“That trend continued in November, with applications to purchase a new home up 22% compared to last year, while the purchase market as a whole remains about 20% behind last year’s pace,” he added. The report estimated that new single-family home sales were running at a seasonally adjusted annual rate of 677,000 units in November. … [Read more…]
Mantua will host the first Christmas home decorating contest in its history this month.
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Deck the House winners will be selected by judges during the week of Monday, Dec. 18.
“Bob (Mayor Robert Zimmerman) had the idea after getting some inspiration from other townships,” said Joshua Cummings, a member of the township’s digital media team. “He thought it would be a good idea to do something to get the community together, something to celebrate the holidays, something fun, something new.
“I think the big thing with the challenge as a whole and the idea with it was to just get the community involved and engaged,” said Ben James, another team member. “I think it’s going to something nice to bring everyone together and have some holiday fun and everything like that.”
Registration for the contest began last month and will continue until 11:59 p.m. on Sunday, Dec. 10, at the Mantua website. The contest is a collaboration between Zimmerman, the digital media team and the township recreation committee.
Houses will be judged on categories that include overall creativity, theme, lights and special effects. Decorations must be done by participants or those close to them, not professional decorators. Judges have yet to be determined, according to Zimmerman, but will likely be township officials.
“I had an idea, but I can’t put things into place and bring it to fruition,” Zimmerman noted. “I brought it to this (digital media) team a couple weeks ago and the rec committee. They have brought this to life, so without their efforts, there’s no way we would have been physically able this year to put it together on such short notice.”
According to Cummings, about 16 homes are registered for the contest as of Nov. 29, more than expected. Winners will be notified by email and receive a township proclamation, along with a small prize.
“It’s not like a competition where people are gonna get at each other,” James explained. “It’s just going to be very lighthearted … and bring people together. It’s not meant to be cut-throat.”
“This year is the first year, so we’re really kind of in the infancy stages of putting this together …” said the mayor. “We’re just gonna have an overall competition and winners.”
Deck the House could become an annual event in Mantua, according to Zimmerman.
“A lot will be dependent on how successful this is and how many people participate,” he noted. “We’re probably at a good number now; we certainly encourage people to register, but we want to make sure we can handle the judging and do everything the first year.
“If everything is successful, we’ll build off of it and promote it more for the future.”
Last week’s DataDigest offered readers a host of housing forecasts from industry experts at banks, trade associations and more, the thrust of which was housing professionals should expect a modestly better year of sales thanks to retreating mortgage rates in the year to come.
A day after publication, Federal Reserve officials made several of their own forecasts – most importantly that the “appropriate policy path” for the Federal funds rate next year will be for it to decrease 0.75 percentage points, implying three cuts of 0.25 percentage points.
Those economic projections from the 19 members of the Federal Open Markets Committee show both a tighter consensus of opinions and a lower target Federal funds rate than the projections the FOMC made in September.
Following the Fed meeting last Thursday, mortgage rates dropped. Then they dropped. And then they dropped some more.
In fact, they dropped so much that they reached 6.69% on Dec. 15, just 0.07 percentage points above the average of four forecasts for the third quarter of 2024 and roughly 0.6 percentage points below the average forecast for the first quarter of the new year.
That drop – 0.3 percentage points from Dec. 11 to Dec. 15 – is hardly trivial for forecasters. In addition to predicting mortgage rates, they based their predictions for home sales and home starts largely on mortgage rates, as several experts have stated:
“The story this year and the story next year depend on two variables: mortgage rates and inventory.”
Lawrence Yun, chief economist for the National Association of Realtors
High mortgage rates depress not only homebuyer demand but home sellers’ willingness to put their homes on the market:
“High mortgage rates are the main reason for the low level of sales. Higher interest rates make it more expensive to purchase a home and more difficult to qualify for a mortgage. The sharp increase in the mortgage rate from its lowest level on record in 2021 to a 23-year high has caused the vast majority of homeowners to become ‘locked in’ to their existing mortgages.”
Cristian deRitis, deputy chief economist at Moody’s Analytics
So with mortgage rates so important to outcomes next year and mortgage rates now at levels that are far ahead of predicted levels, are forecasts for next year already off the rails?
What the Fed said
The Federal Reserve did not announce rate cuts or provide a schedule of future rate cuts.
Instead, the Fed kept the target Fed funds rate at 5.25-5.5% for the fourth consecutive time. It also provided committee members’ forecasts of what would be the appropriate rate in 2024, which was based on their forecasts of inflation, GDP growth and other economic indicators.
The median of these rate forecasts – 4.63% – is what implies three cuts next year, given that it is 0.75 percentage points below the current rate. But Fed Chair Jerome Powell stressed that “these projections are not a Committee decision or plan.”
Powell further noted that although the FOMC believes “we are likely at or near the peak rate for this cycle” of rate hikes, the possibility of another rate hike has not been taken off of the table if inflation does not continue to moderate.
“No one is declaring victory,” he said. “That would be premature, and we can’t be guaranteed of this progress.”
Yet what the market seems to be focusing on is not Powell’s cautionary comments, but his statement that the FOMC had begun discussing rate cuts in their meeting last week, which sparked a wave of optimism across several market sectors.
However, while Powell said, “We’re sort of just at the beginning of that discussion,” New York Fed President John Williams said on CNBC two days after Powell’s comments, “We aren’t really talking about rate cuts right now.”
Cuts were expected
Forecasters were certainly not blindsided by the possibility of the Fed cutting rates next year. Rather, their forecasts are predicated on the assumption that rates will fall.
