Forget SF, Goodbye NYC!

You Won't Believe the New Magnets for Home Buyers, Last fall, 

Kit Kester, 32, and his wife decided it was time to make the giant leap into first-time homeownership. But they didn't consider relocating to job-packed San Francisco, breakfast-taco-loving Austin, TX, mustache-obsessed Williamsburg, Brooklyn, or any of the other infamous millennial hotspots across the United States.

Instead they centered their search on their hometown of Lincoln, NE. By October, they had purchased a three-bedroom, split-level home in the suburban neighborhood of Highlands for $180,000.

“We got tired of paying rent and throwing money away,' says the maintenance supervisor and father of a young child. 'And we really liked the idea of having a home for my daughter to grow up in.”

Millennials bought 36% of homes last year, the highest share of any generational group, according to the National Association of Realtors®. Of that 36%, 65% went to first-time home buyers. But this vast army of buyers faces some unique challenges in their transition from renters to owners, including crushing debt loads and one of the tightest and most competitive housing markets in history. They may be buying homes in big numbers, but they can't afford to do so in the nation's largest, most expensive cities.

Instead, many younger buyers are opting for more affordable—and unexpected—parts of the country. But where? The data team decided to find out where younger Americans make up the largest percentage of purchasers, by looking at who is getting mortgages and where they're getting 'em.
Now let's take a tour of the new millennial meccas!
4. Provo, UT

Median home list price: $376,700
Percentage of mortgages issued to millennials: 56.5%

Most of the places on our list are all about reasonably priced housing. The exception is Provo, where home prices are almost $100,000 more than the national median.

But high prices aren’t locking younger buyers out of the market here, because wages are also good. The city is home to Brigham Young University, Ancestry.com, and plenty of start-ups where computer coders can earn a fine living. That earned the city a spot on our our ranking of top metros for the middle class.

Provo homes cost a bit less than those in nearby Salt Lake City, at a median nearly $394,000. The larger city, about 45 minutes north, was ranked as one of the toughest housing markets for millennials.

Many first-time buyers are moving to more family-friendly, suburban communities like Cedar Hills, around 25 minutes from downtown Provo, where they can snag larger homes. Just look at this 3,400 square-foot, five-bedroom Rambler-style home, priced at $479,000.

And all the 1990s kids who grew up watching 'Jurassic Park' over and over are sure to dig (get it?) the dino fossils at the Brigham Young University Museum of Paleontology.

What we found flies in the face of conventional wisdom. 'At the end of the day, it comes down to what they can afford,' a New York-based company that helps people reach their financial goals. 'They might have started their careers in very expensive metros areas like [Washington] DC or San Francisco. But as they age, they often want to settle down and look for a home in a reasonably priced location.'

We used Pew Research Center's definition of millennials: those born between 1981 and 1996—who are now anywhere from 22 to the ripe old age of 36.Then we calculated the share of buyers within that age group who bought homes over the past 12 months in the 200 largest housing markets.

Ready to Buy or Sell?  We have a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership #NewConstruction #UtahRealEstate

Source: Realtor.com

Freddie Expands 3% Down

New HomeOne mortgage has no geographic or 

income restrictions, Freddie Mac Announces HomeOne(SM) Conventional 3% Down Payment Mortgage to Broaden Access to Credit for Qualified First-Time Homebuyers

Freddie Mac is debuting a new 3 percent down payment option for qualified first-time buyers that could put it in direct competition with the Federal Housing Administration’s low down payment mortgage. 

The mortgage financing giant announced Thursday that it is rolling out a new conventional 3 percent down payment option called HomeOne, which will not have any geographic or income restrictions. 

Freddie’s expansion into small down payment loan products for new buyers will put it in competition against FHA, which offers mortgages to first-time buyers that similarly only require 3 percent down. 

Freddie Mac rolled out conventional mortgages with 3 percent down payments more than three years ago 

for qualified low- and moderate-income borrowers.

