2009 is the longest in American history. Bull markets cannot run forever and at some point in the future (potentially the near future) the economy will need to pause to take a breather. Like many of the clients I speak with, you may be ... Read More
Q2 Spring Market – April Predictions
It’s that time of the year again for our April predictions – It’s no secret if you look at the statistics. Salt Lake City is a seasonal market, in fact we always see the most appreciation in the second quarter (from April – June). Up, down, sideways, recession – our ... Read MoreUtah Housing Market Update 2017Q4
So, how was the market last year? Once a quarter we like to pull up the above chart. The points you see mark the end of a given quarter. Blue line is median Price (median price growth in SLC based on quarter). The Black line is the number of homes ... Read More
Floating City on Utah lake?
This article was originally posted on good4utah.com here. We built this city…on Utah Lake? It could become a reality because a local development group is planning a massive conservation and construction project for the 95,000 acre freshwater lake in Utah County. Artist rendering of proposed island city in Utah Lake. Courtesy: ... Read More
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