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Apache is functioning normally

Most Curated is a monthly series in which one editor, team member or friend of Livingetc will share the top 15 items on their current wish list.

I don’t know if it’s the abundance of tinsel and velvet ribbons I’m seeing all over social media this holiday season, but I’ve never felt more in tune with decorative trends than I have this year. In a season built on tradition, things are bound to feel redundant: décor, food, and even gifts. But this year, I’m inspired by all the creativity I’m seeing, so I’m pushing myself to color outside the lines when it comes to home décor and gifting. What you’ll find below is a curation of items that sparked joy for me while I was online shopping this month. For a personalized gift, you have to shop the monogrammed frames below. For holiday meal prep, this Jenni Kayne x Staub collab is just perfection. And if you’ve got a dinner party invitation, I suggest showing up with the Flamingo Estate Garden box as a gift for the host. Keep scrolling to shop these cool finds and even more favorites below.

Free People Retro Stirrer

Laetitia Rouget Viens on se Casse Ceramic Serving Platter

Le Labo Candle Discovery Set

Leif Blue Windowpane Ceramic Dish

Bettina Ceramica Gigli Jug

Piglet in Bed Botanical Green Gingham Linen Tablecloth

Anthropologie Ramona Wine Glasses

Jenni Kayne x Staub Round Cocotte

Assouline Barbie Book

Free People Mini Oaxaca Candle

Anthropologie Woven Cozy Throw Blanket

Anthropologie Nelda Egg Crate

Anthropologie Scarlet Monogram Frame

Flamingo Estate The Garden Tour Set

Heather Taylor Home Stripe Velvet Bow Crackers

It wouldn’t be a 2023 holiday roundup without a velvet bow. These poppers are such a fun tradition for any dinner party.

Source: livingetc.com

Apache is functioning normally

Mortgage rates moved higher for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans increased.

After surpassing 8 percent in late October, mortgage rates have somewhat retreated. One big driver: Inflation has cooled, which means the Federal Reserve might end its rate increases. The Fed last hiked its key interest rate in July, which increased borrowing costs on a variety of financial products, including mortgages.

The central bank decided to hold firm at its November meeting, indicating it expects rates to stay on the higher side for the foreseeable future.

“Expectations of slower economic growth, moderating inflation and no more Fed interest rate hikes have been a downward influence on mortgage rates,” says Greg McBride, CFA, chief financial analyst for Bankrate.

The slight decline in mortgage rates comes alongside appreciating home prices. Home values have now climbed for eight months in a row, according to the S&P CoreLogic Case-Shiller index for September 2023.

Rates last updated December 5, 2023.

These rates are Bankrate’s overnight average rates and are based on the assumptions indicated here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, December 5th, 2023 at 7:30 a.m.

30-year mortgage rate moves higher, +7.53%

The average rate for a 30-year fixed mortgage for today is 7.53 percent, up 753 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 7.83 percent.

At the current average rate, you’ll pay a combined $701.27 per month in principal and interest for every $100,000 you borrow. That’s an increase of $701.27 over what you would have paid last week.

The popular 30-year mortgage has a number of advantages:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower, more affordable payments spread over time.
  • Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Remember: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you might qualify for a larger loan amountor a more expensive home.
  • Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.

Learn more: What is a fixed-rate mortgage and how does it work?

15-year mortgage rate moves up, +6.80%

The average 15-year fixed-mortgage rate is 6.80 percent, up 680 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $888 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 adjustable rate mortgage rises, +6.78%

The average rate on a 5/1 ARM is 6.78 percent, ticking up 678 basis points over the last 7 days.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 6.78 percent would cost about $651 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Jumbo mortgage interest rate trends higher, +7.59%

The average rate for a 30-year jumbo mortgage is 7.59 percent, up 759 basis points since the same time last week. Last month on the 5th, jumbo mortgages’ average rate was higher, at 7.82 percent.

At the current average rate, you’ll pay $705.39 per month in principal and interest for every $100,000 you borrow. That’s $705.39 higher compared with last week.

Mortgage refinance rates

Current 30 year mortgage refinance rate climbs, +7.63%

The average 30-year fixed-refinance rate is 7.63 percent, up 763 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 7.96 percent.

At the current average rate, you’ll pay $708.14 per month in principal and interest for every $100,000 you borrow. That’s an extra $708.14 compared with last week.

Where are mortgage rates heading?

Mortgage rates have done a 180 as of late, falling back under 8 percent. With inflation cooling and 10-year Treasury yields declining, the 30-year fixed mortgage could head into the 6 percent range by next year, said Lawrence Yun, chief economist of the National Association of Realtors, at the group’s conference in November.

“I believe we’ve already reached the peak in terms of interest rates,” said Yun.

The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves. These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.

