Money Management in the New Year.

15 Financial Resolutions for the New Year
Ask The Experts: Potential home owners who have put getting into the housing market at the top of their to-do list next year may not realize how many steps it takes to make it to the finish line.  As a real estate pro, now may be the perfect time to share a few planning tips for where they can begin this January. "Roughly 45 percent of Americans make New Year’s resolutions each January, with many of their pledges being financial in nature," This company engaged a panel of financial and consumer psychology experts to create 15 resolutions "in order to help progress-minded people improve their money management in the New Year." Read more.

Buying is still more affordable than renting

Buying Trumps Renting in Most Places
Buying is still more affordable than renting in the majority of U.S. housing markets, according to a new analysis. A study conducted by RealtyTrac factored in 2015 fair market rental data recently released by the U.S. Department for Housing and Urban Development for three-bedroom properties in 543 counties nationwide with populations of at least 100,000. Buying a median-priced home was found to be more affordable than renting a three-bedroom property in 68 percent of the counties tracked. Buying a median-priced home on the other hand, will only require 36 percent of median household income, on average, read more.

Allowing HOAs to Extinguish Mortgages:

Lenders Appeal Court Decision
Allowing HOAs to Extinguish Mortgages: Several mortgage lenders have asked the Nevada Supreme Court to reverse a decision it made in September that a homeowners association's (HOA) super priority lien can extinguish a first deed of trust nonjudicially on a residential property. Last month's ruling, which was issued by only a 4-3 majority, has only caused more debate in Nevada between mortgage lenders and housing investors over whether or not HOAs should have the right to extinguish a lender's mortgage on a foreclosed property without going through the courts. The ruling allows HOAs to legally foreclose on a property that is delinquent on dues payments and auction off the title to the property without the involvement of the lender or courts, read more.

Housing Not Up to Handle Aging Population

Housing Not Set Up to Handle Aging Population
The U.S. is not prepared to accommodate its rapidly growing older population where housing needs are concerned. The report, entitled Housing America's Older Adults – Meeting the Needs of an Aging Population, estimates that the population of adults age 50 and above will reach 133 million by 2030, a jump of more than 70 percent since the year 2000. But while their numbers are rapidly increasing, the amount of housing that is affordable, physically accessible, and located well is not, the report said. "High housing costs, aging homes, and costly repairs can greatly impact those with limited incomes, read more.

Groups Urge FHA To Lower Premiums

Time to lower FHA premiums
A group of 18 senators, along with the nation's bankers and trade organizations — including the National Association of REALTORS® — are calling on the Federal Housing Administration to lower its insurance premiums. In the latest letter to FHA and the U.S. Department of Housing and Urban Development, leaders from the Community Home Loan Association said that FHA-insured mortgages are too high and are making FHA loans less affordable for lower and middle-income home buyers. NAR urges FHA to lower its annual mortgage insurance premiums and eliminate the requirement that mortgage insurance be held for the life of the loan, read more.

Happy Holidays

Warm Wishes from Tina Orr

and your Friends at Affordable Utah Housing.

Amenities Buyers Splurge For

Amenities Buyers Splurge For
"Consumers today aren't just looking for the biggest house on the block. They're looking for more efficient use of space and a greater area allocated to 'workhorse' spaces, like the kitchen," Ryan Marshall, PulteGroup's executive vice president of homebuilding operations, marketing, and sales, said about findings from a recent survey of buyer wish lists. "Home buyers want unique features and amenities and will do what it takes to find the home they truly want, even if they have to pay more for a move-in ready home." Meanwhile, Forbes recently highlighted several 2015 predictions from housing experts, read more.

Foreclosure Protections Extended

Foreclosure Protections Extended For The Military
Lawmakers have granted active-duty military an extension in avoiding foreclosure. House and Senate lawmakers recently agreed to extend until the end of 2015 protections for military members, which will prevent a bank from issuing a foreclosure on their home for a year after they complete active duty. The Servicemembers Civil Relief Act also contains other housing-related protections and extensions for active duty military members, such as preventing some rental evictions for up to three months and allowing service members in some cases to opt out of leases or rental agreements without penalty, read more.

Landlords are Quickly Raising Rents

Landlords are Quickly Raising Rents
Apartment rent to outpace inflation next year: NAR: Landlords are quickly raising their rents as the national vacancy rate dips to the lowest level in two decades. Rents are rising at the fastest pace in six years, according to newly released data from the Bureau of Labor Statistics this week. The annual rent inflation reached 3.5percent in November, the highest growth since November 2008, and up from 3.3 percent in October, Read more.

