It’s good to be a homeowner these days. After all, home prices are rising at an incredible pace, and have been for nearly a decade now since bottoming out.
On top of that, many of today’s homeowners hold fixed-rate mortgages with ultra-low mortgage rates, making it very affordable to own rather than rent.
Unfortunately, the same can’t be said of those looking over the fence, or sitting on the fence, wondering if they too should make the move to homeowner.
One of the biggest hurdles to homeownership that continues to worsen is the pesky down payment.
And as property values increase, so too does the minimum amount required to get a mortgage, assuming a down payment is needed, which it often is unless you’re taking out a USDA loan or VA loan.
This has made it more and more difficult for renters to become homeowners, despite mortgage rates being at/near all-time lows.
It also highlights the fact that low mortgage rates, while certainly great, aren’t a be-all, end-all solution to affordable housing.
Home Price Gains Outpace Mortgage Rate Discounts
Median monthly mortgage payment on an existing single-family home increased to $1,059 in Q3
That number was up from $1,019 in the second quarter and $1,032 in Q3 2019
Mortgage payments accounted for 15.6% of income in Q3 based on median income of $81,477
That was up from 14.8% in the second quarter unchanged from a year ago
In the National Association of Realtors (NAR) latest statistical release, they noted that the median existing single-family home price surged 12.0% on a year-over-year basis to $313,500.
These home price gains were seen all throughout the country, with double-digit year-over-year increases in the West (13.7%), Northeast (13.3%), South (11.4%), and the Midwest (11.1%).
Meanwhile, home prices are growing four times as fast as median family incomes, which have only ticked up about 2.9%.
Still, with mortgage rates so low at the moment, the monthly mortgage payment on an existing single-family home has only increased to $1,059 from $1,019 a quarter earlier and $1,032 a year ago.
For most prospective home buyers and existing homeowners, this is probably incidental, and not a deal-breaker in terms of qualifying for a mortgage.
But NAR chief Lawrence Yun still remarked that “housing prices are increasing much too fast.”
Interestingly, the low mortgage rates are a double-edged sword because they’re continuing to lure buyers to market, thereby increasing demand and raising home prices in the process.
So while you might get a lower mortgage rate, you’ll pay more for the house, assuming you don’t already own it.
In fact, 65% of metro areas , or 117 areas out of 181, experienced double-digit price gains from one year ago.
These are the hottest metros nationwide when measuring home price growth from the third quarter of 2019 to the third quarter of this year.
Shockingly, home values were up nearly 30% in Bridgeport, Connecticut, which certainly doesn’t sound like healthy home price appreciation.
Yun noted that home prices have “jumped” in cities that contain larger properties with more open space, a symptom of the ongoing COVID-19 pandemic.
More frightening is the continued lack of housing inventory – at the end of the third quarter there were just 1.47 million existing homes available for sale, which was down a whopping 19.2% from a year earlier.
That represented just 2.7 months at the current sales pace, as of September 2020, which tells you why it’s overwhelmingly a seller’s market still.
Sure, you can probably get your hands on a super low mortgage rate, but good luck finding a house if you don’t already own one!
Read more: Would You Rather Have a Low Mortgage Rate or Pay a Lower Price for a Home?
Over the past few months, I’ve occasionally used the “Ask the Readers” feature at Get Rich Slowly to poll people about their budgets and spending habits. So far, I’ve asked folks to share their spending on food, clothes, gifts, and health insurance. Now I want to look at a bigger item in your budget — probably the biggest. Let’s talk about how much you spend on housing.
More than other expenses, your housing costs are influenced by where you live. Some parts of the country — and some parts of the world — are much cheaper to buy a home or to rent an apartment. It’s cheaper to live in Boise, Idaho, for instance, than to live in New York City. Generally, however, there are reasons for these price disparities. Most people are willing to pay more to live in New York than in Boise, and that drives prices higher. It’s a trade-off.
I’m a firm believer in the Balanced Money Formula, which says that if you pay too much for housing, you’ll have less to spend on other wants and needs, and you’ll always feel pinched, as if you can’t afford anything. On the other hand, if you limit your housing expense to below 25% of your take-home pay, you should have lots of breathing room.
For my own part, I pay a little more than I ought to for housing. After a few years of spending $0 per month (because we paid off the mortgage after selling the blog), I’m now paying $950 for my apartment in Portland. That’s 36% of my take-home pay, and a fine example of not practicing what I preach. But I’m able to get away with this because:
I’m still saving more than 20% of my income.
I have ample emergency savings.
The rest of my spending on needs is low.
My spending on wants is extremely low, and my relatively high housing expense doesn’t make me feel pinched.
As I mentioned before, this $950/month figure seemed high to me until I started comparing notes with other Portland renters. Yes, there are places that cost less, but they all involve compromises I’m unwilling to make right now. (The biggest compromise? Location. I want to be able to walk almost everywhere, and I can do that from this apartment. That’ll help me save money on auto expenses, which balances things a little.)
What about you? Where do you live and how much do you pay on housing? What percentage of your budget does this represent? Does your housing payment cramp other parts of your life? Or have you intentionally kept it low so that you can afford to spend on other things? If you were to start over again from scratch, what sorts of housing choices would you make? Would you rent? Would you buy? Would you move to another part of the country (or the world)?
Reminder: I’m not one of those who believes that buying a home is always best. Nor do I believe that renting is always best. Either can be a fine choice, but you have to be clear on your financial goals and you have to take into account your local real-estate market. To help make an informed choice, use something like the New York Times rent or buy calculator. In my case, I opted to rent.
National Mortgage News Editor-in-Chief Heidi Patalano joins Yahoo Finance Live to discuss the state of the housing market, including mortgage rates, pricing, and challenges for first-time homebuyers.
Video Transcript
– Keeping a close eye on the housing market, buyers are flowing into the new home market. Sales of new single family houses hitting in 683,000 during the month of April. This comes as mortgage rates continues to gradually trend higher again after a few weeks of declines. Rates on a 30-year fixed rate mortgage, they topped 5% for the first time in over a decade last year climbing as high as 7%.
For more on the housing market, we’re joined by Heidi Delano, who is the National Mortgage News editor-in-chief. Thanks so much for joining us on set.
HEIDI PATALANO: Thanks for having me. Great to be here.
– Certainly. So we were just diving into some of the numbers that broke this morning, particularly on the new home sales front. And one of the kind of figures that caught my eye here was the median sales price, that’s sitting at about $420,000 right now– so just shy of $500,000 there. And particularly, how that correlates to where people are finding mortgage rates.
You say in your notes to us they’re expected to remain volatile in the near term. But what about as we get towards the end of this year where there’s not as much buying that typically takes place towards that kind of latter half, or at least the third and fourth quarter of this year.
– Right. Well, there’s some reason for optimism for first-time homebuyers, those looking to get into their homes now or in the near future. As we’re noting, a lot of Fannie Mae is predicting that there may be a recession, of course, coming at the second half of the year. We’ve heard from the Mortgage Bankers Association, they expect rates to go down to about 5.6 by the end of the year, which should bring some people back to the table in terms of being interested in getting back in there and finally making an offer on a home.
