U.S. home prices haven’t changed much this quarter. But regional trends looked wildly different, a report by the National Association of Realtors says.
“Just like the weather, large local market variations exist despite the minor change in the national home price,” NAR’s chief economist Lawrence Yun said in a press release.
The national median single-family home price reached $402,600 this quarter, the organization’s Metropolitan Median Area Prices and Affordability report found. It’s a dip of only 2.4% year-over-year and 0.2% month-over-month.
Why such a small change? Regional housing market price shifts almost canceled each other out.
In around 60% of the nation, homes got more expensive this quarter, NAR found. Most of these markets are in the northwest, up 3.2%, and midwest 1.4% higher. Prices increased the most in Fond du Lac, Wisconsin, New Bern, North Carolina and Duluth, Minnesota.
Homes became cheaper in the rest of the country. Prices slid by 2.2% in the south and 5.8% in the west year-over-year. In Austin, Texas, prices dipped 19.1%, the biggest market decrease, followed by San Francisco, Salt Lake City and Las Vegas.
Even California prices fell — San Jose, San Francisco and Anaheim were the top three most expensive cities; each still had a median sales price of over $1 million, but depreciation of 5.3%, 11.3% and 3.8%, respectively.
“Interestingly, price declines occurred in some of the fastest job-creating markets,” Yun said. “Prices in these areas are trying to land on better fundamentals after several years of skyrocketing increases.”
Nevada, Texas and New Mexico saw the highest job growth rates this year, all around 4%, according to the Bureau of Labor Statistics. The rest of the country saw modest growth, too: only Vermont and Rhode Island had lower nonfarm employment versus last year.
The south made up 46% of sales this quarter, the largest share of all U.S. regions. Yun thinks this means prices will soon bounce back, noting “the number of homes receiving multiple offers, alongside continuing job and wage gains, signal price slides may already be a thing of the past.”
Affordability worsened because of high mortgage rates, NAR said. An already-built house with a 20% down payment would cost around $2,051 a month, which is 11.6% more than last year and 10% more than last quarter. This eats up 27% of the average family income, the report says.
And first time homebuyers have it even harder: the monthly mortgage payment on a median-priced home with a 10% down payment reached $2,012 this quarter, $200 more a month than the same time last year.
New buyers “needed a qualifying income of at least $100,000 to afford a 10% down payment mortgage in 40.3% of markets,” the report said. Last quarter, buyers only needed an income that large in 33% of markets. Families with an income of $50,000 could only afford to buy a home in 6.3% of markets.
The median price of a single-family existing home dipped 2.4% to $402,600 from a year ago and was down 0.2% from the previous quarter. “Home sales were down due to higher mortgage rates and limited inventory,” said NAR chief economist Lawrence Yun. “Affordability challenges are easing due to moderating and, in some cases, falling home … [Read more…]
“Life is all about transitioning from one stage to the next. Everything is always a transition,” said Chad Hedrick, founder of the Gold to Sold Group and former Olympic speed skater. Hedrick and his team provide the best possible service to the luxury real estate market in Houston, Texas. He founded the Gold to Sold Group in 2017, and the organization now represents the “gold standard” in the Houston housing market.
Below, Hedrick spoke with HousingWire about his gold medal career in speed skating, career jump to real estate and how the leadership skills learned from athletics prepared him for leading a team of all-star agents better than anything else could have.
HousingWire: Before we discuss your current career in real estate, can you tell me a bit more about your past experience as an Olympic speed skater?
Chad Hedrick: I grew up skating a lot because my parents owned the roller rink in our town. I found that I had a knack for it at a really young age and spent many hours at the rink. I was a “rink rat,” and I decided at a young age that I wanted to be the fastest skater in the world. When I first started skating, I was on conventional skates — ones with two wheels in the front and two wheels in the back.
When I was 14, in-line rollerblades came out, and I started racing on rollerblades. We traveled all across the country competing. At 16 I turned professional and started getting paid as an athlete. For 10 years I competed and had endorsement deals, but at the end of the day, I would tell people what I did and they wouldn’t know what in-line speed skating was. So, I decided I wanted to try something that people would recognize.
I packed everything up from Texas, moved to Utah and pursued an Olympic career in ice-speed skating. That journey started in 2003. About one year later, I became the world champion. And, two and a half years after my first day on the ice, I won the first U.S. gold medal at the 2006 Winter Olympics in Torino, Italy.
My story is similar but also different from many other people’s stories because life is all about transitioning from one place to the next. Whether it be a position at a company or the growth of your personal company, everything is always a transition. You have to accept the challenge and not be frustrated with change. You’ll face adversity that could be discouraging, but there is a light at the end of the tunnel. I was so glad that I was able to prevail in accomplishing this challenge of mine.