Its HomeOne product will not replace its current Home Possible products, but instead serve as a complement to it, Freddie Mac officials say. 

HomeOne mortgages will be offered only for conforming fixed-rate mortgages that are secured by a one-unit primary residence. 

At least one of the borrowers must be a first-time buyer. Also, applicants are required to participate in homeownership education to qualify for the mortgage. The loan is available for single-family homes, condos, and townhomes. Manufactured homes are not eligible.

“Freddie Mac’s HomeOne mortgage is part of the company’s ongoing efforts to support responsible lending, provide sustainable homeownership and improve access to credit,” Danny Gardner, senior vice president of single-family affordable lending and access to credit at Freddie Mac, said in a statement.

“HomeOne is a great solution for aspiring homebuyers to grab that first rung of the property ladder and enjoy the financial and social benefits of participating in homeownership.”

HomeOne mortgages will be available starting July 29. Mortgage Rates Surge to 4-Year High

Are you ready to Buy or Sell?  If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership #MortgageRates #FreddieMac


Source: Freddie Mac and “Freddie Mac Takes Aim at FHA With Widespread Expansion of 3% Down Mortgages,” HousingWire (April 26, 2018)

Looking Beyond New Construction

To Solve Inventory Shortages, Inventory shortages have been making 

headlines nationally and in many housing markets across the nation.

According to a recent research by the Brookings Institution, “It’s not your imagination. The U.S. really is adding less housing than it used to.”

About 70 percent of new housing stock comes from new construction, so construction definitely merits attention, the report said.

However, another 15 percent of new housing stock enters the market by way of “reconfigurations of existing buildings.” Restorations, conversions of non-housing buildings into housing units, and mobile homes are also sources of new housing inventory; and the importance of these more minor contributors varies by region and urban status.

However, construction is only part of the story. If policymakers want to truly effect change, they need to look beyond construction stats.

“If we want to understand and correct housing shortages, we need to look below the national level.” Nationally, churn rates are down considerably, declining from 7.5 percent between 1985 and 1987 down to about 2.5 percent between 2011 and 2013. Brookings noted, “Most of the decline in churn was driven by the slow rate of additions to the housing stock.”

The suburbs accounted for most of the growth in housing inventory between 1987 and 2013, although the pace of growth is on the decline, following the national trend. In fact, the suburbs are experiencing a steeper decline than urban or non-metro markets.

In the suburbs, new inventory is most often the result of new construction. Fewer than one in 10 “new” homes are added to suburban markets through “reconfiguration of existing structures,” and other sources of inventory also play insignificant roles in these markets.

On the other hand, in central cities, about one out of four homes are added to the market by reconfiguration, which includes dividing a single-family home into an apartment or adding an apartment over a garage. In non-metro areas, mobile homes play an important role, adding more to inventory than reconfigurations or restorations.

Regionally, the Northeast has the lowest percentage of new construction and a higher rate of reconfiguration as a share of new inventory than any other region. New construction accounts for a larger share of additional inventory in the West and South than in other regions. Mobile homes played a larger role in inventory gains in the South than in other regions, contributing to 10 percent of growth, compared to just 4 percent in the Northeast.

With inventory growth on the decline across the nation and with a noticeable steep decline in the suburbs, “Land use regulation and property taxes badly need a 21st-centurymakeover.”

Zoning laws, property taxes, and building codes generally favored low-density, single-family housing; and that needs to change. “Suburbs could learn from their urban cousins on how to accommodate more housing growth through mechanisms beyond new construction.” 

Are you ready to Buy or Sell?  If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership #NewConstruction

Homeownership Becoming Less Stressful?

Homeownership is becoming less stressful for many owners, 

despite the financial and emotional costs of owning a home. Tim Manni states that many Americans still put homeownership as a top priority.