The National Association of Realtors, for example, made their quarterly predictions for 2024 on October 30, long before last week’s Fed meeting, and predicted three cuts to the Fed funds rate in 2024 – with the rate reaching 4.4% by the end of the year.
In NAR’s outlook summit held the day before the FOMC released its forecasts, NAR predicted four cuts next year.
The Fed’s median forecast of 4.6% for 2024, then, is both fewer cuts and a higher funds rate than NAR predicted when it forecast mortgage rates of 7.5-6.9% in the first half of the year and a full-year average mortgage rate of 6.3%.
Similarly, Wells Fargo noted in its forecast made on Nov. 9 that “we look for the FOMC to cut its target range for the federal funds rate by 225 bps [2.25 percentage points] by early 2025, which is more than both Fed policymakers and market participants currently project.” Wells Fargo predicted mortgage rates of 7.2-6.7% in the first half of next year.
In other words, the forecasters expected rate cuts that are more aggressive than the Fed has so far forecasted for 2024 when they predicted mortgage rates of 6.6-7.6% in the first half of 2024.
Mortgage rate movements
For those who regularly watch mortgage rates, this winter’s decline may look familiar. Since October 26, the weekly average rate for a 30-year mortgage has fallen from about 7.8% to just under 7%.
The drop is reminiscent of a similar period a year ago when the weekly average rate fell from about 7.1% to 6.1% from early November through early February.
The decline in rates last year was motivated in part by a market consensus that a recession was imminent, which could in turn prompt rate cuts to stimulate the economy. When the recession proved elusive, mortgage rates about-faced.
The current market consensus seems to reflect optimistic prospects for a “soft landing,” an inflation-crushing economic slowdown that doesn’t prompt a job-loss recession. Lower mortgage rates are just one signal of this optimism; stock prices for tech, banking, real estate and other companies that went out of favor when interest rates were expected to rise have now soared.
Will this year’s favorite market theory fare better than last year’s? Wall Street Journal’s senior markets columnist James Mackintosh, for one, is skeptical.
“What’s surprising to me is that there seems to be so little investor concern that a slow-growing economy will turn into something worse, or that inflation proves stickier than expected,” he wrote.
So where do forecasts stand?
Housing professionals can take heart that forecasters generally believe 2023 was rock bottom for this economic cycle and expect 2024 to be better – but modestly better. Most forecasters don’t expect significant improvement in home sales until mortgage rates fall to 6% or lower.
Although mortgage rates are currently well ahead of forecasters’ outlooks, they are not near 6%, and only time will tell if they continue on their current path or return to recent highs and descend more inline with forecasters’ expectations.
Forecasts can be useful for businesses planning for the year ahead, but only time will tell what 2024 will bring.
For a third day, average mortgage rates barely moved yesterday. But that’s good because it means last week’s big falls remain effectively uneroded.
First thing, it was again looking as if mortgage rates today might fall, perhaps modestly or moderately. However, that could change as the hours pass.
Current mortgage and refinance rates
Find your lowest rate. Start here
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.125%
7.14%
-0.075
Conventional 15-year fixed
6.385%
6.415%
-0.1
Conventional 20-year fixed
6.975%
7%
-0.045
Conventional 10-year fixed
6.12%
6.145%
-0.065
30-year fixed FHA
5.98%
6.88%
-0.095
30-year fixed VA
6.165%
6.315%
-0.13
5/1 ARM Conventional
6.425%
7.675%
-0.035
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock your mortgage rate today?
Every day that passes makes a corrective bounce (when mortgage rates rise as markets think they’ve got carried away) less likely. And it reinforces my hope that those rates are in a downward trend that could last well into next year.
So, my personal rate lock recommendations are:
LOCK if closing in 7 days
FLOAT if closing in 15 days
FLOAT if closing in 30 days
FLOAT if closing in 45 days
FLOATif closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:
The yield on 10-year Treasury notes edged lower to 3.90% from 3.92%. (Good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were mostly falling this morning. (Good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices climbed to $75.14 from $73.12 a barrel. (Bad for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices held steady at $2,049 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — ticked down to 77 from 78. (Good for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to decrease. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Find your lowest rate. Start here
What’s driving mortgage rates today?
The Federal Reserve
This morning’s Wall Street Journal (paywall) observed: “After their policy meeting last week, Fed officials released projections of at least three rate cuts [in general interest rates] next year. They have since been flummoxed that investors expect even faster and deeper cuts. The result: Confusion over when and how quickly the Fed might cut as the central bank tries to bring inflation down without a painful recession.”
This could turn into a real issue that could push mortgage rates higher, probably in the new year. Wall Street has a long and inglorious record of hearing what it wants the Fed to say rather than what the Fed actually says. And we’ve seen quite recently examples of sharp rises in mortgage rates when markets’ wishful thinking collides with reality.
Still, last week’s Fed meeting did deliver genuinely good news. And, even if mortgage rates rise when investors face the cold light of dawning reality, I’m optimistic that we’ll keep at least most of the recent gains. Just be aware that the path to lower mortgage rates is unlikely to be smooth.
Today
This morning’s economic reports cover existing home sales in November and consumer confidence in December. They’re both published too late for me to assess their likely impact on markets and mortgage rates.
They could push mortgage rates a little higher or lower, but they rarely move them far or for long.
Tomorrow
Tomorrow brings gross domestic product (GDP) figures for the third quarter of this year. This will be the third and final estimate for this number.