What today’s rates mean for your mortgage

While mortgage rates fluctuate considerably,, there is some consensus that we won’t see rates back at 3 percent for some time. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.

You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.

“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”

More on current mortgage rates

Methodology

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.

Source: bankrate.com

Apache is functioning normally

Knowing what colors to choose for your home decor can be tricky. It’s not just about choosing a palette for one room, but ensuring there’s some level of cohesiveness between each of the rooms.

Having a sense of togetherness with your color trends throughout your home will help make your home appear more considered from a design perspective. However, this doesn’t mean you need to have the same colors in every room; it’s all about deciding on one broader palette that can then be interpreted differently to fit each of your rooms. 

Jordan Samson who shared a video explaining these intriguing color rules. 

‘Start with a defined color story for your entire home, but this doesn’t mean that you need to use the same three or four colors in every single room,’ explains Jordan. So, if you favor modern, minimalist decor, then your color palette would most likely begin with decorating with neutrals. Or, for a mid-century modern home, as Jordan uses as an example in his video, you would start with a palette of earthy colors, such as forest green and mustard yellow.  

‘From there we can build out the color palettes for each room,’ says Jordan. ‘This could look like a living room with two of those colors dispersed with the drapery, lighting, and accent chairs, and then in the kitchen, maybe we introduce a different tone of green for the tile and sprinkle in some wood accents. And then in the bathroom, we’re introducing another color entirely with the blue tiles or even more simply with bath towels.’ the designer explains. 

(Image credit: Farrow & Ball)

By following these ideas, you will ensure that the look is consistent throughout your home, yet there’s enough difference between your room color ideas so it doesn’t look bland.

Once you’ve decided on the main colors for your walls or tiles, Jordan adds that you can continue this color theory with smaller decor pieces too: ‘Think smaller scale with easier-to-change items like vases, artwork, throw pillows, and blankets, bedding. These are all really great ways to introduce and play around with different colors within your story.’

If you’re finding it difficult to know where to start with choosing colors for your home, this is a good place to begin. Once you decide on the overall palette, which should come naturally from your design style, you can’t go too wrong with experimenting with these hues throughout your home decor ideas. 

Source: homesandgardens.com

Apache is functioning normally

TPO, Subservicing, Marketing, CRA Products; Training and Webinars; Podcast Interview with Dr. Elliot Eisenberg

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TPO, Subservicing, Marketing, CRA Products; Training and Webinars; Podcast Interview with Dr. Elliot Eisenberg

By:
Rob Chrisman

Mon, Dec 4 2023, 10:43 AM

“People would learn more from their mistakes if they weren’t so busy denying them.” Here’s a little trivia for the compliance folks in the coffee room: The CFPB handles 20,000 consumer complaints per week, and given that financing a home, and then servicing the loan, is the largest financial transaction most individuals go through, you gotta figure a chunk of the 20,000 involve mortgages. While we’re on the CFPB, Director Chopra addressed issues related to refinancing in a hearing on Capitol Hill last Thursday. But the headlines have been grabbed by interest rate improvements in our free market economy, and the economics calendar this week will be highlighted by the U.S. jobs report on Friday, arriving just five days before the Federal Reserve’s December 13 meeting. (Expect payrolls growth will rise to 200K in November from 150k job additions in October, and the unemployment rate to stay steady at 3.9 percent.) Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Today’s has a wide-ranging interview with economist Elliot Eisenberg on government spending, the Fed’s balance sheet, and “Eisenbergian Economics.”

Lender and Broker Products, and Services

Servicing transfers are complicated, so it is critically important that you nail down the prep work beforehand. If you don’t, and the servicing transfer goes awry, it’s not only servicers who suffer, their customers do, too. The professional services team at ICE Mortgage Technology break down exactly what’s on the line, and what happens when poorly handled servicing transfers leave customers in a lurch. Read its new blog here to learn just how “high stakes” loan transfers can be, and the steps servicers can take to avoid borrower confusion, retention concerns, and even reputational risk, before they become a problem.

Exclusive data: Maxwell Q3 2023 Mortgage Lending Report reveals trends in interest rates, loan volume, and borrower demographics. Q3 brought continued challenges for home buyers and lenders. Despite 11 Fed rate hikes over the past year and a half, interest rates averaged 7.2 percent in Q3, the highest Maxwell data has recorded within the current market cycle. Still, Maxwell’s new report, which derives insights across more than 300 lenders and $290B in loan volume, shows signs of stabilization in Q3. Motivated borrower groups found creative paths to homeownership despite adversity, flocking to remaining pockets of affordability (hint: West Virginia). For insightful market data along with actionable advice from Maxwell experts on how to form a strong 2024 strategy, click here to get your free copy of Maxwell’s Q3 2023 Mortgage Lending Report.