“Despite homebuying being a long and often exhausting process, and homeownership being a time-consuming and frankly expensive venture, 75 percent of Americans say it’s a priority,  2018 Home Buyer Report,” 

'If recessions, high prices, and stress can’t kill the American dream, I’m not sure anything will. The American desire to own a home is incredibly resilient.”

One reason for the lower stress of homeownership is the falling costs of owning a home. On average, homeowners reported paying $1,443 each month on housing costs, which includes mortgage payments, insurance, property taxes, and HOA fees.

Just one in three homeowners called these costs expensive, meaning the majority of homeowners find their costs of ownership to be affordable.

Since the 2008-2010 recession, homeowners have gone from spending 25 percent of their income on homeownership to 21.5 percent as of 2016. Still, many homeowners could be saving even 

more money if they were to look closely at their insurance premiums.

“Homeowners should get into the habit of conducting a yearly audit of their mortgage costs.”  “For example, contact your insurer to see if there are ways to save on homeowners insurance. Repairs like a new roof could lower your yearly premium, for instance.”

Still, home repairs can be the most stressful aspect of owning

a home. Around 65 percent of homeowners have experienced some sort of anxiety related to owning their home, and 75 percent of that anxiety was due to unexpected home repair costs.
Homeowners should put aside just 2 percent of their yearly home costs for repairs. Other stress factors include late payments and delinquency.

Despite this, over half of homeowners reported feeling accomplished and proud of their home.

Are you ready to Buy or Sell?  If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership #Insurance rates 

Source: Dsnews

Where are The Houses?

Demand is Rising, But Inventory Plummets in Lower Price Points. 

 Bargain hunters or those looking to break into the housing market may need to face the reality that finding a home for less than $250,000 is getting tougher and tougher.

Homes priced under $100,000 plunged 20.7 percent in March month over month, and the percentage of homes under $250,000 has ped 7.8 percent, according to the National Association of REALTORS®’ latest housing report. 

The median home price was $250,400 in March, up 5.8 percent from a year ago. 
“In general, we’re seeing that there aren’t enough homes available for sale across all price ranges.”  “But the biggest shortage is under $250,000.”

Buyers looking for affordability will find existing homes significantly less expensive than buying a new home. Existing-home sale prices are about 30.5 percent lower than newly constructed homes. The median price of a newly constructed home was $326,800 in February, according to the Commerce Department. 

Expects listings to pick up in April and May, which is generally the peak spring buying season for real estate. Also, an early inventory in the first half of April suggests that the number of homes for sale was increasing in line with seasonal expectations.

“Abnormally late winter weather and an early Easter likely delayed homeowners planning to list their homes for sale in March.”  “While inventory levels are still not nearly high enough to meet strong buyer demand, we do expect listings to pick up in April and May.”

“The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year-ago levels,” says Lawrence Yun, NAR’s chief economist. 


“Supply is woefully low, and home prices keep climbing, If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership


Source: “Spring 2018 Report: realtor.com® (April 23, 2018)

Home Sales Overcome

Inventory and Price Woes, Inventory shortages and pressing affordability

 issues didn’t suppress home sales activity inMarch. Total sales of existing homes, including single-family homes, townhomes, condos, and co-ops, increased 1.1 percent last month to a seasonally adjusted annual rate of 5.6 million, according to the 
National Association of REALTORS®.

However, home sales are still 1.2 percent below a year ago. 

“Robust gains last month in the Northeast and Midwest—a reversal from the weather-impacted declines seen in February—helped overall sales activity rise to its strongest pace since last November,” says Lawrence Yun, NAR’s chief economist. “The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year-ago levels because supply is woefully low, and home prices keep climbing above what some would-be buyers can afford.”

