A tempered trend, possible peak & affordable add-ons

UP AGAIN

Home appreciation is up again, gaining 5.4% year-over-year in October according to the latest CoreLogic Home Price Insights (HPI). Prices were also up .5% month-over-month, but CoreLogic forecasts the November numbers will show negative gains. Despite higher mortgage rates and declining affordability, CoreLogic Chief Economist Frank Nothaft says, “Many renters view a home purchase as a way to build wealth through home-equity growth.”

STAYING STEADY

Freddie Mac reported a zero-percent change in rates for the 30-year fixed rate mortgage in its Primary Mortgage Market Survey for the week ending November 29. Recent trends show rates stabilizing as a result of trade concerns and weakening indicators in the auto and new home segments of the economy. The number of mortgage applications rose for the second consecutive week as a result, according to the Mortgage Bankers Association.

COSTLY CREDIT

Late credit card payments will cost more in 2019. Rates for first-time and subsequent tardy payments will rise $1 each next year to $39 and $28, respectively. The Credit Card Accountability Responsibility and Disclosure Act of 2009 – also known as the Credit CARD Act – permits watchdog agency Consumer Financial Protection Bureau to adjust ceilings for late fees on an annual basis.

SENIOR HOUSING?

In an attempt to address its worsening housing affordability crisis, Denver is “thinking outside the zoning box.” Government-sponsored entity Fannie Mae will fund a pilot program in the city that will permit property owners to install and rent out Auxiliary Dwelling Units (ADUs) to create more housing options, revenue streams for low-income homeowners and combat skyrocketing rents. ADUs are also known as “mother-in-law suites” or “granny flats.”