Community Reinvestment Act (CRA) Final Rule: Preparing Your Bank for CRA Modernization! After years of discussions and false starts, the Federal Reserve, FDIC, and OCC issued their final rule modernizing the Community Reinvestment Act (CRA) in October. The almost 1,500-page final rule will take effect on April 1st, 2024. This means banks must comply with all the rule’s provisions by January 1, 2026 (aside from certain requirements taking effect January 1, 2027). How will CRA modernization impact your bank? What do regulators hope to achieve? What are they looking for from banks? What should your bank do to prepare? In this new article, experts from Ncontracts discuss this and more, plus offer insights on how the right resources can ease these regulatory burdens. Read the full article for more information.

Variety is the spice of life, which is why ICE maintains an ever-growing library of multimedia marketing content with its Surefire℠ CRM and Mortgage Marketing Engine. Intelligently automated Blueprints for Success give lenders a leg up with effective marketing workflows without the hassles of A/B testing and complex configuration. Whether a lender launches our Blueprints for Success out-of-the-box or configures them to meet unique goals, these automated campaigns help nurture relationships, improve pull-through and power sales across the entire homeownership lifecycle. Explore how Surefire can power your sales strategy in 2024 and schedule a demo with the ICE team today.

Delinquencies have remained statistically low, but recent market data indicates an uptick in early-stage delinquencies, unemployment, and more Americans relying on credit to make ends meet, so that rate may continue to rise. Computershare Loan Services (CLS) is a highly rated subservicer that can take the heavy lifting of managing high-risk loans off your shoulders. All its services (originations fulfillment, co-issue MSR acquisition, subservicing, and its mortgage cooperative) help keep lenders one step ahead. In this industry, you deserve a partner that has it all. Contact CLS to find out how they can help you reach your goals, in any market.

Broker and Correspondent Programs

Give Your Pipeline a Boost this December with LoanStream’s Winter Specials on Non-QM and Prime! Purchase, Rate/Term & Refi Cash-Out on both. Non-QM, 50bps >65% to <= 75% LTV & 720+ FICO, 75bps >55% to <= 65% LTV & 720+ FICO, 100bps <= 55% LTV & 720+ FICO. These are only here for a limited time so take advantage and Contact your Account Executive for details. For loans locked 12/1/2023 through 12/31/2023. Restrictions apply. Interested in getting approved? Visit our Get Approved page now: Get Approved LoanStream Wholesale – Wholesale Mortgage Lending.

With the holiday season underway, Rocket Pro TPO is kicking off its December to Remember campaign by introducing a series of exciting and valuable wins throughout the month of December to celebrate and support Rocket Pro’s broker partners. On Friday, the first win was introduced: a 25 bps LLPA on 30-year fixed rate conforming VA loans that will be available all month. Check out this video message from EVP Mike Fawaz. And, today, Rocket Pro’s highly popular Fast 15 Loan Guarantee is back now through January 31st! This special offer for brokers guarantees that all eligible loans will be clear to close in 15 business days or they will pay your client $2,500. For correspondent partners, they guarantee that eligible loans will be clear to close in 15 business days, or they will waive the $999 acquisition fee. Requirements and rules apply. Partners are encouraged to watch their inboxes and Rocket Pro TPO’s social media channels for more wins to come. Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.

Events, Training, and Webinars in December

TOP CEOs DISCUSS WINNING STRATEGIES FOR THE 2024-25 MORTGAGE CYCLE. Tomorrow, 12/5, at 2 PM ET, tune into HousingWire as Sagent CEO Dan Sogorka digs into this topic with industry leader Mark O’Donovan (Chase), moderated by Julian Hebron of The Basis Point. These 3 mortgage experts will uncover how lenders can thrive through 2025 and beyond, discussing vital topics such as navigating homebuyer affordability, lender priorities, FHFA, CFPB insights, and more. Don’t miss this powerhouse session! Register here to refine your strategies for the upcoming year or catch the recording if you can’t attend live.

A good place for longer term conference planning is to start is here, and click on “events” for conferences in the future.

Tomorrow, 12/5, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 1PM ET to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. This week’s guest is Kayla Gatmaitan, and education-focused LO for first time homebuyers.

If business is slow and you’re looking for new opportunities, register for MBA Eastern Pennsylvania’s upcoming free session with Freddie Mac on Tuesday, December 5 at 11:00 a.m. One of the challenges homebuyers face in today’s market is saving for the down payment. In this session, the benefits and differences between two low down-payment offerings, Home Possible® and HomeOne® will be explored. Additionally, the session will cover Freddie Mac BorrowSmart AccessSM, a program that offers up to $3,000 in down payment and closing cost assistance to help your clients reach homeownership.