Here’s a closer look at some key indicators from NAR’s latest existing-home sales report for March:

• Home prices: The median price for existing homes of all types was $250,400, up 5.8 percent from a year ago. “Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets, especially those out West,” Yun says. 
• Inventories: Total housing inventory rose 5.7 percent to 1.67 million existing homes available for sale, but that’s still 7.2 percent lower than a year ago. Inventories have fallen year over year for 34 consecutive months. At the current sales pace, unsold inventory is at a 3.6-month supply.
• All-cash sales: Cash transactions comprised 20 percent of sales, down from 23 percent a year ago. Individual investors tend to account for the bulk of all-cash sales. They purchased 15 percent of homes on the market last month, down from 18 percent a year ago. 
• Distressed sales: Foreclosures and short sales made up 4 percent of home sales. Broken out, 3 percent of sales were foreclosures and 1 percent were short sales. 
• Days on the market: Fifty percent of homes that sold in March were on the market for less than a month. Properties stayed on the market for an average of 30 days, down from 34 days a year ago. 

“REALTORS® throughout the country are seeing the seasonal ramp-up in buyer demand this spring—but without the commensurate increase in new listings coming onto the market,” Yun says. “As a result, competition is swift, and homes are going under contract in roughly a month, which is four days faster than last year and a remarkable 17 days faster than March 2016.” 

If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership


Source: National Association of REALTORS®

Debunking the Down Myth of 20%

Are you looking to buy a home this spring, but are worried you don't have 

enough for a 20% down payment? Good news:  You can put down less than 20%. In fact, the average down payment for first-time homebuyers in 2017 was 5%, and 10% for repeat buyers, according to the National Association of REALTORS^®. 

And, it's possible to put down even less.

For example, Freddie Mac Home Possible^® mortgage products let eligible homebuyers put down as little as 3%.

Putting less than 20% means you'd likely havehigher monthly payments and you'll be required to pay private mortgage insurance (PMI). However, if putting 20% down is not an option or will deplete all your savings and leave you with no financial cushion, it's probably not in your best interest.

Many potential buyers are also unaware of the fact that their down payment can come from sources other than personal savings. Some mortgage products let you use gifts from your family or employer. Others let you use grants or loans from not–for–profit or government agencies.

Hundreds of programs provide down payment assistance, with eligibility requirements varying based on your location and generally limited to first–time and/or low– and moderate–income homebuyers. Certain programs specifically benefit veterans, Native Americans, and workers employed in education, health care, law enforcement, and firefighting.

The U.S. Department of Housing and Urban Development (HUD) gives grants to state and local organizations nationwide. These organizations, in turn, use these funds to help homeowners bridge the down payment gap. To find the programs in your area, check out HUD's listing or Down Payment Resource's handy tool. State and local housing finance agencies (HFAs) administer many of these programs. Go to the National Council of State Housing Agencies' web site for a state–by–state listing.

Let's add up what this all means, using the following example:

Before signing on the dotted line, it's important that you understand your finances.

The decision to Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership #MortgageRates

Metros Are Surging Above Price Peaks

In many markets, home prices have never been this high. About half of 

105 metro areas studied were above their prerecession home price peaks in the first quarter of this year, according to a newly released study by ATTOM Data Solutions, a real estate data provider. 

The metros with median home prices highest above their prerecession peaks were Houston (69 percent higher); Dallas-Fort Worth, Texas (67 percent higher); Denver (62 percent higher); San Jose, Calif. (60 percent percent higher); and San Antonio (57 percent higher).

“Rising interest rates and recently enacted tax reform that removed some tax incentives for homeownership were not enough to cool off red-hot home price appreciation in many parts of the country, with 30 of the 105 local markets analyzed posting double-digit gains in median home prices in the first quarter,” says Daren Blomquist, senior vice president at ATTOM Data Solutions.

“In 2018 and in the next couple of years, we’ll see more markets where home prices are entering boom territory. It’s strange to say after so many years of stagnation, but buyers will want to beware right now in Denver, Miami, the LA area, Austin, San Francisco, Tampa and Seattle, where home prices are already 25 percent higher than they should be,” said Ingo Winzer, founder and president at Local Market Monitor.