So, you know, prices aren’t going to come down drastically from where they are now. They may come down a smidge– just a smidge. But really, there’s so much more demand than there are homes to be bought, so that’s really going to keep the prices pretty much where they are for the moment.
– Well, that and if we’re seeing mortgage rates come down, doesn’t that give a little room for prices to go up? In other words, when mortgage rates go up a lot, isn’t that a little bit of a curb to some extent on pricing because if you’re buying a house, you need a little bit more of an incentive on the pricing side?
– Right. Right. Absolutely. And you know, it’s interesting that across the country, every market is different. And we’re seeing more and more of that that every market has its own unique dynamics and there’s different things at play. For example, in Boise, Idaho, over the pandemic, the prices went up 70%. And now they’re coming back down. They came back down by about 8% from last year. So where there were huge increases, there is a little bit of a correction right now. And so yes, with rates coming down a little bit, they want to close that deal. It’s possible to maybe come down a little bit more on price.
– That might be a little bit of a correction, but like that’s not– I mean, if it went up 70% and it’s just coming down by 8%, that is still incredibly elevated. I mean, in other words, are you seeing as you look across the country, it doesn’t sound like that there is a, quote unquote, “normalization” to pre-pandemic levels certainly.
– Right. Certainly not. No. From the start of the pandemic, prices went up about 30%. And they’re only coming down just a little bit from that. They’re still way above historic norms. And so that’s actually really good for people who bought in the last few years. Of course, we don’t want to see people who have purchased over the past two to three years have their homes now drop in value drastically.
So this is actually good for the health of the overall housing market the fact that these prices aren’t coming down too much. But it’s also tough for the first-time homebuyers who are really having a hard time getting into those homes that are affordable to them.
– Something that we heard about within the earnings reports of Home Depot and Lowe’s was lumber deflation– that being one of the kind of common threads or denominators there. But how does that also play into potential new homebuyers as well who are looking for a home in the price that they may potentially pay?
– Right. There’s hope there. There’s some hope there. One thing that’s interesting about this market, you know, people in homes that exist today are not– they are not incentivized to move. So they’re staying put. And the things that are– the homes that are available to first-time homebuyers are those new ones, those brand new ones. Making them affordable at this time is, of course, still challenging because labor and materials are still quite high, but that’s where the real optimism is in the housing market for those new homes.
– I don’t know what kind of consumer surveys you guys do or you draw from. When people are making those decisions right now, is it rates? Is it price? Is it still location, location, location? Like, what are kind of what are people prioritizing, I guess?
– Right. I think it’s rates in some ways. Certainly for the people that do own a home now, they are not going to move right now. They’re going to wait to see what’s going to happen over the next couple of months. We’re really just in a holding pattern until the next Federal Reserve meeting and we see what they do in terms of raising the federal funds rate.
And for others, it’s a matter of relocating to a place that’s more affordable for them. Like, maybe the existing homeowner will move if they’re moving to a place where, you know, they can make up the difference in the higher cost of the new home because their overall cost of living will be lower. For first-time homebuyers, they want to get into this market no matter what. And so they’re just looking. And you know, certainly a lot of lenders are trying to come up with products that will help them to get into these homes.
You might have seen yesterday, Rocket launched a new product where they will help cover the 3% down that a homebuyer will need in order to get those people into those homes and make it more of a realistic proposition for them.
– Hopefully that doesn’t come back to bite on the other side. I don’t know.
– Yeah. Mortgage News Editor-in-Chief, Heidi Patalano, thank you so much for joining us here on set today. Thank you so much for having me.
Let’s take a look at the top mortgage lenders in Idaho, based on annual loan origination volume.
The Gem State was one of the hotter housing markets last year, seeing an influx of buyers from other states nationwide.
That, plus rising home prices, led to over $42 billion in home loan origination volume there last year.
And while some 500+ mortgage companies took part, only one could claim the top spot.
Interestingly, the #1 mortgage lender in Idaho is homegrown. Read on to find out who it is.
Top Mortgage Lenders in Idaho (Overall)
Ranking
Company Name
2021 Loan Volume
1.
Idaho Central CU
$4.2 billion
2.
Rocket Mortgage
$2.4 billion
3.
U.S. Bank
$1.3 billion
4.
Fairway Independent
$1.2 billion
5.
UWM
$1.1 billion
6.
Wells Fargo
$1.1 billion
7.
Academy Mortgage
$1.0 billion
8.
Guild Mortgage
$911 million
9.
Glacier Bank
$843 million
10.
Willamette Valley Bank
$834 million
Even if you’re headquartered in a particular state, it’s difficult to beat out the national mortgage brands.
But Idaho Central Credit Union did just that, originating $4.2 billion in home loans in the state of Idaho in 2021, per HMDA data from Richey May.
That was more than enough to take out top ranked Rocket Mortgage, which only mustered $2.4 billion.
Pretty impressive feat, and a testament to how much Idahoans like their own local lender. It’s also one of the few credit unions (if only) to rank #1 in a state.
In third was U.S. Bank with $1.3 billion, followed by Fairway Independent Mortgage with $1.2 billion, and United Wholesale Mortgage with $1.1 billion.
Spots six through 10 went to Wells Fargo, Academy Mortgage, Guild Mortgage, Glacier Bank, and Willamette Valley Bank.
So just one hometown lender the in the bunch, though it was far and away the leader.
Top Idaho Mortgage Lenders (for Home Buyers)
Ranking
Company Name
2021 Loan Volume
1.
Idaho Central CU
$1.6 billion
2.
Fairway Independent
$659 million
3.
Academy Mortgage
$525 million
4.
U.S. Bank
$487 million
5.
UWM
$476 million
6.
Supreme Lending
$469 million
7.
Wells Fargo
$440 million
8.
Glacier Bank
$433 million
9.
Willamette Bank
$430 million
10.
Chase
$389 million
As far as home purchase lending was concerned, Idaho Central was even more dominant, taking first place easily with $1.6 billion funded.
That was more than double second place Fairway Independent’s $659 million, and tripled Academy Mortgage’s $525 million.
In fourth was U.S. Bank with $487 million, followed by UWM with $476 million.
The rest of the best included Dallas-based Supreme Lending, Wells Fargo, Glacier Bank, Willamette Bank, and Chase.
Surprisingly, just the one Idaho-based company in the list, despite home purchases being pretty personal, and thus often local.
But again, Idaho’s own Idaho Central CU was easily the leader here too.
Top Refinance Lenders in Idaho (for Existing Homeowners)
Ranking
Company Name
2021 Loan Volume
1.
Idaho Central CU
$2.6 billion
2.
Rocket Mortgage
$2.0 billion
3.
U.S. Bank
$721 million
4.
UWM
$670 million
5.
Wells Fargo
$663 million
6.
Freedom Mortgage
$633 million
7.
loanDepot
$592 million
8.
Fairway Independent
$554 million
9.
Guild Mortgage
$529 million
10.
Pennymac
$505 million
If we filter out purchase loans and focus only on existing homeowners who refinanced, Idaho Central was still king with $2.6 billion funded.
However, Rocket Mortgage wasn’t too far behind with $2 billion in refi originations. It then dropped off quite a bit with U.S. Bank coming in third with $721 million.
