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REACH YOUR GOALS
Spring 2023 Housing Market Update
Home prices have risen across numerous regions with the arrival of spring. In certain areas, a decline in the quantity of available homes has sparked a new wave of bidding wars, and many properties are selling for more than their asking prices despite rising mortgage rates. Homes are also selling more quickly, with about 50% of them selling in less than two weeks.
However, some of the larger metro areas, including Austin, Salt Lake City and San Antonio, are seeing prices slide each month. Prices in Phoenix and Dallas are flat. Home prices in 10 states are lower than they were during March 2022: Washington (-7.4%), Idaho (-3.6%), Nevada (-3.5%), Utah (-3.4%), California (-3%), Montana (-2.3%), Oregon (-2%), Colorado (-1%), Arizona (-0.9%) and New York (-0.6%). Buyers who prefer new construction may be in line for some money-saving incentives, such as mortgage rate buydowns that lower payments for the first one to three years of a loan. New home supply has also risen, which is helping builders recover from years of expensive building materials and lack of skilled workers.
Source: cnbc.com
MORTGAGE IQ
The Low Down on Down Payment Assistance
Programs for down payment assistance (DPA) offer money to assist prospective homebuyers with the up-front expenditures of purchasing a home. In addition to state-sponsored initiatives, certain counties and localities also support programs. Some DPA programs are meant to help purchasers in particular professions, like teachers, who can have financial difficulties.
There were 2,362 DPA programs in existence as of the first quarter of 2023. The Pacific region experienced the greatest growth, with more than 80% already offering funds to qualifying buyers.
To meet the demands of 2023 buyers, some DPA programs have been altered. For instance, the number of companies that support both first-time and repeat homebuyers increased, with 39.7% of them currently doing so.
There was a 4.7% increase in programs for veterans and military service members, a 5.2% increase in programs for protectors, a 5.8% increase for firefighters and a 4.8% increase in the program for healthcare workers. Programs with incentives now make up 17.5% of all available programs.
If you're considering purchasing a home this year, down payment assistance could make it happen – and many don't require repayment! Contact me to learn more about the types of assistance available in our area.
Source: downpaymentresource.com
FINANCIAL NEWS
Will Bank Failures Affect Your Finances?
Bank failures are frightening because they occur so swiftly. One day everything is normal; the next, their demise is in the news. Only five days earlier, First Republic Bank had this kind of failure. Together, Signature Bank, Silicon Valley Bank, and these three other institutions account for three of the four biggest bank failures in history. Even while the FDIC has always stepped in to help, this fact has ruffled many people's feathers.
Should you be concerned about these issues is the question. The reply is perhaps. This is why.
Investors have been anticipating a recession, which may now actually materialize. Businesses experience uncertainty after bank failures, which frequently leads to the cancellation of expansion plans and stricter lending standards. Households reduce expenditure, particularly on expensive products.
There may be an increase in bank fees. This is due to two factors:
Smaller banks might approach lending and investing with less risk. As a result, the bank will have to find other ways to offset its lost income, such raising banking fees.
To make up for the money used to save failing banks, the FDIC may raise the quarterly fees it charges institutions. Once more, banks will raise their banking and transaction fees in order to pass on their rising costs to their clients.
Interest rates may actually go down... Other banks have troubled assets, and this was caused by interest rate changes changing the value of long-term debt. Many economists have suggested that lower interest rates would boost these banks' business model and help reduce their losses. ...or rates may go up. This would happen when banks reduce lending because of the general uncertainty caused by bank failures. This would make it difficult and expensive for consumers to get a loan. Sales of homes and vehicles would slow down, and industries would see declining revenue and operations. This could be the factor that finally brings on a recession.
Source: nasdaq.com
DID YOU KNOW?
More Consumers Cranky About Credit Agencies
Equifax, Experian, and TransUnion, the top three credit reporting agencies, recently received an unpleasant honor: they were the main subjects of complaints to the Consumer Financial Protection Bureau (CFPB) in the previous year.
In comparison to the two years prior, the average number of complaints regarding credit and consumer reporting than doubled, coming in at 48,300 per month in 2022 as opposed to 24,500 in 2020 and 2021. Almost all of the complaints that the CFBP addressed to the relevant credit agency were changed, with the agencies either fixing the issues raised or providing an explanation for each complaint. Inaccurate information on credit reports was the most frequent problem encountered by consumers (38%).
Consumers were also annoyed with the improper use of their report (35%) and problems with a company's investigation into an existing issue (25%). Runners-up in complaint volume included credit repair services and student loans. Last but not least: complaints about mortgages fell. Want to make sure your credit reports and scores are 100% accurate? Be sure to claim your free reports from the only Federally authorized website: AnnualCreditReport.com.
Source: nerdwallet.com
PERSONAL FINANCES
Don't Miss Out on Positive Legal and Financial Updates
If the National Consumer Law Center (NCLC) is unfamiliar to you, you might want to have a look at the information they offer. You can access a sizable online collection of articles and news in the financial and legal fields. For instance, a recent article offers ways to deal with title issues that could occur when a homeowner passes away.
The NCLC also disseminates information on more recent laws pertaining to consumer rights, such as the following:
Even if delinquent and/or in collections, unpaid medical debts of $500 or less are no longer reported by the three major credit bureaus Equifax, Transunion, and Experian.
Hate robocalls? So does the Federal Communications Commission (FCC). Beginning this summer, the FCC will limit the number of robocalls from debt collectors and informational, non-telemarketing calls to three each month. Even better, these callers must offer an opt-out mechanism so consumers can stop the calls.
If you have an adjustable-rate mortgage (ARM) with an interest rate based on the London Interbank Offered Rate (LIBOR), your lender will replace this index by July. This is because published LIBOR rates will end in June 2023.
Source: library.nclc.org
FOOD
Maple Blueberry Zucchini Muffins
Since many fruits and vegetables will be in good supply in May, including blueberries and zucchini, they're ideal to include in this breakfast recipe for Blueberry Zucchini Muffins. You may substitute gluten-free flour for wheat flour.
REAL ESTATE TRENDS
Lawns Gone Wild: Organic Outdoor Style
This year's outdoor themes include taking bee-friendly green space and including natural, organic features rather than high-maintenance, well-kept lawns. Here are four backyard styles and improvements to take into account.
Homes that are environmentally conscious are embracing wilder yards by substituting flowers, bushes, and stone accents for sodded lawns. Bee-friendly plants, often known as pollinators, are particularly well-liked.
Wellness gardens and yards are another trend. It may be necessary to do some research before developing a conscious design style in order to create an environment that fosters serenity. The outcome is a location that encourages community, sustainability, and wellness.
Edible gardens with raised beds are another feature and can complement an overall design or take up a major area of the backyard. More homeowners want to get their hands dirty and grow their own food, and forward-thinking garden centers have recognized this trend. While swimming pools are still popular, a smaller version – the plunge pool – has become a runaway hit. They need less water and maintenance and are a climate-responsible approach to cooling off. They can even double as a hot tub for homeowners who opt for a heated version.
Source: thespruce.com
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