Rates Hit 3.80% Lowest Level of the Year

 Mortgage Rates Hit 3.80% Lowest Level of the Year
“This is likely the last of the low rates,” said Smoke. “We’re likely to see increases in the weeks ahead.” The 30-year fixed-rate mortgage dropped to its lowest point of the year as 10-year Treasury yields closed at their lowest level since May 2013, according to Freddie Mac. This week, the 30-year fixed-rate mortgage fell to 3.80%, down from 3.93% last week. A year ago this time, it was 4.47%, according to the Primary Mortgage Market Survey. “The temporary decline in rates will likely be short-lived,” said Jonathan Smoke, chief economist.  “Those who can take advantage now and lock in a purchase or refinance at these levels may never see these rates again.” Read more.

Home Buyers’ Final Price

Helping Buyers Reduce Closing Costs
Closing costs can add a lot to home buyers’ final price, particularly depending on which lender a buyer uses, what state they live in, the price of the home, and sometimes even the day of the month the closing occurs, The Wall Street Journal reports. But comparison shopping among lenders may help buyers to reduce their closing costs. Watch the day of your closing. The day of the month of the closing can even have an influence on costs. Borrowers can reduce their closing costs in several ways, see how.

Best Time to Sell and Buy

Winter Is Best Time to Sell and Buy
The housing market doesn’t hibernate in the winter. Sellers who list and buyers who buy often find the winter season the most advantageous time to make a move in real estate, according to a new study by the real estate brokerage. The winter season officially takes place between Dec. 21 and March 20, and real estate professionals should be ready for a season that often brings in more focused and active sellers and buyers. The study found that February is “historically the best month to list, with an average of 66 percent of homes listed then selling within 90 days.” The winter tends to net sellers’ more than their asking price during the months of December, January, February, and March than listings from June through November, read more.

Paving the Way for More First-Time Buyers in 2015
A new year is about to dawn—and the outlook on the housing market is definitely brighter. After all, 2014 was the best year in the U.S. economic recovery since 2008-2009. Even as the housing market gets back on track, the numbers of first-time buyers continue to disappoint. This is strongly associated with the tight credit requirements facing would-be buyers. The new standards should lead to thousands more consumers being able to get a mortgage and should also speed up the underwriting and approval process. Measures of mortgage credit availability from the Mortgage Bankers Association already indicate a slight loosening of credit in November prior to these rules going into effect. Housing Market Predictions for 2015:

Curious About Containers?

Salt Lake City, UT Customized Container Homes
Curious About Containers? There's been a lot of buzz lately about the sustainable, design-forward world of shipping containers turned into livable spaces. The Pros weigh in on Container Homes Affordability, Sustainability. Utah, knows quite a bit about container homes and has demonstrated how the shipping container can be used as an affordable, environmentally friendly housing
option. The most surprising thing about shipping container homes is how different and varied these structures can be. They don’t have to look like giant rectangles. They can be customized to look like traditional homes. There are many different options to choose from, such as pre-fab homes, commercial office designs, and a wide variety of floor plans and design styles, Learn more.

Gap Between Appraiser and Homeowner Narrow

 Appraisers Getting on the Same Page
The discrepancy between appraisers' and home owners' opinions of home values is narrowing. In November, appraisers valued homes 1.56 percent higher than home owners, according to  Home Price Perception Index. ."Mortgage financing often hinges on whether the appraised value coincides with the home values agreed upon by the home buyer and seller in the case of a home purchase, and the home owner's estimated value in the case of a refinance," says Chief Economist Bob Walters. "It is reassuring to see the gap between appraiser opinions and home owner opinions narrow, and if we had to choose a side of the fence, it makes for a much smoother mortgage process if appraisers are valuing homes above home owners' estimates like we're seeing, as compared to the opposite." Read more.

Foreclosure-Free Holiday
A gift from Fannie, Freddie : Fannie Mae and Freddie Mac announced they plan to 
suspend evictions on foreclosed single-family properties nationwide during the holidays, from Dec. 17, 2014 through Jan. 2, 2015. Shows Foreclosure Crisis Isn't Over Legal and administrative proceedings for evictions may continue, as well as pre-foreclosure activities, but families who are living in foreclosed homes will be allowed to remain in their homes during that time. The U.S. Department of Housing and Urban Development and Department of Treasury have announced enhancements to the government's Making Home Affordable program to assist homeowners who are struggling to make monthly mortgage payment, read more.

During the Off-Peak Selling Season

Listing During the Off-Peak Selling Season
House Hunters: Winter Doesn't Scare Us Off, There's a perception that listing a home for sale over the winter months in a northern state is foolhardy. However, recent research has pointed to the opposite: Listing during the "off-peak" selling season can actually be the perfect moment for sellers to get attention from serious buyers in less time than usual.  Here's one of the most encouraging signs for the housing market's future: Consumers' personal financial outlook is improving. 
 Just listed Salt lake City Utah at $193,000 MLS: 1270543, see video .