“We don’t think a bust is imminent— in fact we think prices in these markets will keep going up for several years — but dynamics like this have always ended badly in the past. If you’re thinking of selling, this year or next would be a good time. If you’re thinking of buying, either have a very short-term outlook or a very long one.”

“Home prices are still below prerecession peaks in 46 percent of local markets, but nearly one-third of even those markets posted double-digit home price appreciation in the first quarter.”

The following other major metros (with populations of at least 1 million) saw median home prices at least 30 percent above prerecession peaks in the first quarter of 2018: Nashville, Tenn. (46 percent higher); Austin, Texas (45 percent higher); Salt Lake City (42 percent higher); Raleigh, N.C. (35 percent higher); Indianapolis (31 percent higher); and Oklahoma City (30 percent higher).

If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership

Source: ATTOM Data Solutions

Rates Rise

After eight weeks of stability, average mortgage rates jumped 

across the board rising to their highest so far in 2018 to 4.47 percent according to the weekly Freddie Mac Primary Market Survey.

Data from the survey indicated that 30-year fixed-rate mortgage rose to 4.47 percent from 4.42 percent a week earlier. The rates during the same period last year were at 3.97 percent.

“Treasury yields rose ahead of the release of the Fed’s Beige Book and speeches from New York Fed President William Dudley and Fed Governor Randal Quarles,” said Len Kiefer, Chief Economist at Freddie Mac. “Following Treasurys, mortgage rates soared.

The U.S. weekly average 30-year fixed mortgage rate rose five basis points to 4.47 percent in this week’s survey, its highest level since January 2014 and the largest weekly increase since February this year.”

Data indicated that 15-year fixed-rate mortgage also increased this week to 3.94 percent from 3.87 percent in the week prior, while 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.67 percent during the week, increasing slightly from 3.61 percent last week.

Why Are Consumers Leaving Money On The Table?

But the rate rise has been expected for some time. “Rate increases are expected for much of 2018, with the 30-year fixed rate mortgage expected to approach 5 percent by the end of the year,” said Danielle Hale, Chief Economist, Realtor.com. 
#RealEstateForSale #Homeownership #MortgageRates



Source: Mreports.com and Freddie Mac

So Rent Is About to Accelerate

That Apartment Building Boom Is Slowing— In a research note out Tuesday, 

Goldman Sachs economists suggested a February slowdown in housing inflation was likely temporary.

In the March consumer price index data released Wednesday, they were proved right.Goldman’s analysis was concerned with whether the rental industry would be able to weather the ongoing glut of new construction, and they believe it will.

That’s good news for landlords, but not so great for renters.

The Labor Department’s CPI tracks housing price inflation several ways. Housing costs for both renters – the category known as “rent of primary residence” – and for owners, a metric called “owner’s equivalent rent” – both accelerated to a 0.3% monthly gain from 0.2% in February.

In the 12 months ending March, rent climbed by 3.6%.

As Goldman explained it, many analysts have assumed years of robust building of apartments, particularly in expensive cities, would eventually slow increases in the cost of rent. But, the economists wrote, “the pipeline of new projects appears to have peaked. 

Additionally, a rise in cancellations/project delays (akin to the 2005-2007 experience) may slow the pace of completions going forward. Most importantly, the rental market has been able to absorb this decade-high pace of new supply without a significant increase in vacancy rates.”

The Labor Department also reported Wednesday that average hourly earnings rose 2.7% for the year — continuing a years-long trend of rents rising faster than wages. Many tenants have “absorbed” rising rents because they have no other options, but hefty rent payments crowd out other spending. They also make it difficult to save for down payments.

Builders step up their outreach

The construction industry has begun to take action to feed its need for workers. 

That should give the home buyers of tomorrow a sliver of hope.

For example, the Home Builders Association in Colorado Springs, CO, recently partnered with the local school district to start a vocational program in six schools. Called Careers in Construction, it instructs over 350 kids in carpentry, plumbing, HVAC, and electrical trades.

