Looking at where it is cheaper to buy than rent, fantastic news about foreclosures and mortgage delinquencies, consumer sentiment about housing and the economy plus more!
Where Is It Cheaper to Buy Than Rent?
According to GoBankingRates.com, it is cheaper to buy than rent in 38 states:
This does not Of course, this does not take into account what is truly best for each individual. Buying a home is a very serious decision that can set you on the path towards a more secure financial future.
I suggest that anyone thinking about buying a home talk to their financial advisor, tax person, a local Realtor and the mortgage lender of their choice to discuss home buying. Do your research, educate yourself and as always, if you have any questions about real estate in the Anderson area, Contact Me!
Mortgage Delinquency and Foreclosure Rates at 12 Year Low
4.1 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in July 2018, representing a 0.6 percentage point decline in the overall delinquency rate compared with July 2017, when it was 4.7 percent.
As of July 2018, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.5 percent, down 0.2 percentage points from 0.7 percent in July 2017, and the lowest for a July since 2006. The July 2018 foreclosure inventory rate remained unchanged from April, May and June rates of this year.
This is incredibly good news and shows just how good the economy is doing today.
Foreclosure Activity At Lowest Level Since 2005
From Attom Data Solutions:
There were a total of 177,146 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the third quarter, down 6 percent from the previous quarter and down 8 percent from a year ago to the lowest level since Q4 2005 — a nearly 13-year low.
U.S. foreclosure activity in Q3 2018 was 36 percent below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1 2006 and Q3 2007 — the eighth consecutive quarter where U.S. foreclosure activity has registered below the pre-recession average.
This report combined with the report from CoreLogic should put a smile on everyone’s face!
Housing Sentiment Decreases
The latest Fannie Mae Housing Sentiment Index decreased slightly because of rising mortgage rates and household income concerns. Some of the highlights:
- 58% said it is a good time to buy a home
- 64% said it is a good time to sell a home
- 49% say home prices will increase in the next 12 months
- On average, those surveyed expect home prices to increase 4.5% in the next 12 months
- 60% say mortgage rates will increase in the next 12 months
- 89% are not concerned about losing their jobs in the next 12 months
- 28% say their significantly higher than 12 months ago
- 66% would buy a home if they moved
- 41% think it would be difficult to get a mortgage today
- 53% say their financial situation will improve in the next 12 months
- 55% say the economy is on the right track
While there was s slight decrease in sentiment from the previous month, overall things do not look bad. And it appears that people are pretty optimistic about how the economy is doing today and how their finances are going to improve in the coming year.
Small Business Optimism Stays Positive
The NFIB Small Business Optimism Index continued its historic 23-month positive trend, with a reading of 107.9 in September, the third highest reading in the survey’s 45-year history. In the small business half of the economy, 2018 has produced 45-year record high measures of job openings, hiring plans, actual job creation, compensation increases (actual and planned), profit growth, and inventory investment.
A very encouraging report that hopefully means we will see the economy remaining strong.
Highlights from the latest NY Fed Survey of Consumer Expectations:
One-year- and three-year-ahead inflation expectations held at 3.0 percent. Respondents’ expectations at both horizons have been virtually unchanged since April 2018. Results also showed that median one-year ahead earnings growth expectations increased 0.3 percentage points in September to 2.8 percent, an all-time high for the series.
Median home price change expectations remained steady in September at 3.6% and median one-year ahead earnings growth expectations increased to 2.8%.
Median expected household income growth decreased to its lowest level of the year.
Not quite as encouraging as the report from Fannie Mae but not cause for any negativity either.
Well that is all for today! Be sure to hit those share buttons if you enjoyed this post!