UWM and Wells Fargo took fourth and fifth, with $670 million and $663 million, respectively.
The bottom half of the top 10 included Freedom Mortgage, loanDepot, Fairway Independent, Guild Mortgage, and Pennymac.
Again, mostly bigger national brands and only the one Idaho-based lender. Perhaps there just aren’t a lot of large mortgage companies headquartered in the state.
But impressive to see Idaho Central sweep all three categories, including both home purchases and mortgage refinances.
Top Mortgage Lenders in Boise
Ranking
Company Name
2021 Loan Volume
1.
Idaho Central CU
$2.5 billion
2.
Rocket Mortgage
$1.3 billion
3.
Fairway Independent
$1.0 billion
4.
Academy Mortgage
$729 million
5.
Guild Mortgage
$614 million
6.
UWM
$611 million
7.
U.S. Bank
$539 million
8.
Movement Mortgage
$469 million
9.
Wells Fargo
$458 million
10.
Flagstar Bank
$429 million
The Best Idaho Mortgage Lenders (based on customer reviews)
We’ve discussed the biggest mortgage lenders in the state of Idaho. But what about the best?
As I always say, it’s difficult to get mortgage-specific reviews for a bank or credit union because they offer lots of different products.
There are also smaller companies that don’t necessarily make the lists above, but are still highly-rated.
For example, Meridian, Idaho-based Premier Mortgage Resources has a 4.95/5 on Zillow from nearly 300 reviews.
And Boise-based Blue Sky Financial has a 4.88/5 from nearly 150 reviews. They aren’t as big as the others, but come highly reviewed and are local to Idaho.
As for the big guys, Rocket has a 4.48/5 on Zillow, U.S. Bank has a 4.98/5, Fairway Independent a 4.95/5, and Wells Fargo a 4.95/5.
So there appear to be good options both small and large, and local and non-local. Take the time to compare different companies, and different types of companies.
That includes credit unions, banks, nonbank lenders, and independent mortgage brokers located in the state of Idaho and beyond.
We’re living longer than ever before, and doing so in better health. So what can you do when you retire and want to keep your mind sharp or need to gain additional skills to stay competitive at work?
For many, the answer is to go back to school. But tuition can be prohibitively expensive.
At the same time, schools want their classrooms to be full of engaged students, regardless of age. In the interest of continuing education, many colleges and universities offer reduced or free college for seniors (typically, adults 60 and up, although the rules vary).
In fact, we found at least one option in every state.
Free (or Cheap) College for Seniors in Every State
While some institutions only allow senior students to audit classes, many offer the chance to earn credits toward a degree at a reduced — or completely waived — tuition rate.
Does your state have a senior citizen education program you can use? Find out below!
1. Alabama
The Alabama Commission on Higher Education states that Alabama seniors can attend any two-year institution within the state tuition-free.
Adults 60 and older should contact the financial aid office at any community college for admission and eligibility details.
Some Alabama schools, like Coastal Alabama Community College, offer online courses if you want to avoid in-person classes.
2. Alaska
The University of Alaska waives tuition for senior-citizen residents who receive full Social Security benefits. Seniors must wait until the first day of classes to enroll to ensure that there’s space remaining; they must also complete a tuition-waiver form.
Additional costs such as student activity, health center and lab fees are not covered; the student must pay them directly.
Online courses may be included if offered; check with the admissions office for confirmation.
3. Arizona
All 10 campuses of Maricopa Community College allow senior citizens to take classes for credit at 50% of the full tuition cost.
Students 65 and older must register between the first and second class sessions of the semester to ensure space is available. You can register for in-person, online or hybrid classes.
4. Arkansas
Arkansas waives tuition for anyone 60 and over who wants to work toward an undergraduate or graduate degree at state institutions.
Student fees may apply, and senior citizens may register only for classes with space available. If you need online courses, check with your chosen college to see what options you have.
5. California
California State University waives all tuition for state-supported classes and dramatically reduces campus fees for residents age 60 or older.
Different Cal State locations may offer online courses or in-person classes. Students who attend in-person classes must provide proof of COVID-19 vaccination.
6. Colorado
Students age 55 and older may attend class on a space-available basis at Colorado State University. There is no tuition fee, but visitors don’t get credit for attending class. It is up to the instructor how participation and grading of assignments and tests are handled. CSU currently offers face to face, hybrid and online classes.
At the University of Colorado Denver, people 60 and older may enroll on a no-credit basis to attend up to two classes per semester as auditors when space is available. (Courses with a lab component are excluded, as are computer courses and online courses.)
7. Connecticut
Residents 62 and up may attend state colleges, including community colleges, for free on a space-available basis.
At Central Connecticut State University, for example, tuition is waived for any resident over the age of 62 who applies for full- or part-time admission for a degree-granting program. Online courses are included.
Senior students may also take noncredit courses on a space-available basis and have tuition waived. All students must still pay all other fees.
8. Delaware
The University of Delaware, Delaware State University, and Delaware Technical and Community College allow all permanent state residents age 60 or older to audit or take classes for credit for free.
At the University of Delaware, students wishing to use the program must apply for admission on a space-available basis. Some graduate degrees may be eligible, as well. Residents can register for online or in-person courses.
Participants must pay all related student fees and buy their own textbooks.
9. District of Columbia
Senior citizens 65 and up may audit undergraduate courses from Georgetown University’s School of Continuing Studies. These students pay a fee of $32 per credit, which means a three-credit course will cost $96.
To audit a course, there must be available space and the instructor of record must approve the enrollment.
10. Florida
The Florida college system waives application, tuition and student fees for those age 60 and above, but colleges will award no credit and will grant admission on a space-available basis. Check to see whether your chosen college covers online courses as well as in-person ones.
Fun fact: Florida Atlantic University’s Lifelong Learning Society has the largest adult continuing education program in the U.S. It even has its own auditorium on campus to help serve FAU’s 30,000 new registrants each year.
11. Georgia
Georgia residents age 62 and above may take classes on a space-available basis for “little or no cost” at the state’s public colleges.
Seniors may choose to take classes for credit or continuing education, but they must apply through the regular admissions process at their school of choice. Many general education courses are offered online.
12. Hawaii
The Senior Citizen Visitor Program at the University of Hawaii and state community colleges allows senior residents age 60 and up to attend up to two courses per semester free of charge. Seniors who have been residents of Hawaii for at least one year may enroll in in-person, hybrid or online courses for no cost. It’s recommended but not required for students to be vaccinated against COVID-19. Students must demonstrate tuberculosis (TB) clearance by providing test results or a TB risk assessment form signed by a licensed U.S. health care provider.
Schools will not award credit nor will they keep permanent records of students’ class history.
13. Idaho
Programs in Idaho vary based on institution, but some schools offer good deals. The College of Southern Idaho offers free tuition for lower division courses for students aged 60 and older, in addition to other benefits. The college has online and in-person courses.
At Boise State University, Idaho residents who are at least 65 years old can audit classes on a space-available basis for free except for applicable special course fees. BSU offers online courses as well as in-person ones.