HW: How did you make the transition into real estate? What motivated that move?
CH: I didn’t find real estate, real estate found me.
I relocated from Salt Lake City, Utah, back to Houston with my wife, and I really went through a bit of an identity crisis. I had done one thing my whole life and I had sharpened this one skill and not really paid attention to anything else, which if you’re going to be the best in the world, then that is what you have to do.
At 32 years old, my skating career was over because I was competing against athletes who were 10 to 14 years younger than me, so it came to an end.
But, when I came home to Houston, everyone who was successful was in the oil and gas industry. I didn’t have any formal education, but I weaseled my way into the oil and gas business. What I discovered was that I was starting a new career, working for people my own age who had already spent 10 years after college building their careers. It was difficult for me to go from being the best in the world at something to answering people my own age. I really floundered for quite a while. It got to a point where I knew I had to do something else. I had to take control of my destiny. And, one of the biggest real estate brokers in our town at that point gave me an opportunity.
HW: What was the greatest learning curve getting into the new industry?
CH: Originally, it was just me. Serving clients, showing up to the closing table and getting paid were all great, but it was a lonely business for me. I was used to traveling with a team: a sports psychologist, a coach, all of these people were always around and we would celebrate the wins or work to understand what we needed to do to get better if we came in second or last.
I realized that having a team was really fulfilling to me and I wanted to be able to use these leadership skills that I developed as an athlete. Now, we have a team here in Houston and it’s been incredible to use the competitive spirit — lessons my father and coaches taught me — to be able to challenge and inspire my team and enjoy this business.
HW: You mentioned leadership skills and a competitive spirit, how have those attributes from your prior experience in athletics helped you become a better real estate agent?
CH: I’m wired to win. Winning could mean a lot of different things to a lot of people. When you’re winning, it may not be closing the most deals, it could be developing relationships along the way. It may be helping others to grow in this business. You have to find what really pushes you. For some people, it is all personal and financial gain, but for me, I realized that I needed more than that. To me, it’s about nurturing and building the relationships around me.
HW: What does the market look like in your area?
CH: Houston has always been a more stable market. We don’t see the fluctuation that other parts of the country do. We’ve seen a lot of growth, of course, over the past two or three years like everybody else. But, it is still a seller’s market. Everything that is priced correctly sells within a week or so. I put up three homes last week and one sold in three days, the other two sold in a single day. It is all about supply and demand, but we feel like rates are going to come down in the next 18 to 24 months. Once rates are back in the four to five range, real estate is going to be going gangbusters again.
HW: Gold to Sold has quite the team of agents, how has the team atmosphere enhanced your real estate experience? Is it at all similar to the team environment in athletics?
CH: Before creating the team, I felt like a man on an island, selling homes by myself. It’s a business where you’re with someone new every day. If you want to do great, then every day you have to go after it again and again. I didn’t have a team or coaches at first, so it was so important to me to establish that environment.
I started with my wife’s aunt, she came in as my partner. And quite honestly, we haven’t really pursued people or recruited them. Our team attracts people who want to be a part of a team because it’s been such a great experience. I want to help someone be the best they can be and to see an agent that you brought into the business close 30 deals in their second year, which is unheard of in this business, it makes you feel really respected as a leader.
Mortgage tech firm Lender Toolkit sued two mortgage lenders claiming that the companies failed to make payments while continuing to use its services and software solutions.
Lender Toolkit accused Celebrity Home Loans and MLD Mortgage of breach of contract. Lender Toolkit says Celebrity owes at least $97,288 and MLD Mortgage $138,069. That’s according to separate filings made in the U.S. District Court for the District of Colorado in May. Both lenders entered into a contract with Lender Toolkit in 2021.
Lender Toolkit is a provider of mortgage automation as a service solutions that integrates with Intercontinental Exchange‘s (ICE’s) loan origination system Encompass, according to its website.
Lender Toolkit’s solutions allow lenders to automate and simplify tasks including disclosure generation and delivery, income calculations and verification and post-closing processes.
Though the three-page lawsuits offer little detail about the contract, including when the lenders stopped paying and what services were offered, a filing from MLD’s chief legal and chief enterprise risk officer included a copy of the contract with Lender Toolkit.
None of the plaintiffs or defendants responded to requests for comment.
Lender Toolkit charged MLD Mortgage a $2,000 Mortgage Electronic Registration System (MERS) automation set up fee and a $2,000 FHA Upfront Mortgage Insurance Premium (UFMIP) automation fee.
The vendor charged $2 per funded loan for MERS automation with a minimum of 750 loans per month; and $250 per funded loan for FHA UFMIP automation with a minimum of one loan per month, according to the contract.