The title industry faces many challenges going into 2024 and October Research wants to help you prepare your business. Orrick Partner Sherry-Maria Safchuk and CATIC SVP and National Agency Manager Kyle Rank will share their expertise and address critical issues such as consumer protection, cybersecurity trends, remote online notarizations, updates on the 1033 rule and more on the latest Industry and Regulatory Outlook webinar Dec. 5th. Stay ahead of the competition and start the new year strong. Register today at DoddFrankUpdate.com.

2023 Financial Institutions Professionals Webinar Series, presented by the Bonadio Group, December 5th, 6th, and 7th at 8:00 PST. During this complimentary event, industry experts will discuss emerging issues, impacts, insights, & more. Create your own personal agenda by choosing from several sessions, each designed as a roadmap to help you navigate what’s to come in the ever-changing financial services landscape. Each session offers 1 (one) credit of CPE.

Wednesday the 6th, looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. This week’s guest is Mark Jones, President of Union Home Mortgage and Chairman of the MBA.

Join MBA St. Louis at St. Charles Realtors, Wednesday, December 6th, 8:00 am – 10:30 am, and test your knowledge on Conventional Loans. This engaging and interactive course led by Trainer MaryKay Scully, Enact MI’s Director of Customer Education will review the key areas of Credit, Income, Collateral, Liabilities, Assets, HomeReady and Home Possible. It will inform and engage participants. Assessing knowledge, while reviewing Fannie Mae and Freddie Mac guidelines, as well as Desktop Underwriter and Loan Product Adviser. Cost: $20 (covers light snacks and room rental).

Freddie Mac added enhancements to its HFA Advantage® mortgage offering, providing a competitive solution for housing professionals to consider for first-time and repeat homebuyers. In a free webinar, Thursday, December 7th, 2 p.m. – 3:30 p.m. ET, you’ll learn more about HFA Advantage’s features and benefits, eligibility and homebuyer education requirements and new product enhancements.

With a residential real estate market that continues to change and evolve, WMBA has gathered industry professionals that offer different perspectives to give real insight into “Build for Rent” model, an increasing popular approach to residential new construction being built and held as rental properties. Join WMBA for the Income Property Luncheons on Thursday, December 7th, In Person Attendees: 11:30-1:00pm, Virtual Attendees: 12:00pm-1:00pm.

Join Angel Oak Mortgage on Thursday, December 7 at 10:00 PST for a webinar detailing its Investor Cash Flow (DSCR) programs and cover the top 20 broker questions. Learn how easily these loans close and help add to the bottom line.

Success leaves clues. Not surprisingly, many of the traits shared by high achievers are common sense in theory, but not necessarily common practice (otherwise, everyone would be a high achiever, right?). Discover the keys to having your best year ever, the most important (yet often missing) part of the formula for success and disciplines you often don’t think about. Join Hannah J. Barton and Blaine Rada, CSP, to discover these habits and incorporate them into your own life. TMBA Webinar, Habits of High Achievers, Thursday, December 7 at 11:00 am – 12:00 pm.

Join LSEG Academy session Central Bank & Bond market outlook – Insight from IFR Markets,

Thursday, December 7th | 8:00 PST., as industry experts examine recent benchmark interest rate increases and likely changes to the direction of central banks’ monetary policies. They will also look at the commentary and insight provided by IFR Markets and showcase how benchmark rates have been impacting the bond and rates markets utilizing LSEG Workspace tools. The discussion will include expectations for interest rate moves in 2024 and provide an opportunity to ask questions to industry experts.

Friday, December 8, is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Listen to Rich Kuegler with Stewart Title!

Capital Markets

As mortgage rates dropped for the fifth consecutive week last week, Federal Reserve Chair Powell said that any speculation of potential rate cuts is still “premature.” Yes, inflation is easing, and the U.S. economy is cooling with Fed policy now well into restrictive territory. The full effect of higher rates is still working its way through the economy and the central bank has noted progress against inflation over the past six months. The hiking cycle is likely over, but the Fed is reluctant to admit as much or discuss any sort of rate cuts.

Economic data over the last week continued to show the U.S. economy is still expanding while inflation trends lower. Real GDP was revised up to 5.2 percent in the second update from 4.9 percent in the advance update. Consumer spending on services increased 0.2 percent in October and spending on nondurable goods increased 0.3 percent. The October PCE deflator was unchanged in October and showed prices were 3.0 percent higher than twelve months ago; the lowest annual reading since March 2021. While prices are still rising faster than the Fed’s preferred rate, the pace continues to slow and bodes well for a soft landing for the U.S. economy.

This can also be seen in housing prices which rose 0.7 percent in September and 3.9 percent from one year ago, according to the S&P CoreLogic Case-Shiller Home Price Index. While elevated mortgage rates helped the slowdown, limited available for sale inventory has kept prices from outright declines. As a result of the continued progress on inflation and recent Fed comments around being well into restrictive territory, the markets expect the Fed is done hiking and will begin to cut rates in 2024.