Officially Lower Down Payment

Officially Lower Down Payment - Loans With Maximum 97 % LTV
3 Percent for Qualifying First-Time Homebuyers: Following months of talk and speculation, both Fannie Mae and Freddie Mac announced on Monday they will begin allowing qualifying first-time borrowers to purchase homes with just a 3 percent down payment. By lowering the down payment down to 3 percent, leaders from the GSEs and the Federal Housing Finance Administration (FHFA) hope to increase home ownership and particularly household formation by offering loans to those who can afford mortgages but lack resources to make a 20 percent down payment plus closing costs.Likewise, Fannie Mae is now offering mortgage loans with a maximum 97 percent LTV ratio to qualifying first-time homebuyers, Read more.

Mortgage Rates at Lowest Point Since May 2013

 Update Loan Limits Will Not Change for 2015
The Federal Housing Administration (FHA) announced Friday it will leave loan limits 
unchanged for the highest- and lowest-cost housing markets in 2015.For most high-cost housing markets, the maximum allowable amount for an FHA loan will stay at $625,000, a threshold first set at the start of this year.For low-cost metro areas, the limit will remain unchanged at $271,050, the agency announced. FHA recalculates its national loan limit every year, basing its math on a percentage calculation of the national conforming loan limit for mortgages eligible for purchase or guarantee by the GSEs.That limit was also left untouched by the Federal Housing Finance Agency., read more.

70% Unaware of Down-Payment Assistance

Mortgage Rates at 3.89 percent average this week.
Seventy percent of adults in the U.S. say they're unfamiliar with down-payment assistance programs for middle-income home buyers in their community, according to a survey. But plenty of help is available. Organizations provided 6,000 buyers with more than $100 million in down-payment assistance last year. Expects to increase its assistance this year, too. Many local and state organizations offer down-payment assistance as well, and there are specialized programs for military vets through the Veterans Affairs loan program, for first-time buyers through the Federal Housing Administration, and for rural home buyers through the U.S. Department of Agriculture, Learn more about Down payment Assistance..

Apartment Boom May Put Lid on Rising Rents

 Apartment Construction Boom to Impact Rents
Apartment Boom May Put Lid on Rising Rents As builders quickly ramp up building of apartments across the country to meet rising demand, vacancy rates are starting to rise. That could help limit rent increases in 2015, according to economists. Renters Burdened More Than Owners The economists predict rent growth to slow to below 2 percent in 2015 as the multifamily market increases construction. They say apartment vacancy rates will rise in 46 of the country's 54 top metros over the next four quarters "due to the massive wave of current apartment deliveries and new apartment projects starting almost daily." Vacancy rates will likely push higher than 5 percent by the end of 2015.
See Median Price of Existing Homes in the U.S. for October 2014.

Borrowers Looking to Invest

United Wholesale Mortgage Investor Edge Michigan-based, 
announced on Tuesday the rollout of its newest product: Investor Edge, an offering designed specifically for borrowers seeking to purchase or refinance non-owner occupied investment properties. According to a company release, the Investor Edge program provides UWM's broker partners with the opportunity to expand their businesses by catering to the niche segment of borrowers looking for homes to invest in.   "The last few years residential investment purchase property transactions have largely been dominated by all cash investors.,"  Our Investor Edge program helps level the playing field by giving investors alternative options to an all-cash transaction, read more.

Housing Market As A Whole Will Shift In 2015

Economist Predicts - Housing Market As A Whole Will Shift In 2015
While millennials so far have yet to find their place in the housing market, the stage is set for younger Americans to become the driving force in the residential sector in 2015, according to a forecast. "The lack of home-buying activity from millennials thus far is decidedly not because this generation isn't interested in homeownership.  "As renters' costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market, the housing market as a whole will shift more to the advantage of buyers, who have struggled throughout the recovery in what has largely been a seller's market, Learn more.

Refi Rising While Housing Closure to Stability

Refi Volume Rising While Housing Inches Closure to Stability
Following a slower than expected summer, the U.S. housing market made up some ground in September as most major indicators inched closer to stability. Freddie Mac released its latest Multi-Indicator Market Index, revealing a 0.5 percent uptick in September to a reading of 74.4 after months of slight declines. The most recent improvement puts the index a few points short of the lower threshold for a market considered to be in "stable" territory. Mortgage refinance volume increased throughout the third quarter as demand for the government's Home Affordable Refinance Program continued to diminish, read more.

Million-Dollar Homes Are Easier to sell,

High-End Homes Are Getting Easier To Sell,
Million-Dollar Homes Are Easier to sell, with the luxury market posting some of the largest increases in home sales compared to every other price category, according to the National Association of REALTORS®. Sales of homes priced $1 million and above surged 16.2 percent year-over-year in October. On the other hand, overall home sales rose only about 4.7 percent during that time, according to NAR. Also, inventory levels of higher-priced homes dropped by the largest amounts, falling to a 10.6-month supply. Nonetheless, the prospects for townhouse construction over the long run are positive, given large numbers of home buyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities, read more.