MLD claimed that Lender Toolkit submitted invoices after December 2021 that contained instructions to remit payment to Salt Lake City, Utah and invoices prior to that were submitted to a different PO BOX in Bountiful, Utah.
On Friday, Lender Toolkit and MLD agreed to transfer the case to New Jersey, where MLD is headquartered after the lender filed to dismiss for improper venue or alternatively transfer venue earlier in August.
MLD’s Colorado business volume between 2019 and the present accounts for less than 0.1% of its national business volume while production in New Jersey took up about 26.6%, according to MLD.
MLD Mortgage, doing business as Money Store, posted origination volume of $906 million in 2022, according to data from mortgage tech platform Modex. The lender’s origination volume came in at $261.6 million in the first six months of 2022. The lender has 122 sponsored MLOs and is licensed in 47 states across the country, according to the Nationwide Multistate Licensing System (NMLS).
Celebrity Home Loans hasn’t responded to the allegation. The Oakbrook, Terrace, Illinois-based lender abruptly terminated about 92% of its staff in February and On Q Financial’s deal to acquire some of the company’s assets fell apart.
The lender has two sponsored MLO and seven active branches in Colorado, Hawaii and Missouri, according to the NMLS. Celebrity’s license was revoked in California in July and suspended in Massachusetts in April, regulatory filings showed.
Utah is home to amazing natural wonders and national parks like Zion, Bryce Canyon, and the Arches, showcasing stunning red rock formations and vistas. For outdoor enthusiasts, Utah offers hiking, mountain biking, skiing, and more, that blend alongside city-life. If Utah sounds like the state for you, then you may also be curious what cities fit into your budget. For example, the median home sale price in Utah is $529,600 as of July.
If that price is out of your budget, don’t worry, we’ve got options to help you find a home. Redfin has collected a list of the 8 of the most affordable places to live in Utah. And they all have a median home sale price under the state’s average. From Ogden to Provo, read on to see what cities you may want to consider moving to this year.
#1: Ogden
Median home price: $367,625 Average sale price per square foot: $231 Average rent for a 1-bedroom apartment: $1,350 Median household income: $55,974 Nearest major metro: Salt Lake City (40 miles) Ogden, UT homes for sale Ogden, UT apartments for rent
With a median home sale price of $367,625, Ogden lands the number one spot on our list as the most affordable place to live in Utah. There are about 87,300 residents living in this mid-sized city. Living in Ogden, you can take a trip to one of the nearby ski resorts like Snowbasin, Powder Mountain, or Nordic Valley, visit the historic Union Station, and enjoy the outdoors at the beautiful Ogden Botanical Gardens or Ogden Nature Center.
#2: Logan
Median home price: $379,000 Average sale price per square foot: $229 Average rent for a 1-bedroom apartment: $450 Median household income: $43,056 Nearest major metro: Ogden (48 miles) Logan, UT homes for sale Logan, UT apartments for rent
Taking the second spot on our list of affordable cities to live in Utah is Logan. When living in this city of 52,800 people, you can explore the charming downtown area, see the animals at Zootah, or visit the natural areas outside town like Providence Cave.
#3: Provo
Median home price: $427,500 Average sale price per square foot: $277 Average rent for a 1-bedroom apartment: $1,484 Median household income: $50,072 Nearest major metro: Salt Lake City (45 miles) Provo, UT homes for sale Provo, UT apartments for rent
Next is the city of Provo, which has about 115,200 residents. The median home sale price is $427,500 which is about $100K less than the median home sale price in Utah. If you find yourself moving to the third most affordable city in Utah, spend the day at Utah Lake State Park, hike up Provo Peak or Y Mountain, and check out the Saturday Provo Farmers Market during the summer season.
#4: West Valley City
Median home price: $442,500 Average sale price per square foot: $226 Average rent for a 1-bedroom apartment: $1,315 Median household income: $43,056 Nearest major metro: Salt Lake City (12 miles) West Valley City, UT homes for sale West Valley City, UT apartments for rent
Only slightly more expensive than Provo is West Valley City, the next city on our list. About 140,200 people live in West Valley City, where there are plenty of unique activities to do. Be sure to check out a show at USANA Amphitheatre, see a Utah Grizzlies game at Maverik Center, or watch a movie during the summer at Redwood Drive-in Theatre.
#5: Layton
Median home price: $470,000 Average sale price per square foot: $227 Average rent for a 1-bedroom apartment: $1,337 Median household income: $43,056 Nearest major metro: Ogden (16 miles) Layton, UT homes for sale Layton, UT apartments for rent
Another great affordable place to consider moving to is Layton. With 81,800 residents, moving to this city gives you the perks of city-life without living in a major metropolitan area. Living in Layton, you can explore nature at Great Salt Lake Shorelands Preserve, hike the Adams Canyon Trail, and check out the downtown area.