14. Illinois
Upon admission, senior citizens age 65 and up who meet income requirements can attend regular credit courses at Illinois public institutions for free. Lab, student and other fees still apply. Each institution will have guidance on registering for online or in-person classes.
15. Indiana
Indiana University offers programs that allow retired residents age 60 and older to take up to nine credit hours per semester and pay just 50% of in-state tuition fees. Courses are in person.
16. Iowa
Private institution Simpson College in Indianola allows people 65 and older to take one noncredit class for free per semester. Courses are open on a space-available basis and do not include lab courses. Online courses may be available.
17. Kansas
Tuition and fees are waived for students age 65 and older taking classes on a space-available basis. Residents must be admitted to a state-supported school to take advantage of this discount. Each school can also provide info on in-person versus online courses.
The registration process varies: The University of Kansas and Wichita State University, for example, require senior auditors to apply for admission. Online or in-person courses may be offered.
18. Kentucky
Tuition and fees are waived for students age 65 and older taking classes on a space-available basis. Residents must be admitted to a state-supported school to take advantage of this discount. Each school can also provide info on in-person versus online courses.
19. Louisiana
Students age 65 and up attending Louisiana state schools receive free tuition and 50% off books and materials at the campus student bookstore. Check with each school to see if online courses are included.
20. Maine
Senior citizens 65 and up may attend undergraduate classes as degree-seeking or audit students in the University of Maine System for free, subject to space availability.
Each college within the system can provide info on the types of courses covered (i.e., online, in-person, hybrid).
21. Maryland
Any student in the University of Maryland System who is retired and over the age of 60 may have tuition waived for up to three courses per semester, even for degree-granting programs. Online courses are available as well as face-to-face offerings.
Online courses are available as well as face-to-face offerings.
22. Massachusetts
Residents age 60 or older can take at least three credits per semester at any state-supported school in Massachusetts and receive free tuition.
Each location has information on what online courses are offered.
23. Michigan
Opportunities for seniors in Michigan vary by institution.
At Michigan Tech, for example, students 60 and older can have tuition waived for up to two courses per semester. Seniors must apply through the admissions office.
Western Michigan University invites seniors 62 and older to register for one class per semester tuition-free, which may include online classes.
At Wayne State University in Detroit, seniors 60 and up receive a 75% discount on tuition but must pay registration and related fees. Wayne State offers some online courses.
24. Minnesota
Minnesota waives tuition for senior citizens 62 and older, but fees and online options may vary by school. At the University of Minnesota, seniors pay a $10 fee per credit, but they can audit for free.
25. Mississippi
There’s no statewide benefit in Mississippi, but some schools have programs for seniors.
Mississippi State University provides a waiver to residents age 60 or older for classes offered on the Starkville or Meridian campuses or by the Center for Distance Education. Seniors are limited to six semester hours per semester and a maximum of 18 credit hours per calendar year, where space is available. MSU offers online courses as well as traditional in-person ones.
The University of Mississippi’s Office of Professional Development and Lifelong Learning allows seniors 65 and older to take one class for free per semester (up to four hours) at any UM campus.
26. Missouri
Missouri residents age 65 and older are exempt from paying tuition at state-supported institutions for classes attended on a noncredit basis. Schools may limit the number of students who receive the tuition benefit based on space availability. Online classes are offered in addition to in-person ones.
27. Montana
The Montana University System offers a tuition waiver for in-state residents 65 or older. Campus and registration fees are not waived. Choose from online or in-person classes.
28. Nebraska
Chadron State College allows adults 65 and up to audit one course per semester for free. The college offers classes online and on campus.
29. Nevada
The University of Nevada, Las Vegas allows seniors 62 and up to take autumn and spring courses free of charge. They pay 50% tuition for summer classes. Lab and other course fees are not covered. Online courses may be offered.
30. New Hampshire
The University of New Hampshire offers residents 65 and older free tuition for two credit-bearing classes per academic year on a space-available basis, so long as they’re not enrolled in a degree program. Courses are offered online or in person.
31. New Jersey
Rutgers University allows retired New Jersey residents 62 and older to audit courses for free in the spring and fall semesters at its Camden, New Brunswick and Newark campuses, space permitting. Current guidelines allow senior citizens to audit in-person or online classes if they have been fully vaccinated against COVID-19.
32. New Mexico
New Mexico offers reduced tuition of just $5 per credit hour to state residents 65 and older. Online courses are available.
For-credit classes are eligible as well as auditing; senior citizens can take no more than 10 credit hours per semester. The program is offered on a space-available basis, and students are responsible for paying any additional course fees.
33. New York
Many schools offer free or reduced tuition for senior citizens. Queens College allows residents 60 and up to audit any course on a space-available basis after completing a Senior Citizen Auditor Application and paying $80 per semester. Up-to-date COVID-19 vaccinations are required to enroll.
At SUNY Purchase, New York state residents 60 and older can enroll tuition-free in a maximum of two credit-bearing, on-campus courses in which space is available. They pay a $50 audit fee, $20 ID processing fee and any course fees. In-person, online and hybrid courses are available, and COVID-19 vaccinations are required for anyone coming on campus.
34. North Carolina
Tuition and registration fees are waived for residents 65 or older attending North Carolina community colleges. Senior citizens can take up to six credit hours per semester for free. Audit options may be available at other schools.
At the University of North Carolina Wilmington, for example, senior citizens may audit classes for free after getting the instructor’s permission and submitting an application. Lab, studio, performance, distance education, independent study, internship and special topic courses are excluded. Online courses are available for those who prefer them.
35. North Dakota
Programs vary by institution in North Dakota. At Bismarck State, for example, senior citizens 65 and older can audit one course tuition-free per semester on a space-available basis. They’re still responsible for other course fees. Some online courses are available.
36. Ohio
Ohio residents at least 60 years old may attend class at any state college for free. Senior-citizen students do not receive credit and can register only on a space-available basis. They are still responsible for special assessments, such as lab fees, that may apply.
Many Ohio state colleges offer online courses, as well as in-person and hybrid.
37. Oklahoma
Oklahoma state colleges and universities waive tuition and fees for senior citizens 65 and older who wish to audit classes on a space-available basis.
38. Oregon
Oregon State University allows senior citizens at least 65 years old to audit classes for free at a maximum of eight credit hours per semester.
The University of Oregon also waives fees for seniors 65 and older auditing classes on a space-available basis.
Online course options may be offered depending on availability.
39. Pennsylvania
Clarion University offers a tuition waiver for residents 62 and up to audit classes. At Bloomsburg University, you need to be only 60 to take tuition-free classes on a space-available basis.
There can be additional benefits at the community college level: Bucks County Community College, for example, waives for-credit course tuition for seniors 65 and up so long as they register after students who are paying full tuition. Many courses are offered online, though some in-person and hybrid options are available.
40. Rhode Island
Tuition waivers can be requested from citizens over 60 at the Community College of Rhode Island. Seats are granted when there is space available.
All degree-seeking senior students must fill out a FAFSA. They also have to submit a Senior Citizens Means Test to verify they have limited income.
Proof of COVID-19 vaccination is required to attend in-person classes. There are also online classes.
41. South Carolina
Residents 60 and above can attend classes at state schools on a credit or noncredit basis, pending space available, for free. The school must grant admission via its normal procedures.