The second estimate put GDP growth at 5.2%, up from 2.1% in the second quarter. MarketWatch says that market expectations for tomorrow’s figure have recently been slightly scaled down to 5.1%.
If the actual number tomorrow is lower than 5.1%, that could drag mortgage rates lower. But, if it’s higher, that could push those rates upward.
Friday
We’re due November’s personal consumption expenditures (PCE) price index on Friday. Markets might get nervous if that shows inflation rising more than expected because that could destroy the Fed’s new-found optimism.
More on what to expect from the PCE report tomorrow.
Don’t forget you can always learn more about what’s driving mortgage rates in the most recent weekend edition of this daily report. These provide a more detailed analysis of what’s happening. They are published each Saturday morning soon after 10 a.m. (ET) and include a preview of the following week.
Recent trends
According to Freddie Mac’s archives, the weekly all-time low for mortgage rates was set on Jan. 7, 2021, when it stood at 2.65% for conventional, 30-year, fixed-rate mortgages.
Freddie’s Dec. 14 report put that same weekly average at 6.95%, down from the previous week’s 7.03%. Freddie’s data are almost always out of date by the time it announces its weekly figures.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the current quarter (Q4/23) and the following three quarters (Q1/24, Q2/24 and Q3/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Dec. 19 and the MBA’s on Dec. 13.
Forecaster
Q4/23
Q1/24
Q2/24
Q3/24
Fannie Mae
7.4%
7.0%
6.8%
6.6%
MBA
7.4%
7.0%
6.6%
6.3%
Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Verify your new rate
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Verify your new rate. Start here
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
Check your refinance rates today. Start here
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also, pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
For the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
In fact, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Verify your new rate. Start here
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.
Time to make a move? Let us find the right mortgage for you
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
Nearly two-thirds of college graduates leave school with debt, which means many couples have to manage outstanding student loans after they get married. If you and your spouse each have multiple student loans, you could potentially end up with a large number of loans to manage in one household. That might make the idea of consolidating student loans with your spouse appealing. So, can you do it? And, if so, is it a good idea?
Yes — and maybe.
The federal government no longer offers spousal consolidation of federal student loans. However, you may be able to combine your federal or private loans by refinancing with a private lender. Whether or not that’s a wise move will depend on a number of factors, including the types of loans you have and your interest rates.
Here’s a look at options available for consolidating your loans as a couple, plus other ways to make student loan payments more manageable after marriage.
Consolidating Federal Loans
Consolidating is the process of combining your loans so you only have to make one payment and keep track of one due date, rather than several. Individual borrowers can consolidate their federal student loans through the federal government.
When you consolidate federal loans, the government pays them off and replaces them with a Direct Consolidation Loan. Your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next one-eighth of 1%.
Previously, married federal student loan borrowers could consolidate their loans together through a joint consolidation loan. However, the government ended that program in 2006 and no longer offers federal loan borrowers a way to consolidate student debt with a spouse.
Currently, the only way to consolidate federal student loans with a spouse is through refinancing with a private lender. This involves taking out a new, larger student loan to pay off all of your existing loans. The lender will base your new loan’s interest rate on your combined income and creditworthiness, and both of you will be listed as primary borrowers on the loan.
It’s important to note that consolidating in this way will convert those federal loans into private loans, which removes all federal benefits and protections, such as income-driven repayment plans and student loan forgiveness programs. 💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.
Refinancing Student Loans With Your Spouse as a Cosigner
Another way to commingle student loan repayment responsibility is to apply for refinancing with your spouse as a cosigner (or vice versa). While your loans won’t be consolidated together if you’re approved, you’ll share ownership of the loan with your spouse. This could be a good idea if you would not be able to qualify for a refinancing on your own or could qualify for a better rate if your spouse serves as a cosigner, due to their added income and/or good credit.
An advantage of cosigning versus joint consolidation is that some lenders allow you to eventually remove a cosigner from a loan, which could be useful should you ever part ways. Joint refinancing, on the other hand, generally doesn’t have an “out” clause.
Recommended: Student Loan Consolidation vs Refinancing
How to Combine Student Loans With Your Spouse
If you’re interested in combining student loans with your spouse, here’s a look at the steps involved in a joint refinance.
1. Find a lender. You’ll need to find a lender that offers joint refinancing (not all do). Ideally, you’ll want to shop around and compare offers from multiple lenders to make sure you find the best deal. Browsing around and receiving prequalified rates won’t affect your credit, since companies will do a “soft” credit check.
2. Apply for the loan. Once you find a lender you want to work with, you’ll need to choose which loans you want to consolidate (you don’t have to include every loan you have) and officially apply for the loan. Both you and your spouse will need to supply personal and financial information.
3. Review your documents and sign. Once approved, it’s a good idea to carefully review all the documents you receive and check the fine print before signing anything. Confirm the loan terms you were approved for match the ones you applied for.
4. Keep paying your individual loans until the refinance is complete. When you refinance a loan, your new lender must then pay off your old lender. It may take a little while for that process to finalize. In the meantime, it’s important for you and your spouse to continue making your payments on your individual loans until you’ve received notice from your new lender that the debt transfer is complete.
Recommended: Pros and Cons of Refinancing Student Loans
Advantages of Consolidating Student Loans With Your Spouse
Combining your student loans with your spouse’s through refinancing comes with certain advantages. Here are some to consider:
• Simplified repayment Rather than juggling multiple student loan payments and due dates, you and your spouse will only have one payment to make.