#6: Orem
Median home price: $472,500 Average sale price per square foot: $222 Median household income: $65,622 Nearest major metro: Provo (7 miles) Orem, UT homes for sale Orem, UT apartments for rent
Another noteworthy city is Orem, where the median home sale price is about $50K less than the state’s average. With roughly 98,100 people calling Orem home, it’s a great area to consider living in. There are also plenty of activities to do in Orem. For example, you can check out the waterfall, historic railroad, and canyon at Provo Canyon, visit the downtown area, and explore the wetlands habitat at Powell Slough Waterfowl Management Area, among many other local favorites.
#7: West Jordan
Median home price: $506,000 Average sale price per square foot: $237 Average rent for a 1-bedroom apartment: $1,407 Median household income: $84,722 Nearest major metro: Salt Lake City (15 miles) West Jordan, UT homes for sale West Jordan, UT apartments for rent
Seventh on our list of affordable places to live in Utah is West Jordan. With a population of nearly 116,900, living in West Jordan is a great option for those looking for a mid-sized city to live in. Don’t miss out on checking out one of the many parks in town, bike, run, or stroll along the Jordan River Parkway Trail, and see the beautiful flowers at Conservation Garden Park.
#8: St. George
Median home price: $509,000 Average sale price per square foot: $272 Average rent for a 1-bedroom apartment: $1,803 Median household income: $59,989 Nearest major metro: Las Vegas (120 miles) St. George, UT homes for sale St. George, UT apartments for rent
Last but not least on our list of most affordable places to live in Utah is St. George. This affordable area is home to about 95,300 residents. Be sure to enjoy nature at Snow Canyon State Park and Red Cliffs National Conservation Area, bike along the New Bearclaw Poppy Navajo Trailhead, and visit the St. George Narrows once you move to St. George.
Methodology: All cities must have over 50,000 residents per the US Census and have a median home sale price under the average median home sale price in Utah. Median home sale price and median sale price per square foot from the Redfin Data Center during July 2023. Average rental data from Rent.com July 2023. Population and median household income data sourced from the United States Census Bureau.
A message from our partner: The new Delta Vacations is even more rewarding than before. Click here to learn more and start planning your next trip.
Using Delta SkyMiles can be complex and frustrating due to frequent changes and a lack of award charts. However, once you accumulate enough miles and gain the necessary knowledge to navigate the program, you can extract significant value from them.
Historically, Delta has offered flash sales where round-trip tickets cost as little as 5,000 SkyMiles. They’ve also run flash sales for flights to Europe, including economy round-trip flights for 32,000 SkyMiles.
While it requires effort to understand and utilize SkyMiles effectively, many consider Delta’s inflight experience to be the best among domestic carriers — as does the data powering TPG’s own annual report on the best U.S. airlines (Delta took the top spot for the fifth straight year in 2023).
Today, we will explore five key things you need to know about Delta SkyMiles to maximize their value.
There’s no published award chart
Delta removed award charts from its website in 2015. If you want to save miles for a future award flight, you must search for your desired route on different dates to get an idea of the approximate number of miles required. However, it’s important to note that this range can change unexpectedly.
Another aspect to consider is the wide range of SkyMiles needed for the same route. For example, a domestic flight that costs 10,000 miles one day could be half that price just a few days later. To illustrate this, let’s look at the varying prices over one week for a short flight from New York’s John F. Kennedy International Airport (JFK) to Chicago’s O’Hare International Airport (ORD).
The variance can be even more significant when it comes to international routes, especially in premium cabins. Within a week one-way, business-class flights from JFK to Tel Aviv’s Ben Gurion Airport (TLV) range between 237,500 and 480,000 SkyMiles.
Availability with award programs is always a challenge. Still, without set prices, these significant variances force you to plan your trip schedule around availability rather than SkyMiles rewarding you with your desired schedule.
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Finally, with no fixed prices, last-minute SkyMiles award tickets function like revenue tickets: They tend to be significantly more expensive.
This is a major drawback to collecting SkyMiles compared to other legacy carrier miles. In this Hartsfield-Jackson Atlanta International Airport (ATL) to Cancun International Airport (CUN) example, close-in award tickets are roughly double than tickets a week or more out:
That said, it’s worth noting that you can reticket most Delta award flights (excluding basic economy) when the price drops. Many times, this can be accomplished right in the Delta app.