This week’s economic calendar contains several higher tiered releases including the November payrolls report and preliminary December consumer sentiment on Friday. Between now and then, we will receive ISM Services for November, some labor market indicators, wholesale trade, and consumer credit. The week kicks off with just factory orders for October, due out later this morning. We begin Monday with Agency MBS prices roughly unchanged from Friday evening, the 10-year yielding 4.25 after closing last week at 4.23 percent, and the 2-year at 4.61.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Anyone eyeing mortgage rates, which reached above 8% in October, can be excused for longing for the pandemic lows of sub-3% mortgages. But it’s unlikely those rock-bottom rates will return anytime soon, according to Mark Zandi, chief economist at Moody’s Analytics. Instead, the veteran market watcher expects rates to hover at roughly double that level in the near future. 

“Everybody should get used to 5.50% to 6%, because that’s where mortgage rates are going to settle in, [in the] long run,” Zandi told CNBC on Monday. Mortgage rates tend to trail the 10-year Treasury yield, which he suspects will hover around 4% to 4.50%; that generally puts mortgage rates at that 5.5% to 6% he’s expecting. 

Asked to predict the magic mortgage rate that will have inventory flooding back into the housing market, Zandi said that obviously a 5% rate is better than 6%, but the long-term number will likely be somewhere in between.

In recent weeks, mortgage rates have fallen from their October highs, with the average 30-year fixed rate currently at 7.30%. But in today’s somewhat frozen housing market, that’s barely a start. With a 6% mortgage rate, things start to thaw as would-be buyers and sellers enter the market, but Zandi doesn’t think home sales will get back anywhere near levels seen during the pandemic, before the Federal Reserve began its interest rate hike cycle to lower inflation. Getting closer to that 5% mortgage rate would trigger more activity, he added. 

“The other thing that’s got to happen here, obviously, is we do need to see some weakness in house prices,” Zandi added. “If house prices don’t come [down] to any degree, we’re going to have to see even lower mortgage rates to get sales up.”

Some forecasts, like that of Goldman Sachs, suggest home prices will continue to increase next year. So far, prices aren’t letting up; the national S&P Case-Shiller house price index increased 3.9% on an annual basis in September, according to figures released on Tuesday. 

Meanwhile, existing home sales are at their slowest pace since 2010, when the housing market was reeling in the aftermath of the Great Financial Crisis. That’s largely because of the so-called lock-in effect, which keeps homeowners with low mortgage rates from selling their homes—constraining both buyers and sellers. New home sales, on the other hand, have outperformed existing home sales because homebuilders can offer incentives, like mortgage rate buydowns. Still, higher mortgage rates are curbing demand even there, with new home sales falling more than expected in October.

“Most of the weakness in sales is on the existing side,” Zandi explained. “Homeowners are much more reluctant to cut prices … Builders are doing what it takes to move those homes.”

There is some relief pushing its way through the housing market, and that’s on the rental side. 

“Rents have gone flat to down, particularly at the high end of the market,” he said. “These big multifamily towers are going up in the big urban centers in the Northeast, Chicago, on the West Coast, and that’s putting downward pressure on rent—and, I think, is having some impact on new house prices, and at the high end of single-family housing markets.” 

Realtor.com’s October rental report released on Tuesday showed median rent for studios and one- and two-bedrooms across the top 50 metro areas in the U.S. continues to trail its 2022 levels, experiencing a year-over-year decline for the sixth month in a row. As Zandi mentioned, a lot of that has to do with supply. There was a substantial increase in new multifamily construction in 2022, and that resulted in an uptick in new multifamily completions in 2023, “which significantly augmented the rental supply and exerted downward pressure on rental prices” this year, the report found. 

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Source: fortune.com

Apache is functioning normally

Renting after eviction may seem daunting, but it’s not impossible. Yes, getting evicted is a terrible experience to deal with and a frustrating process to handle afterward. It’s something everyone fears and when it happens, you’re left wondering what the process of renting after an eviction is like.

While starting to find a new apartment after getting an eviction notice is a daunting process, it’s not impossible. With the right knowledge and preparedness, renting after eviction will be much easier. Don’t let an eviction weigh you down — we’ve got you covered with useful information so you’ll be renting after an eviction in no time.

Things to do if you’ve been evicted

If you’ve been evicted and are now ready to begin searching for a new space to rent, there are some things you should consider that will help make the process easier. Here are 10 tips for renting after an eviction.

1. Work on your credit score before renting after eviction

Your credit and legal history are two separate records, but when applying for a new place to rent, they become intertwined. An eviction won’t show up on a credit report itself but it will show up on a background check. Almost all landlords or apartment complexes will require a background check as part of the rental application process. So, if you have a past eviction, the landlord will almost certainly see it on your background check.