• A potentially lower rate If your spouse has better credit or a higher income than you, refinancing with your spouse may allow you to qualify for a lower interest rate than you’d get on your own. Together, you could potentially save money.
• You could lower your payment You may be able to lower your monthly payment by getting a lower interest rate and keeping the same repayment term. You can also lower your payment by extending your loan term. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)
• Fosters teamwork When you combine student loans with your spouse, there’s no longer separate debt. You have one joint goal you’re working towards as a team.
Recommended: Making Important Money Decisions in Marriage
Disadvantages of Consolidating Student Loans With Your Spouse
Although consolidating student loans with your spouse can seem appealing, there are some significant drawbacks to keep in mind:
• Few lenders offer it Only a small number of lenders offer spousal student loan consolidation. With few options to choose from, you may have trouble getting approved or finding a competitive interest rate.
• Loss of federal protections If you or your spouse have federal student loans and you refinance them, they become private student loans. You’ll lose federal loan benefits and protections, including the ability to enroll in an income-driven repayment plan and access to federal forbearance or deferment options.
• Divorce could be messy When you refinance your student loans with your spouse, you are taking on a new loan together. If you end up divorcing, you’ll still be legally obligated for the combined debt and you’ll have to work out payment terms with your former spouse as part of the divorce agreement.
• You might not lower your rate In most cases, refinancing only makes sense if you can get a lower interest rate. This is especially true if you have federal loans because you give up many protections by refinancing.
Other Ways to Tackle Student Debt as a Couple
A joint refinance isn’t the only way to manage your combined student debt load. Here are some other tips for how to manage student debt as a married couple.
• Be honest — with yourself and your spouse Having a high student loan balance might feel overwhelming, but avoiding your debt or hiding it from your spouse can affect your relationship. You can start by getting acquainted with exactly how much you each owe, your interest rates, and the loan terms.
• Know your repayment options If you have federal loans, it can be helpful to read up on the different plans available for student loan repayment and the pros and cons of each. If you’re having trouble making payments, you can look into income-driven repayment plans or other federal loan forgiveness programs. Speak to your loan servicer(s) if you’re concerned with your ability to repay your total loans as a couple.
• Consider consolidating separately If your or your spouse has multiple federal student loans, consolidating with a Direct Consolidation Loan can help you better manage the loans you have in your name. If you have loans other than Direct Loans, it can also give you access to additional repayment options. Federal consolidation won’t lower your rate, however. It could also extend your loan term, which would increase your overall costs.
• Look into refinancing separately If you (or your spouse) has higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans, refinancing could help you get a lower rate, a lower payment, or both. Keep in mind that refinancing federal student loans with a private lender means giving up federal benefits. And, if you opt for a longer loan term, you could end up spending more over the life of the loan.
💡 Quick Tip: It might be beneficial to look for a refinancing lender that offers extras. SoFi members, for instance, can qualify for rate discounts and have access to career services, financial advisors, networking events, and more — at no extra cost.
Figuring Out the Financial Path that’s Right for You
While you and your partner can’t jointly refinance your student loans with the federal government, you may be able to find a private lender that offers a spouse consolidation loan. Other ways to manage student loan repayment after marriage include: listing all of your loans and coming up with a repayment strategy together, re-evaluating your payments plans, and looking into consolidating or refinancing your loans separately.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
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SoFi Student Loan Refinance If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The South End is a unique neighborhood. Like many in Boston, it is built on reclaimed marshland. But the modern-day South End is a bustling, vibrant, diverse district filled with hipsters and doctors and old school Bostonians, trendy eateries and dive bars and pricey mansions and housing projects.
The South End is alive with public parks and green spaces, restaurants and vintage clothing shops, mansions and South End apartments. Even before its swaths of gentrification, it was a haven for the LGBTQ community.
But its most distinguishing feature is its Victorian-style row houses. In fact, South End, Boston’s 300-acre district of original Victorian homes which is the largest collection in the nation.
Where is the South End in Boston?
Despite its name, the South End is not the south end of Boston. South End is not even directly south of downtown, that’s reserved for Southie. Sure, there was a time when the South End was the southern limits of the city, but that was back in the days when most of Boston was tidal marshes.
Source: Rent.
The South End sits southwest of downtown, with Chinatown forming its northern border. Back Bay and Fenway-Kenmore are along its western side. Roxbury (and more specifically Lower Roxbury) is to its south. And, yes, South Boston is to the east. The Mass Pike and the I-93 Central Artery join at the northeast corner. Melnea Cass Boulevard and the Massachusetts Avenue Connector are along South End’s south end. The Boston & Providence Railroad and the Southwest Corridor Park form its northwest border.
Tremont and Washington Streets and Columbus Avenue are the primary east/west thoroughfares. The South End, Boston ZIP Code 02118 covers most of the neighborhood.
South End overview
The South End in part is as homey and traditional Boston as the old neighborhoods of Southie. It’s also in part as buzzy and hip as Fenway–Kenmore. And parts are as upscale as the best of Back Bay.
It’s the South End’s diversity that keeps it fresh and unique. Every block of South End is distinct from every other, and a plethora of different people, cultures and economic backgrounds exist.
Studio average rent: $2,586
One-bedroom average rent: $3,304
Two-bedroom average rent: $4,590
Walk score: 95.17
Bike score: 84.82
Transit score: 93.29
Living in the South End
So what is it like living in South End, Boston? It’s a diverse and distinct neighborhood. There are many whites as non-whites, and represents backgrounds and cultures from across the globe. It’s hip and traditional, upscale and down to earth. It’s family-friendly and LGBTQ-friendly, with gritty old-time New Englanders and young couples.