TPG director of content Nick Ewen did this twice on a one-way award ticket from Orlando International Airport (MCO) to Salt Lake City International Airport (SLC) for him and his family earlier this year. He initially booked three tickets at 25,000 miles apiece, but the price dropped to 20,500 miles and then 19,500 miles. Both times he was able to rebook his flight, ultimately putting 16,500 miles back in his SkyMiles account.
Related: Complete guide to changing and canceling award tickets
Adding segments can lower your award ticket price
Surprisingly, longer flights can sometimes result in lower award rates for a Delta award ticket. Delta tends to have limited competition on routes originating from its main hubs.
As an example, here’s a search from Detroit Metropolitan Wayne County Airport (DTW) to San Francisco International Airport (SFO) in economy class:
When you shift your origin to JFK, which is served by more carriers, the prices drop significantly — with many itineraries on these days connecting in Detroit:
Related: How to redeem Delta SkyMiles for maximum value
Partner award prices are now higher
In late 2022, award rates skyrocketed on partner flights booked through SkyMiles, as pricing was largely brought in line with itineraries entirely operated by Delta.
In short, it now costs a lot more to fly with partner airlines on flights to and from the U.S. — especially for business-class awards.
For example, Virgin Atlantic flights to and from the U.S. now cost around 210,000 miles when there’s award space — instead of the previous 86,000-mile price.
For reference, you can typically book this same business-class award for 47,500 Virgin Atlantic Flying Club points plus $926.70 — though it’s even cheaper (33,200 points) through Sept. 30 thanks to Virgin’s 30% discount on award redemptions this summer.
You’ll see similar increases on Aerolineas Argentinas, Aeromexico, China Airlines, China Eastern and Korean Airlines flights originating from the U.S.
Related: Leisurely luxury: A review of Virgin Atlantic’s A350 leisure configuration in Upper Class from Manchester to Orlando
Keep an eye on SkyMiles sales
Delta routinely offers SkyMiles sales. One of its most recent was round-trip airfare to Auckland Airport (AKL) from most major U.S. airports for just 37,400 SkyMiles round-trip. Last year, the airline offered round-trip awards from JFK to various gateways in the Caribbean and the Bahamas for just 8,000 miles round-trip.
We even saw select flights from Seattle-Tacoma International Airport (SEA) to beach destinations at just 2,500 miles each way back in Feb. 2021.
Keep an eye on Delta’s SkyMiles sales page to find these deals.
Related: The ultimate guide to Delta One Suites
You can earn elite status without ever flying
Delta SkyMiles lets you earn Medallion status without flying.
If you have both of the Delta cobranded cards issued by American Express that earn Medallion Qualification Miles (either the consumer or business versions of each card), you could spend your way to upper-level Platinum Medallion status without ever setting foot on a Delta plane.
Here are the four cards and the Medallion Qualification Miles (MQMs) they allow you to earn:
Delta SkyMiles® Platinum American Express Card: Earn 10,000 MQMs after you spend $25,000 in purchases on your Card in a calendar year, up to two times. Thus, you can earn a total of 20,000 MQMs by spending $50,000 in a year. The card’s annual fee is $250 (see rates and fees).
Delta SkyMiles® Platinum Business American Express Card: Earn 10,000 MQMs after you spend $25,000 in purchases on your Card in a calendar year, up to two times. Thus, you can earn a total of 20,000 MQMs by spending $50,000 in a year. The card’s annual fee is $250 (see rates and fees).
Delta SkyMiles® Reserve American Express Card: Earn 15,000 MQMs after you spend $30,000 in purchases on your Card in a calendar year, up to four times. Thus, you can earn a total of 60,000 MQMs by spending $120,000 in a year. The card’s annual fee is $550 (see rates and fees).
Delta SkyMiles® Reserve Business American Express Card: Earn 15,000 MQMs after you spend $30,000 in purchases on your Card in a calendar year, up to four times. Thus, you can earn a total of 60,000 MQMs by spending $120,000 in a year. The card’s annual fee is $550 (see rates and fees).
If you hold the Delta Platinum Amex and the Delta Reserve Amex and can put $50,000 and $120,000 in spend on them (respectively), you’ll reach Platinum status. That’s because you’ll have 80,000 MQMs (just ahead of the required threshold of 75,000) and will waive the Medallion Qualification Dollar (MQD) requirement for Silver, Gold and Platinum Medallion status.
While not Delta’s top tier, Platinum Medallion still comes with unlimited upgrades and a selection of Choice Benefits that can improve your flying experience.
For reference, the Diamond MQD waiver only kicks in once you’ve spent $250,000 on eligible purchases across your Delta cobranded American Express credit cards.
Note that all four of these cards also include a 15% discount on Delta-operated award flights when you redeem your SkyMiles and pay the taxes and fees with the card. This doesn’t apply to partner tickets.