Technology, lab and other fees are the responsibility of the student. Many South Carolina community colleges offer online courses for those interested.
42. South Dakota
Residents 65 and older can attend public universities in South Dakota at 55% of the normal cost of tuition for undergraduate or graduate in-person courses on a main university campus.
Interested adults should apply through the regular admissions system, and the school will automatically grant the discount upon admission. Student fees are not waived.
Contact your chosen university to see whether online courses are offered.
43. Tennessee
The University of Tennessee allows senior citizens to enroll in undergraduate or graduate courses for $7 per credit hour with a maximum fee of $70.
Students will still pay application and course fees. Senior citizens can choose between online courses and in-person ones.
44. Texas
A senior citizen age 65 or older can take up to six tuition-free credit hours at the University of Texas at Austin.
At the University of Texas at Dallas and Lone Star College, undergrad students 65 and older must maintain a 2.0 cumulative GPA to receive a tuition waiver for up to six credit hours per semester.
Check with each individual university to see which online and in-person classes are available for enrollment.
45. Utah
Utah residents age 62 and up may enroll tuition-free at a state institution, space permitting; a quarterly registration fee is required.
At the University of Utah, for example, seniors can audit most classes on a space-available basis and only have to pay a fee of $25 per semester, plus any special fees required. Call to see whether online classes are included.
46. Vermont
Vermonters over the age of 65 can audit one class per semester tuition-free on a space-available basis in the Vermont State College System. Students can take additional classes at a 50% discount of the tuition rate, either in person or online.
They’ll still have to pay administration and course fees for all classes.
47. Virginia
Under the amended terms of the Senior Citizens Higher Education Act of 1974, Virginia residents over 60 years old who earn a taxable income of less than $23,850 annually can audit up to three courses per term for free on a space-available basis at any public institution, either in person or online.
48. Washington
Institutions in Washington are required to partially or fully waive tuition fees for residents age 60 or older who are enrolled for credit on a space-available basis. Nominal fees may apply to students auditing courses.
Some schools limit senior citizens to a certain number of classes or credits; for example, Washington State University caps the waiver at six credits for the fall and spring semesters. Online programs are available.
49. West Virginia
Senior citizens 65 and older at West Virginia University seeking college credit must use the regular admissions form. Those wishing to be non-degree students pay just $5 to apply. WVU offers classes online or in person.
50. Wisconsin
Adults 60 and up may audit classes at the University of Wisconsin-Madison campus or at UW-Madison Online for free, where space is available.
51. Wyoming
At Laramie County Community College, senior citizens 60 and older pay only 20% of the resident tuition rate per credit hour, though they still need to pay any other course or online fees.
Northwest College offers adults 60 and older free tuition up to six credit hours per semester for on-site and online courses, as well as free entry to most college social, cultural and athletic events.
Another Continuing Education Option
More than 100 colleges and universities around the country offer another continuing education program for senior citizens: enrichment courses through the Osher Lifelong Learning Institutes (OLLI).
Prices vary depending upon the institution. Duke University, for example, has a $50 annual membership fee and then charges $50 to $175 per class. Senior citizens can choose to take classes online or in person.
OLLI classes don’t count toward a degree, but if you’re looking for personal development opportunities among older adults, these courses can provide opportunities that mix in the campus experience, too.
Contributor Catherine Hiles updated this post for 2023.
You think things are bad in the housing market now? Stick around and see if mortgage rates climb into the 7% range.
If it happens, the current origination forecast of $2.2 trillion in 2023 will look awfully rosy. Even the most battle-tested industry players are preparing for one of the strongest housing market corrections in decades.
Federal Reserve Chairman Jerome Powell sent a clear message during a press conference following the announcement of the central bank’s decision to hike the federal funds rate by 75 basis points on Wednesday: the ongoing housing market correction, which brought the largest mortgage rates increase in four decades, is far from at an end.
“Builders are having a hard time finding lots, workers and materials,” Powell said. “For the longer term, what we need is supply and demand to get better aligned, so house prices go up at a more reasonable pace and people can afford houses. Probably, the housing market needs to go to a correction to get to that place.”
So far, the tightening monetary policy led the 30-year fixed mortgage rate to 6.29% this week, up 27 basis points from the previous week, the Freddie Mac’s Primary Mortgage Market Survey (PMMS) showed on Thursday. A year ago at this time, rates averaged 2.86%.
“The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield’s jump to its highest level since 2011,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Impacted by higher rates, house prices are softening, and home sales have decreased. However, the number of homes for sale remains well below normal levels.”
Some market watchers were hoping to see Powell express some willingness to tone down the tightening. These observers were based solely on the expectation that existing policies will have the desired effect to bring inflation closer to the 2% target, according to Matt Graham, founder and CEO at MBS Live.
“But the biggest takeaway for the mortgage industry is that Powell remained completely unflinching in his commitment to hike rates as much as it takes to tackle inflation,” Graham said. “Between yesterday afternoon and today, the entire financial market is in the throes of adjusting to that new reality. Mortgage-backed securities are right about the worst place on the duration spectrum for this move. Freddie’s weekly survey is hopelessly low today – actual 30-year-fixed rates are well over 6.5% now.”
Where did the ‘correction’ bring us?
Freddie Mac’s index compiles only purchase mortgage rates reported by lenders during the past three days. Other estimates, however, show that rates are even higher.
The 30-year fixed mortgage rate was at 6.62% on Thursday afternoon, up 20 basis points compared to the previous day, Mortgage News Daily reported.
According to Bankrate.com, which surveys from the 10 largest banks, the primary mortgage rates are currently hovering around 6.4%. Rates are up over 300 basis points year-over-year, the largest trailing 12-month increase since the early 1980s, analysts from the investment banking firm Keefe, Bruyette & Woods wrote in a report on Wednesday.
“This creates a very challenging environment for volume-sensitive businesses such as mortgage originators and title insurers,” the analysts said. “Given the magnitude of the move in rates, we think there could be a downside to current estimates for industry volumes in 2023.”
Fannie Mae’s latest forecast, which was published this week, projects total mortgage origination activity at $2.44 trillion in 2022 and $2.17 trillion in 2023.
With rates at this level, the entire mortgage market is 150-200 basis points (or more) out of the money to refinance, KBW analysts said. In addition, purchase activity has also declined materially in recent weeks. The Mortgage Bankers Association purchase index is currently 21% below 2021 levels and 26% below 2019 levels.
To understand the impact on borrowers, this week’s increase in mortgage rates to 6.29% resulted in a monthly payment on a $400,000 loan of about $2,470, compared to $1,660 a year ago, according to Nadia Evangelou, National Association of Realtors senior economist & director of forecasting, said in a statement.
“Owners may be locked into their existing homes as mortgage rates rise, and the 3% rates from last year may not be back anytime soon. While the nation suffers from a severe housing shortage, lower mobility can make housing inventory even tighter and cause home prices to continue escalating.”
However, the median-priced home is worth about $80,000 more than in 2020 and $200,000 more than in 2012. “Thus, having positive equity in one’s home may ease the effects of rising mortgage rates on mobility.”