The South End is convenient and lively, full of things to do and places to go. And wherever you are, it’s easy to get to.
Demographics
The South End has always been diverse. It has Irish, Lebanese, Greek, Puerto Rican, Jewish and Black communities, many dating back to the 1880s. Today it is home to many immigrant and ethnic communities, young professionals, long-time residents and a significant LGBTQ presence since World War II.
The neighborhood has both wealthy and low-income sections, with an average income nearing $60,000.
Despite gentrification, the neighborhood remains nearly 50/50 white versus non-white, including nearly equal populations of Black, Latino and Asian-American residents.
The median age is 36, just below half live alone and just over half are college grads.
Education
The South End is home to the McKinley Schools, a collection of institutions for kindergarten through graduation, including the McKinley South End Academy. Blackstone Elementary School matriculates students through fifth grade. Josiah Quincy Upper School operates from sixth through twelfth grade. These are all public institutions within the Boston Public Schools system.
The Benjamin Franklin Institute of Technology is a private college for engineering and industrial technology. It was founded in 1908 with funds from Franklin’s will and a gift from Andrew Carnegie.
Safety
Previously, the neighborhood was one of the most dangerous in the city. Today, with its economic diversity, the South End is broader, with both safe family-friendly blocks and risky streets near subsidized housing.
In general, it has relatively low rates of violent street crime compared to other nearby neighborhoods. Property crime is also on par with Boston in total.
Sidewalks are readily available and the streets are mostly well lit.
Recreation and entertainment
The South End is known for its lush and accessible green spaces. The neighborhood features 11 residential parks, many of which are English-style squares featuring fountains and cast iron fencing. There are a number of pocket parks and community gardens as well.
Some of the best trendy restaurants and cafés dot the South End, including the original J.J. Foley’s Café which dates back to 1909. The neighborhood is ranked the second-best for restaurants in all of Boston. It also has a lively bar scene, especially of the dive variety. Jazz it up over at Wally’s Café, one of the nation’s oldest jazz clubs.
Galleries abound, particularly in the SoWa (South of Washington) Art + Design District. And nearby, don’t miss the SoWa Open Market for everything from luncheonettes to art galleries with food trucks and pop-up beer gardens.
The South End also a shopper’s haven, including high-end florists, vintage clothing, twee furniture and even fresh meat at the iconic The Butcher Shop.
Transportation
The MBTA Orange Line runs along the northwestern border of the South End. Ruggles, Massachusetts Avenue and Back Bay stations all serve the neighborhood. As well, the T stations on the Green Line at Copley, Symphony and Prudential in Back Bay are just a block or two away. MBTA commuter rail trains stop at both Ruggles and Back Bay stations along the Franklin, Needham, Providence/Stoughton and Framingham/Worcester lines. And the Silver Line bus rapid transit to downtown runs along Washington Street.
The South End is reached easily by car. The neighborhood is accessible off the Massachusetts Turnpike Exit 22 Dartmouth Street at Copley Place and Exit 24 at South Station.
Medical care
The South End is Boston’s premier medical district. The original Boston City Hospital opened in 1864 and merged with Boston University Medical Center Hospital in the 1990s to create Boston Medical Center.
Today, BMC is the largest Level I trauma center in New England. The Boston University School of Medicine, which uses BMC as its teaching hospital, is next door. Nearby is the South End Community Health Center offering affordable comprehensive healthcare and community services.
Because of the number of hospitals and medical facilities nearby, the South End is a popular neighborhood for doctors and medical professionals to call home.
10 things to do in the South End
There is so much to do in South End, Boston, you could find a different activity, eatery or event for every weekend day of the year, no matter your tastes.
Go shopping for the best vintage men’s clothing and accessories in Boston at SAULT New England.
Swing to hot jazz and cool standards at Wally’s Café, the former Wally’s Paradise, one of the oldest jazz clubs in America.
Take a selfie in front of the former St. James Hotel, now Franklin Square House Apartments. The familiar exterior was used for the fictional St. Eligius Hospital on the Emmy award-winning television series “St. Elsewhere.”
Brunch with your BFFs and catch up on the week at South End Buttery bakery and coffee shop.
Join a pickup game of ultimate Frisbee or hit a few tennis balls around at Carter Playground.
Take in a show and the history at the Boston Center for the Arts’ Cyclorama which dates back to 1884 and is the headquarters of the Boston Ballet.
Christmas shop at the SoWa Winter Festival, in South End’s South of Washington district, a holiday village and market featuring handmade gifts, winter cocktails, popup galleries and ice sculptures.
Enjoy some of Boston’s best vegetarian, vegan and gluten-free meals at Five Horses Tavern South End.
View all the Victorian-style homes along the 300-acre Victorian rowhouse district, the largest intact collection in the nation.
Bring your pooch for a stroll, or just pup watch, at the 13,000 square feet off-leash Peters Park Dog Park.
Finding an apartment in the South End
The South End isn’t the cheapest place to live in Boston. But there are certainly places in the neighborhood more affordable than much of Back Bay, Fenway-Kenmore and the gentrified areas of South Boston.
The district is as diverse in its housing as it is in its people. You can find full-house rentals, rowhomes to lease and a slew of South End, Boston apartments.