Related: Best Delta credit cards
Bottom line
Delta SkyMiles remains a solid choice for Delta travelers. I continue to find great value in using SkyMiles for domestic flights for me and my family, and I find equal value in holding Delta Platinum Medallion status. However, SkyMiles isn’t the currency to hold if you’re looking for aspirational or long-haul premium cabin awards.
For rates and fees of the Delta SkyMiles Platinum Amex Card, please click here. For rates and fees of the Delta SkyMiles Platinum Business Amex Card, please click here. For rates and fees of the Delta SkyMiles Reserve Amex Card, please click here. For rates and fees of the Delta SkyMiles Reserve Business Amex Card, please click here.
Additional reporting by Ryan Smith, Nick Ellis and Richard Kerr.
Households including at least one person with a high school diploma or GED can afford the typical mortgage payment in most large metro areas across the U.S., according to a new analysis by Zillow.
But soaring home values that have outpaced incomes have made down payments a barrier for many, particularly first-time home buyers.
Mortgage rates have dipped to multi-year lows in recent months, meaning monthly payments are relatively affordable for buyers who can secure a down payment. However, down payments are a challenge to afford for many as prices have grown faster than incomes over the past several years. An earlier Zillow study found that buyers need 1.5 years longer to save for a 20% down payment on the typical home than 30 years prior, and the difference is much more extreme in the most expensive metros – 13.3 years longer in San Jose, for example.
This effect is especially pronounced for first-time buyers who do not have the equity of an existing home to put towards a down payment on a new one. Zillow data shows that 46% of a typical down payment comes from savings for first-time buyers, compared with 35% for repeat buyersii.
“The influx of highly educated workers into already-expensive metros with stagnant or slow-growing inventory has made it difficult for those with less education and earning potential to enter those markets,” said Skylar Olsen, director of economic research at Zillow. “There can also be considerable variation within metros. While a bachelor’s degree may be enough to afford a mortgage on the typical home in the San Diego metro at large, it’s likely to be insufficient in pricey areas like La Jolla. And that’s only after scraping together a sizable down payment, which is a huge hurdle for most buyers.”
For households that secure a down payment, the median mortgage payments are affordable for those with a high school education in 36 of the 50 largest U.S. metros. The remaining 14 metros require earnings associated with at least a two-year associate’s degree.
The median income of a university degree holder is necessary to afford the median mortgage payment in the five most expensive West Coast metros. A bachelor’s degree is typically needed in San Diego and Seattle, while the typical income of someone with an advanced degree is required in San Jose, San Francisco and Los Angeles. The typical mortgage payment is affordable for those with associate’s degrees in Boston, New York, Sacramento, Washington, D.C., Denver, Portland, Riverside, Salt Lake City and Miami.
In only one metro, Oklahoma City, can those with less than a high school degree usually afford the typical mortgage payment. Households in Oklahoma City benefit from a combination of low housing costs – only three of the 50 largest metros have a lower median mortgage payment – and relatively high median incomes for households in which nobody has a high school diploma.
Median rent was 27.8% of the typical U.S. household income in Q1 2019. This is up slightly from the previous quarter and just below levels from a year earlier. Rent was most affordable for those in Pittsburgh, where the median rent is 21.4% of the typical household income. Los Angeles is the least affordable large metro for renters – 46.1% of the typical income is required to pay the median rent there.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
Delta Air Lines will replace its SkyBonus program, which has long catered to small and midsize businesses, with SkyMiles for Business in October. By phasing out the SkyBonus program, Delta will more closely align its business program with SkyMiles rather than making it a stand-alone currency.
As part of the changes, Delta is opening up its small-business loyalty program to additional companies, with no minimum traveler or spending requirements. A Delta spokesperson said, “As businesses and their travelers continue to redefine the when, why and how of business travel, Delta is prepared to cater to their evolving needs — regardless of company size.”
However, you’ll still need to meet minimum thresholds to earn miles in the new program.
Here’s what we know about the new SkyMiles for Business program.
Delta SkyBonus to become SkyMiles for Business
The existing SkyBonus program rewards small businesses whose employees fly on Delta. The company earns SkyBonus points for eligible itineraries, while the travelers earn Delta SkyMiles, just as they would on a normal ticket. Those SkyBonus points can then be used for things like flight credits, a membership to the Delta Sky Club and eCredits.
However, in order to enroll, a company must have at least five unique employee travelers and spend at least $5,000 in eligible flight revenue every calendar year.
In October, the program is being renamed SkyMiles for Business, and it’ll open its doors to all companies, regardless of size and annual revenue. However, the ability to earn miles (rather than SkyBonus points) will still be restricted to companies meeting the above requirements.