'We’re giving them a choice because not all of us are meant for college,' says George C. Hess III, CEO of Vantage Homes Corp., a Colorado Springs–based builder, and chairman of the Home Builders Institute, an educational trade group.

On a grander scale, Home Depot recently pledged $50 million for HBI to support a Pre-Apprenticeship Certificate Training program. It provides vocational education not just in schools but also on military bases.

“We know the younger generation is where we start to overcome perception and make the trades cool again, if you will, so we can have that pipeline continue over the next several decades,” says Shannon Gerber, executive director of the Home Depot Foundation. #RealEstateForSale #Homeownership #Rentals #NewConstruction

source: Realtor.com

Credit Scores May Jump This Month

Credit Policy Changes Could Boost Scores, The three major credit reporting 

agencies are implementing policy changes for credit scoring that could lift the scores of some consumers. Equifax, Experian, and TransUnion will now exclude exclude all tax lien data from credit reports, which could raise some credit scores as much as 30 points, CNBC reports. 

The agencies began this process last summer, removing nearly 100 percent of data on civil judgments and 50 percent of data on tax liens from credit reports. The firms now will strike the remainder of tax lien data, a policy that began taking effect Monday.

About 11 percent of the population likely will have a judgment or lien removed from their credit file, according to estimates from LexisNexis Solutions.

“Analyses conducted by the credit reporting agencies and credit score developers FICO and VantageScore show only modest credit scoring impacts,” Eric Ellman, senior vice president of the Consumer Data Industry Association, said in a statement. 

Credit reporting and scores play a key role in most Americans' daily life. The process can determine the interest rate a consumer is going to pay for credit cards, car loans and mortgages — or whether they will get a loan at all.

The new rules come following a study by the Consumer Financial Protection Bureau that found problems with credit reporting and recommended changes to help consumers. (Incorrect information on a credit report is the top issue reported by consumers, according to the bureau.)

Credit scores are key for consumers who are applying for loans, such as a mortgage. FICO scores, for example, generally range from 300 to 850; anything above 700 is usually considered a good credit score. 


#RealEstateForSale #Homeownership

Source: CNBC (April 16, 2018)

Subprime Mortgage Loans Make a Comeback

With a New Name and Soaring Demand ‘Nonprime’ 

Subprime mortgages—which were blamed for sparking the last housing crisis—are reappearing, this time being dubbed “nonprime” loans. This lending option, which carries new quality standards, is growing for buyers who have damaged credit. 

Carrington Mortgage Services is one company expanding its nonprime loan offerings. “We believe there is actually a market today for people who want to buy nonprime loans that have been properly underwritten,” Rick Sharga, executive vice president of Carrington Mortgage Holdings, told CNBC. “We’re not going back to the bad old days of ninja lending, when people with no jobs, no income, and no assets were getting loans.”

Carrington Mortgage Services, which plans to manually underwrite each loan, will qualify borrowers with FICO credit scores as low as 500. Borrowers could qualify for loans of up to $1.5 million on single-family homes, townhomes, or condos. The lender also will qualify borrowers who’ve had recent problems reported on their credit histories, such as a foreclosure, bankruptcy, or a history of late payments. But borrowers who are at higher risks will be required to make a bigger down payment, and the interest rate on the loan will be higher. 

The outsized demand from borrowers with more debt as well as demand for nonprime mortgages in the private sector show just how many borrowers today would like to become homeowners but are frozen out of the mortgage market.

Millennials, the largest homebuying cohort today, have much higher levels of student debt than previous generations. Members of older generations who went through foreclosures during the housing crisis or other hits to their credit are still struggling with lower FICO scores.

In addition, credit tightened up dramatically. In fact, between 2009 and 2015, tighter credit accounted for just more than 6 million 'missing' loans, according to research by Laurie Goodman at the Urban Institute. These are mortgages that would have been granted under more normal historical underwriting standards.