Where is the housing market heading?
Looking ahead, loan officers have started to expect mortgage rates at the 7% level, a sign that the housing market correction will bring even greater affordability challenges in the year to come.
“After the Fed raised rates yesterday, we now see the 10-year Treasury up today at 3.697%. My guess is that traditional lenders will most likely be charging points to stay in the high 6’s or pushing into the 7’s now,” said Blake Bianchi, founder and CEO at Boise-based brokerage Future Mortgage. “Mortgage brokers like us are most likely in the low-mid 6s on a primary residence.”
Bianchi said that in the current landscape, rate shopping has become more critical than ever, as saving half a percent or paying no points can financially impact buyers in this market. “The good news is that we see it is driving down prices, so buyers can get into a home for a better price and less competition and hopefully refinance later to improve their loan situation,” he said.
Sean Grapevine, a branch manager for UMortgage based in Atlanta, said Wednesday’s Fed decision pushed rates up by 50 to 75 basis points over the last couple of weeks, which is not entirely bad for the housing market.
“Rising rates from the Fed do cause some temporary pain as people adjust to the differences, but a few years of 5-7% interest rates on mortgages are going to be good for the economy, great for buyers, as demand becomes less insane, and more sustainable long-term,” he said.
Higher education never looked so good. These are the best college towns in Idaho.
When it comes to the best college towns in Idaho, a unique combination of outdoor adventure, tight-knit communities and rich cultural experiences come to mind. These towns provide not only top-tier education but also unforgettable experiences for students and visitors alike.
In this article, we will explore five of the best college towns in Idaho as well as mention a couple of additional noteworthy destinations. So, pack your bags, lace up your hiking boots and join us on this adventure through Idaho’s finest college towns.
Located in eastern Idaho, Rexburg is home to Brigham Young University-Idaho, a private university with a strong focus on faith, learning and service. This picturesque college town offers a family-friendly atmosphere and a tight-knit community, making it an excellent choice for students who value strong connections and personal growth.
Rexburg’s historic downtown district features a variety of unique shops, restaurants and entertainment options, providing students with plenty of opportunities to unwind after a long day of classes. The town also hosts several annual events, including the Idaho International Dance Festival and the Madison County Fair, which bring the community together to celebrate and enjoy local culture.
For outdoor enthusiasts, Rexburg is a gateway to numerous adventures, with the Grand Tetons just a short drive away. The nearby St. Anthony Sand Dunes also offers a unique opportunity for off-roading, sandboarding and camping.
With its friendly atmosphere, strong community ties and convenient access to the great outdoors, Rexburg is undoubtedly one of the best college towns in Idaho.
Nestled in the rolling hills of the Palouse region, Moscow is home to the University of Idaho, the state’s flagship research institution and New Saint Andrews College, a private Christian liberal arts college. Moscow is known for its strong emphasis on sustainability, community engagement and cultural richness, making it an ideal location for students who are looking for a well-rounded college experience in and out of the classroom.
Downtown Moscow boasts a variety of locally-owned shops, restaurants and art galleries, as well as a vibrant farmers’ market during the warmer months. The town is also home to East City Park, which hosts numerous events, including the annual Moscow Mountain Madness trail race and the Rendezvous in the Park music festival.
Outdoor enthusiasts will enjoy exploring the beautiful Palouse region, with its miles of scenic trails for hiking and biking, as well as the nearby Moscow Mountain Recreation Area, which is the ideal to place to be when the sun is shining in Moscow.
Moscow’s commitment to sustainability and strong sense of community make it one of the best college towns in Idaho without doubt.
Located in the Treasure Valley region of Idaho, Caldwell is home to the College of Idaho, a private liberal arts college with a strong focus on academics, leadership and civic engagement. This charming college town is steeped in history and agricultural heritage, providing students with a unique and enriching college experience.
The revitalized downtown area features a variety of one-of-a-kind shops, restaurants and entertainment options, including the Whittenberger Planetarium and the Caldwell Train Depot. Caldwell also hosts several annual events, including the Caldwell Night Rodeo and the Indian Creek Festival.
For those who love the outdoors, the nearby Deer Flat National Wildlife Refuge offers opportunities for hiking and reconnecting with Mother Nature. Additionally, the region’s burgeoning wine industry provides a unique opportunity for students to explore local vineyards and wineries, like the renowned Ste. Chapelle Winery and Bitner Vineyards.
With its rich agricultural heritage, strong sense of community and easy access to outdoor activities, Caldwell stands out as one of the best college towns in Idaho.
Situated at the confluence of the Snake and Clearwater Rivers, Lewiston is home to Lewis-Clark State College, a public institution known for its strong academic programs and scenic riverfront campus. This picturesque college town offers a blend of outdoor adventure, history and culture, making it an excellent choice for students seeking a well-rounded college experience.
Downtown Lewiston is home to a variety of shops, restaurants and entertainment options, as well as a beautiful riverfront park, where students can enjoy outdoor activities and take in the stunning views. The town also hosts several annual events, like the Lewiston Roundup Rodeo and the Hot August Nights Concert Series, which bring the community together to celebrate and enjoy their beautiful surroundings.
Outdoor enthusiasts will appreciate the wide range of recreational activities available in Lewiston, from fishing and boating on the Snake and Clearwater Rivers to hiking and biking in the nearby Hells Gate State Park.
Lewiston’s scenic riverfront setting, rich cultural offerings and ample outdoor recreation opportunities make it one of the best college towns in Idaho.
Located in the Treasure Valley region, Nampa is home to Northwest Nazarene University, a private Christian liberal arts university with a strong focus on academic excellence and spiritual development. This rapidly growing college town offers a diverse range of cultural and recreational activities, as well as a strong sense of community, making it an appealing choice for students seeking a suburban college town experience.
Downtown Nampa features the historic Nampa Train Depot (pictured above) and the Nampa Civic Center, which hosts concerts, plays and other performances. Students and locals alike can also be found chatting over drinks at the ever-popular Crescent Brewery.
Outdoor enthusiasts will appreciate the variety of recreational opportunities available in and around Nampa, from golfing at the numerous local courses to hiking and biking along the scenic Boise River Greenbelt.
Nampa’s focus on community and abundance of outdoor activities make it an excellent choice for students looking to experience the best college towns in Idaho.
Honorable Mentions
While Rexburg, Moscow, Caldwell, Lewiston and Nampa are undoubtedly among the best college towns in Idaho, there are a few other noteworthy destinations worth mentioning.
Located in southeastern Idaho, Pocatello is home to Idaho State University, a public research institution with a strong focus on health sciences and engineering. This historic college town offers a unique blend of history, culture and natural beauty, making it an attractive choice for students seeking a well-rounded college experience.
Twin Falls, situated in south-central Idaho, is home to the College of Southern Idaho, a public community college known for its strong academic programs and commitment to individual student development and future career success. This growing college town offers a wealth of outdoor adventure opportunities, from exploring the beautiful Shoshone Falls to BASE jumping off the Perrine Bridge.
There’s something for everyone in Idaho’s best college towns
Idaho is home to some of the best college towns in the country, offering students a wide range of experiences and opportunities. From the family-friendly atmosphere of Rexburg to the culturally rich and eco-friendly vibe of Moscow, you can have it all and then some by locking down a perfect apartment in one of these top-tier Idaho college towns.