It’ll also continue to offer rewards when employees book eligible flights on Air France, KLM, Virgin Atlantic and Aeromexico. And as a traveler, you’ll still earn your standard mileage accruals as a SkyMiles member — in addition to the rewards your company will earn in its SkyMiles for Business account.
If you currently have SkyBonus points in an existing account, those will be converted to SkyMiles when the new program launches in October. This will happen at a 3-to-1 ratio.
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Bear in mind that you can currently use SkyBonus points for Delta eCredits at a rate of 7,500 points per $25, which means they’re worth 0.33 cents apiece for this option. A 3-to-1 conversion ratio thus pegs the new miles at 1 cent apiece.
Related: The inside scoop on invite-only Delta 360 status
3 tiers of SkyMiles for Business
SkyMiles for Business will have three tiers when it launches in October. Here’s an overview:
Member: Open to any business, with no minimum traveler or spending requirements
Plus: Accounts with at least five employee travelers and $5,000 annual travel spending
Elite: Accounts with at least five employee travelers and $300,000 annual travel spending
As noted previously, member accounts won’t be eligible to earn SkyMiles through the new program. Instead, here’s what a Delta spokesperson told TPG about this tier:
Accounts that belong to the SkyMiles for Business Member tier will receive tailored offers from Delta and third parties. Our goal is to be their partner in business travel, so Delta will also offer resources to allow companies to manage their travel program more efficiently.
For those organizations with Plus or Elite status, the new earning chart that Delta shared with TPG looks very similar to the current SkyBonus program, with higher accrual rates for flights to (or from) the following destinations:
Hartsfield-Jackson Atlanta International Airport (ATL)
Detroit Metropolitan Wayne County Airport (DTW)
Minneapolis-St. Paul International Airport (MSP)
Salt Lake City International Airport (SLC)
Here’s the full chart:
Market
Delta One
First class
Delta Premium Select
Delta Comfort+
Main cabin
Delta hubs noted above
5 miles per dollar
5 miles per dollar
5 miles per dollar
2 miles per dollar
1 mile per dollar
All other destinations
10 miles per dollar
10 miles per dollar
10 miles per dollar
4 miles per dollar
2 miles per dollar
Note that basic economy tickets will not be eligible to earn miles through the SkyMiles for Business program.
When it comes to redemption, a Delta spokesperson indicated that the new program will continue to allow redemptions for eCredits and Silver Medallion status, and individual Delta Sky Club membership will return as an option.
However, the SkyMiles for Business program will also allow companies to transfer business miles to individual employee accounts, a new feature.
Related: 5 things you need to know about Delta SkyMiles
Earn more miles with Delta business credit cards
Ahead of this transition, it’s worth noting that Delta’s small-business credit cards are featuring elevated welcome offers through Aug. 2. Here’s a look at these bonuses:
However, it appears that these business credit cards will remain separate from the SkyMiles for Business program.
Related: Points of View: Which credit card should you use for Delta Air Lines flights?
Bottom line
Delta is phasing out the SkyBonus program and replacing it with SkyMiles for Business. While more businesses will be eligible for Delta’s business program, the current SkyBonus restriction — at least five employee travelers and $5,000 in annual spending — will remain in place for the purposes of earning miles.
Existing SkyBonus points will convert to SkyMiles at a 3-to-1 ratio, and the new program will offer similar redemption options but also enable companies to transfer the miles directly to individual employee accounts.
We’ve reached out to Delta with questions on these details, and we’ll be sure to update this article if we receive any additional information.
With the news of the Federal Trade Commission opening an investigation into OpenAI and its technology ChatGPT’s potential harm to consumers just this week, it appears that the tool faces its first serious regulatory hurdle just as mortgage professionals are beginning to embrace it.
Since the technology’s debut last year, real estate players have rushed to boost their artificial intelligence bona fides. Redfin and Zillow have incorporated ChatGPT plugins to serve prospective homebuyers, while some lenders have touted their own AI chatbots.
But ChatGPT specifically has already suffered from one security vulnerability exposing chat history titles of other users. The FTC says it intends to investigate whether OpenAI “engaged in unfair or deceptive privacy or data security practices or engaged in unfair or deceptive practices relating to risks of harm to consumers.”
Cybersecurity firm Cyberhaven earlier this year suggested 11% of the data employees paste into the software is confidential.
Massive tech players and mortgage giants like Wells Fargo and JPMorgan have placed restrictions on ChatGPT in recent months over concerns that confidential data could be exposed. The Mortgage Bankers Association said it doesn’t have specific guidance around ChatGPT. The National Association of Realtors said in a statement one of its goals is to create policies on AI use and educational materials for Realtors, but the work is in its infancy.