The rebirth of the nonprime market is focused on these missing mortgages. The hope is that the industry will also focus on better standards of underwriting and not take risk to the levels it once did, levels that resulted in disaster.

“What we’re talking about is underwriting that goes back to common sense sort of practices,” Sharga says. “If you have risk, you offset risk somewhere else. We probably are going to have the widest range of products for people with challenging credit in the marketplace.”

Other lenders also are getting into the nonprime space, including Angel Oak and Caliber Home Loans; more than 80 percent of Angel Oak loans are nonprime. 

“We believe that more competition is positive for the marketplace because there is strong enough demand for the product to support multiple originators,” Lauren Hedvat, managing director of capital markets at Angel Oak, told CNBC. 

“Additionally, the more competitors there are, the wider the footprint becomes, which should open the door for more potential borrowers.”

Source: CNBC (April 12, 2018)

Is Your Job on This Lucky List?

10 Most Affordable Cities for the Fastest-Growing Careers: When it comes 

to winning the real-world Game of Life, there are a pair of treasured action cards everyone is eager to play. 

One is

'Get a great new career'; the other is 'Buy the home of your dreams.' For most of us, they're a critical one-two combo. 

Homeownership is one of the reasons we shell out thousands for a good education, spend endless hours studying for certification tests, and smile through excruciating networking events.

But there can be a big disconnect. A red-hot economy is churning out jobs left and right, but the most in-demand gigs aren't necessarily in the places where those professionals can afford to live.

Hoping to helm the next zillion-dollar tech startup? Silicon Valley and Seattle reign supreme, but you may still need a hefty trust fund to buy a home. Attracted to the burgeoning solar power biz?

You'll have your pick of jobs in Boston or Honolulu, but good luck affording your own digs on a median salary of $39,200.

We picked the metros with the best prospects for 10 of the nation's fastest-growing professions—many of which are in green energy, health care, and technology—that are also affordable enough to make home ownership an achievable dream for the folks who ply these trades.

To come up with our rankings, we picked professions expected to see the most growth in new jobs through 2026, according to the U.S. Bureau of Labor Statistics. (We knocked off those that paid below $35,000 or were duplicative.)

We figured out where to find the highest concentrations of these jobs within the 200 largest metros. Then we looked at how much moola people in these careers pulled in nationally to see where they're most likely to be able to afford a home—assuming a 20% down payment and 30-year mortgage. We limited our list to just two metros per state to ensure some geographic diversity.

'Choose a job you love, and you will never have to work a day in your life,' 

Genetic counselors

Top metro: Salt Lake City, UT
Metro's median home list price: $394,000
Profession's national median salary: $74,100

Profession's projected growth rate: 29%

As a genetic counselor at the Huntsman Cancer Institute in Salt Lake City, reviews patients' family history, and then deploys genetic tests. If the patient's results show increased odds of cancer or other diseases, can recommend future screenings, exams, or other preventive measures. 

An explosion in genetic technology has created demand in metros such as Salt Lake City for these type of jobs. “We look at your family history looking for red flags,” 'such as breast cancer at a really young age.'

Generally, genetic counselors will have completed a master's degree. Salt Lake City employs these professionals at its hospitals, and also at nearby commercial employers such as Ancestry.com.

Since the profession is relatively young, many of the counselors in Salt Lake City are in their 20s and 30s, and live in condos in downtown Salt Lake City—many of them new units. (The median price for condos and townhomes is more reasonable: just over $271,000, according to data.)

You got the skills. Now let's find you a new home to put them to use.  If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership

Source: Realtor.com

Ramp up the Homebuying Season

Stable Rates, Mortgage rates continued to hold steady this week 

 according to the Freddie Mac Primary Mortgage Market Survey that was released on Thursday. 

The data indicated that the 30-year fixed-rate mortgage averaged 4.42 percent and was only slightly up from 4.40 percent last week. The 30-year fixed-rate mortgages were at 4.08 percent during the same period last year.

