Gary Pierpont Blog

According to 2014 spring housing market data, this year will be prime time to sell. Mortgage rates are still historically low, and many sellers have been putting off selling their homes until the brutal winter has come to an end. Experts say there are a few things to keep in mind when selling your house this season, such as keeping the price right by researching homes that have sold in your area during the last 60 days, staying on top of your competition, and making your housing photo and description “pop” on mobile devices. More here

Many baby boomers are turning to reverse mortgages for extra income, according to recent data. Loan percentages are expected to increase over the next several years as 77 million baby boomers make their way into retirement, and new reverse mortgage rules have been put in place to preserve the safety of the borrower. The new rules have made the reverse mortgage a more attractive option. Spokeswoman for the U.S. Department of Housing and Urban Development, Melanie Roussell said, “as with any mortgage product, there is risk to financing a loan, but we have made, and continue to make, significant efforts to mitigate that risk.” More here

Mortgage rates fell this week after last week’s increase, according to Freddie Mac’s Primary Mortgage Market Survey. The 30-year, fixed-rate mortgage fell 0.5% averaging 4.32% nationally this week. While the 15-year, fixed-rate mortgage also declined 0.6%, averaging 3.32% nationally. Both the 30-year and 15-year, FRM are still up from this time last year. Additionally, the 5-year treasury-index hybrid adjustable-rate mortgage also fell to a national average of 3.02%, and the national average for the 1-year Treasury-indexed ARM increased to 2.49%. More here

New data released by TransUnion states that, as hiring increases and the housing market continues to improve, more consumers are making mortgage payments a priority once again. An increasing number of homeowners are beginning to pay off their mortgages instead of making large payments on credit cards, showing evidence that more consumers are out of debt. The mortgage delinquency rate fell in December 2013 to 1.71%, and credit card delinquencies fell to 1.83%. Ezra Becker, vice president of research and consulting for TransUnion said. “as unemployment rose and home prices cratered, many borrowers chose to value their credit card relationships above their mortgages.” More here

The number of Americans who want to buy a home this year is growing, but following through with the act may be a difficult task. Zillow’s chief economist Stan Humphries said, “the dream of homeownership remains very much alive and well, but these aspirations must also contend with the current reality, and in many areas, conditions remain difficult.” According to a recent survey in 20 metropolitan cities, 5% of residents and 10% of renters want to buy a home over the next year. More here

According to the National Association of Home Builders, home builder sentiment in the United States increased this month. The NAHB/Wells Fargo Housing Market index jumped one point from last month averaging 47, still lower than many economists had predicted for March. February was the first month the housing market index fell below 50, and many experts expect the number to continue to increase as we make our way into the spring buying season, though concerns are still abundant. More here

According to reverse mortgage rules, when the owner of a home enrolled in a reverse mortgage moves out of the current home or passes away, the loan payoff is due shortly after, leaving many heirs in a complicated financial situation. Experts are encouraging people to let their heirs know about their reverse mortgage to help avoid future financial problems. If both spouses’ names are on the mortgage and one spouse passes away, the reverse mortgage will not require immediate payoff and will continue as designed. Adult children and spouses not on the mortgage will be expected to pay the loan off in full within 6 months following the borrower’s death. More here

Home prices have jumped, and in turn, an increasing number of houses have been put on the market, increasing supply in many U.S. cities. The median home price averaged $199,000, up 7.6% from this time last year. Home sellers and economists are hoping for a large spring buying season that will help the housing produce more positive data. Many experts suggest that seller confidence is one of the main factors to watch as we go into the spring buying season, and according to the data, confidence seems to be growing. More here 

Research shows that millennials have now reached an age where homeownership activity typically increases, and the increased activity is expected to strengthen the housing market. According to the National Association of Realtors annual survey of recent homebuyers, millennials make up 78% of all first-time homebuyers. Lawrence Yun, the NAR’s chief economist said, “given that millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand.” More here

According to the most recent report from the Mortgage Bankers Association, mortgage credit continues to improve. The mortgage credit availability index increased 0.44%, averaging 113.5 last month. Experts say that if the MCAI was tracked in 2007, the index would be approximately 800. Mortgage Bankers Association’s chief economist, Mike Fratantoni said, “for the third month in a row, mortgage lenders and investors slightly expanded credit offerings in February on net, as a result of offsetting factors.” More here