Just be prepared to have a lot of visitors because everyone is going to want to spend time with you exploring one of Boston’s best neighborhoods.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory as of June 2021. Our team uses a weighted average formula that more accurately represents price availability for each unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Michael is a Philadelphia-based writer with a variety of interests, including music, concerts, TV, politics, travel and sports. His background includes a decade as a programming executive in network television, six years as a marketing executive at a technology company, and time at two magazines and two advertising agencies. He currently works as Craft Beer & Brewery contributor for the Visit Philly Greater Philadelphia Tourism Bureau and sits on the board of a non-profit law firm that assists veterans with disabilities. Michael is a proud Syracuse grad (Newhouse) who has lived in Wichita, Albany, Chicago, Washington DC, Boston and beyond.
There are many changes you can make to reduce the environmental impact your home and your daily life has on the planet. Even simple adjustments like using green cleaning products, finding ways to reuse your kitchen scraps, or locking your windows shut, can lead to less waste and energy savings. Whether you just bought a house in Miami, Los Angeles, or anywhere in between, here are some great ways to save energy, reduce your carbon footprint, and save money all from the comfort of your own home.
Reconsider your grocery shopping habits
To reduce waste and save energy at home, adopt eco-friendly grocery shopping habits.
“Subscribing to a milk delivery service with reusable glass bottles, reusing bags at a bulk grocery store, and selecting glass or metal packaging can make a tremendous difference in reducing our consumption of plastics,” says Lyons, CO-based BrightHeart Decor.
These simple adjustments in your grocery shopping routine can make a significant difference in promoting sustainability at home.
Save energy with LED lighting
In addition to upgrading the look of your home’s interior, changing up the lighting can make your home more efficient. LED bulbs are much more energy-efficient than other alternatives, and incorporating them throughout your home is an easy way to conserve energy.
“The easiest DIY way to save energy is to install LED lighting and click the thermostat one to two degrees up or down,” according to Edge Energy “Another way to conserve energy is to get an energy audit and do basic installations of any cost-effective retrofits.”
Reduce your household’s consumption of water
A common area of waste in many households is water usage. The average US household consumes over 300 gallons of water per day, and much of this is unnecessary. If you’re looking for ways to save water, simply being mindful of when the water is running unnecessarily can go a long way.
“Try cutting down on your daily water usage at home by saving six liters of water a minute by turning off your tap while you brush your teeth,” suggests Bamboodu, an online store that specializes in eco-friendly products. “Use natural biodegradable cleaning products that don’t contain chemicals, and install taps and showers with automatic shut-off.”
Use smart home technology to save energy and avoid expensive repairs
We all know that technology has made our lives easier, but it can also save money by reducing energy waste. Sensors on home appliances can not only prevent food and energy waste, but also alert homeowners to potential issues that could prove costly if missed.
“Smart homes enable homeowners to save energy and money by automatically regulating lights and thermostats using geofencing and motion sensor technology,” says Agile Home Automation. “Leak detectors can notify homeowners of problems before they become costly repair situations. Freezer and refrigerator sensors can notify homeowners if a door is not closed properly, or if the unit is beginning to fail before the food is ruined.”
“Using automation for lighting, temperature control, and window coverings is the most cost-effective way to reduce waste, and manage and save energy use in your home,” adds Brad Smith, president of Audio Video Design. “Today’s products sync with circadian rhythms and the astronomical clock for personal and precise customization.”
Be friendly to the environment (and your pocket) by going solar
With recent improvements in solar technology, saving money on electricity with solar panels is easier than it’s ever been. Take advantage of clean energy and save yourself some money in the process.
“Homeowners can install solar on their roof or property and pay no more than they were paying for electricity before, and hedge against rising electric costs while making the planet a cleaner place to live,” says Madison, NJ -based Green House Solar. “Not only will solar save energy, but it will also increase the resale value of your home.”
“Homeowners can save energy and get a greater return on investment by pairing their solar system with a smart home system,” adds Freedom Forever, a Temecula, CA-based company that combines solar and smart technology. “These systems enable homeowners to schedule when appliances consume electricity, allowing you to use more of your solar power and send less to the grid.
Find ways to save and reuse your produce
A great way to prevent food waste is by getting the most out of your produce scraps. Get more out of your veggies by using the scraps for a homemade vegetable broth.
“To make the most of your produce, save your vegetable scraps,” says blogger Nutti Nelli. “Once you fill up a half-gallon of scraps, bring five cups of water to a boil and add your veggie scraps, one teaspoon of salt, and one teaspoon of black pepper, and simmer for one hour. Drain the scraps, and now you have four cups of vegetable broth to use for cooking, soups, curries, or stews.”
Think twice about the cleaning products you’re using
When it comes to eco-friendly cleaning products, the first thing that probably comes to mind is biodegradable products. While these are great, you can go a step further by eliminating plastic packaging entirely.
“Save space and eliminate plastic from your cleaning routine when you use USDA certified biobased products,” says Beyond Clean Products, a company that specializes in eco-friendly cleaning products. “Consider incorporating detergent sheets and auto dish tabs that are 100 percent plastic-free.”
Keep windows locked to avoid any air leaks
Whether you’re running the AC during the summer or heating your home in the chilly winter months, the last thing you want is to run up your bill because of air leaks. Locking your windows not only secures your home, but also the air inside it.
“Keep your windows locked to save energy in your home, says Home Energy Saving Solutions. “The lock is not only for security, but it also keeps the window close-packed and creates a seal along the weather-stripping of the window. An unlocked window is an open window.”
