By Brittany De Lea Published December 13, 2018 U.S. Economy FOXBusiness Facebook Twitter Comments Print video US new home sales tumble in October Tri Pointe Group CEO Doug Bauer discusses how new home sales have tumbled in October and the Federal Reserve’s interest rate hikes. While the housing market was a centerpiece of the 2008 financial crisis, its stagnant recovery could actually save it from a downturn in another potential recession. Continue Reading Below “Because of the fact that it has been underperforming during the economic recovery, there is less room to go down,” Lawrence Yun, chief economist at the National Association of Realtors, told FOX Business. “I think the housing market would not see any big negative hit if there was an economic recession.” Yun said in the event of a recession, interest rates are likely to decline, while the Federal Reserve could halt rate increases and even cut some … [Read more...] about Housing: The new recession-proof investment?
Refinance investment property mortgage rates
LONDON (Reuters) - British banks approved the fewest mortgages for house purchase since March last month and demand to refinance home loans also fell following the Bank of England's interest rate rise in August, industry data showed on Wednesday. The number of mortgages approved for house purchase dropped to a six-month low of 38,505 in September from 39,241 in August, down 6.7 percent on a year earlier, the seasonally adjusted figures from UK Finance showed. Britain's housing market has slowed since the Brexit vote in June 2016. Most of the weakness has been in London and neighbouring areas, which have also been hit by a rise in purchase taxes for property worth over 1 million pounds. Net mortgage lending dropped to 1.550 billion pounds last month from 1.617 billion pounds, the weakest since January. "The mortgage market softened slightly in September, following strong remortgaging activity in the months preceding the recent base rate rise," UK Finance's managing director of personal … [Read more...] about UK mortgage approvals drop to six-month low
By Ilyce Glink and Samuel J. Tamkin, Tribune Content Agency Published 5:00 am CDT, Friday, October 12, 2018 Q: I was offered a mortgage "recast" and I need help evaluating if it is a sound financial move. My home is worth $250,000. I owe about $68,000, as I have been paying additional principal on the loan. My understanding is that when you do a recast of your mortgage, the lender simply takes the existing balance and adjusts it to the current amortization schedule. The appeal of having my current monthly payment lowered is attractive in case of a job change or if something happens and I suddenly earn less. I would still pay additional principal and pay off the loan sooner but would have the peace of mind knowing I only owed a lower payment each month. How do I measure the difference between my payment now and what it would be after a recast in terms of interest paid? All of the online calculators require a lump sum payment to the principal upfront, so I'm not sure I'm … [Read more...] about How to achieve a ‘home run refinance’
By Brenna Hughes Neghaiwi and Rupert Pretterklieber ZURICH (Reuters) - Nearly four years after a 1930s telephone switchboard centre was transformed into 18 industrial-style loft apartments in Zurich's Wiedikon neighbourhood it is still not fully occupied. With rent plus utility bills of just over 5,400 Swiss francs per month for a three-bedroom apartment, the development by part of Swiss bank Credit Suisse <CSGN.S> is indicative of a real estate rush which is raising regulatory red flags. A search for yield driven by Switzerland's negative interest rates has driven investors to build up their residential property portfolios and commission new luxury complexes. But although the country's vacancy rates have hit their highest levels in more than two decades, Swiss banks have upped mortgage lending as more investors seek to cash in. This is causing alarm among Swiss authorities who warn banks could be exposed when interest rates rise from the abnormally low levels used by the central … [Read more...] about Holes in Swiss property market ring mortgage alarm bells
By Jeff Lazerson | | PUBLISHED: August 9, 2018 at 12:45 pm | UPDATED: August 9, 2018 at 12:45 pm What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take. Rate news summary From Freddie Mac’s weekly survey: The 30-year fixed rate averaged 4.59 percent, down 1 basis point from last week’s 4.60 percent. The 15-year fixed rate averaged 4.05 percent, 3 basis points better than last week’s 4.08 percent. The Mortgage Bankers Association reported a 3 percent decrease in loan application volume from the previous week. The refinance index is now at its lowest level since December 2000. Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $453,100 loan, last year’s rate of 3.92 percent and payment of $2,142 is $165 lower than this week’s payment of $2,307. What I see: Locally, well-qualified borrowers can get the following fixed rate mortgages for a 1-point cost: 15-year at 3.5 … [Read more...] about First time ever: Standalone fixed-rate second mortgages allow 100% cash-out