Lenders who spoke with National Mortgage News said their companies don’t have specific policies around use of chatbots but are proceeding with caution.
“If people were going to start [using personally identifiable information] then yeah, you need to have some policies and procedures,” said Kristin Hess, a mortgage loan originator with CMG Home Loans in Middletown, New Jersey. “But I don’t think we need to go that deep. I don’t think we need to just put that much detail in.”
Hess posted on LinkedIn in June a certificate that she’d completed an introduction to ChatGPT course online with edX, an online platform that offers training courses. She uses ChatGPT like Google to find more relevant search results and to write unique marketing posts. But she doesn’t enter what she described as customers’ six points of financial and personal identifying information including names and Social Security numbers.
OpenAI’s potential use of personally identifiable information that has been entered into ChatGPT is at the heart of the FTC’s investigation.
“Whoever’s information is in prompts that you give ChatGPT, they didn’t necessarily consent for you to do that,” said Jordan Roe Bingham, CEO of LendSafe, a Salt Lake City-based cybersecurity company. “You are giving that information to the company that owns a chatbot and they’re using that for their own reasons and their own purposes.”
Mortgage professionals should stick to doing generic, non-PII type of work in open AI models, said Rutul Dave, co-founder and chief technology officer at mortgage fintech Maxwell.
“You cannot just say, ‘Alright, I’m going to offload this [information] to some other third-party and then I’m just going to get the benefit of it,” said Dave. “That doesn’t work in the highly regulated, compliant industry that mortgages are.”
Raymond Grewe, a branch manager for Paramount Residential Mortgage Corp. in the Greater Baltimore area, said he uses ChatGPT sparingly, but not for many mortgage functions. He said he’s used the chatbot for scripting messages. Other lenders said they have used the chatbot to check grammar and edit paragraphs of text.
“I always feel weird about putting third-party information into a system like that,” he said. “I personally used it for creating some scripting.”
ChatGPT has limited information beyond 2021, and can’t provide users answers about current mortgage rates or home prices. Grewe expressed interest in Bing AI, the new AI chatbot tied to Microsoft’s search engine that can provide real-time information. Microsoft is also a $10 billion investor in ChatGPT.
Grewe said he’s an “early-to-mid” adopter of ChatGPT, and said his firm leans into tech heavily, a distinction amid a generally tech-averse industry. Grewe questioned aloud whether the technologies could eventually replace loan officers, or at least help speed the mortgage underwriting process.
The industry’s biggest lenders haven’t publicly integrated ChatGPT into their operations, while smaller entities like InstaMortgage have enhanced their own AI for customers. ChatGPT may not be ready to originate a mortgage, but originators will continue to utilize the chatbot.
“I’m authentic. I do create my own content,” said Hess. “That’s how this ChatGPT has really helped me because now I have what I want to do, but maybe I don’t know the proper wording for it. So that’ll help me so I can connect with the right people…It’s the way of the future and I don’t want to stay stagnant in the past.”
In the days where much of the shopping for home can be done from home, a place has to be pretty special to lure us outside. These home-design retailers aren’t just shops—they’re experiences:
Swoon is located along the main drive in the sleepy town of Santa Clara, and the new boutique is a decor-lover’s dream. Designer April Hickman transformed an old brick bungalow into a shop with a swanky vibe that takes hold the moment visitors step inside the entry, where a dazzling chandelier and a dark mural wallpaper deliver drama from the get-go.
Nancy Van Matre’s décor and lifestyle shop in St. George, Cosy House, is designed to help others create a welcoming air—with fresh, clean, timeless and comfortable style—for their homes.
Native Flower Company. Photo courtesy of Native Flower.
The Garden Store is not only Salt Lake’s cherished destination for unique gifts, furnishings and décor for the home and garden, but it has also served as a beloved retreat, offering a happy escape and gratifying retail therapy. With welcoming spaces and inspiring displays, The Garden Store is curated with an approachable yet elevated aesthetic, enlivened with just enough whimsy to keep things interesting.
Native Floral Company is a spacious, urban-style boutique teeming with fresh flower arrangements, bloom bundles, indoor plants, stylish vessels, gifts cards, candles, treats and much more. The open space also hosts classes and workshops for plant enthusiasts and floral hobbyists.
For unique home décor, luxurious accessories and exceptional gifts, visit O.C. Tanner Jeweler’s Home & Lifestyle Department on the third floor of the flagship store in Salt Lake City. Highly curated, there are always new offerings from well-known and recently discovered designers and artisans. (The Park City location also offers pieces selected for mountain luxury lifestyle.)
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