Recycle your leftover household paint
If you’ve got leftover paint lying around after a recent home project, you may be wondering how exactly you’re supposed to get rid of it. Product Care Recycling cautions against simply throwing old paint in the trash.
“A fresh coat of paint can give your home new life,” they say. “However, leftover paint, like other hazardous household products, does not belong in the trash. It should be recycled to avoid contaminating our soil and water sources and to divert landfill waste.”
Enrich your soil and decrease landfill waste
Whether you already have a home garden or just want to help the environment, composting is a great way to get the most out of your food waste. The planet will appreciate it and so will your plants.
“Composting is one of the most impactful actions you can take to both reduce household waste heading to landfills and create an ultra-nourishing natural resource that your garden will love,” says Sustainable Jungle, a website that shares sustainability tips and tricks. “Some cities even offer discounts on composters to help encourage this community supporting activity.”
Use dimmable indoor lighting
Home lighting is another area where energy waste can take place. Since most light bulbs operate at full capacity when turned on, you may end up using more energy than you need to keep your home lit, especially during the day. Dimmable lights give your home a more natural glow, saving energy in the process.
“One of the most effective ways to reduce your electricity bill is to install a lighting control system or smart lighting,” says TSP Smart Spaces. “We’re all used to running our lights at 100 percent, but the reality is that not only do we not need to use 100 percent of the energy of a bulb all the time. Dimmable LEDs create a much more enjoyable living experience, and natural lighting that costs 20 to 50 percent less to run compared to regular switches.”
Obligo, the fintech company that fosters trust between renters and landlords and enables renters to forgo paying a security deposit, has revealed the honorees of its fourth annual Renter’s Trust Awards.
The following are property management services for various types of properties across different locations:
Advantage Property Management Services caters to single-family properties in California and uses Propertyware as its property management software.
AIR Communities offers property management for multifamily properties nationwide, with Entrata as its property management software.
Beam Living specializes in multifamily properties in New York and utilizes Yardi & MRI as its property management software.
Common provides property management for coliving spaces nationwide, using Entrata as its property management software.
Empire Management focuses on multifamily properties in New York, utilizing Yardi as its property management software.
Equity Team LLC manages single-family properties in Ohio, using Propertyware as its property management software.
Home Property Management serves single-family and multifamily properties in Florida, with Buildium as its property management software.
J&L Holding Corp specializes in multifamily properties in New York, using Yardi as its property management software.
Landmark Communities provides property management for multifamily properties in Pennsylvania, using Yardi as its property management software.
Northern Virginia Property Management Pros caters to single-family properties in Virginia, using Propertyware as its property management software.
Patoma manages multifamily properties in New York, using AppFolio as its property management software.
Rudin Management Company focuses on multifamily properties in New York, using Yardi as its property management software.
Touchpoint Property Management serves single-family and multifamily properties in North Carolina, with AppFolio as its property management software.
Time Equities manages multifamily properties nationwide, using MRI as its property management software.
Wolfnest Property Management specializes in multifamily and single-family properties in Utah, using Propertyware as its property management software.
Security deposit deductions are an inevitable aspect of the rental process, but these distinguished property management firms have distinguished themselves by providing exceptional rental experiences. They accomplish this by clearly establishing renter expectations at both move-in and move-out, transparently communicating any charges, and meticulously monitoring deduction rates across their portfolio over time. This approach effectively minimizes friction, mitigates the risk of negative online reviews and disputes, and ultimately leaves renters thoroughly satisfied.
Upon a renter’s departure, Obligo evaluates the property’s security deposit deductions, if any, as well as the renter’s sentiments regarding these deductions and the settlement of any outstanding charges. The awards honor property management companies that have earned a substantial level of trust from their renters based on these criteria.
Victoria Udrea, a talented author who specializes in real estate and technology, is a valued contributor to Realty Biz News. With her keen eye for detail and passion for keeping readers informed, she diligently covers the latest developments in the industry, focusing particularly on the exciting realm of smart home technology.
The defining characteristic of the 2023 housing market has been dramatically fewer home sellers than any recent year. That’s one reason total sales volume has been so low, but it looks now like that’s starting to change.
In this week’s Altos Research video, I look at how home sellers and sales are up, but that doesn’t mean prices will climb in 2024.
Watch the video or check out some key data takeaways from the data for the week ending Dec. 18.
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The inventory picture
There are now 539,000 single-family homes on the market unsold, which is up 3.2% than last year at this time. Housing inventory climbed late in the year as mortgage rates rose. Rates are falling now and if that continues, buyers will jump and inventory will fall well into the first quarter of 2024.
Could we see new inventory from distressed sellers if we see a deep recession? Yes, demand will slow if unemployment climbs, but it’s probably 2025 before we see the bulk of that.
More home sellers enter the market
There were 11% more new sellers this week than last year at this time. All year there have been 10-20-30% fewer sellers, so the tide is starting to turn. These sellers have been matched by an increase in buyers, too, so there were 10% more immediate sales than last year.
As of now, there are no signs of increased sellers growing out of balance with the number of buyers. There are still far fewer sellers each week than in the pre-pandemic era.
Contracts growing
We continue to see the new contracts grow each week: There were 7.7% more new contracts started this week than the same week a year ago. The market was contracting all the way until October, but is now reliably expanding. This is growth of very low numbers: This isn’t a boom market, of course, but it’s a turn.
Home prices will finish the year up 2-3%
Home prices will finish 2023 with 2%-3% gains over last year. The median price of single-family homes in the U.S. is now $420,000. The leading indicators here show another year of flat home-price change in 2024.