The stability in the mortgage rates bodes well for homebuyers looking at making a purchase this buying season. “For now mortgage rates are still quite low by historical standards, helping to support homebuyer affordability as the spring homebuying season ramps up,” Kiefer said.

And homebuyers remain undeterred by rates this season according to Realtor.com. “Home buyers remain largely undeterred by the rate increases we’ve seen since the beginning of the year making competition fierce. Homes in March sold 7 percent faster than last year and were 8 percent more expensive,” Hale said.

“March buyers had 8 percent fewer homes to choose from which has contributed significantly to these price gains and fast time on the market. In spite of the challenges, home shoppers remain optimistic. Seven in ten shoppers surveyed in March expected to purchase their home by the end of 2018.”

But will this stability last? This remains the big question. “Rates could break out and head higher. The U.S. Bureau of Labor Statistics reported this week that the Consumer Price Index increased 2.4 percent over the 12 months ending in March, the largest 12-month increase in a year,” Kiefer said. “ We may see two or three more rate hikes from the Fed this year, and mortgage rates could follow.”

Hale agrees: “Rate increases are expected for most of 2018, as the Fed responds to the anticipated strength of the economy. Long-term rates have thus far shrugged off the Fed’s moves, and mortgage rates have followed suit.”

Source: Freddie Mac

Here's Some Advice You'll Hear When Buying a House

Should Totally Ignore: When Buying a house? Then you'll no doubt 

hear tons of advice from people who've been through the home-buying process before and want to pass their sage wisdom onto you. Problem is, sometimes the advice that 'everybody knows' is right isn't.

Fact is, housing markets change over time—and the rules vary widely based on where you're looking to live, along with lots of other specifics. Just so you can keep your eye peeled for the home-buying advice you might hear that could lead you astray, here are common tips to take with a grain of salt.

'You need a neighborhood expert'

Of course you want an agent who knows the area, but do you really need a neighborhood expert? What on Earth does that even mean?

'I think it's kind of a fake term,' 'Most cities aren't as divided as you think.' In fact, working with a neighborhood expert can hurt your search if your agent doesn't suggest properties in more than one small area. Even if you think you know for sure where you want to buy, 'there may be other opportunities out there that are a better fit, and for a better price,' 

'You can save money by buying a fixer-upper'

Sure, shows such as 'Fixer Upper' make it look easy, but rest assured, purchasing a run-down home and turning it into something special 'is not for the faint of heart.' 

To really score a deal on a fixer-upper, you need to be able and willing to do a lot of the work yourself. Bottom line: For the inexperienced, the line between fixer-upper and money pit is perilously thin. Make sure the stress of a remodel is worth the savings.

'Foreclosures and short sales are bargains, too'

Short sales and foreclosures are often not the deals they appear to be, especially for inexperienced buyers.

'In this market, even banks want to get top dollar for their properties.'  'People can overpay for a property and still have to go through all the hassle of doing the work on it.' This is especially true for people using FHA loans, which have strict requirements about the condition of the homes they are used to purchase.

It's difficult for novices to know what they're actually buying, 'The price tag may be fair, but the damages are often severe and the room for negotiation is limited.'

'Always buy the worst house on the best block'

On the face of it, this seems like good advice: Pick the ugly ducking in your area, and the higher value of surrounding homes will elevate its value, which means your home's price has nowhere to go but up! And that'll be great when you're ready to sell.

Still, though, what if you don't want to live in the 'worst house'?

While it's important to think about resale value, most buyers aren't real estate investors; they're people buying a home they're going to live in. Even on the best block in the world, a home that's too small for your family or that has other deal-breaker qualities is not going to be a good fit.

It's better to find the right house in a less expensive neighborhood. After all, in a few years, your neighborhood can change, trees will grow, your neighbors 'landscaping could improve, but your house isn't going to sprout another two bedrooms.

The decision to Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale

How to win a bidding war:

Source: Realtor.com