So how does that impact your credit score? We mentioned an eviction won’t show up on the credit report, but, if a previous landlord sent unpaid rent information to a collection agency or if your landlord sued you in court and won, this will all negatively impact your credit score. If you’ve been evicted, you need to work to improve your credit score so you can use a high score to advocate for yourself when going to rent a new property.

Start by paying off outstanding debts and paying future bills on time. A good credit score can make or break your ability to rent an apartment in the future.

2. Be honest

When people say “honesty is the best policy,” they mean it. It’s always best to share upfront with a possible future landlord about your past eviction notice — honesty is the best policy. Renting after an eviction is already hard enough and you don’t want to make it harder by having your future landlord find out you lied or withheld the truth. If they ask about your previous eviction you can simply explain the situation that led to your eviction.

Sometimes, the landlord will be more willing to work with you after hearing your side of the story.

3. Look at renting from a private party

Renting from a private owner as opposed to an apartment complex is always an option for those with eviction notices on their records. Because they’re renting the space privately they don’t have to work within the guidelines and restrictions that a regular apartment complex does. Because of this, they might be more willing to work with you and your situation. As mentioned above, be as open and honest with them as possible so they can fully understand your situation.

4. Pay more upfront

There are two ways to really get a person to help you out — buy them food or give them money. When looking for a place to rent, try and offer more money upfront. If you have the means, offer to pay a higher security deposit or two months’ rent upfront. This way the landlord knows you’re serious about renting and paying on time.

5. Get a co-signer

Getting a co-signer is another idea to explore while trying to rent after an eviction. If you know someone who is willing to and has good credit, ask if they’ll co-sign. Doing this might make the landlord more inclined to rent to you. But, keep in mind that if you don’t pay, your co-signer will have to.

6. Try and clear your record

An eviction stays on your record for seven years. That being said, there are some ways to clear your record sooner. If you’ve paid off any outstanding rent debts, reach out to your previous landlord and ask them to remove the eviction from your record.

If you haven’t yet been able to pay off an outstanding rent debt, still talk to your previous landlord. Ask them if you are able to pay off your rent if they’ll consider removing your eviction.

7. Refine your search renting after eviction

When searching for an apartment, refine your search and filter for apartments that either don’t do background checks or that accept applicants with previous evictions. By doing this you won’t waste your time looking at places guaranteed to turn you down.

8. Find the right references

Because renting after eviction is a tough road, you should have a lot of references ready before applying to rent an apartment. Because evictions are sometimes seen as a character flaw, you’ll want a reference to point out your good character traits.

Get friends, employers or colleagues to write letters speaking to your character and what a great tenant you’ll make. Submit these letters along with your rental application so that the landlord can read them and get a better sense of who you are and how you’ll be as a potential tenant.

9. Get a letter of credit when renting after eviction

Your goal when renting after an eviction is to get the landlord to understand what happened and still rent to you. Writing a letter of credit is a great start on this process. Write up your previous credit history and how you’ve changed. Tell them if you’ve gotten a new job or how you’re planning on doing things differently this time around.

10. Make a good first impression

First impressions last for a long time. When meeting with the landlord, dress nice and wear something that says you’re a reliable renter. Be polite and positively engage with them whilst speaking. You want to leave with them thinking you’re the best person to rent to. By doing this, they might be more willing to work with you and your situation.

Home sweet home

Being evicted is an extremely difficult moment to go through. And then on top of that, renting after eviction is a hard task. It takes time, effort and energy, but fear not it can be done. Using the knowledge and tips listed above you’ll be able to better prepare yourself for this daunting task.

Make sure to gather all the appropriate documents and references with you when going to meet with your potential new landlord. Tell them your story and appeal to their hearts. While it may seem like your past is still haunting you, there is hope that you’ll be able to find a new place to call home.

Ashley Singleton is a writer who loves following and writing about current lifestyle, DIY and home improvement trends. You can read some of her other work on the Lady Spike Media website. In her spare time, she performs stand-up comedy in Los Angeles.

Source: rent.com

Apache is functioning normally

CD rates have been slowly dropping for several weeks, and last week was no different. Bread Savings, MYSB Direct and Rising Bank all lowered the annual percentage yield on some of their CD accounts. But while past weeks have seen rate drops largely limited to long-term CDs, last week’s drops were across a range of common terms, from six-month to five-year CDs.


What does this mean for savers?

If you’ve been considering opening a CD, now is the time to do it. Whatever your savings timeline, rates remain high overall — but they’re slipping. So the longer you wait, the lower your earning potential could be.

Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.

Today’s best CD rates

Here are some of the top CD rates available right now and how much you could earn if you deposited $5,000 today.

*APYs as of Dec. 4, 2023, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.

CD rate trends — where are APYs heading?

CD rates have steadily increased since March 2022 as the Federal Reserve regularly raised the federal funds rate to combat inflation. This rate affects how much it costs banks to borrow and lend money, so the higher it is, the higher banks raise their CD rates to attract new customers (and their money).