The price reductions data tells us that while demand is still weak, it’s better than last year at this time. We had 37.6% of the homes on the market get a price cut this week, which is still above normal, but should drop into the normal range in January.
What will the housing market look like in 2024? If mortgage rates were to plummet early in the year, buyers would jump in quickly, inventory would drop and competition would push prices higher. That’s a big if. On the other hand, price reductions show enough weakness that if supply were to surge, prices would correct down very quickly. Supply isn’t surging, but it’s worth watching.
Mike Simonsen is the president and founder of Altos Research.
Download the free Altos eBook: “How to Use Market Data to Build Your Real Estate Business”
Chances are, you’ve come across information on Bitcoin or other cryptocurrencies in the news lately. It’s no wonder the digital currency is such a hot topic – after crashing in value, the Bitcoin market seems to be recovering quickly with an increase in value of over 120% since the beginning of the year. With more players in the cryptocurrency game than ever, many landlords are debating getting involved themselves, or are even considering accepting rent payments in Bitcoin.
In 2013, a New York-based property management company became the first on the market to accept rent and maintenance payments in Bitcoin. In the following years, many other landlords and property managers have jumped on board the Bitcoin train as well. So, is it time for you to follow suit? Here are some of the pros and cons of accepting Bitcoin as payment as a landlord.
Pro: Faster and Cheaper Than Traditional Banking
Bitcoin is an open financial system, meaning payments using Bitcoin can be made anytime, anywhere, even if there is no traditional banking system. Bitcoins can be spent in the same manner digital money systems such as credit cards and PayPal operate – from your mobile phone, computer, or tablet. While still experimental, Bitcoin is even slated to become transferable through satellite and radio waves, meaning Bitcoin users can literally make payments from almost anywhere on the planet. Offering this payment option to your tenants could prove to be beneficial for renters who travel frequently or who are planning a trip to an isolated destination. Compared to other digital payment methods, Bitcoin tends to have lower transaction fees and no foreign transaction fees.
Con: Lack of Regulation
There is currently no government body or other organization monitoring the Bitcoin market and ensuring it retains its value. Unlike cash, silver, gold, or any other tangible commodity, Bitcoin is made up of digital information that has little to no regulatory oversight. This can cause significant and unpredictable shifts in value – in both directions.
According to a report from Bloomberg, a mere 1,000 people own 40 percent of the Bitcoin market. All it would take is a handful of these 1,000 people to decide to cash out, potentially causing a ripple effect where others decide to sell, in turn causing the value of Bitcoin to come crashing down. In fact, this is exactly what occurred in January 2018 during the most recent crypto market crash. Technically, these stakeholders could manipulate the market by bulk selling their Bitcoin, causing a value crash, and buying back the same Bitcoin at a much lower price. This is called collusion and is forbidden in traditional money markets, but because of the lack of regulation, there’s not much that would prevent this from happening in the cryptocurrency market.
Pro: Added Security for Payment Makers
Bitcoin can protect the identity and money of your tenants, which may be appealing to some potential renters. Because Bitcoin uses anonymous addresses that change during each transaction, payments do not require any personal information and do not require consumers to provide credit card or account numbers that could be stolen.
For landlords using software designed for property management, you likely accept ACH (electronic check) and credit cards for rental payments. These transactions are traceable, legal and backed by major banking institutions, but each account is clearly associated with a specific tenant. Renters who prioritize privacy when it comes to their finances will appreciate the option to make payments using Bitcoin.
Con: Taxes Could Be Tricky
Paying taxes as a landlord and understanding the related filing obligations is already a stressful process. Throwing cryptocurrencies into the mix won’t make tax season any easier on landlords. The IRS doesn’t treat Bitcoin and other cryptocurrencies as money; instead they are treated as assets, which introduces additional tax consequences. Assets may require reports not just on your income, but also on the product you received, what it’s value was when you obtained it, and what it’s value was when/if you turned it back into cash. This entails three IRS reporting transactions as opposed to one for accepting cash. You’ll also have to keep detailed records of the exact value of any Bitcoin you received at the time you receive it and again at the time you convert it to cash.
Pro: Increasing Acceptance in the Marketplace
As much as the cryptocurrency market has its ups and downs, it’s not going to disappear. Bitcoin is becoming increasingly accepted in mainstream markets and many merchants are beginning to accept Bitcoin as payment. Major outlets like Overstock, Microsoft, Expedia and Shopify have all started accepting cryptocurrencies and this list is expected to continue to grow as things progress. Cryptocurrency started as a niche market and has expanded into an immense industry, though there’s still some work to do before it becomes a financial norm. Those who want to remain at the front end of the trend curve, and are forward-thinking and tech-savvy, may want to consider being early adopters.
Con: Courts Don’t Have a Perfect Understanding
A cryptic Bitcoin receipt can be difficult for average people to understand and trace, despite the fact that the technology is inherently transparent. There are programs that allow people to track down transactions on blockchain (the protocol that underlies Bitcoin), but it is quite different than normal banking transactions to which most are accustomed. This can add a layer of complexity to any legal proceedings, and extra hoops to jump through when providing proof of payment (or not), ultimately prolonging things like an eviction process.
As you can see, there are pros and cons to accepting Bitcoin as a rental payment method if you are a landlord. Providing a new method of payment can be appealing to some tenants, and if you are looking for a new market to engage with expendable money, Bitcoin may be a good option for you. However, the market doesn’t come without its risks, so it really has to do with how adventurous and progressive you are in your role as landlord.