Buying a home is a big deal — it’s a huge financial commitment and a seriousresponsibility. But confusing and misleading information on the internet can throw curveballs in the research process.
Three pieces of information in particular about mortgages and the housing market have recently been floating around the internet that may confuse potential home buyers.
Here’s what they actually mean:
Half-truth #1: The government gave the OK to 40-year mortgages
In April, Google
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searches for “40-year mortgage rates” surged after people and some news outlets apparently misunderstood an announcement from the federal government that referred to 40-year mortgages. While a small share of lenders may offer a 40-year mortgage product, it’s not the norm.
These longer mortgages are typically available to current homeowners who have Federal Housing Administration mortgages and need help because they’re in financial distress and have already defaulted on their loan.
A 40-year loan modification (meaning, changing an existing shorter-term mortgage into a 40-year mortgage) can help these borrowers avoid foreclosure by extending the duration of their mortgage. This makes their monthly payments smaller and therefore a little more affordable and brings their loan back to current status, meaning that the borrower is making payments on time.
In the U.S., most people are familiar with the fixed rate 30-year mortgage, a conventional, tried-and-true financial product that gives people decades of stability in terms of their monthly housing expenses. Other common types of mortgages include 15-year fixed-rate mortgages as well as adjustable-rate mortgages, which can run for shorter terms, such as three, five or 10 years.
And to be clear, there are some lenders who may offer you a 40-year mortgage. Make sure to read the fine print, because it’s not the typical fixed-rate mortgage that most Americans take on.
Half-truth #2: Buyers with higher credit scores will have to pay higher mortgage fees than those with lower scores
Also in April, media outlets reported that the federal government was changing the way it charged home-buying fees to borrowers, and in the process penalizing homebuyers with higher credit scores and lowering fees for those with poor credit scores.
A change in federal rules to fees that are known as loan-level price adjustments went into effect on May 1, and were initially interpreted as making mortgages more expensive for buyers with credit scores between 680 to above 780, which are considered good to excellent. Buyers who put down 15% to 20% for their home were reportedly going to be hit with the biggest increase in fees.
Some of that is partly true: some fees related to homebuying went up under the new rule, but it’s not the case that borrowers with higher credit scores are being charged more so lower-credit score borrowers can pay less.
The Federal Housing Finance Agency reacted to the misleading press coverage of the new rule with a statement called “Setting the Record Straight,” saying that “much of what has been reported advances a fundamental misunderstanding about the fees charged by [Fannie Mae and Freddie Mac], and why they were updated.”
“There’s a widespread myth that the updated fees punish home buyers with high credit scores to help buyers with low credit scores,” Holden Lewis, home and mortgage expert at NerdWallet, told MarketWatch. “But the truth is that home buyers with high credit scores will pay less for their mortgages than people with low credit scores.”
In its statement addressing “misconceptions” about the new rule, the FHFA said that “higher-credit-score borrowers are not being charged more so that lower-credit-score borrowers can pay less,” and stressed that “the updated fees, as was true of the prior fees, generally increase as credit scores decrease for any given level of down payment.”
The federal government did eliminate certain upfront homebuying fees for first-time buyers with lower incomes “who nonetheless have the financial capacity and creditworthiness to sustain a mortgage,” FHFA said. It also upped fees on products such as second-home loans and cash-out refinances, the statement read.
Half-truth #3: Home prices are about to crash
High home prices may have some would-be buyers hoping for a crash, but don’t hold your breath, Lewis said. In a survey from January, NerdWallet found that two-thirds of the respondents expected the housing market to crash in the next three years.
“There’s a lot of misinformation about home prices crashing,” Lewis said. “Home prices aren’t moving in the same direction nationwide. Home prices are falling in many markets on the West Coast, plus Boise, Las Vegas and Austin. But prices are rising in a lot of markets in the Midwest and the South.”
Cities like San Francisco, San Jose, and Reno saw home prices drop in the first quarter of this year by at least 10% year-over-year, the National Association of Realtors said on Tuesday. In Austin, prices dropped in the first quarter on an annual basis by 13.5% and in Boise by 10.3%, the NAR said.
Overall, the U.S. is facing a housing deficit, and there aren’t enough homes to meet demand.
While it may be tempting to speculate about the housing market crashing, one fact remains: People are still frustrated by how expensive it is to buy a home. In a separate survey by Fannie Mae, though respondents were more upbeat about falling mortgage rates, they said they expect home prices to go up in the next 12 months.
Does this sound disturbingly familiar? Skyrocketing home prices have very suddenly leveled off. Recession fears are swirling. The number of home sales has dropped. Is it 2006—the year that saw the ramp-up to America’s housing crash two years later—all over again?
Just like in the mid-2000s, experts are adamant that the correction in the housing market is simply that: a correction and not a catastrophe. Many news reports from early 2006, which often downplayed the risk of a severe housing crash, seem like they could be written about what’s happening today.
But back then, the pundits were wrong. We all know that a housing bubble burst, ushering in the Great Recession and taking down the global economy with it. Hindsight is 20/20.
So is the housing market in for a repeat performance? Or is this just some temporary pain for both buyers and sellers?
“Parallels can be drawn because of how quickly home prices have risen over the past few years,” says Yelena Maleyev, an economist at KPMG. “But that’s where the comparisons would end.”
Housing experts are quick to point out that the foundation of today’s housing market is stronger than it was in the mid-2000s. This time the downturn is due to higher mortgage interest rates, which rose rapidly from below 3% in 2021 to the high 6% range.
Today’s buyers have monthly mortgage payments that are basically double what they were just before the COVID-19 pandemic began. So many aren’t buying, or they’re unable to bid up prices like they did over the past few years.
But the most important difference between then and now is there are many more buyers than there are homes available this time around. The acute housing shortage will likely keep prices from falling off a cliff.
During the Great Recession, there were plenty of available homes—and no one to purchase them—so prices dropped about 26% over five years for existing homes. Today, buyers are still willing to bid over the asking price for move-in ready homes in desirable neighborhoods despite the financial challenges they face.
In addition, mortgages made over the past few years are much safer than those made nearly 20 years ago when lenders joke that their dogs could have gotten loans. The worst of the subprime mortgages that got homeowners in trouble when their payments suddenly doubled—or even tripled—have largely been eradicated. Borrowers have been thoroughly vetted, and only the strongest have been approved. And today’s homeowners are generally sitting on record amounts of equity.
“There are a lot of similarities that we should not ignore just because this time is different. … We do have some of our fundamentals that are out of whack,” says Ali Wolf, chief economist of the building consultancy Zonda. “But I don’t think it’s going to be a crash because the undersupply of homes is so different.”
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Watch: The Best Cities in the U.S. for Home Sellers Right Now
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Will home prices crash?
The question on the minds of homebuyers, sellers, and homeowners is what is going to happen with home prices.
They’ve already come down from their peaks last summer, which is typical. But they’ve also dipped a bit in some of the markets that got the most heated during the pandemic.