But with inflation finally cooling, the Fed has opted to pause rate hikes at its last two meetings. As a result, banks have begun easing their rates. Here’s where rates stand compared to last week:

Term CNET Average APY* Weekly Change** Average FDIC rate
6 months 4.93% No change 1.43%
1 year 5.26% No change 1.85%
3 years 4.35% No change 1.39%
5 years 4.10% -0.24% 1.39%
*APYs as of Dec. 4, 2023. Based on the banks we track at CNET.
**Percentage increase/decrease from Nov. 27, 2023, to Dec. 4, 2023.

From Nov. 27 to Dec. 4, rates have remained largely unchanged, with only a 0.24% decrease in average five-year CD terms. However, this is looking at overall averages. On a more micro level, several banks have lowered their CD rates recently, and experts expect rates will continue to decline over the next several months.

“Consumer Price Index (CPI) numbers for October showed below-expectation inflation for both headline CPI (3.7% to 3.2%) and core CPI (4.1% to 4.0%),” said Jesse Carlucci, Ph.D., CFP, chief investment officer at Arrow Investment Management. “Together with comments recently from the Federal Reserve chair, Jerome Powell, this has led to the expectation that we have reached the peak of the interest rate cycle.”

Why you should open a CD now

CD rates aren’t likely to drop dramatically in the near future, but even the gradual erosion we’ve seen lately makes a difference in your bottom line. When you open a CD, you lock in the current rate in exchange for agreeing to keep your funds in the account until the term is up. That means your earnings are guaranteed even if rates go down in the future. High-yield savings accounts, by comparison, have variable rates that rise and fall in response to federal funds rate changes.

“[CDs] are a good place to keep short-term savings, like saving for a baby or to buy a home,” said Bola Sokunbi, founder of Clever Girl Finance and CNET Financial Review Board member. “Although CDs might have penalties for early withdrawal, you could look at those penalties as an incentive to leave your savings alone if you don’t really need to touch it.”

In addition, CD accounts with FDIC-insured banks or NCUA-insured credit unions are protected up to $250,000 per person, per institution if the bank fails. This makes them a low-risk way to grow your savings and enjoy peace of mind.

Factors to consider when selecting a CD

APY is an important factor when comparing CD accounts, but it’s not the only one.

“I wouldn’t stress too much about the difference in a few tenths of a percentage,” said Bernadette Joy, a personal finance coach and CNET Financial Review Board member. “But I do think it’s important to make sure the CD is at least earning more than comparable high-yield savings accounts. HYSAs are more liquid, and if you’re going to lock up your money for several months, you should get paid more to do so than an HYSA.”

In addition to comparing APYs, you should also weigh the following when choosing a CD:

  • How soon you’ll need the funds: Most banks charge a penalty if you withdraw money before the CD matures. This can eat into your interest earnings. So, be sure to choose a term that fits your savings needs.
  • Minimum deposit: Some CDs require a certain amount to open an account — typically, $500 to $1,000 — while others have no minimum deposit requirement. This can narrow down your choices.
  • Monthly fees: Fees can erode your balance. Many online banks don’t charge maintenance fees. They have lower overhead costs than banks with physical branches, and they pass these savings down to consumers through higher rates and fewer fees. Still, be sure to read the fine print for any account you’re considering.
  • Federal deposit insurance: Confirm that any institution you’re considering is an FDIC or NCUA member to ensure your money is protected in the event of a bank failure.
  • Customer service: Read customer reviews and ratings on sites like Trustpilot to make sure the bank is responsive, professional and easy to work with.

Methodology

CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.

The current banks included in CNET’s weekly CD averages are: Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America, Connexus Credit Union.

Source: cnet.com

Apache is functioning normally

The latest baseline increase in conforming loan limits has enabled loan originator Dave Krichmar’s client to make a 5% down payment instead of 10%.

The self-employed homebuyer found an $800,000 home in Texas, but with the conforming loan limit for 2023 being $726,200, the buyer needed a jumbo loan or a bank statement loan. Those loan types would require a larger down payment of at least 10% of the home’s value, or $80,000, which would stretch his budget too thin.

“With the latest Federal Housing Finance Agency (FHFA) announcement, he could qualify for a conforming loan paying a 5% down payment of roughly $40,000 rather than $80,000 – which could have put him on the sideline. Now he is off the sideline because a 5% down payment is completely doable,” said Krichmar, a mortgage banker at Legend Lending Corporation. 

Based on annual changes to an index of national home prices, conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac on one-unit properties will be $766,550 in 2024. For high-cost areas, the loan limit is $1.149 million.

Rising home prices also prompted the Federal Housing Administration (FHA) to adjust its loan limits — with the “floor” FHA loan limit for one-unit properties increasing to $498,257 in most parts of the country.

