Paramount Mortgage - Lender's Blog

How Homeowners are Spending Home Equity

Home equity has hit a record high, thanks to fast-rising values in today’s competitive housing market.

By the Numbers – New Home Sales

The demand for newly constructed homes increased in December 2017. The Mortgage Bankers Association (MBA) said its Builder Applications Survey (BAS) found those applications were up from November.

18% – Builder applications up from November

7.8% – December 2017 applications higher than December 2016

7.1% – Average 2017 applications up from 2016 average

December 2017 loan applications:

72.5% – Conventional loans

15.1% – FHA loans

By the Numbers – Down Payments

Most renters say they expect to buy a home someday. But nearly half admit that saving for a down payment is one of their biggest obstacles. Through their National Housing Survey®, Fannie Mae asked consumers about down payments and, specifically, if they received or expect to receive family financial assistance to help buy their first home.

82% – Renters who say that plan to buy at some point

20% – Received financial assistance from family

Of those who received assistance:

A Little Holiday Humor

 

Housing and Mortgage Trends to Watch in 2018

Here are a few housing and mortgage trends to expect in 2018, as compiled by NerdWallet.com:

Home prices decelerate
This is good news for first-time home buyers. Home-price appreciation is expected to cool down. The median forecast among six industry and lender groups is for a 4.1% increase in existing home prices nationwide, compared to 6.3% in 2016 and approximately 6% in 2017.

FHA Increases Loan Limits for 2018

The Federal Housing Administration has announced that nearly every area of the U.S. will see FHA loan limits increase in 2018. The new loan limits will take effect for FHA case numbers assigned on or after January 1, 2018.

FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008, to set Single Family forward loan limits at 115% of median house prices, subject to a floor and a ceiling on the limits. FHA calculates forward mortgage limits by Metropolitan Statistical Area and county.

US New Home Sales Hit 10-Year High in October

Sales of new U.S. single-family homes rose unexpectedly in October, hitting their highest level in 10 years amid vigorous demand across the country.

The Commerce Department stated that new home sales increased 6.2 percent to a seasonally adjusted annual rate of 685,000 units in October. That was the highest level since October 2007 and followed September's revised sales pace of 645,000 units.

New home sales have increased for three straight months.

FHFA Announces Maximum Conforming Loan Limits for 2018

The Federal Housing Finance Agency (FHFA) recently announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018. In most of the U.S., the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017.

A Little Turkey-Day Humor

 

5 Mistakes that can Hurt your Credit Score

1. Paying More Than 30 Days Late
Late payments can hurt a credit score, but what a lot of people don’t realize is that everyone gets a 30-day grace period before a lender can report delinquency to the credit bureaus. Even if you get hit with a late-payment fee from your credit card issuer, you can still save your score if you pay within this grace period.

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