That’s reflected in the new-construction data from John Burns Real Estate Consulting. The price of newly built homes in Phoenix fell 15% year over year in March, according to the data. (The price includes incentives and concessions.)
In Boise, ID, another pandemic destination, prices were down 14% year over year for newly constructed homes. Prices dropped 10% in San Antonio, TX, just outside of Austin.
“It’s substantial,” says Devyn Bachman, senior vice president of research and operations at John Burns.
These places where prices rose the most or were extremely expensive to begin with might be the most vulnerable to larger price corrections, says Lisa Sturtevant, chief economist of Bright MLS. That includes the priciest parts of many housing markets, such as the downtowns of large cities.
Even with the affordability challenges, more than half of the sellers in the mid-Atlantic region received multiple offers in March, according to Sturtevant. About a third of all of the home sales went for more than the list price.
And home prices could continue to rise in the more affordable markets, such as in the Midwest. Homes in the lower price tiers could also see prices go up. Demand is so high for those more affordable properties that the competition often results in higher prices.
“We should expect some price corrections, not a price crash in these places where prices ran up the fastest,” says Sturtevant. “Everything seems to be slowing down a little bit … but everything still seems very competitive.”
The shortage of homes for sale is also keeping prices high. Builders have slowed down construction as their pool of buyers has dried up. And homeowners who would have listed their homes have been reluctant to do so thanks to the high mortgage rates. Most sellers are also buyers, many of whom will need to get a new mortgage at today’s rates. That means significantly higher monthly payments.
“Are there enough homes on the market for sale today? No,” says Matthew Gardner, chief economist at Windermere Real Estate. The Seattle-based brokerage covers much of the Western U.S. “Who is going to sell their home when they’re comfortably sitting on mortgage rates that are around 3%?”
Could higher mortgage rates deliver a death blow to the housing market?
Low mortgage rates were the fuel that caused the housing market to catch fire during the pandemic. Low rates meant buyers had more purchasing power—and could afford to bid higher than they otherwise would have. But when they rose, and buyers could no longer afford to buy, the housing correction commenced.
If the U.S. Federal Reserve keeps raising its rates to combat high inflation, mortgage rates are likely to keep climbing. That could scare off and price out additional buyers and put pressure on home prices to come down.
But many real estate professionals don’t anticipate mortgage rates to zoom up. They largely expect them to stay about where they are now—in the mid-6% range—at least through this spring.
Important to note: Historically, a 6% mortgage rate is relatively low. It’s a lot better than the peak of about 18.6% in September 1981, according to Freddie Mac data. The problem is home prices are high and memories of rates below 3% are fresh in the minds of many recent homebuyers and sellers. For every percentage point rise in rates, buyers can afford a whole lot less house.
Even though higher rates have led to a correction in the market, there are still buyers around the country queueing up at open houses.
“People have figured out how to make these mortgage rates work. They’re just looking for something to buy,” says Sturtevant.
Could there be another wave of foreclosures?
Foreclosures have been ticking up as pandemic-era moratoriums aimed at preventing homeowners from losing their properties have expired. But another tidal wave of foreclosures, like what happened during the 2000s, isn’t likely.
In the 2000s, “we had a huge amount of people using adjustable-rate mortgages with remarkably low interest rates. And there were also people who quite frankly should not have gotten a mortgage,” says Gardner, of Windermere. But when mortgage rates rose, “people found their mortgage payments doubling overnight and they had next to no equity. So what did they do? They walked away.”’
About 40% of homeowners currently own their homes outright without a mortgage, according to KPMG’s Maleyev. Many homeowners have record amounts of equity in their properties thanks to the rising prices over the past few years. So if they were having trouble making their mortgage payments, they choose to sell their homes instead—and often walk away with a profit. And most homeowners who have mortgages have 30-year fixed-rate loans, which don’t balloon in size over time.
There were more adjustable-rate mortgages in the early 2000s. So when mortgage rates ticked up and borrowers’ payments ballooned, “it didn’t take very much to burst that housing bubble,” says Maleyev.
Now, many real estate experts believe the nation is headed right into a recession—or will it be a near miss? A downturn with steep job losses would likely result in unemployed homeowners losing their abodes.
It would also discourage many folks, even those who remain employed, from purchasing property. Buying a home is typically the largest transaction that most people will ever make. And many people won’t feel comfortable doing so if they’re worried about the stability of their jobs.
“We will likely see some effects on the housing market going forward,” says Bachman, of John Burns. “Any time you lose jobs, there’s less demand for housing, for sale and for rent.”
But few expect another downturn would cut as deep as the Great Recession—or last nearly as long. Once the Fed gets inflation under control, it’s expected to cut rates to combat any turbulence in the economy. That will likely lead to lower mortgage rates, giving the housing market a boost. Many economists believe the housing market will begin recovering as early as next year, if not the year after that.
“It’s not the calm before the storm,” says Gardner. “This was just an important reset in the housing market.”
Maybe it’s a hatred of cold weather, a love of chicken and waffles or even the fact that the south is teaming with jobs in both tech and entertainment, but when it comes to the fastest-growing US cities, southern cities are booming. The U.S. Census Bureau recently released its list of The Top 15 Fastest Growing Cities in America, and 10 of those locations found themselves south of the Mason-Dixon line.
According to Amel Toukabri, a demographer in the Census Bureau’s population division, this is part of a growing trend. “Overall, cities in the South continue to grow at a faster rate than any other U.S region. Since the 2010 Census, the population in large southern cities grew by an average of 9.4 percent. In comparison, cities in the West grew 7.3 percent, while cities in the Northeast and Midwest had much lower growth rates at 1.8 percent and 3.0 percent respectively.”
So where are these cities where the population is growing like crazy? Here’s the Census Bureau’s top 15:
The 15 Fastest-Growing Large Cities in America
Rank
City
Metro Area
Percent Increase
2016 Total Population
1
Conroe, TX
Houston, TX
7.8%
82,286
2
Frisco, TX
Dallas-Fort Worth, TX
6.2%
163,656
3
McKinney, TX
Dallas-Fort Worth, TX
5.9%
172,298
4
Greenville, SC
Greenville, SC
5.8%
67,453
5
Georgetown, TX
Austin, TX
5.5%
67,140
6
Bend, OR
Redmond, OR
4.9%
91,122
7
Buckeye, AZ
Phoenix-Scottsdale, AZ
4.8%
64,629
8
Bonita Springs, FL
Fort Myers, FL
4.8%
54,198
9
New Braunfels, TX
San Antonio, TX
4.7%
73,959
10
Murfreesboro, TN
Nashville, TN
4.7%
131,947
11
Lehi, UT
Provo, UT
4.6%
61,130
12
Cedar Park, TX
Austin, TX
4.5%
68,918
13
Meridian, ID
Boise, ID
4.5%
58,627
14
Ankeny, IA
Des Moines, IA
4.5%
58,627
15
Fort Myers, FL
Fort Myers, FL
4.5%
77,146
Calculated between July 1, 2015, and July 1, 2016 (Populations of 50,000 or more in 2015). For methodology, please click here.
Are you currently living in one of America’s fastest-growing cities? Would you move to one of these cities for better apartments or job opportunities? Get discussing below on social!