The increases in conforming and FHA loan limits will help certain homebuyers,  including younger buyers with little cash saved and a small window of borrowers who were on the cusp of not being able to apply for an FHA or conventional loan due to lower floor FHA loan limits or baseline conforming loan limits.

“By increasing the maximum loan amount, the change means that more borrowers will be able to get conforming loans instead of jumbo mortgages, which often are harder to qualify for. It might open the door for homeownership just a touch wider for a few buyers who would have had trouble securing jumbo loans,” said Holden Lewis, a home expert at NerdWallet.

Who benefits from higher loan limits?

The latest increases in the FHA loan limits will move the needle a little bit, noted John Palmiotto, chief production officer at The Money Store.

“It can squeeze them into maybe a better property than they previously could [afford] so there’s a bit of an opportunity there,” Palmiotto said.

Amid a high interest-rate environment, FHA loans have become a popular option for borrowers who have lower FICO scores or need to qualify with a slightly higher debt-to-income (DTI) ratio. 

Mandatory mortgage insurance premiums were reduced to 55 basis points (bps) for most borrowers in February, and FHA loans tend to come with lower interest rates than conventional loans while the difference in interest rates could often be offset by the greater number of fees — including the MIP charges

Demand for FHA loans has risen over the past year to comprise 26.3% of all new-home purchase applications in October 2023, the highest share of FHA new-home purchase applications made in a decade, according to the Mortgage Bankers Association (MBA).

Millennial homebuyers — about 28% of all buyers — who don’t have as much cash saved to be able to buy at a higher price point will benefit most from higher FHA loan limits.

“They will be more comfortable than the baby boomer generation taking out a larger mortgage to get what they want. They’ve seen massive real estate appreciation; they’ve seen it as a great investment vehicle,” Palmiotto noted.

The increase in conforming loan limits are also expected to help some borrowers who would have otherwise needed a jumbo mortgage. 

“A lot of people shop for homes based on a price range. So they’re able to just push a little bit further towards what they want, which may be doable,” Krichmar said. 

“I’m in the San Francisco/San Jose/Oakland area in California, so we have the high balance conforming loan limit as well, which is going up to $1.149 million. For sure, that will help a lot of people who might not be qualified for [a] jumbo [loan]. Some people don’t have the ability to put up to 20% down,” said Brady Thomas, branch manager at American Pacific Mortgage.

How higher loan limits might move the housing market needle

Economists at Fannie Mae project home prices to increase by 2.8% on an annual basis in 2024. Meanwhile, economists at Capital Economics are expecting an annual increase of only 1.5% next year. 

The MBA has a more optimistic view on home prices, expecting a 4.1% increase. 

The FHFA’s increase for conforming loan limits in 2024 follows a formula that tracks increases in national home prices. The FHFA cited an average 5.56% increase in home prices across the country from the third quarter of 2022 to the third quarter of 2023. 

But 2024’s higher conforming loan limits should enable more homebuyers to take advantage of conventional financing in 2024, noted Peter Idziak, senior associate of residential mortgage law firm Polunsky Beitel Green.

“I expect the increase in conforming loan limits will provide support for continued appreciation in home prices as more potential homebuyers are able to take advantage of federally-backed financing. In non-high cost areas, this support should be especially evident in the $725,000 to $955,000 price range, which roughly corresponds to the 95% to 80% [loan-to-value (LTV)] ratios based on the new limits,” Idziak said. 

However, loan originators and housing professionals are skeptical the new changes will move the needle much to resolve widespread affordability issues.

“It’s not a big enough movement that it’ll draw that amount of attention. What price range is it affecting? It’s only affecting someone who was wanting to buy an $800,000 home but could only buy a home of $750,000. That’s a small window. For somebody who’s buying a $1 million home and $600,000 home, it’s not making a drastic change,” Krichmar said.

It’ll help around the edges, allowing people to buy at lower down payment amounts who normally wouldn’t be able to with a down payment for jumbo loans of at least 10% and as much as 20% of the home’s purchase price.

The heightened limits enable a larger pool of prospective homebuyers to secure financing with more favorable terms, which could potentially sustain housing demand and market activity, said Orphe Divounguy, senior macroeconomist at Zillow Home Loans.

“Nevertheless, the overall impact remains contingent on various economic factors, interest rate trends and localized housing dynamics.” Divounguy added.

For affordability to improve and homeownership to expand, mortgage rates will have to come down. Current high rates are creating an inventory lock-in effect because sellers with existing low-rate mortgages don’t want to give those loans up for a much higher rate on another property.

“I think rates will have a big impact because, one, they affect buyer affordability, and two, they affect inventory. So I don’t think that the increase that FHFA announced […] is going to have a huge impact because it was already expected and kind of part of [how] our market works,” Thomas said.

Source: housingwire.com